Tuesday, November 13, 2007

Economic Crisis a good thing?

Sten caused a bit of a stir this past weekend when some of his comments at a innovation forum made the newspaper. Sten was quoted as saying that Eesti could use a good old economic crash at this point in order to secure the economic future of the country. He argues that Eestlased have gotten a bit lazy, that life is going so well and the money is rolling in so there's no need for radical change. This is good in the short term but long term will hurt Eesti which still relies greatly on Old Town tourism, (no longer) cheap labour, a real estate boom and transit corridors as sources of income.

I think Sten hits the nail on the head and a little shake up is necessary in order to re-order the school system and focus the country on a sustainable economy of innovation and services. Looking at the recent economic stats (GDP growth hits a 4 year low) we may be in process of that correction, whether or not it will be severe enough to shake things up is yet to be seen.

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