Estonia is trapped - Neivelt

19.08.2014, 16:45

As a country, Estonia is trapped in the group of medium-income countries where only a few have managed to break out, said ex-banker Indrek Neivelt at the Opinion Festival held last weekend in Paide, writes Äripäev.

Neivelt said that ito nstead of continuing to offer cheap subcontracting services such as assembling wire harnesses, Estonia should find ways to support its own strong companies, make sure that they keep their head offices in Estonia, invest in infrastructure and support domestic market.

“Forget about GDP, it’s a hoax. Instead of talking about GDP we must focus on average income. GDP figures also include profits earned by foreign capital, but they don’t share it with us,” he said, adding that Europe’s attempts to change the methodology of calculating GDP were strange, especially since it would include drug trafficking and prostitution.

“Estonia is in the group of medium-income countries and this not a bad place to be, but it’s very difficult to break out of it,” said Neivelt, adding that most people want to live better.

“But if you add them if they want changes, most say no. If we want to improve our living we need to make things differently. Doing the same work for another ten years is not going to make us richer,” he concluded.