The history of Estonia – and indeed of the other Baltic States – has been one of constant struggle to maintain independence and national integrity against the predatory instincts of larger neighbors. The Vikings passed through the territory in the ninth century. Over the next few centuries, both the Danes and Swedes tried and failed to force Christianity upon the Livs tribe, which dominated the region. They eventually succumbed to Bishop Albert of Buxhoevden, at the turn of the 13th century. During the Middle Ages, Danish influence was at a peak in the Baltic region. After the Livonian
War of the 1550s (Livonia was the area covering modern Latvia and the southern part of Estonia), a period that involved Denmark, Sweden, Poland and Russia in a disputed succession and rival territorial claims, Estonia was taken by the Swedish King Gustavus. The 16th and 17th centuries marked the high point of Swedish imperial power. The Russians were determined, however, to secure a ‘window onto the Baltic’ for economic as well as strategic reasons. Estonia was duly acquired by the Russians from Sweden, at the Treaty of Nystadt, in 1721.
Russia remained in control of Estonia until shortly after the Bolshevik revolution of 1917. At the treaty of Brest-Litovsk the following year, which brought an end to Russian involvement in World War I, Estonia was ceded. The new Soviet government at first refused to recognize Estonian independence but gave way in February 1920. The new state – along with its Baltic neighbors, Lithuania and Latvia – enjoyed just two decades of independent statehood before the Soviet Union took control under the 1939 Nazi-Soviet Pact. Soviet ownership lasted barely 12 months before Estonia was conquered in the German invasion of the Soviet Union. It was retaken by the Red Army in 1944, after which Estonia was constituted as one of the 15 Soviet Socialist Republics. Four decades passed before the advent of Mikhail Gorbachev who, as Communist Party General Secretary, offered the prospect of change for the Baltic States. A key part of the perestroika (economic reform) program was the devolution of power to the republics. Estonia led the way among the Baltic States, assisted by the collaboration between nationalist groups and the Communist Party, who joined together in a People’s Front (analogous bodies emerged in Latvia and Lithuania) to orchestrate change.
Having asserted the right to make their own legislation, measures to establish an Estonian currency – preparatory to full economic autonomy – and to restore Estonian as the official language quickly followed. In March 1990, the Estonian Communist Party voted in favor of full independence from the Soviet Union but allowed for a six-month transitional period before making the decision final. President Gorbachev was strongly opposed but ultimately powerless – barring military intervention – to prevent the Estonian drive for independence. Rapid international recognition of Estonia as a sovereign state, followed by admission to the United Nations, completed the transition to full nationhood. In June 1992, Estonia scored two more firsts with the introduction of its own currency, the Kroon, and of a new post-Soviet constitution. The constitution was first put to the test in September 1992. The legislative elections produced an inconclusive result. Isamaa (Fatherland Alliance) formed a coalition government with two other parties; party leader Mart Laar became premier. Laar is one of a small group of prominent politicians who have dominated Estonian politics through the series of coalition administrations, which have governed the country since independence. They include Tiit Vahi, leader of the left-leaning Coalition Party, Arnold Ruutel who became president in 2001, and the Center Party pair – known by its acronym Kesk – of Edgar Savisaar and Mart Siimann. Laar is acknowledged as probably the most successful of these, taking much credit for guiding Estonia through major political and economic changes. Kesk remains the largest party following the most recent general election held in March 2003, but was excluded from office by a three-party coalition led by the conservative grouping Res Publica under the premiership of Juhan Parts.
Abroad, successive Estonian governments, irrespective of their make up, have been careful to maintain good relations with Russia while its main priorities have lain to the west: specifically, securing membership of NATO and the European Union. In July 1997, Estonia became an associate member of the EU as the first major step to becoming a full member. Negotiations proceeded rapidly thereafter, and Estonia was scheduled to join, along with nine other countries including its Baltic neighbors, in May 2004. The final decision was conditional on the outcome of a national referendum which was held in September 2003 and returned a large majority in favor of membership.
Government A new constitution was accepted in a referendum in June 1992, under which a 101-seat National Assembly is elected by popular vote. The Assembly’s members elect a President and Council of Ministers who share executive responsibilities.
Economy The Estonian economy is widely seen as an excellent example of a transitional economy, providing its citizens with one of the best standards of living in the former Eastern bloc. Growth rates have been averaging over an extraordinary 10% per year. Estonia also has a thriving information technology sector, and trade with the West is strong. Unemployment is down to under 5%, and that figure is much lower in and around Tallinn.
Other than oil-shale, which is present in significant quantities and provides the basis of the country's power generation, Estonia has few raw materials of its own and relies mostly on imported commodities to produce finished goods. However, Estonia's infrastructure, particularly the road network, is well-developed by regional standards.