• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economy of Estonia.

Extracts from this document...

Introduction

Centrally planned countries, also referred to as command or planned economies, are run and managed by the government. The government controls the whole country and decisions involving the country are made amongst themselves. They own most resources of the country, like land and natural resources, e.g. oil. The government decides what sorts of goods and services to produce and how they are priced and allocated in the economy. As a result, consumers do not have a choice of products to choose from and also no unnecessary products are imported, as the government provides all the essential goods and services for consumers. What's more, factories within a planned country are given output production targets by the government to ensure efficiency and also the necessary resources. Workers are often given evenly spread out incomes, not taking in account of what jobs they do; the government tries to balance equality amongst people by doing this. Furthermore, everybody is guaranteed a job, so there should be no unemployment and everybody is ensured housing along with free of charge basic needs, like basic health care. ...read more.

Middle

Following independence in the 1990s, the Estonian parliament pushed through a range of free-market transitions based on privatisation and a fundamental reformation of the economy. As soon as Estonia broke free of the Soviet Union, the government of Estonia decided to privatise enterprises and land as speedily as possible to begin their free market economy. Estonia's employment grew as new jobs were created as firms were privatised and foreign business entered the economy. Estonia also applied and was accepted as a member of the World Trade Organisation and started trade of agriculture products with neighbouring countries, like Finland and Sweden. Estonia has carried on privatising, things like energy, telecommunications, railways and any other state owned companies. By this Estonia achieves to become a member of the EU. In 2002, Estonia completed most of its preparations for EU membership by the transition to free market and changing its currency to the euro. The most important thing Estonia wanted to benefit from a free market was to get away from the centrally planned economy run by the Soviet Union and gain control of their own country. ...read more.

Conclusion

Estonia is has now one of the strongest economies part of the EU, which it officially joined on 1st May 2004. The Estonian economy during recent years has continued to grow. Estonian GDP grew by 6.5% in 2001 and by 6.0% in 2002. Also inflation declined modestly to 4.2% in 2001 and to 2.7% in 2002. The reason for the growth of Estonia's economy is partly due to a number of foreign companies locating in Estonia for resources and labour, also as Russian oil transits have begun using Estonian ports. Plus, the strong electronics and telecom sectors have benefited the economy. Estonia The transition started in the 1990s when Estonia gained independence. Estonia was controlled by the Soviet Union, which crippled their economy due to the Soviet Union destruction during World War II. This led to the Estonia's Independence and transition by the parliament. Estonia privatised all state owned firms and land, which increased employment as more jobs were created and attracted foreign business. Estonia applied to join the EU and in 2002, Estonia completed most of its preparations for EU membership by the transition to free market economy. The Estonian economy during recent years has continued to grow. ?? ?? ?? ?? Kamaldeep Gill ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. UK Membership of the European Monetary Union.

    If problems emerge is there sufficient flexibility to deal with them? 3. Would joining the EMU create better conditions for firms making long-term decisions to invest in Britain? 4. What impact would entry into EMU have on the competitive position of the UK's financial services industry, particularly the City's wholesale markets?

  2. Chinese economy sets for soft landing in 2005.

    Byrne, vice president and senior credit officer at Moody's, who co-chaired a news conference. He also said that the overheating in the mainland economy is not systemic because the current situation is different to the early 1990s; and that it is prevalent only in certain industries.

  1. Free essay

    different sectors of economy

    * Businesses in primary Sector Seldom seen farm - Local Seldom seen farm are the farmers which are locally based in Leicester.

  2. Free essay

    What are the main characteristics of a free market economy and centrally planned economy?

    In doing so, the economy will be deregulated or privatized, and like any choice, there will be consequences and also benefits. In most cases, when in a transition economy, the GDP of a country will drop dramatically because in a planned economy, everyone's salary or income is fixed and fairly equal which suggests that the GDP can be high.

  1. Global Business Plan.

    Each unit has the name of the company on the front and will be packaged in cardboard boxes. iv. The air conditioners will be produced in a manufacturing plant and trucked to a warehouse destination. B. Place i. The channel of distribution is the air conditioners will be produced by the manufacturer and trucked to the wholesaler.

  2. Japan - the second largest market economy in the World?

    Advocates of "free rider" in which the U.S-Japan relationship has supported Japanese economic growth. The United States provided cheap technology transfer to Japan following World War II and promoted the Japanese economic buildup through its international trade policy (5). Part III What Causes the Japanese Economic Recession in the 1990s

  1. Retailing In India - A Government Policy Perspective

    2.5 External Factors Affecting Productivity Low productivity in the retail sector has been driven by restrictions on FDI, underdeveloped upstream industries, non-level playing field issues, the supply and cost of real estate, and India's low per capita income. Productivity has also been affected by secondary factors such as a rudimentary urban infrastructure, red-tapism and varied customer preferences.

  2. How Planned was the Soviet Economy Between 1924 and 1939?

    One must not overlook the timing of the First Plan and brand it an accident. The Left Opposition had originally proposed rapid industrialization to be the part's primary priority. Now that they had been defeated the government was able to adopt their industrialization policies without putting them in power.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work