• 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...


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.


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.


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. Free essay

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

    choice and the way they run their business, which means that they have property rights. As a result, there will most likely be more firms, and thus more competition, which, in the long-term, will allow development, and technological advancements to help minimize resources and maximize the quality of goods.

  2. The Social Balance - The Mixed Economy.

    A small number of MPs have been seeking, notably through the Expenditure Committee of the House of Commons, to exercise some meaningful control over expenditure. The General Sub-Committee in particular has produced perceptive and telling reports. But work on the Expenditure Committee rarely catches the headlines and is not likely to impress constituents.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    One specialists needed are Lawyers so they help Sony comply with this competition policy because they know what has to be done and what legislation has to be meant and can advice Sony in what options are open to them.

  2. Free essay

    different sectors of economy

    involves all the services that are provided to businesses and consumers. This sector includes all business that offers a service. The vast majority of people in the UK work in service industries so they can be extremely varied in nature.

  1. UK Membership of the European Monetary Union.

    By joining the single currency Britain would lose the ability to set interest rates and in future could have to endure rates quite inappropriate to the phase in its economic cycle (too high in times of recession or too low in times of boom).

  2. Global Business Plan.

    We off discounts if orders are made in bulk. This is a benefit for the hotels and the auto industry. D. Promotion i. We will use our Chinese counterparts to contact the major industries to make sales pitches and let them know the benefits of purchasing our product. ii.

  1. The European Union.

    There are two aspects to this. One is, will UK firms find membership of the Euro conducive to investment and secondly, will foreign firms be prepared to still invest in the UK. If these firms will invest in the UK, it will depend on the ability of the UK to meet the convergence and flexibility tests.

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

    Companies are responsible for providing technical training to the persons they hire. 2.5 To absorb foreign culture and technology in a flexible manner and improve them to suit the Japanese condition 2.6 Development of export markets through specialization 2.7 The importance of the international context Japan's economic success can be

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