From: thietaniemi@cc.helsinki.fi
Newsgroups: talk.politics.soviet
Subject: Re: The ESTONIAN cabinet coalition agreement
Date: 8 Nov 92 14:55:19 GMT
Organization: University of Helsinki

In article <1992Oct29.103718.1@cc.helsinki.fi>, thietaniemi@cc.helsinki.fi 
writes:
> I got this couple of minutes ago through email and post it forward.
> It obviously is an important and interesting document.
> But still, I have not had time to read it thoroughly, yet.
> Let us read and interpret this document together!
>                                                Tapani
> ----------------------------------------------------------------------

Now, when I have some extra time, I have added some comments 
between the lines.                               ibid.

 
>                                            Unofficial Translation
> 
> 
> 
> 
>                  COALITION AGREEMENT BETWEEN
>     THE ESTONIAN NATIONAL INDEPENDENCE PARTY, "PRO PATRIA"
>                         AND "MODERATES"
> 
> 
> The Riigikogu factions Estonian National Independence Party, "Pro
> Patria" and "Moderates" have reached an agreement to form a
> government for the revival and advancement of Estonia.
> 
> Our parties' obligation is to fulfil the will of the people
> expressed in the Riigikogu elections and to assume responsibility
> for Estonia's welfare. Our goal is not to lead Estonia with
> consideration for but a few political forces or social classes,
> rather to proceed for the interests of the entire population,
> involving the entire population in Estonia's revival.
> 
> In the June 28, 1992 referendum, Estonian citizens adopted the
> new Constitution. This entered into force on July 1 of this year,
> yet has not entirely been enacted. The entering into force of the
> Constitution in its entirety was left to the Riigikogu elected
> on September 20.
> 
> In the Riigikogu elections, the people voted for change,
> expressing clear support for reforms and renewal.
> 
> In accepting responsibility for carrying out reforms, we are
> aware of the complexity of the situation in which the new
> Government is assuming office. In the past year, Estonia has
> taken a great step forward. The transitional Government led by
> Tiit Va"hi managed to stabilize the economic situation and to
> carry out monetary reform. 


This is a great achievement in post-soviet conditions.


> At the same time, many key issues have
> yet to be resolved. Privatization and property reform have
> faltered, production continues to fall and unemployment is
> growing. Monetary circulation is seriously troubled and we are
> threatened with a budgetary deficit. The new Government must
> carry Estonia through the winter and must at the same time
> initiate its fundamental reorganization, maintain a balanced
> budget, while decreasing the tax burden to allow for economic
> development. In any case, the new Government, at least in the
> beginning, will have relatively little room to manoeuvre.


Estonia is trying to survive and reform itself simultaneously.
A vast task.


> 
> There is, however, no other way. The people expressed their
> support for change during the elections and it is the duty of the
> politicians elected to the Riigikogu by the people to bring it
> about. The Government which is now entering office is the first
> political government in decades to be clearly responsible for its
> actions both before the parliament and before the Estonian
> people.
> 
> 
> In assuming office, the Government has set the following goals:
> 
> I.   THE REINFORCEMENT OF ESTONIA'S NATIONHOOD, CREATION OF
>      A JUST STATE AND THE PROTECTION OF DEMOCRACY
> 
> II.  THE STABILIZATION OF THE ECONOMY AND THE CREATION OF
>      CONDITIONS NECESSARY FOR THE DEVELOPMENT OF A FREE
>      MARKET ECONOMY
> 
> III. GUARANTEEING SOCIAL STABILITY
> 
> IV.  RESTORATION OF A CIVIL SOCIETY
> 
> V.   INTEGRATION INTO EUROPE
> 
> 
>                                I
> 
> REINFORCEMENT OF ESTONIA'S NATIONHOOD requires cooperation
> between all political forces, conservation and careful use of the
> resources at our disposal, and greater participation by the
> people in the resolution of the problems which Estonia faces.
> 
> Estonian independence has been restored, but it cannot be
> considered to be fully secure as long as foreign military forces
> remain in the country. The Government demands the immediate and
> unconditional withdrawal of Russian forces from Estonia. Foreign
> assault units and foreign military units in the capital of the
> Republic of Estonia must leave the county before the end of the
> year.
> 


Exactly according to the CSCE resolutions.


> The Government deems it necessary to assume firm control over
> Estonia's borders. The border guard must be reorganized with the
> aim of creating a professional and salaried border guard
> administered by the Ministry of the Interior.
> 
> The development of the Estonian Defence Forces must be
> accelerated and they must be better equipped. The establishment
> of a State Defence Foundation should be considered in order to
> involve the people in the creation of our defence forces. We must
> make wider use of the experience of foreign-Estonians and must
> strive for more effective cooperation with Western states.
> 
> The Estonian Defence Forces must become a unitary system,
> subordinate to unitary command. Fractioning and competition
> between different armed organizations must be ended. The Defence
> League must become an indivisible part of the Estonian Defence
> Forces.


Read: the defence forces are not yet under unitary command. This caused
some troubles in summer. But that kind of private feuds must be banned
totally in Estonia. But even the Russian forces should have unitary
command.

 
> In order to protect internal security within the state, all
> relevant authorities must be quickly brought together. The head
> of the authority must be quickly appointed to office, whereby the
> control of representatives of the government coalition and the
> opposition together over this office must be guaranteed.
> 
> 
> ORDER MUST BE ENSURED on Estonian borders as well as within
> Estonia itself. It is vital that the police become more
> effective. The reputation of the Estonian police must be freed
> of its militia past. Our goal should be perhaps a smaller but
> thereby more effective police.
> 
> Decisive measures must be taken against persons who remain in
> Estonia illegally, who must be deported from the country. More
> effective control of individuals entering Estonia on the border
> will help to avert crime.
> 
> People must also be encouraged to organize for their own
> protection. Explicit regulations must be enacted by law as to how
> and under what conditions Estonian citizens may possess weapons.
> 
> LEGAL PROTECTION is a pillar for the perseverance of the Estonian
> state. Reform of the legal and court systems must be quickly
> enacted. We must draft and adopt a civil and criminal code which
> conforms with modern European standards.  The Riigikogu must
> confirm the Legal Chancellor and Chairman of the National Court
> into office and the role and duties of the Prosecutor must be
> more clearly defined. Only with a correctly functioning court
> system can we hope to have a normal economy and society.
> 
> Legislation must be brought into accordance with both the new
> Constitution and the generally recognized standards of
> international law. This must be based on pre-war Republic of
> Estonia legislation, foremost on relevant chapters of the 1940
> draft of the civil code, guided by the German legal system, as
> was Estonian legislation before. We must avoid "loopholes" in
> legislation and it is important that we reduce the role of
> general or so-called framework laws.
> 
> In creating legislation, we must make use of the opportunities
> presented by foreign assistance programmes, with the priority of
> educating Estonian jurists abroad and acquiring juridical
> literature. Re-training for practising lawyers must also be
> provided.

 
These are necessary tasks indeed.
 

> IN ITS ETHNIC AND CITIZENSHIP POLICIES the Government proceeds
> from the principle, set forth in the Constitution, of
> guaranteeing the preservation of the Estonian nation and its
> culture throughout the ages, while at the same time protecting
> the human rights and freedoms of all Estonian residents,
> regardless of their ethnic origin, religion, language or
> citizenship.


A very good formulation.

 
> The Government considers it of utmost importance to form a
> permanent and loyal citizenry - regardless of ethnic origin.
> 
> The process of determining Estonia's citizenry, based on legal
> succession, and compiling the registry of voters must be
> completed. We will eliminate the traumatic bureaucratic obstacles
> to granting citizenship to Estonian nationals in accordance with
> Point 1 of Article 7 of the Law on Citizenship.
> 
> Persons who registered as applicants for citizenship prior to the
> election of the Congress of Estonia in February of 1990 must be
> granted citizenship under simplified conditions (without the
> language requirement), in accordance with Point 2 of Article 7
> of the Law on Citizenship.


This is, unfortunately, just cosmetics. No real initiative towards
the Russian speaking population.

 
> The Estonian Government appeals to non-citizens, resident in
> Estonia, who wish to apply for Estonian citizenship by
> naturalization, to present their applications for citizenship as
> soon as possible. The Government wishes to assist in this process
> and believes that the matter of granting citizenship to these
> persons can be resolved in the next few years.


No carrot is being offered to non-citizens. Well, the government does not use
the stick, either.

 
> The Government deems it necessary that the current Law on
> Citizenship be brought into accordance with the Constitution,
> that it be amended and that amendments be made to the regulations
> for its application, which, amongst other provisions, would
> include the following:
> 
>      - the right to dual citizenship for Estonian citizens by
>      birth;
>      - acquisition of Estonian citizenship by birth equally
>      through the father or the mother who is an Estonian
>      citizen;
>      - an equal right to Estonian citizenship for males and
>      females who have married Estonian citizens prior to
>      February 26, 1992;
>      - the possibility for children who are non-citizens born
>      and educated in Estonia to present an application for
>      Estonian citizenship one year prior to becoming a legal
>      adult, which would allow them to acquire Estonian
>      citizenship without the waiting period. Additional
>      instruction in the Estonian language, culture, history and
>      legislation in schools must also be organized;
>      - conditions for citizenship for persons from our closest
>      kindred peoples (Ingerians, Votians, Vepsians, etc.) equal
>      to those for Estonian nationals.



These very small reforms benefit only the Estonians.

The last sentence refers to plans to create some kind of Finno-Ugric Israel
in Estonia. Well, they are entitled to do that. We Finns have never went
that far.
 

> The Government believes that the rights and status of individual
> aliens residing in Estonia must be regulated by law and that they
> must be registered as permanent residents and be issued
> corresponding documentation. This law must provide aliens with
> clear guarantees for the inviolability of their property, the
> right to participate in privatization and enterprise, their right
> to social, labour and health insurance, their right to
> participate in trade unions and to form non-profit organizations
> and associations.
> 
> The integration of non-Estonians who remain in Estonia into the
> Estonian society and culture as loyal ethnic minorities is vital
> to Estonia's future. We will restore cultural autonomy for ethnic
> minorities in a renewed form.
 

This is vital indeed: but, where is the offer to non-Estonians?

 
> The Government supports those non-Estonians who wish to return
> to their historical homelands - Russia, Ukraine, or elsewhere,
> and will provide them with practical assistance in this effort.
> The Government is appealing for agreements through negotiations
> with those states on matters of voluntary migration. At the same
> time, we support the resettlement of Estonians in Estonia, both
> from the East and from the West.


This is ethnic transfer - when it happens voluntarily, there is nothing
to complain! But it is no offer.
 

> The Government is appealing for agreements with CIS states in
> which they recognize those persons residing in Estonia as their
> citizens, who, for a certain period of time, do not wish to apply
> for Estonian citizenship.
> 
> In the negotiations with Russia, the Government intends to firmly
> demand that Russia does not interfere in Estonia's internal
> affairs under the pretext of protecting the rights of Russian
> aliens. 


I agree. This is a danger. But if the most of Russian speakers in Estonia 
apply for the Russian citizenship, it might easily cause conflicts between
Russia and Estonia.


> The Government is appealing for agreements on
> humanitarian issues which would facilitate people's relations
> with their relatives across the current Estonian-Russian
> administrative border, would resolve problems related to
> guaranteeing pensions for certain groups, the availability of TV
> programmes and written media, etc.
> 
> The Government intends to steadfastly stand for the rights of
> Estonians residing in Russia and to also monitor the rights of
> our kindred peoples in Russia, to assist them in the development
> of education in their native languages and their culture.


Isn't this a little bit contradictory: it might be interpreted "interfering
Russias internal affairs": Laar, you can't have your cake and eat it, too!


> The Government deems it important to promote migration within
> Estonia such that the native population would return to Eastern-
> Virumaa and Paldiski to restore their former homes. We intend to
> incite the interest of both Estonian entrepreneurs and Western
> investors towards Eastern-Virumaa and Paldiski.


The destroyed Paldiski naval base needs a new population, indeed. 


> It is the Government's position that Estonian citizens residing
> in the regions of Eastern-Petserimaa and east of Narva which have
> been annexed by Russia must be guaranteed rights equal to those
> of other Estonian citizens. We must eliminate all obstacles and
> impediments for these citizens in enjoying their rights on
> territory under the control of the Estonian Government.


Free movement is a good thing, without doubt (see below).
 
> The Government considers it to be its responsibility to protect
> the human and citizens rights of its citizens residing in
> Eastern-Petserimaa, both Russian and Estonian, and is appealing
> for the elimination of the obstacles which currently restrict
> their freedom of movement and information and their economic
> rights.
> 

Ditto. 

> THE GOVERNMENTAL REFORM can be delayed no longer. This consists
> of reducing the number of ministries and incorporating
> governmental departments into the ministries. The duties and
> authority of each ministry must be clearly defined. The formation
> of the new Government must fundamentally proceed from the needs
> of the upcoming reforms and ministers must be obligated to carry
> out the merging and transformation of the ministries within a
> definite time period.
> 
> As a result of the reform, the current governmental bureaucracy
> should be reduced by one third. 


This denotes cleansing the nomenclatura and changing the ruling elite:
More right wing civil servants in Estonia.


> Officials who are incompetent in
> their duties will be dismissed. Leading positions within the
> bureaucracy will be filled on the basis of open competition. A
> law governing government service must be drafted and adopted. We
> must decisively battle corruption within the state apparatus and
> persons entering the civil service must reveal their sources of
> income to the public.


This is healthy development.

 
> Cut-backs need not only apply to the bureaucracy but to the
> parliament as well. Pensions and other allowances for Supreme
> Council and Riigikogu members which were enacted by the Supreme
> Council need to be reviewed.


The parlamentarians might reduce their own salaries and pensions!? 
Something totally new in Europe!


> If we are to free ourselves from the Soviet legacy, we need to
> engage a committee to examine crimes committed during the Soviet
> occupation and to set up an inquiry into circumstances related
> to the liquidation of the KGB.
> 
> 
> RAPID ADMINISTRATIVE REFORM is inevitable for the reinforcement
> of Estonia's nationhood and economic revival. The administrative
> reform will define the tasks, rights and duties of the national
> and local governments. The Government's policy is based on
> decentralizing power and bringing the people as close as possible
> to the decision making process.
> 
> We need to adopt those laws which will enable us to realize
> administrative reform (law on the bases of local governments, law
> on changes to administrative borders, law on local government
> budgets, law on the formation and election of local government
> bodies, law on townships, law on cities) and to more clearly
> define the rights and duties of local governments. Special
> attention must be focused on the creation of local government
> institutions in the cities.
> 
> In carrying out administrative reform the experience of different
> regions in restructuring local government units will be shared
> and we will provide for the enactment of the laws, principles and
> explanation of administrative reform.
> 
> New elections to commune councils must be organized as quickly
> as possible, parallel with administrative reform and the creation
> of new administrative units. Prior to this, local governments
> must be guaranteed a steady income base, which could be derived
> from personal income tax, a portion of enterprise income tax,
> turnover tax and so-called resource taxes. The role of local
> governments in imposing taxes and offering concessions must be
> augmented.
> 
> 



All this is necessary indeed.



>                               II
> 
> IN THE ECONOMY the Government must guarantee satisfactory living
> conditions for the upcoming winter while at the same time
> initiating radical reforms. The Government's main concern is to
> guarantee food and warmth to the people of Estonia, 


Read: this winter will be cold in Estonian and Russian homes. People
might starve.


> and thus is
> attempting to obtain foreign loans and unconditional aid. 


We should support Estonia. Now.


> An
> energy conservation programme must be put into use, which will
> include every household.  A portion of foreign loans must be used
> for the credit purchase of energy saving devices. The
> compensation of heating expenses must be made dependent on the
> initiative which the resident displays for heating his or her
> home. The change over to the use of local energy sources must be
> supported.


The last sentence means that oil shale will be used more in Estonian
economy with it's anti-ecological side effects.
 

> The Government considers the establishment of the necessary
> operational conditions for enterprises to be its obligation. For
> this, legislation such as a real estate law, a mortgage law, a
> law on pledging, an insurance law, enterprise law, contractual
> law, etc., must be passed. In drafting these laws, we should
> proceed from established European standards and aspire to bring
> Estonian laws in harmony with present European legal norms.
> Especially important for economic development is the speedy
> adoption of the Law on Competition and the elimination of
> monopolies. In accordance with the memorandum signed with the
> IMF, the Estonian Government is obligated to promptly break the
> ten largest monopolies in Estonia.
> 


Necessary, elementary reforms.


> In applying the Law on Bankruptcy, there is no need to establish
> artificial obstacles or to artificially support bankrupt
> enterprises. Exceptions may be made if the bankruptcy of an
> enterprise is more costly to the state than its support. This
> also applies to banks. Nonetheless, bank bankruptcies need
> specific regulations and depositor's rights need to be protected
> by law through the bankruptcy law or a separate law.
 

There are no bankrupties in Estonia right now, because  that kind of 
judicial category does not exist.

 
> TO GUARANTEE ESTONIAN ECONOMIC STABILITY it is necessary to
> increase exports in all possible ways. The Estonian Government
> must aid enterprises in the location of Western markets. Support
> should be given for a export institution, based on private
> capital, to gather and provide information to Estonian
> enterprises.

OK. 

> The attempt to maintain a balance of trade does not mean the
> abandonment of the principles of an open market economy.
> Estonia's customs policies should be as liberal as possible. The
> Government realizes the importance of generally abstaining from
> protectionist measures. 

This message is not a clear one. But it is a cabinet programme, after
all!

> To protect Estonian producers we can
> weigh the option of providing subsidies for certain products with
> the requirement of economical and successful production. A higher
> import tax may be applied to some luxury goods. Excise tax on
> goods subject to excise tax in Estonia must be paid at the time
> of their arrival in Estonia.
> 
> The revival of the Estonian economy is unthinkable without
> normalizing the cash flow and banking mechanism. Bank activities
> must be more effectively controlled. Withholding information or
> other transgressions should lead to the loss of operating
> licences. The number of commercial banks should be decreased and
> support should be given to the Bank of Estonia's requirement for
> larger founding capital. Money for economic revival will be
> raised by foreign loans granted under the conditions agreed to
> by the Government and directed by the Government to the credit
> market. The arrival of foreign banks in Estonia will aid in the
> improvement of the situation in the financial market.


OK. 


> One of the most important tasks in Estonia is to curb the present
> rate of inflation. The Government considers the implementation
> of a strict monetary policy a necessity. Prices under state
> control should be liberalized, while simultaneously avoiding
> unjustified increases in the minimum wage. Monopolistic pricing
> policies must be prevented by law and we must take measures to
> eliminate monopolies in both production and trade. The Government
> considers it obligatory to adhere to the economic stabilization
> programme concluded with the IMF. 


Estonia will strictly follow the IMF programme. Fine indeed.


> Discussions with employers and
> employees must be initiated without delay to review the decision
> of Tiit Va"hi's Government for a sharp increase in the minimum
> monthly wage.


The right wing government will not pay the bill of the left wing
government.

 
> Inflation will also be curbed if we bring an end to the
> artificial support of bankrupt state enterprises. This creates
> a need for goal oriented employment policies and the organization
> of re-training.
> 
> 
> THE STABILITY OF THE KROON is the cornerstone of the Estonian
> economy. 


Indeed. And it's best success, so far!


> The state budget must be kept in balance, expenditures
> must be cut and maximum conservation must be practised. The
> subsidization of non lucrative production must be stopped.
> Increasing the portion of income derived from state property in
> the state budget could be used to maintain a balanced budget.
> 
> As we are aware of the need to guarantee the accumulation of
> income into the state budget to build up the state, we cannot
> avoid looking for ways to fundamentally reform the taxation
> system. It is vital that the budgetary incomes for 1993 be based
> on the principles set for the taxation reform.
> 
> The primary goal of taxation reform is to restructure the
> taxation system from the taxation of income to the taxation of
> consumption. Resource taxes must comprise a greater part of the
> budget. In order to facilitate the collection of taxes, the
> taxation system needs to be simplified as much as possible.
> Personal income tax should become proportional, whereby the
> amount of tax-free income would depend on the number of persons
> supported by a family, and we should weigh the possibility of
> allowing income from interest and dividends to become tax-free.
> This would render placing money in shares or bank accounts more
> attractive, which in turn would increase Estonia's credit
> resources. The filing of income tax forms would become much
> simpler and the taxation department could focus its attention on
> monitoring the payment of the tax.
> 
> Enterprise income tax must also be restructured. Its rate does
> not need to be significantly higher that the rate of personal
> income tax. To lower taxes, investments in production and
> expenditures for the re-training of employees must be deducted
> without restrictions from the amount of taxable income.
> Concessions must also be offered for the sponsorship of cultural,
> educational and social activities.
> 
> This taxation reform would decrease the tax burden for the
> population but also state income from these taxes. To keep the
> state budget in balance, a land tax must be enacted by the end
> of this year and we must consider the adoption of a tax on
> capital. An excise tax on motor fuel should be enacted. This
> would be easy to collect and this excise tax would to a certain
> extent contribute to making the taxation system more progressive.
> It would be prudent to enact certain luxury taxes and to increase
> the gambling tax.
> 
> For incomes to accumulate in the state budget, it is of upmost
> importance that the taxation department become more effective and
> that taxes be collected from all liable taxpayers. A law on
> accounting must be adopted and sanctions most be brought against
> those who fail to pay taxes.

 
There are no such sanctions, so far!
 

> A RAPID PROPERTY REFORM AND WIDE-SPREAD PRIVATIZATION are
> inevitable for Estonian economic recovery. There is no acceptable
> alternative to rapid privatization. 


No one opposes the privatization in Estonia. Only it's forms are 
discussed (vouchers, workers' collectives, auctioning) and the
timetable.


> Here we must be aware that
> the goal of privatization is not to earn money for the state,
> rather to allow as many people as possible to become owners.
> 
> In carrying out property reform and privatization, the Government
> will proceed from the political resolutions adopted on the bases
> of property reform, elaborating and amending the corresponding
> laws where necessary. The Government will create effective
> mechanisms for the execution of property reform.
> 
> The Government considers it necessary to quickly determine the
> procedures for the return and compensation of illegally
> expropriated property and to begin the actual restoration of
> property rights. We see compensation securities as the primary
> means of compensation, which holders will be able to use during
> the privatization of state property or which the state will
> reimburse through long-term cash payments.


I am afraid that the Laar government will here repeat the mistakes
made by Helmut Kohl and Lothar de Maiziere in Germany.

 
> In issuing and completing the registration forms for Public
> capital bonds (shares based on term of service) the Government
> has set the goal of honouring previously set deadlines. On the
> basis of the completed registration forms we must immediately
> begin the privatization of apartments. Public capital shares can
> also be used as a means of payment during the privatization of
> state property. The Government will provide the authorities and
> local governments in charge of privatization with all necessary
> resources.
> 
> The Government will reassume control over state property by
> making the directors of enterprises and administrative councils
> completely responsible for the preservation and effective use of
> such property. Legislative gaps, which until now have allowed for
> transactions which are unfavourable for the state, must be
> filled. Illegal transactions involving state property will be
> voided and guilty parties will be held liable in court. We must
> also appeal for the voiding of lease agreements which are
> detrimental to the state. In order to assess the amount and
> condition of property to be privatized, we must inventory state
> property and we must update the registry of enterprises and make
> it public.
> 
> In preparation of the privatization of large enterprises, the
> Government will draft the laws which stipulate its procedures and
> conditions, which address the issue and use of privatization
> securities (public capital bonds and compensation securities) and
> the creation and use of investment funds (including a pension
> fund). The authority and activities of the Estonian Privatization
> Corporation will be restricted by law. The sale of large
> enterprises by public auction will already begin this year and
> the privatization of smaller enterprises will be accelerated. The
> privatization of property originating prior to 1940 and for which
> no claims for return have been filed will also begin.


Estonian Treuhand shall start it's work soon.
 

> The Government has set the goal of ending the ambiguous situation
> in the privatization of agricultural enterprises. For this the
> agricultural reform will be coordinated with other privatization
> programmes, the privatization of residential space and large and
> small enterprises. Residents of apartments belonging to
> enterprises will be guaranteed the opportunity to own residential
> space in accordance with the laws on the privatization of state
> and municipal residential space.
> 
> 
> THE INVOLVEMENT OF FOREIGN CAPITAL in the restructuring of the
> Estonian economy will help reduce the lack of capital and
> resources. Estonia must have a definite and well reasoned
> investment policy. The current Law on Foreign Investment must be
> reviewed, and equal conditions for foreign and domestic
> businessmen must be created. To attract investment, the
> Government has the right to offer additional concessions based
> on regional considerations and specific economic branches. 


If this is carried out systematically in every branch of Estonian economy,
it might be the case that the Estonians could me the urban proletariat
and the landed semi-proletariat in a country that once belonged to them.


> Here
> we must monitor that foreign capital involvement does not
> compromise Estonia's natural resources or cultural treasures.


Laar government will not sell the Tallinn old town to the Japanese ;)

 
> It is imperative that we exploit Estonia's favourable geographic
> location. 

= Eastern trade. Estonia needs the FLOURISHING Skt. Petersburg...


> Customs-free regions and storage areas must be promoted
> and transit trade must be increased. In order to create
> favourable conditions for foreign investment in Estonia, we must
> bring our commercial legislation into accordance with European
> standards and eliminate the disparity between the rights of
> foreign and domestic businessmen. Foreign capital must be allowed
> to participate in privatization. 


Estonia is on sale now! Come on, everybody...


> The sale of land corresponding
> to real estate to foreigners must be legalized. The sale of land
> to foreigners can be tied to the size of the investment made.


= summer cottages for Finns in Estonia. 


> In order to transform its economy, Estonia needs foreign loans,
> which must foremost be directed toward the development of the
> infrastructure. We must appeal for loans to provide new
> businesses with starting capital.
> 
> The conclusion of agreements for the protection of investments
> and opening markets for Estonian goods form an important part of
> Estonia's foreign policy.
> 
> 
> RURAL AND REGIONAL POLICIES form an important part of the
> structuring of Estonia on which more attention needs to be
> focused.
> 
> Rural areas form the pillar of the Estonian people and culture.


The villages are overwhelmingly Estonian. The Russian speaking population
dwells in the cities and gorod-sputniks (ugly and big suburbs).


> For the Estonian state to persevere, the settlement of Estonians
> in all regions of Estonia must be promoted. A programme for the
> creation of a modern infrastructure in rural areas, particularly
> in outlying areas, must be designed. 


This in an empty promise in the contemporary situation. The Estonian
countryside will remain dull.


> The introduction of non-
> agricultural production in rural areas must be promoted in every
> way. Regional tax concessions currently in effect must be
> reviewed. The resettlement of citizens in sparsely inhabited
> areas must be promoted by granting credits. Special attention
> must be paid to North-Eastern Estonia by enacting resettlement
> support for Estonian citizens, directing business and educational
> assistance to these areas and by guaranteeing the availability
> of Estonian television and radio.
> 
> The foundation of the development of the rural economy is the
> private ownership of land, buildings and forests. The Government
> has set the goal of substantially accelerating land and
> agricultural reform. 


This might be even foolish: will the Estonian government create a class
of small peasants in Estonia? I doubt that small farms will survive
the European competition (and GATT).


> For this we must adopt the legislative acts
> which until now have been lacking, foremost laws governing land
> management, land pricing and taxation. Monies accumulated through
> land and real estate taxes must play an important role in
> carrying out regional policies.
> 
> The governmental programme for the restoration and development
> of private farming must be supported by flexible governmental
> credit and taxation policies as well as by local governments. The
> creation of farming capital must be accelerated by mortgages and
> long-term low interest credits. The outright subsidization of
> agriculture must also be terminated. Where possible, subsidies
> will be offered for improving the effectiveness of production,
> taking into consideration the interests of environmental
> protection. This will be primarily financed by foreign assistance
> programmes geared towards agriculture.
> 
> In supporting agriculture, it is vital that relations between
> producers and processors of agricultural goods as well as
> enterprises servicing agriculture be normalized and that their
> monopolistic position be restricted. We support cooperatives and
> cooperatives of local producers will be favoured in the
> privatization of enterprises which process agricultural products
> or service the agricultural industry.
> 
> In order to avoid a sharp increase in unemployment, it is
> sensible to tie reforms in rural areas with the research and
> development of the employment market as well as re-training for
> employees. Together with agriculture, light industry, forestry,
> fishing, hunting, tourism, handicraft, etc. will be developed in
> rural areas. Small schools and cultural associations need to be
> restored.


Perhaps, tourism might help a little the Estonian countryside.

 
> Rural affairs and agriculture on the governmental level will be
> managed through the small Ministry of Agriculture, which will
> work with an organization representing the interests of producers
> formed for direct relations with the Government. This
> organization would foremost deal with matters of production and
> markets.
> 
> In the interests of consumer protection, effective quality
> control for food products will be instigated.
 

It was about time!


 
>                               III
> 
> IN THE FIELD OF SOCIAL SECURITY AND SOCIAL ASSISTANCE, the goal
> of the Government, in spite of economic difficulties, is to work
> out and implement a social policy to encompass all those
> requiring assistance. Proceeding from the Constitution, a body
> of laws on social security must be implemented. The role of the
> central government in social assistance must be expanded:
> programmes for social care must be created in communes, towns,
> cities and counties. The experiences garnered by Western Europe
> and Scandinavia must be utilized.  


Without the resources of Western Europe and Scandinavia.


> All communes, towns and cities
> must compile a social security register on which the distribution
> of individual support would be based, depending on the financial
> situation of the individual. At the same time we must tie the
> amount of tax-free income to the number of persons supported by
> a family. Child support for the first two children should be tied
> to the financial capacity of the family unit but should be
> increased for three or more children.
> 
> Work organization for social services should receive a complete
> overhaul, such that line ups to receive pensions would disappear
> and those in need of assistance would not feel degraded by the
> bureaucracy.  Departments for social assistance in counties and
> cities should become centres where people can come with their
> troubles and receive material support as well as consultation and
> assistance in finding solutions. Positions in the field of social
> assistance should be filled by open competition and employees
> should be trained and re-trained on a regular basis. Life
> management training should be provided for all, including
> pensioners.
> 
> The Law on Pension should be re-established, with changes and
> amendments corresponding to the economic capabilities of the
> Government. As it is inevitable that the age of retirement for
> women will in the next few years be equalled to the age of
> retirement for men, the Government does not deem appropriate to
> raise the age of retirement in 1993. Taking into consideration
> the threat of increased unemployment, the possibility of
> authorizing early retirement must be weighed for those close to
> retirement age.


The retired people lost all their life's savings during the rouble 
hyper-inflation. They will suffer even more in the very near future.


> Loans should be made available for young families to start an
> independent life. A family fund should be established for this
> purpose and underlying capital could be derived from an
> additional 0.5% annual social tax levied on enterprises.
> 
> Assistance for heat and shelter can be made dependent on the
> initiative of residents for heating their houses and apartments.
> Assistance for heating should foremost be provided to unemployed
> pensioners living alone and families with children whose income
> is below the poverty line. Compensation for heating assistance
> should be completed between local governments and fuel companies
> by the cashless clearing of accounts. On the same basis,
> compensation should occur for residents with furnace heating as
> well as local and central boilerhouse heating facilities.
> Sanctions should be levied against persons who are able to pay
> rent but fail to do so, including requiring them to move to
> another apartment.
> 
> During 1993, the privatization of apartments must be carried out
> through privatization shares and the creation of residential
> cooperatives.

 
It was about time!
 

> IN LABOUR POLICIES, we must keep in mind two contradictory goals:
> the step by step rise in the price of labour in the market and
> the prevention of rampant inflation. These goals can only be
> achieved simultaneously if the development of enterprise is tied
> to the creation of new jobs. 


But how that could me managed in practice? Wishful thinking.


> At the same time unemployment must
> not be concealed in essentially bankrupt state enterprises by
> providing unpaid vacations and converting full-time jobs to a
> part-time basis. 


Right!


> In the privatization of state-owned enterprises,
> full employment and the possible need for re-training must be
> kept in mind. Expenditures made by enterprises for the training
> and upgrading of employees should be deducted from their taxable
> income.
> 
> Unemployment payments should not exceed 50% of minimum wage and
> should be dependent on re-training. 


Life is no bunch of roses for an Estonian unemployed. 


> Those temporarily engaged in
> community service should receive the minimum wage.  Community
> service in defence and state organizations and work with health
> and nature preservation, also in providing fuel, etc. is
> preferred.
> 
> The Law on Employment Contracts must be amended to protect
> employee rights concerning lay offs and the implementation of
> decreased working hours.
> 
> All actual and potential unemployed should be encouraged to seek
> re-training.
> In wage policies, we should proceed from the need to obstruct
> inflation but at the same time increase the price of labour
> (wages) to its actual market value.  


Here, the historian Mart Laar claims to be a magician.


> For this we must introduce
> an effective mechanism for negotiations on wage policies with the
> participation of professional trade unions, employers and their
> associations, the Bank of Estonia and government representatives.
> We must keep in mind that an increase in the minimum wage must
> be due to the growth of productivity, but this has the
> unfortunate consequence of a growth in unemployment. We must
> adopt a law for the collectivization of contracts and settlement
> of disputes and must revise laws governing trade unions.
> 
> We must quickly prepare a law on civil service which stipulates
> the duties of government employees, wage conditions, and social
> guarantees.
> 
> The improvement of health care through the financing of medical
> assistance must continue. We consider it essential that the
> current legislative base be augmented in order to guarantee
> medical institutions with necessary resources, including through
> voluntary medical insurance. It is necessary that we more
> precisely define the role of private medical practice in the
> health care system, in order to guarantee comprehensive heath
> care organization and to broaden the possibility of receiving
> contemporary treatment.
> 
> Problems related to health protection, prophylaxis and
> rehabilitation require quick principled solutions, for which a
> legislative base must be formed.
> 
> The health care and social welfare systems must be united, so
> that their resources may be utilized more effectively and more
> economically.
> 
> We consider it important that the role of associations of medical
> specialists be increased, making them responsible for the
> competency of specialization, medical ethics, supplemental
> medical studies and development in their fields of
> specialization.
 

All right, OK.
 

                               IV
> 
> THE CREATION OF A CIVIL SOCIETY is one of the most important
> tasks for Estonia in the next few years. The rights and freedoms
> enacted in the Constitution must be guaranteed by concrete
> legislative acts. The people must be provided more opportunities
> to actively participate in society. We must restore structures
> characteristic of a democratic society beginning with
> organizations of employees and employers and ending with
> associations and cultural unions. 


Sounds nice indeed.


> It is imperative to support the
> church and also care providing and educational institutions. 


But if this is the only suggestion that comes from the government...


> It
> is hard to imagine the return of Estonia to the level of other
> democratic states without the rebirth of morals and ethics.
 

Right. But unfortunately, the Laar government does not elaborate
this task any further.

 
> We must carefully protect and monitor the freedom of the press.
> State-owned media must predominantly be privatized. There is a
> need for the formation of a unitary television and broadcasting
> system which would be under the control of the parliament. The
> personnel of the state television and radio stations should be
> significantly reduced in number. 


Necessary indeed.


> At least one radio channel must
> be privatized. Due to the economic conditions prevailing in
> Estonia, it will only be possible to continue the relay of one
> Russian television channel. The fate of the other Russian
> television channels will be decided through negotiations with
> Russia. The Russian speaking population must be sufficiently
> informed of events and conditions in Estonia and abroad.


Good. 

 
> IN CULTURE AND EDUCATION the state must find ways and resources
> to guarantee cultural and educational stability and its free
> development even in these difficult times.


Unfortunately, it can't.

 
> Fundamental reforms must be carried out in the fields of culture
> and education, the bureaucracy must be reduced and cultural and
> scientific matters must be placed within the competence of
> representatives of these fields. The Ministry of Culture and the
> Ministry of Education must be brought together in one ministry,
> which will also be responsible for forming science related
> policy.
> 
> A law on the cultural fund must also be adopted and enacted which
> must be guaranteed a steady tax base - for example the gambling
> tax, a set per cent of the excise tax on spirits and a portion
> of income derived from the privatization of state property. Until
> the fund is put into operation, we must try to finance projects
> within its competence from the state budget. We must do all to
> avoid a break in the continuity of our national culture. To
> promote sponsorship we need to adopt a law on non-profit
> organizations and to assist in the creation of tax exempt
> foundations.


Necessary indeed; note: there are no cultural foundations in Estonia
(a typical feature of the Soviet system).

 
> For culture and education to be revitalized and made more
> effective, their management must to a great extent be placed
> under the authority of local governments, without allowing for
> breaks in their continuity. The bureaucracy within the Ministry
> of Education must be decisively reduced. The Ministry's primary
> task will remain to work out educational standards and to issue
> operating licences to educational institutions. A legal base for
> parental participation in the setting of curriculum in schools
> must be created and we must weigh the idea of introducing
> educational vouchers. Private schools must be supported with
> standard capital within the state's capabilities. The monopoly
> in educational publications must be brought to an end. Teacher
> re-training must be substantially improved, enabling teachers to
> participate in payable courses.
> 
> Serious problems have arisen in the financing of higher
> education. Institutions of higher education must be provided with
> a steady income base and must be granted full authorization for
> its use, while at the same time encouraging these institutions
> to seek additional sources of income. Institutions of higher
> education must be permitted to introduce tuition fees, but at the
> same time we must enact a system of student loans. Until this has
> been achieved, stipends for university students must be tied to
> the minimum monthly wage.


Which is not much.

 
> The preservation of its scientific potential is vital for
> Estonia. At least 1.5% of the gross national income must be
> allocated to science annually. Estonian scientists should
> participate in international research projects on a wider scale.


This is an exact promise. The Tartu university faces great financial
troubles and should be saved.

 
> The building of a civil society requires that cultural heritage
> and the natural environment be preserved for future generations.
> Laws which guarantee the preservation of cultural treasures and
> nature in a free market economy society must be adopted.


Good!

 
> In environmental protection, the Government's goal is to change
> its focus from battling the consequences of pollution to battling
> its causes. This requires the step by step enactment of
> conservation principles, the reduction and end of the wasteful
> use of resources and better use of land through regional
> planning. In its energy policies, Estonia must prepare for the
> diffusion of production and must place greater emphasis on making
> use of alternative domestic energy sources. 


I do not believe in this. Because of the economic situation, the Estonians
are forced to use more oil shale with the polluting effects.


> Legislation must be
> brought into accordance with the property relations which will
> arise in the property reform, whereby restrictions for natural
> and heritage protection must be maintained for property which has
> gone into private hands.

 
Good!
  

> INTEGRATION INTO EUROPE means the opening of Estonia to the
> world. Our goal is for Estonia to become a member of the Council
> of Europe at the beginning of next year. To achieve this, we must
> effectively promote Estonia on the international level. 


It might be that the Council of Europe requires some concessions or 
a compromise in the citizenship question...


> Estonia's
> foreign policy must become more active and consistent. Estonia
> must react more strongly to the propaganda war initiated by
> Russia. This requires that the network of embassies be more
> rapidly developed.


Right: Estonia has so far only one press secretary in Tallinn.
Answering the propaganda war is impossible.


 
> While continuing with close contacts with the Nordic countries
> and the Nordic Council, Estonia is placing the conclusion of an
> agreement for associate member status within the European
> Community on the agenda and will join as many European Community
> programmes as possible. More emphasis must be placed on
> cooperation with Central European countries, where we can find
> trade and business partners as well as experience in reform.
> Integration with the European security system as well as
> cooperation with NATO and the Western European Union is vital.


Estonia turns to West definitely.
 

> One of the most important goals of Estonian foreign policy is to
> improve relations with Russia. 


Should one then offer something to the Yeltsin government?


> In the negotiations with Russia
> we must appeal for the rapid withdrawal of Russian forces in
> accordance with the Conference on Security and Cooperation in
> Europe Helsinki Final Act. 


Right! Boris is required to bring the boys back home according to the
international conventions.


> In these negotiations, Estonia must
> base its position on the Tartu Peace Treaty and cannot forego its
> demands for compensation for damages caused by the annexation.


This is no prudent politics.

 
> We must steadfastly counter Russia's interference in Estonia's
> internal affairs. 


Right, but see below...


> Our position must be more effectively explained
> in the East and the West, the Estonian Embassy in Moscow must
> play a more active role and consular posts and trade
> representations must be opened in Russia. Contacts with Russian
> business circles must be improved to develop regional
> cooperation.


Good.

 
> Much greater attention must be given to strengthening ties with
> Ukraine, Byelorussia and other CIS member states. An embassy must
> be opened in Kiev.
> 
> We must more actively seek contacts in South-East Asia and we
> need to open a representation in Japan. The same is true for the
> United States where the development of our embassy is a priority
> task. Estonia must make energetic use of programmes offered by
> foreign business interests and governments to support business
> in Estonia.


Good, no-one is against that...
 

> We must place greater focus on the fate of Finno-Ugric peoples
> in Russia and we must raise this issue before the world
> community. 


I do really appreciate this: a sign of real (inter-) national
solidarity! This issue should be discussed and the Finno-Ugric peoples'
survival should be supported.


> The Estonian Government can also not be indifferent
> to the fate of Estonian citizens in Petserimaa.


Right, but then one should not oppose that Russia can not be indifferent
to the fate of Russian citizens in Estonia.

 
> In assuming office, the Government deems it important to stress
> that it intends to base its actions on the principle of openness.
> Each citizen must be able to examine the decision making process
> and to receive information on the activities of government
> agencies.


Good.
 

> In this difficult time, Estonia needs cooperation between all
> political forces. The Government is prepared for this and hopes
> that constructive dialogue will become the key word in Estonia
> in the near future. It is our goal to lead the country with
> united strength and will, to the benefit of the entire population
> and country.
 

A good formulation. But the initiatives of the Estonian opposition
have not always been considered in this programme.


comments
the observer
Tapani Hietaniemi, Universitas Helsingiensis
                    urbs fennorum