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Doing Business in Tallinn February 2003

Off The Bloc
On the threshold of joining the EU, Estonia’s workforce is committed to improving its skills
ESTONIA, THE NORTHERMOST OF THE BALTIC STATES, HAS COME A LONG WAY FROM INDEPENDENCE FROM THE SOVIET UNION IN AUGUST 1991. Accession to the European Union takes place in May 2004, and it was one of seven former Eastern Bloc countries recently invited to join NATO.
This country of 1.5 million people has spent the last 1,000 years under many different rulers: the Swedes, the Danes, the Germans and the Russians have all been in charge at one time or another. Since the so-called Singing Revolution, when the country’s annual Song Festival became a focus for the independence movement, the country has emerged as a successful, modern democracy that elects a 101-member parliament every four years and a president every five.
Tallinn, the capital, has a population of around 400,000. Much remains of the city’s 15th-century heritage, but it is a thoroughly modern place to do business and is one of the most wired places on earth. Agriculture is the country’s principal industrial sector, and exports of dairy products and fish are strong.

PROFILE
Bob Gallienne
Chief Executive, Tallinna Vesi

The City of Tallinn sold off a majority share in Tallinna Vesi, the city’s water company, nearly two years ago to a joint venture between International Water and United Utilities. The company’s British chief exec, Bob Gallienne, says: “It’s not difficult to do business in Estonia. The Scandinavian influence is strong, and this has helped the transition from being a Soviet republic.”
He has been impressed by the Estonian workforce, which has proven to be well educated, and with strong language and IT skills. “People are so committed to improving their skills,” he says. “We really notice that people are improving their education in their own time. Often at weekends, staff are in the office studying.”
Accession to the EU will be positive, too, says Gallienne. “It should provide business growth within Tallinn, it will improve the way people live, and we will see growth in our business.”
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