Had a fascinating lunch with Juhan Parts, Prime Minister of Estonia 2003-2005, his delegation and some local Estonian leaders hosted by Steve Jurvetson at DFJ. I believe the conversation was off the record, was generally on the future of Estonia, so let me just say some things on my mind independent from the meeting:
Our little country as at interesting turning point. After EU and NATO succession and the development of a stable and growing economy, the question is, what's next? The cost of living is rising rapidly in harmony with the EU and the sources of growth over the past 10 years will decline.
I have some strong views given my experience as an expat entrepreneur and former public sector contributor. And given that I am thousands of miles away, I can voice them strongly.
Estonians are bright, honest (although they also have many who game systems, which keeps it healthy), well educated and hard working. However, the long road to independence and establishing an identity while overcoming 50 years of occupation has led to complacency. Estonians have a superiority complex and are intolerant of real diversity and don't trust strangers. In a flat world, this is a competitive disadvantage. Immigration and language policies once designed to keep Russian colonists at bay now hamper growth. Education is mired with cruft institutionalism. Regulations are unfairly applied, sometimes you are guilty until proven innocent. Entrepreneurship was discovered by some through hardship, but the culture punishes failure.
The solution to this is to Open Estonia. Invest in developing clusters of capability by supporting entrepreneurs and investors in new areas of competency. In line with EU intent, open immigration so the best people who want to work with Skype and others can more freely (in Silicon Valley 70% of CEOs are first generation immigrants). Open the education system to leverage open courseware and distance learning. Invest in more exchange programs. Open source software becomes a strategic investment in developing capabilities. Continue e-government initiatives towards transparency, feedback and internet voting -- recognizing e-government is not just about efficient provision of services, but civic engagement. Invest in language technologies to remove barriers with other culture.
I would live in Estonia if it wasn't for:
* Un-cosmopolitan intolerance of diversity
* Business risks (not costs) that stem from the government instead of the market
* Cold winters
This is all very strong language to head off a nationalist streak that is so tempting when either backed in a corner or experiencing short term success. The reality is living in Estonia is great for expats who can understand the larger context and Estonia has a bright future, except for the approaching dark winter.
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