During the Gorbachev period, before Estonian independence, free markets developed, allowing several Estonian entrepreneurs to sell their production to the West for much-needed hard currency. However, hard currency transactions were limited to only one bank in Estonia, a branch of the Soviet Export Bank, which we had to use.
When Estonia gained independence, it was announced to the public that all customer accounts at this bank were frozen. This caused bankruptcy for several export-oriented businesses that could have formed the base of the new Estonian economy.
In our first elections, we voted for individuals to represent us in parliament. Then, some US consultants arrived, telling us, "This is wrong. People should vote for political parties." This led to the creation of political parties in our small nation of one million people, resulting in soap opera-like situations. Nobody had funds for marketing their political programs. Suddenly, the leader of the Estonian Central Bank created a political party with substantial funds for marketing, and unsurprisingly, they won the elections. They have been in power ever since.
Now, more than twenty years later, it has become public knowledge how they acquired these funds. The frozen assets were actually only frozen for Estonians, while Russian and other businesses could use them freely. The man decided to create a fund to buy Estonian demands, paying 8-12% of the total sum, using commercial bank financing. Remember, this individual was the president of the Estonian Central Bank, and most of our banks were in a liquidity crisis, giving him the power to decide which banks survived. He transferred over $30 million of Estonian demands to a Singaporean company owned by Russians. One of their party members took $30 million in cash from a Russian bank and used it to finance their newly created party's marketing campaign to gain power in Estonia.
They have refused to relinquish power since then. After the first elections under the new law, they passed legislation making it nearly impossible for newcomers to create a party or get elected. A minimum number of members is required, only parties already in parliament receive millions in public funds, and election campaigns often use taxpayer money, calling it "citizen notification campaigns," which is not allowed for newcomers.
One of the oddest aspects of the Estonian election law is the use of party lists. When you vote for someone at the bottom of the list, your vote is transferred to a higher-ranked person. To get a higher rank, individuals often donate large sums to the party, which also means high-ranking government jobs. It is common for party members to donate large amounts of cash rather than using bank transfers. One party member, expelled later, testified that he donated money given to him in a plastic bag.
Such scandals are quickly muted. When an Estonian journalist went to Brussels to ask how they got that cash, he had copies of the evidence. First, his assistant tried to throw her out of the press conference. Later, in an elevator, the journalist asked the same question, and the only response was, "I do not remember." After some high-level European Union Commission corruption scandals, he tried to get a post in Estonia again. His party leader and long-serving prime minister wanted a better salary in Brussels, so they decided to swap positions. He was unaware of the questions from local newspapers and left for Brussels again after a week, where his kind of criminals feel safe.
During this party's rule, the Estonian economy has collapsed. Almost half of the working population has left the country. In a nation of just over a million people, where over 60% are dependents and over 10% work in the public sector, this is a catastrophe. Economic growth shown to the European Union has been achieved by raising government-controlled prices, taxes, and changing calculation methods. Of course, there are low unemployment figures, as no one expects to get a job in Estonia. The entrepreneurship that built our country is now ruined by corruption and EU laws. This party has always favored foreign capital over local entrepreneurs, resulting in significant donations from foreign entities. Initially, we built our banks and telecoms to be the most innovative in the world. Now, they are owned by Swedish corporations, exploiting Estonians without paying much in taxes.
As a final result, Estonia doesn't even produce its own bread. It is now imported from Finland, as Finns purchased most of our small bakeries, built a bigger factory, and then shut it down. Opening new bakeries is nearly impossible. Banks no longer provide loans or leases based on business plans, focusing instead on exploiting Estonian real estate. Additionally, EU rules require numerous permits to manufacture food, and every official demands bribes. But the party continues in Brussels.
