Economic reforms in Estonia looked like those taken in other central and Eastern European countries. These countries’ economies are also called “transition economies”.
But not the whole amount of the country’s enterprises has suffered from enormous economic reforms. As for the reforms, they started in 1991-1992 in Estonia. First of all they concerned monetary ones. They began in 1992 and Estonian national currency was introduced. There are three main reasons for the economic reforms. They are extirpating inflation and its results, ascertaining balance exchange rate that is considered to be the base of demand and supply, and wining the global cash crisis.

The next thing to do was to establish macroeconomic situation in the country. It was reached thanks to providing reforms from the top to the lower level.This step in reforms should give the people new opportunities, new expectations and new predictions. And, of course, several law regulations should be taken to provide radical economic changes in the country. Some economists told that a free-market economy could help to enlarge wealth, but it wasn’t so simple in real life.

Nevertheless, the regulation of law was obvious if the country wanted to achieve positive changes in economy. Estonian economy has changed since the years when it was a communist country. Estonia showed real fast economic growth in Europe. Economic growth has changed its rates from 11 to 12 per cent. Thanks to it, Estonian economy has reached the average standard of living in Europe which was beyond all expectations. Here we can speak about certain diminution in inequality and poverty. United Nations human Development Index considers Estonia the country which has turned from not-so-developed country into a developed one.

There were some economic reforms that affected the development of the country’s economy to a certain extent. These reforms took place on 1991 – 1992. For instance, the national currency of Estonia was established in 1992 through monetary reforms. All in all, the government was trying to eradicate inflation and win the global cash crisis.

Moreover, due to the reforms, macroeconomic stabilization was performed. According to this, reforms were implemented from the top level to lower level. That gave Estonia new expectations and hopes. Though, the government understood that strict regulation of law was needed.

Private ownership was said to one of the main economic transitions. The goal was to build the economy with well-established property rights and privatization of public enterprise in order to make the market work in a proper way.

As a result, during the recent years, Estonia showed significant economic growth expressed in the rise from 11% to 12%. Poverty and inequality have decreased and Estonia is characterized as one of developed countries.