Jan 21, 2009

Estonia is doubly challenged by the economic crisis:  an Estonian downswing due to the international financial crisis and this sets back plans for sustainable development in ways aligned with Estonian cultural values.  Estonia is pressed to respond to the crisis with this duel challenge in mind.

Local and international investors profited in Estonia's liberalized markets- creating an economic upswing-spurred by investors anxious to make as much as possible as quickly as possible. This overshadowed the need for a culturally compatible and sustainable approach to development. The way forward must envision managing the crisis and maintaining prosperity in ways compatible with sustainable development and cultural values.

Legitimate economic decisions generate private wealth while promoting public and national interests.  Safeguarding the welfare of society reflects the nation’s notion of democracy, fairness and justice.  Justice protects society by demanding that the pursuit of private wealth does not hurt society. Estonian financial experts work best to promote public interests by displaying that it is not merely wealth, “quick fixes” and easy money driving financial decisions. We witnessed this type of speculation resulting in a global crisis.

During the years after independence Estonia enjoyed new levels of prosperity; affording years of celebrating what the national common struggle achieved. However Estonians were mindful of something essential that created the spirit of the national bond. There was hope that prosperity would not overshadow this essential “value-bond.”  Estonian’s love for peace, independence and "The Estonian Homeland" bound Estonians during the struggle for independence.  Estonians trusted their work ethic, “Honest work reflecting character and integrity, produces desired results!”  Now Estonians wonder if integrity and honest hard work are respected most, or if it has become “as much as possible as quick as possible!”

National prosperity is created by transforming cultural values and national character into a basis for wealth.  Belgium with its pride in beer; France with its pride in cheese and wine plus Greece with its pride in olive oil are examples.  Estonia , like Greece , shares the ability to be a significant shipping center, thus potential for being an outstanding cosmopolitan center.  Cosmopolitan centers are dynamic centers of cultural arts and unique cultural worldviews (attracting tourists); plus have enormous potential as significant finance centers. 

Most nations making a transition to democracy have found that natural resources are the best basis for sustainable wealth.  Agriculture must develop both to feed the nation and to generate income from trade. What remains to be seen is if Estonian rural development can create significant export possibilities, thus reduce the inflation problem.  Although the potential is here it remains to be seen if Estonia can develop pride in agricultural production like France takes in its own.

Estonian cultural values must be internalized; betrayal creates conditions Estonians prefer avoiding.  Estonian cultural values are in line with democratic and free market principles.  Estonian sentiments support the cornerstone free market principle-non interference by the state.  Estonians do not like state interference in private affairs!  But hurting public interests and official betrayal of public trust -by using public office for private gain- increases government interference.  The recent crisis makes evident that financial decisions threatening public interests and betraying the integrity of trusted officials will result in greater official interference-from national and from supra-national levels- with surveillance technology ability to demand greater transparency. 

Estonia experienced the “Bursting Real Estate Bubble” like other national economies; leaving many people distressed about property value, their ability to pay increasing utility rates and mortgages.  The problem’s scope makes it necessary to discern how to move ahead in ways allowing society to uphold its most treasured principles, while altering patterns that have left society faltering at realizing its cherished values.

I propose three viable ways forward:

1.  Planning that aligns Estonian and regional interests.  This should promote Estonian economic development while emphasizing unique Estonian enterprising potentials and protecting Estonian public interests.

2.   Economic planning from the perspective of strengthening the Estonian sense of national unity.

3.  Remembering that sustainable development is best planned in connection with national character.  German engineering is a good example. The success of the German economy reflects their cultural values, national pride and national character.

A suffering financial system necessitates examining the vision driving the system: what are the values it wants to achieve, what things are driving the system toward realizing these values, and what things are holding progress back?  With this insight the system inspires its people!  In the end the people-because they cherish the values and are committed to them-do the work to realize their shared values.

National prosperity is intended to benefit the people.  The people work to produce prosperity and people suffer when it is threatened.  In this time of crisis, how we manage it and how we come through it is a matter of national character.  All financial systems have their cycles-economies have ups and downs-but cultural values don’t change! 

The article is written by Leon Miller, lecturer of Business Communication and Business Ethics at Business School

Source: The Baltic Times