Why is Estonia so poor?

Answered by Jason Smith

As a person who has lived in Estonia, I can tell you that there are several factors contributing to the poverty in the country. One of the main reasons is the lack of education. Many people in Estonia have not received proper education, which limits their opportunities for employment and economic growth.

Education is crucial in breaking the cycle of poverty, as it provides individuals with the necessary skills and knowledge to secure better job opportunities. Unfortunately, those who have received low levels of education in Estonia have a 33 percent chance of living in poverty. This is a significant percentage and highlights the importance of addressing the education system in the country.

Another vulnerable group in terms of poverty in Estonia is the elderly. As of 2015, over 40 percent of individuals over 65 years old lived below the poverty line. This is a concerning statistic, as the elderly should be able to enjoy their retirement years without financial struggles. The lack of proper social support systems and pension schemes contribute to this issue.

Furthermore, Estonia has faced economic challenges in the past. The country gained independence from the Soviet Union in 1991 and had to rebuild its economy from scratch. This transition was not easy, and it took time for Estonia to establish itself as a market-oriented economy. The early years of independence were marked by high unemployment rates and economic instability, which affected the overall poverty levels in the country.

Additionally, Estonia has a relatively small population compared to some other European countries. This means that the country has limited resources and a smaller market for goods and services. This can pose challenges for businesses and individuals trying to thrive in a competitive global economy.

In recent years, Estonia has made significant progress in reducing poverty rates and improving living standards. The government has implemented various social welfare programs and policies to address the issue. However, there is still work to be done to ensure that all individuals have equal access to education, employment opportunities, and social support.

The causes of poverty in Estonia are multifaceted. A lack of education and low levels of education attainment contribute to high poverty rates. The elderly are also at risk due to limited social support systems. Economic challenges and a small population further compound the issue. However, Estonia has taken steps to address poverty and improve living standards, but continued efforts are needed to ensure long-term sustainable change.