Address by Ms Kristiina Ojuland: TINY TIGERS WILL ALWAYS BE TIGERS

EUROPEAN FORUM 15-16 November 2002, Berlin
Address by Foreign Minister of the Republic of Estonia



Esteemed Chairperson,
Ladies and Gentlemen,

Seven years ago, we saw the launching of the computerization of the Estonian school system -- The Tiger’s Leap.
As far as I know, tigers have never roamed our tiny northern country. Despite the fact that computer sciences had been taught in Estonian institutions of higher learning since 1965, the whole concept of IT, for the public at large, was a new and drastically developing one.
By the year 2000, the aim of computerizing all Estonian schools had been achieved. Within the framework of this project, there were several basic principles, which we have adapted for new endeavours.


Firstly, the active instigator’s and implementer’s role of the state, especially in the primary phases of new programs. In today’s Estonian economy, the private sector plays an 80% role, and quite often, we have to debate the matter of what function the state plays in such a situation at all. We have to admit, that the Estonian market, with its population of 1.4 million, is a small one. Within, both the state and local government sector, the energetic implementation of IT solutions helps to overcome several problems, which are dependent upon the smallness of our market, yet helps to create a critical mass of offered services. Many government decisions create an appropriate environment for the further development of private sector services.

Estonia created the world’s first paper-free Government. The fact that the state tries to order not yesterday’s, but tomorrow’s solutions, should stimulate firms competing for government orders to focus upon new, innovative solutions, thereby making these firms also competitive outside of Estonia. IT helps to promote a "slim" government, in the true sense of the word, by offering "self service" to citizens in the spheres, which are connected with the passing on of information, and giving government officials the opportunity to devote themselves to the core of their assignments. It has been estimated that governmental administrative officials spend 15% of their working hours upon technical communication with the public, and over 10% upon technical communication with other government agencies. IT, primarily, helps to reduce this spent time and energy, and thereby reduce the size of government, which actually means the increasing of the significance of substantive work.

A good example is the route that various Estonian governments have, over the years taken to integrate the traditional census registry with the microchip equipped multifunctional ID card, and the digital signature. The replacing of Estonian passports, which began last year, accompanied with the beginning of the program to issue new ID cards, and the implementation of the digital signature, have created a basis for the quick expansion of IT services. It is essential that we implement the microchip-equipped ID card into the digital signature system. In Estonia, a document with a digital signature is legally useable in all situations and can be used for the confirmation of other documents. For signing and archiving purposes, a free-of-charge website has been created on the internet for ID card possessors.


Secondly, public-private partnership. The intensive co-operative activity, which began with the computerization of our school system, has continued in Look@World , a project aimed at resolving various IT development problems in our society. The initiative came from Estonian private firms, which, with the aim of promoting our information society, have contributed sums that equal the government’s IT investment. Until the digital signature was implemented, Estonians, for instance, dealt with the revenue service, and various other government agencies, via their electronic banking service, which had been the intermediary in their relationship with government services providing personal identification. State and private sector monies were combined when the IT College was created, in which, students are offered a great many private sector scholarships.

Taking a look across the ocean, we can see that the United States government has very strongly supported its private sector, has made use of public-private partnership opportunities much more than their free market image would assume. This should give Europe cause to contemplate.


Thirdly, transparency and openness. All major Estonian developments in the IT sphere have taken place in conjunction with open debate. In a small community, this offers the best opportunities for encompassing everyone who has something interesting to contribute. The e-Government, and the development of other projects, were instrumental arguments in the discussions connected with legislative implementation of the freedom of information law. It is one of the most radical in the world. The home pages of our various government agencies, for instance, post the wages of their employees, the early phases of proposed legislation, and specific government projects. The making of Government decisions at their official sittings is observable in real time. The e-portal of our Government has the sub-division "I Decide Today", in the scope of which, citizens can make proposals to the government, and participate in the debates, which ensue.

We can soon claim, that a developed internet connection with the citizens has become as widely an accepted composite of democracy.


Fourthly, the efforts to reduce the societal digital divide. A recent, very thorough study shows that, in Estonia, as elsewhere in the world, pensioners, middle-aged people, and older blue-collar workers have a problem keeping up with the rest of society. And people in more remote regions tend to be left behind.

Just a little over 30% of Estonian homes are equipped with computers, which doesn’t place Estonia especially high in the European "hit parade". But, if we consider public internet centres per thousand inhabitants, then we’re one of the foremost countries in Europe, taking into consideration both internet cafes, public access points at rural libraries, schools, and local administrations. Even a very specific road sign has been adopted -- as you can observe on the slide.

The hinterlands of Estonia haven’t been forgotten. For those areas, there is a specific program -- Külatee (Country Lane), which, again, is a joint effort incorporating both the state and private sectors.
The aforementioned study shows that more than 41% of the populace actively uses the internet.


To leap on from this stage, people primarily need to be offered new services, especially those, which are geared for older people, that directly give people the opportunity to save money, or which reduce physical exertion. There is room here for the efforts of both the state and private sector. We need to offer solutions for the so-called "average person", in a form, which is understandable for him.
Among other things, a very important factor in the digital gap sphere is the sharing of our experiences with countries, which have started from a basis very similar to ours. During the last few years, within the framework of our foreign aid program, and in conjunction with third states and international organizations, Estonia has been promulgating its various IT experiences to a wide spectre of countries, especially to the CIS and Balkan states. All of Europe is, no doubt, interested in seeing new states being drawn into the whole, thus improving Europe’s ability to compete with the United States.


Fifthly, ensuring the existence of strong international competition in the private sector. Thanks to the ongoing competition between three mobile telephone networks; the opening up of fixed line telephone networks to competition; the increased use of various non-line internet connections; the internet services offered by cable television firms; and many other factors, we can, today, talk about indicators, which correspond to those of average European Union development. And among the Candidate States, we are, together with Slovenia, at the top of the "list". The integration of the e-mail and SMS message systems has created a correspondence system which has increased the efficiency of our whole society.

Estonia is committed to its free market principles, but at the same time, we must avoid erring in the sphere of licensing, taxing, and regulating. The development of the telecom system would be stimulated specifically by expansion into new elements of society, and also by the adoption of new services. In Estonia, we also stress the significance of one more experience -- technical progress must not be made a fiscal factor. Therefore, we haven’t rushed with the licensing of new generation mobile telephone technology, or hope to exploit it for the pumping of large sums into the state budget. At the same time, we are also giving non-line internet connection an opportunity to find its place within this process.


Dear participants,

One of the essential themes of this forum is the increasing of Europe’s competitiveness. Which is quite an endeavour, considering that the United States is clearly ahead in the IT field. Just recently, at the international conference IST 2002, the European Union’s presiding country’s, Denmark’s, minister of science, Helge Sander, noted that 52% of OECD IT research and development takes place in the United States, 22% in Japan, and only 17% in Europe.

In this conjunction, I cannot overlook the significance of the development of the European Union’s e-services. It’s true, that the various sectors of this system have an abundance of conveniently accessible information. But a small entrepreneur, for instance, will, when trying to find information in this system, quickly run into a barrier -- there is a basic shortage of simply explained information and a lack of direct intercourse.

Maintaining the principles stipulated at the beginning of this presentation, I can claim that we have, in every way, supported the achievement of the IT goals, which were established within the framework of the Lisbon process. Although, we are not yet an EU Member State, we nevertheless recognize the significance of these principles. The e-Europe 2002 Action Plan has been followed up with e-Europe 2005. This also encompasses the Candidate States. But, at first, our role is quite limited, although Estonia’s IT potential would actually allow us to do much more.


To be progressively competitive within the sphere of global competition, Europe must have large firms, which, functioning on an all-encompassing EU level, are capable of making substantial investments into research and development that results in truly groundbreaking studies. For small states, and their firms, the only way to achieve success, far too often, is to concentrate on some particular niche products. Estonia, for instance, can offer highly developed IT and communication sector adaptability, biotechnology, and the development of new innovative materials. And we, naturally, hope that in an unbiased and all encompassing EU market our export firms will be successful.

After the upcoming enlargement, the European Union’s essential development resource will be an even greater focusing upon the utilizing of the skills and capabilities of all Member States for the creation of information based and human oriented information society solutions. The transference of information, co-operation, and all encompassing involvement will, once again, be given a new dimension. The information society is global, but its effects, just as its activities in the sphere of improving the commonweal, are of a local nature, with the changes observable on a national , local administration, and firm basis. The future development of Europe will be dependent upon our joint endeavours as IT tigers. We Estonians believe that deeds are more powerful than words--instead of talking all the time about the gap between the US and the EU, we would be better served to take action toward meeting our common goal.

I thank you.