19.09.2015 Views

Taavi Rõivas

Spocj

Spocj

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

NO 39 I FALL I 2015<br />

SPECIAL!<br />

Nordic<br />

With<br />

A Twist<br />

e-Residency<br />

Is Reshaping<br />

The World<br />

Tallinn<br />

Test Site<br />

For The Virtual City<br />

The World According<br />

To Kostabi<br />

<strong>Taavi</strong> <strong>Rõivas</strong><br />

Estonia Is<br />

The’New Nordic’<br />

Ravi Belani:<br />

Innovation Is<br />

Inevitable<br />

land & people I state & society I economy & business I technology & innovation I culture & entertainment I tourism


Estonia – Nordic Business Paradise<br />

The other day I was having lunch with Lars Hellberg, President and CEO of the machine building<br />

company Fortaco Group. After some intensive discussions of different growth scenarios for<br />

Fortaco Group in the Narva area, Lars suddenly surprised me with a question. ‘What is it with you,<br />

Estonians? Do you have a special entrepreneurial gene in you?,’ he asked.<br />

The question made me think of the traits of character foreign investors use to describe Estonians<br />

and indeed this can be seen as a Nordic mentality, but with a twist. So what is this twist?<br />

It is the innovative mind of trying to get things done efficiently – using technology and innovation<br />

to achieve results, both at the Governmental level and in private business. The recent launch of<br />

the e-Residency scheme and the immediate take-up of this by foreign business people is a good<br />

example.<br />

COVER<br />

<strong>Taavi</strong> <strong>Rõivas</strong><br />

Photo by<br />

Atko Januson<br />

But the twist is also persistence and not being afraid of hard work. The Estonians don’t expect<br />

things to be brought to them on a silver platter, but know that success always means devotion and<br />

hard work. For years and years, technology start-up Fits.me put a lot of hard work into fine-tuning<br />

their virtual fitting room for e-commerce companies before Japanese corporation Rakuten acquired<br />

their shares this summer.<br />

Executive publisher<br />

Positive Projects<br />

Pärnu mnt 69, 10134 Tallinn, Estonia<br />

think@positive.ee<br />

Editor<br />

Reet Grosberg<br />

reet.grosberg@ambassador.ee<br />

Translation<br />

Ingrid Hübscher<br />

Language editor<br />

Andrew Whyte<br />

Design & Layout<br />

Positive Design<br />

Partner<br />

Powered by<br />

But the work continues for Fits.me and new jobs are being created in Estonia to further develop the<br />

company and its technology. The devotion of Ruth Oltjer to develop her company, Chemi-Pharm,<br />

especially in export markets is another case study you can read about in this issue of Life in Estonia.<br />

Estonian society is very interlinked and short on social hierarchy, which is great for engaging the<br />

right people at the right level to find an optimal solution to any outstanding issue. This means that<br />

solutions can be achieved quickly. That is another twist in favor of Estonia. The business minded and<br />

can-do attitude of Prime Minister <strong>Taavi</strong> <strong>Rõivas</strong> is a clear proof of this.<br />

But there is seldom a good thing without some kind of accompanying down-side: in Estonia’s case it<br />

is that there are not enough of us to do all these cool things. But where there is a problem, Estonians<br />

are already seeking for a solution. Our solution is the<br />

Work in Estonia project to enable foreign talent to<br />

come and work in Estonia, where there are excellent<br />

career opportunities and challenging projects to<br />

work on.<br />

For foreign companies too, there are also numerous<br />

other small twists that can be found in Estonia, which<br />

makes them decide on it. But be careful if you are<br />

thinking of bringing your company here: the statistics<br />

show that once the foreign companies have decided<br />

to be engaged with Estonia, it is a long-term thing!<br />

A dedicated team of professionals at<br />

Enterprise Estonia’s Investment Agency<br />

supports companies investing and<br />

expanding in Estonia. Come experience<br />

the ease of doing business in e-Estonia –<br />

the low-risk, high quality and competitive<br />

location for your company.<br />

www.investinestonia.com<br />

Enjoy this issue of Life in Estonia, which has plenty of<br />

fascinating stories (each with a little twist) from Estonia<br />

– the Nordic business paradise!<br />

Indrek Pällo<br />

Director of Estonian Investment Agency<br />

FALL 2015 I LIFE IN ESTONIA #39 3


I CONTENT<br />

#39_FALL_2015<br />

6_ Where to Go this Season?<br />

Life in Estonia Recommends<br />

8_ News & Events<br />

COVER STORY<br />

14_ <strong>Taavi</strong> <strong>Rõivas</strong> – the Prime<br />

Minister of the ‘New Nordic’<br />

<strong>Taavi</strong> <strong>Rõivas</strong>, Europe’s youngest Prime Minister thinks of Estonia as a<br />

‘new Nordic‘ country – rigid in foundation, but flexible in solutions,<br />

especially in its approach of embracing new technologies. He is confident<br />

that in 15 years from now, Estonia will have caught up with Nordic<br />

countries completely. Read what is his belief based on.<br />

STATE & SOCIETY<br />

27_ Become an e-Resident of<br />

Estonia. Online, of course<br />

In October 2014, Estonia first introduced the idea of e-Residency and<br />

the interest was huge. Today Estonia has over 4,200 e-residents from<br />

Finland and Russia, but also from much further places like Italy, India or<br />

the United States, and currently several hundred are waiting for their<br />

e-Residency approval. Meet some of them and read how they utilize<br />

their Estonian e-Residency.<br />

32_ Ravi Belani: Even a New<br />

World War Will Not Stop the<br />

Pace of Innovation!<br />

Why have so many Estonian companies won a coveted place in Ravi<br />

Belani’s highly regarded Alchemist accelerator? What is the likelihood<br />

of the Estonian e-Residency program conquering the world? Where is<br />

innovation heading and what will the next technological breakthroughs<br />

be? Life in Estonia met up with Belani during Estonia’s Friends international<br />

meeting and looked for answers to these questions.<br />

19_ Ruth Oltjer:<br />

Lady with a Mission<br />

Ruth Oltjer – whose educational background is in medicine and economics<br />

– is the combined founder, owner, manager and product developer<br />

of a small company called Chemi-Pharm which produces disinfectant-<br />

and cleaning products as well as natural cosmetics. Caring about<br />

humanity and the environment has been the goal of this 18-year old<br />

company from the very beginning, exemplified by the fight against one<br />

of the biggest causes of death in many countries – hospital infection.<br />

24_ Oliver Wihler –<br />

the Expat Who Stayed<br />

LAND & PEOPLE<br />

Some expats have been living and working in Estonia for a long time<br />

already – and seen the country's transition through turbulent times to<br />

the more recent developments in joining the club of stable and relatively<br />

prosperous states. One of these is a programmer Oliver Wihler, originally<br />

from Switzerland, who works as a Coordinator of Development Teams<br />

at the Tallinn-based IT development branch of Kuehne + Nagel, the international<br />

logistics giant, which established an IT Center of Excellence<br />

in Estonia in 2013.<br />

ECONOMY & BUSINESS<br />

37_ 3DPrinterOS is Building<br />

the World’s Largest<br />

Virtual Factory<br />

In a cramped room of the Mektory Innovation Centre, inside the Tallinn<br />

University of Technology campus, a dozen 3D printers are still running<br />

full speed at 8pm on a working day. This is no student club, but a company<br />

working on a global revolution in production. The company plans<br />

to build the largest connected factory in the world without owning a<br />

single production line! Meet 3DPrinterOS.<br />

40_ Scoro Wants You to Click<br />

Less and Achieve More<br />

Fred Krieger, the creator of unique business software claims that although<br />

thousands of similar service providers exist in the world, Scoro is<br />

simply so good that customers who value efficiency and time-saving will<br />

want to recommend this software even to competitors!<br />

4<br />

LIFE IN ESTONIA #39 I 2015 FALL


43_ Wazombi Labs — No<br />

Ordinary Estonian Startup<br />

Their headquarters is in Tartu and not in Silicon Valley, Boston, London<br />

or Tallinn for that matter. They are not competing for a place in an incubator<br />

or an accelerator. They make no effort to attract investments from<br />

business angels or venture capital funds. And they are not working on<br />

the creation of yet another app, but rather developing and producing<br />

gadgets and helping customers all over the world to create product<br />

prototypes.<br />

46_ Manufacturing Company<br />

Fortaco Has a Vision for<br />

Narva<br />

The CEO and President of Fortaco Group, Lars Hellberg, wants to reshape<br />

Estonia’s third largest city, right on the border between Estonia<br />

and Russia. ‘Narva Reborn’ is a vision that will make Narva a better place<br />

to create more business, to live and to visit.<br />

67_ Estonia – a Test<br />

Site for the Self-driving City<br />

The third TAB will look into the changes, challenges and opportunities<br />

that our cities and their inhabitants will be facing once the third<br />

industrial revolution is implemented in full scale and we all start using<br />

self-driving cars. What will this mean for architects, designers, and<br />

urban planners? Curator of TAB 2015, Marten Kaevats, has a vision<br />

about that.<br />

TOURISM<br />

72_ Epic Estonia – Experiencing<br />

Estonia’s Quirky and<br />

Unconventional Attractions<br />

This summer about 300 Swedes visited Estonia to enjoy the most epic<br />

once-in-a-lifetime experience Estonia has to offer. These people became<br />

digital ambassadors of Estonia to spread the beauty this country has to<br />

offer around the rest of the world. Read about their impressions.<br />

50_ PORTFOLIO.<br />

Kalev Mark Kostabi<br />

Kalev Mark Kostabi is a US artist with Estonian roots. His iconic painting<br />

style is a combination of the metaphysical use of colour, which is linked<br />

to surrealism. His drawings are dominated by faceless figures, comicbook-like<br />

dynamics and the irony of the post-modernism of the 1980s.<br />

In 1987, inspiring extensive international press coverage, Mark Kostabi<br />

founded Kostabi World, his large New York studio known for openly<br />

employing numerous painting assistants and idea people.<br />

63_ Wood in the Hands<br />

of the Designer<br />

CREATIVE ESTONIA<br />

Estonians have a special relationship with woodwork. Although modern<br />

lifestyle changes have naturally taken us further away from these traditions,<br />

new technologies today are opening up new horizons for this<br />

ancient art. The products range from furniture from bent plywood to<br />

wooden bow-ties and watches.<br />

76_ 32 Swings and a Full<br />

House – Estonian Pavilion<br />

at EXPO in Milan<br />

The World Exhibition in Milan is still open for a few more months. Participating<br />

in EXPO has been the largest PR event for Estonia this year,<br />

with the aim of representing Estonia well in the world and helping our<br />

businesses to increase opportunities for themselves.<br />

78_ Kiiking – Defying Gravity<br />

The extreme form of Estonian swinging has developed into a sport,<br />

called kiiking. Invented by Ado Kosk in the 1990s, kiiking derives from<br />

the Estonian language word kiik, which means ‘swing‘. Currently, the<br />

Estonian record in kiiking is held by Kaspar Taimsoo (7.08 m), and on<br />

16 September Estonians are planning an attempt to set a new Guinness<br />

World Record at EXPO Milan.<br />

79_ Practical Information<br />

for Visitors<br />

FALL 2015 I LIFE IN ESTONIA #39 5


I WHERE TO GO THIS SEASON<br />

ARABELLA<br />

Concert performance of Richard Strauss’ comic opera on<br />

18 November, 2015 at the Estonia Concert Hall<br />

Conductor: Vello Pähn<br />

Soloists: Kristiane Kaiser (soprano, Austria), Kristel Pärtna (soprano),<br />

Pavlo Balakin (bass), Juuli Lill (mezzo-soprano), Morten Frank<br />

Larsen (baritone, Denmark), Roman Sadnik (tenor, Austria), Oliver<br />

Kuusik (tenor), Aare Saal (baritone), Mart Laur (bass), Pirjo Jonas<br />

(soprano, Theatre Vanemuine), Helen Lokuta (mezzo-soprano)<br />

When looking for a subject for a new comic opera, Hofmannsthal and<br />

Strauss decided to recreate the feel of the earlier comedy set in the<br />

golden age of Vienna, ‘Der Rosenkavalier‘ (1911) that had become a<br />

great success. The story derives from one of Hofmannsthal’s own short<br />

stories, written in 1909. Unfortunately, their work was disrupted by<br />

the death of Hofmannsthal in 1929. In memory of his long-time artistic<br />

partner, Strauss decided to set into music the unrevised version of the<br />

text. The opera with rich and captivating melodies shows Strauss at the<br />

peak of his craft.<br />

‘Arabella‘ continues Estonian National Opera’s successful series of concert<br />

performances of operas, being 15 th on the list.<br />

hooaja peatoetajad<br />

PEETER VÄHI’S<br />

ORATORIO “IN THE<br />

MYSTIC KAYDARA-LAND”<br />

(premiere)<br />

An African initiation rite for vocal soloists, narrator,<br />

male choir, girls’ choir and symphony orchestra<br />

Three friends take the<br />

journey to the world of<br />

shadows governed by the<br />

invisible Kaydara, the god<br />

of knowledge and gold.<br />

The Fula language, African<br />

rhythms and instrument<br />

brought along from African<br />

travels give tone to Peeter<br />

Vähi’s composition. Chuanyun<br />

Li, also from exotic<br />

and far-away places, the<br />

most famous Chinese violin<br />

virtuoso, will perform as the<br />

soloist in Mendelssohn’s<br />

violin concerto. “If China<br />

wishes a grand violinist, then<br />

here he is.” (Ruggiero Ricci)<br />

NEW YEAR’S EVE BALL –<br />

THE WALTZ KING STRAUSS<br />

31 December, 2015 at 19.30 in the Estonian National Opera<br />

On New Year’s Eve, the Estonian National Opera invites everyone to enjoy<br />

the dazzling moments provided by the music of Johann Strauss the<br />

younger! Come and dance to the music of the Waltz King performed by<br />

the orchestra of the Estonian National Opera, enjoy the witty gala performance<br />

and the festive atmosphere of the New Year’s Eve. The party is<br />

spiced up by DJ Katrin Pärn and the ensemble Swingers, featuring Tanja<br />

Mihhailova, Mikk Saar and Birgit. The Theatre Hall, Concert Hall, Winter<br />

Garden, White Hall and Café Colombina are all yours!<br />

190 years ago, on 15 October, 1885, one of the most famous waltz<br />

masters was born. He brought the waltz from the minuteness of dance<br />

floors into the ampleness of concert halls. Strauss has written over five<br />

hundred waltzes and most of them are popular also today, the most<br />

famous being ‘The Blue Danube‘ (1867).<br />

In Cooperation with Estonian National Symphony<br />

Orchestra and Estonian Record Production<br />

The project in sponsored by Tiit Pruuli<br />

Sat 10 October 7 p.m. Vanemuine Concert Hall<br />

Sun 11 Oktober 7 p.m. Estonia Concert Hall<br />

6<br />

LIFE IN ESTONIA #39 I 2015 FALL


THE GOBLIN<br />

Ballet by Eduard Tubin<br />

Premiere at the Estonian National opera on 18 September, 2015<br />

hooaja peatoetajad<br />

Choreographer and Stage Director: Marina Kesler<br />

Conductors: Vello Pähn, Kaspar Mänd, and Lauri Sirp<br />

Estonian National Opera Orchestra, Female Choir, the Estonian National<br />

Ballet and Tallinn Ballet School<br />

The work is based on a mythical character from Estonian folklore, the<br />

Goblin, whose sole purpose is to serve his greedy master, the Farmer,<br />

in obtaining riches. In Marina Kesler’s rendition, in a contemporary<br />

money-hungry world the Goblin is like a voice in people’s head, finding<br />

excuses why there is never enough money. But money buys no happiness<br />

and the reward for gluttony is ruination – becoming weary of<br />

human voracity, the Goblin destroys his maker and dies as well. What is<br />

important in today’s material and racing world? Is there room for love?<br />

www.opera.ee<br />

EK:Labor is Eesti Kontsert’s four-year<br />

audience and educational programme<br />

for the organisers of youth music events.<br />

Wed. 25 November 9 p.m.<br />

Thu. 26 November 6 p.m. and 9 p.m.<br />

Kultuurikatel (Tallinn Creative Hub)<br />

EK:Labor presents:<br />

“MECHANICAL PIANO”<br />

AudioKinetica Group’s audio-visual performance<br />

Composer Aleksandr Žedeljov, stage director<br />

Artjom Garejev, Insomnia quartet, actors and other<br />

performers<br />

The performance of AudioKinetica group combines<br />

theatrical tools, live music, kinetic objects,<br />

calligraphy and video mapping into an impressive<br />

whole. Kurt Vonnegut’s novel “Player Piano” is used<br />

as the basis.<br />

Thu. 26 November 7 p.m.<br />

Russian Culture Centre<br />

EK:Labor presents:<br />

“(DES)IRE & LOVE”<br />

Book of emotions – audio-visual concert based on<br />

Mikhail Bulgakov’s novel “The Master and Margarita”<br />

Estonian LAB Orchestra<br />

The project of LAB Concert wishes to implement a<br />

new form of narrative music theatre, which combines<br />

classical music with other fields of art, such as<br />

literature and video art, and to make these fields<br />

interact with each other in a modern form.<br />

Tallinn Architecture Biennale<br />

TAB is an international architecture festival which introduces<br />

local architecture culture, current issues concerning architecture,<br />

and looks at the future of the architectural profession. TAB<br />

offers a program of events for both architecture professionals,<br />

students and everyone interested in architecture.<br />

The third TAB will kick off on September 9 and will look into the changes,<br />

challenges and opportunities that our cities and their inhabitants will be<br />

facing once the third industrial revolution is implemented in full scale<br />

and we all start using self-driving cars. What will this mean for architects,<br />

designers, and urban planners? TAB will turn Tallinn into a test site for<br />

the cities of the future, visualising ideas and conceptualising the way<br />

cities are built.<br />

tab.ee/en<br />

FALL 2015 I LIFE IN ESTONIA #39 7


I NEWS<br />

Pipedrive and TransferWise<br />

Founders Win at The Europas<br />

Top Estonian startup, Pipedrive, won the Best B2B Startup<br />

of the Year award and the founders of TransferWise, Taavet<br />

Hinrikus and Kristo Käärmann, were honoured as best startup<br />

founders at this year’s Europas Conference and Awards for European<br />

Tech Startups.<br />

Pipedrive is an Estonian-founded startup, producing sales management<br />

software used by over 10 000 customers worldwide.<br />

Hinrikus and Käärmann launched the peer-to-peer (P2P) money transfer<br />

service Transferwise in 2011 and their firm has now grown to employ<br />

over 300 people in London, Tallinn and New York, supporting over 300<br />

currency routes across the world, and attracting investment from Sir<br />

Richard Branson along the way.<br />

Europas – Europe’s equivalent of tech startup Oscars – took place in<br />

London, with over 1 000 guests gathering to celebrate the best of the<br />

continent’s tech entrepreneurship.<br />

The Europas celebrate some of the most forward-thinking and innovative<br />

European tech companies across over 20 categories. While it concentrates<br />

on the newest companies on the scene, it also brings together<br />

the mid- and late-stage technology startups, as well as leading investors<br />

and media in the region.<br />

TransferWise smashes<br />

the Guinness record for<br />

the largest human currency symbol<br />

TransferWise, the Estonian-founded, London-based money transfer<br />

platform, broke a Guinness world record in Estonia over the weekend,<br />

by creating the world’s largest currency symbol made out of people!<br />

The company gathered 350 employees of 35 different nationalities from<br />

across its five offices in Europe and the US to complete the giant euro<br />

symbol. The effort overtook the previous world record of 327 people,<br />

held by the North East Chamber of Commerce (UK).<br />

TransferWise founders Taavet and Kristo receiving the official record.<br />

8<br />

LIFE IN ESTONIA #39 I 2015 FALL


Estonian Cycle Company Viks<br />

Launches New Carbon-framed Bike<br />

Estonian cycle brand, Viks, celebrates its second birthday<br />

with a new carbon-framed version of its distinctively<br />

designed two-wheeler.<br />

Viks was set up in 2013 by GrabCAD co-founder Indrek Narusk, who<br />

is a dedicated cycling buff. The bicycle has since become a sort of an<br />

icon for a new generation of Estonian design, and has featured in many<br />

international exhibitions.<br />

To celebrate its second birthday, Viks has designed a special, small edition<br />

version, which is lighter than its predecessor, thanks to its carbon<br />

fibre frame.<br />

The frameset weighs just four kilograms, compared with the standard<br />

stainless steel frame weight of seven kilograms. In its complete configuration<br />

and equipped with the Gates Carbon belt drive and the Aerospoke<br />

wheelset, the Viks Carbon weighs 10 kilograms.<br />

All carbon tubes used for the frame have been custom built for Viks by<br />

the Slovenian carbon enhancer company, Berk Composites, also known<br />

to collaborate with Team Sky.<br />

Estonian-founded Fits.me<br />

Sold to Japanese e-Commerce<br />

Giant Rakuten<br />

Rakuten, a Japanese e-commerce and internet company, has acquired<br />

a 100 per cent stake in the Estonian-founded fit preference<br />

specialist, Fits.me.<br />

Rakuten said it expects the tech startup to further strengthen its e-commerce<br />

offerings and marketing solutions by providing a greater personalisation<br />

of the retail experience for shoppers.<br />

The Fits.me story began in 2009, when the Estonian entrepreneur, Heikki<br />

Haldre, having less and less time to go shopping for clothes, became<br />

a more avid online shopper.<br />

The company’s business model was based on ‘implanting’ its software<br />

on its clients’ (usually large fashion chains) online store page, where the<br />

Fits.me’s virtual fitting room would appear. An online shopper would<br />

then enter his or her basic measurements – height, neck, chest, waist,<br />

arm length and torso length.<br />

The fitting process is implemented in the software based on the thousands<br />

of shapes worked out by Fitbots – which are physically dressed in<br />

each item and each size of clothing by the retailer.<br />

Shoppers can ‘try on clothes’ in the virtual fitting room, where they will<br />

be shown an image of a chosen item and how the item looks on their<br />

body shape. Fits.me charges retail chains based on the usage of their<br />

software online.<br />

The problem he found, though, was that it wasn’t that easy to find a<br />

perfectly fitted shirt or suit when buying online – an issue made more<br />

complicated by the fact that the meaning of small and large sizes can be<br />

light years apart in different countries and continents.<br />

‘Fits.me represents both the fun and functionality of shopping online<br />

and is a natural complement to our growing portfolio of e-commerce<br />

and marketing services,’ Rakuten founder and CEO Hiroshi Mikitani says.<br />

Hence Haldre and Fits.me cofounder Paul Pallin came up with an idea to<br />

invent a new solution – to find out the perfect fit by creating and using<br />

specially-modified robots which can change their body shape.<br />

With a development from Maarja Kruusmaa, a professor of biorobotics<br />

at the Tallinn University of Technology, the laboratory of intelligent<br />

materials and systems at the University of Tartu, and Europe’s largest<br />

body scanning and anthropometry research company, Human Solutions<br />

GmbH in Germany, a new kind of robot was born – named ‘Fitbot’ by<br />

Fits.me entrepreneurs.<br />

FALL 2015 I LIFE IN ESTONIA #39 9


I EVENTS<br />

Photos by Raigo Pajula<br />

The sixth Estonia’s Friends<br />

International Meeting Focused<br />

on Smart Solutions and<br />

Digital Identity<br />

The 6th meeting of Estonia’s friends, held in Tallinn on July 9-11, was<br />

opened by the seminar “Estonia – where stuff happens first” hosted<br />

by Enterprise Estonia. The event explored Estonia as a frontrunner in<br />

innovation, discussing the various driving forces behind the early adoption<br />

of new ideas.<br />

The traditional symposium “Quo vadis Estonia?” featured talks from<br />

the Estonian President Toomas Hendrik Ilves and Balaji Srinivasan,<br />

board partner at Andreessen Horowitz and a start-up entrepreneur on<br />

the topic of “Identity: Online and Offline”. In his opening address, the<br />

Head of State focused on the deficiencies of the common European<br />

digital market and identity issues on the Internet.<br />

According to Balaji Srinivasan, the Internet is increasingly taking over<br />

the services earlier offered by governments, and the importance of<br />

states is in decline. He added that people communicate on the Internet<br />

without borders and spend more and more time in a virtual world; in<br />

the future, they may choose the country in which they would like to live<br />

and that will match their values.<br />

This year, more than 150 entrepreneurs, politicians and opinion<br />

leaders from more than 24 countries attended the meeting, including<br />

the US Department of State Coordinator for Cyber Issues, Christopher<br />

M. Painter; MP Gordon Marsden from the United Kingdom;<br />

Mayor of Milan, Letizia Moratti, and the board of the Mitsubishi<br />

corporation.<br />

The idea to have an international meeting of friends of Estonia was<br />

conceived in 2010. The event is organised to thank and recognise business,<br />

political and cultural figures whose actions and advice have helped<br />

Estonia become a truly European country with a dynamic economy and<br />

thriving culture.<br />

10<br />

LIFE IN ESTONIA #39 I 2015 FALL


China is Encouraging<br />

Estonian Entrepreneurs<br />

to be More Ambitious<br />

This July, EAS was honoured to host a high level delegation of Hong Kong business<br />

tycoons. A special seminar and networking lunch with Estonian counterparts was<br />

arranged during the Estonia‘s Friends International Meeting.<br />

The delegation was led by Matthew Lam, Executive Director of the Lai Sun Group<br />

and an Honorary Consul of Estonia in Hong Kong. He was accompanied by Justin<br />

Chiu, Chairman of ARA Asset Management and Herman Hu, Chairman of Ryoden<br />

Development Ltd.<br />

The entrepreneurs control more than 30 billion USD worth of assets in 50+ countries<br />

and manage a wide range of companies from manufacturing to hotels to real estate<br />

development.<br />

‘I am glad to see, that Estonia is not only about IT startups, but there are strong companies<br />

also in other sectors. I see high potential especially in logistics industry, Estonia<br />

should take more advantage in its geographical location,‘ commented Justin Chiu. ‘You<br />

have to be more ambitious. Not be satisfied with outsourcing to Scandinavian companies,<br />

but must build your own brands and take them to global market. Only that will create<br />

high value.‘<br />

‘We are interested to invest in companies with high growth potential and support them in<br />

entering Hong Kong and Mainland China,‘ added Matthew Lam and Herman Hu. ‘You cannot<br />

be present in China if you are not a big player in your home region first.‘<br />

Estonian counterparts included Indrek Kasela (Amber Trust), Karl Ader (EKE Invest), Erik Ringmaa<br />

(Port of Tallinn), Jaanus Otsa (Astlanda Ehitus) and Priit Martinson (EAS Shanghai).<br />

FALL 2015 I LIFE IN ESTONIA #39 11


I EVENTS<br />

e-Estonia @ Nordic Business Forum<br />

Helsinki, October 1-2<br />

Estonia is once again partnering with one of the biggest and most exquisite<br />

business seminars in Europe - Nordic Business Forum. Estonian<br />

Investment Agency, the e-Residency team and FinanceEstonia are welcoming<br />

all Forum participants at e-Estonia stand (no 10) to learn about<br />

e-Residency and its power to unleash the entrepreneurial potential of<br />

the whole world. Moreover, everyone can apply for e-Residency on-site!<br />

At the e-Estonia stand, guests will also find out about the efficiency and<br />

flexibility of running a business in Estonia – where else in the world can<br />

you establish a company online in just 20 minutes? FinanceEstonia will<br />

provide a comprehensive overview of Estonian financial sector advantages<br />

and services.<br />

Nordic Business Forum 2015, taking place for the sixth time, has become<br />

one of the most important business events in the Nordic countries,<br />

bringing together over 5 500 leaders and entrepreneurs across the<br />

world, including 500 participants from Estonia. The speakers include<br />

world-class leaders in entrepreneurship, strategy and innovation. Nordic<br />

Business Forum 2015 will take place on the 1st and 2nd of October in<br />

the Expo and Convention Centre, Helsinki.<br />

Photos by Raigo Pajula<br />

Save the Date<br />

Estonian ICT Week 2016!<br />

The third edition of the Estonian ICT Week will be<br />

held from 30 May to 5 June in 2016<br />

Following the success of two previous theme weeks in Tallinn, ICT Week<br />

2016 is expected to maintain its standing as one of the most eventful<br />

week in the centre of sizzling Nordic-Baltic ICT powerhouse, combining<br />

inspiring conferences and exciting talks, bringing together opinion leaders,<br />

entrepreneurs, venture capitalists, top officials around the world<br />

and representatives of international organizations.<br />

In 2015, the ICT Week encompassed about 20 thematic events, dozens<br />

of inspiring speakers and over 3 000 participants from all over the<br />

world. The central topic of the week was e-governance, coinciding with<br />

the launch of e-Residency application portal at e-resident.gov.ee.<br />

Stay tuned for updates at www.ictweek.eu<br />

We look forward to seeing you in Tallinn on<br />

30 May to 5 June in 2016!<br />

12<br />

LIFE IN ESTONIA #39 I 2015 FALL


Arvo Pärt 80<br />

Arvo Pärt, the most-performed<br />

contemporary composer in the world,<br />

celebrates his eighteth birthday<br />

on 11 September, 2015<br />

Arvo Pärt is a composer who has significantly influenced the way we<br />

understand the nature of music. He is known for his unique tintinnabuli<br />

style and, although his earlier modernist works are less known, his entire<br />

oeuvre has shifted our perception of music.<br />

Regardless of nationality, cultural background or age, many people have<br />

been touched and influenced by the timeless beauty and deep spiritual<br />

message of Pärt’s music. His works are performed not only in concert<br />

halls, but also in film, dance and theatre performances, and other multimedia<br />

texts.<br />

From 28 August to 26 September, 2015, Nargenfestival will celebrate<br />

the eightieth birthday of the world-renowned composer with the concert<br />

series ‘Pärdi päevad’ (‘Days of Pärt’ – ed.). The festival focuses<br />

on Pärt’s music, which has been released by the highly-regarded record<br />

company ECM under its ‘New Series’ label. At the opening concert on 2<br />

September in the Jaani kirik (St. John’s Church) in Tallinn, Estonian and<br />

Latvian musicians will present the full program of Arvo Pärt’s music from<br />

‘Adam’s Lament’, which won the Grammy award for the best choral<br />

performance.<br />

On 3 September, the Estonian Philharmonic Chamber Choir will perform<br />

‘Kanon Pokajanen’, and a different interpretation of the same work can<br />

be heard on 6 September by Vox Clamantis.<br />

On 4 September, the EPCC and Tallinn Chamber Orchestra will perform<br />

Pärt’s music principally from 1980s, while on 9 September the YXUS<br />

Ensemble performs works from the program of the legendary concert<br />

which took place on 27 October, 1976 at the Estonia Concert Hall,<br />

where the style – tintinnabuli – was introduced for the very first time.<br />

In addition, two exhibits can be seen at Noblessner Foundry: the small<br />

light installation for which the spatial design was created by Mari Kurismaa<br />

and the graphic design by Mari Kaljuste, which has been dedicated<br />

to Arvo Pärt’s works under the ‘ECM New Series’ label and the exhibition<br />

‘Arvo Pärt - known and unknown’.<br />

Two documentary films will be released as part of the celebrations: ‘The<br />

Lost Paradise’ by German film director Günter Atteln and ‘Arvo Pärt –<br />

Even if I Lose Everything’ by Estonian film-maker Dorian Supin.<br />

‘The Lost Paradise’ follows Pärt over a period<br />

of one year in his native Estonia and on trips<br />

to Japan and the Vatican. The documentary is<br />

framed by the stage production of ‘Adam’s Passion’,<br />

a music theatre piece based on the biblical<br />

story of the fall of Adam featuring three key<br />

works by Arvo Pärt, which the American stage<br />

director Robert Wilson staged in a former submarine<br />

factory, the Noblessner Foundry, in Tallinn in May 2015.<br />

Tracing their creative process, the film offers rare and personal insights<br />

into the worlds of some of the most fascinating personalities on the<br />

international arts and music scene.<br />

Illustration by Kalle Toompere<br />

Leading Estonian music groups will perform at the ‘Days of Pärt’, including<br />

the Estonian Philharmonic Chamber Choir, Estonian State Symphony<br />

Orchestra, Girls’ Choir Ellerhein, Estonian State Male Choir and the early<br />

and contemporary music vocal ensemble Vox Clamantis conducted by<br />

Tõnu Kaljuste, Risto Joost, Jaan-Eik Tulve, Stephen Layton, Paul Hillier<br />

and Endrik Üksvärav.<br />

The audience will have the opportunity to enjoy all of the symphonies<br />

by Arvo Pärt and also his most recent orchestral masterpiece ‘Swansong.<br />

Littlemore Tractus.’<br />

Dorian Supin’s new film ‘Arvo Pärt – Even If I Lose<br />

Everything’ is an intimate and sensitive portrait<br />

which gives an insight into the maestro’s life<br />

philosophy and creative background and shows<br />

simple moments with family and close friends.<br />

It is Supin’s third film about Arvo Pärt after the<br />

films ‘Siis sai õhtu ja sai hommik’ (‘Then Came<br />

The Evening And The Night’, 1990) and ‘24 prelüüdi ühele fuugale’ (24<br />

Preludes For A Fugue’, 2002).<br />

FALL 2015 I LIFE IN ESTONIA #39 13


I COVER STORY<br />

14 LIFE IN ESTONIA #39 I 2015 FALL


<strong>Taavi</strong> <strong>Rõivas</strong> –<br />

the Prime Minister<br />

of the ‘New Nordic’<br />

By Silver Tambur / Photos by Atko Januson<br />

‘We don’t necessarily need a physical tunnel between Helsinki and Tallinn<br />

– time will show whether that will ever happen – but what we<br />

do need is a “mental tunnel” at least, connecting the two countries<br />

by innovation and in cross-border digital solutions,’ says <strong>Taavi</strong> <strong>Rõivas</strong>,<br />

Europe’s youngest Prime Minister.<br />

He is making his pitch whilst looking out of the window of the Stenbock<br />

House, the elegant neo-classical, home of the Estonian government on<br />

Toompea, in Tallinn’s Old Town.<br />

From his office, <strong>Rõivas</strong> can clearly see the Gulf of Finland; just 90 kilometres<br />

(56 miles) separate the two ethnically- and linguistically-close<br />

neighbours, and Sweden is less than 400 kilometres (249 miles) away,<br />

albeit in a different direction.<br />

e-politician from e-Estonia<br />

<strong>Taavi</strong> <strong>Rõivas</strong> became Prime Minister of Estonia in March 2014, but before<br />

that he had held several senior positions over several years. Having<br />

joined the Reform Party at the age of 19 in 1998, his political career<br />

began as an advisor to the Minister of Justice a year later, a position he<br />

held for three years.<br />

He was subsequently elected to parliament where he was Chairman of<br />

the European Union Affairs Committee and a member of the Finance<br />

Committee. Before taking over from Andrus Ansip as Prime Minister,<br />

<strong>Rõivas</strong> served as the Minister of Social Affairs, where he was responsible<br />

for introducing the work ability reform which aims to find employment<br />

for people with special needs.<br />

History has been slightly kinder to Finland than to Estonia, having spared<br />

it from the Soviet occupation, but Estonia has made an enormous effort<br />

since regaining independence 24 years ago and, in many areas, such as<br />

good governance, low corruption levels and the rule of law, has caught<br />

up with its Northern neighbour. In fact, in some spheres – such as digital<br />

solutions – Estonia is actually leading the Nordic pack.<br />

Estonia has not quite caught up with the Nordic countries in living standards<br />

and wealth yet, however, although even here, massive progress has<br />

been made as well: whereas in 1995, Finland’s GDP per capita was almost<br />

nine times higher than Estonia’s, it is just 2.5 times higher today.<br />

<strong>Rõivas</strong>, who has been in politics since the late 1990s and seen most of<br />

the progress made in Estonia at first-hand, is now determined to close<br />

this gap further. His solution? Estonia as a ‘new Nordic’ country – rigid<br />

in foundation, but flexible in solutions, especially in its approach of embracing<br />

new technologies.<br />

As with most Estonians of his generation, by the 1990s the computers<br />

and IT was in everyday use for the young Prime Minister.<br />

‘I started using a PC at my dad’s office, but I do remember my very own<br />

first computer, which was Pentium 486, bought in 1994 and which at<br />

that time cost a couple of month’s wages – an absolutely astronomical<br />

sum!’ <strong>Rõivas</strong> recalls.<br />

It wasn’t long after that that the Tiger’s Leap project was undertaken<br />

by Estonia to heavily invest in development and expansion of computer<br />

and network infrastructure in Estonia, with a particular emphasis on<br />

education – the starting point of e-Estonia.<br />

<strong>Rõivas</strong> joined the political establishment soon afterwards, just at the<br />

time when the modern foundations for the infrastructure of Estonian<br />

digital society were laid.<br />

FALL 2015 I LIFE IN ESTONIA #39 15


I COVER STORY<br />

‘The fundamental starting point of Estonia’s emergence as one of the<br />

most advanced e-societies in the world was not based as much on the<br />

technological decision, but rather on a political commitment – based<br />

on decisions taken in the late 1990s, when it was determined that all<br />

people in Estonia will have secure access to all the e-services where their<br />

online identity equals with a signature on paper,’ <strong>Rõivas</strong> says, recalling<br />

the time when Estonia passed the law giving electronic signatures the<br />

same legal weight as traditional signatures.<br />

were stolen and then leaked after the terrible accident that happened<br />

to him. Something like this would not be possible in Estonia and I have<br />

also made this clear to my foreign colleagues,’ <strong>Rõivas</strong> explains, adding<br />

that the phenomenon has indeed sparked interest from others – Finland<br />

is expected to follow Estonia’s suit soon and start using a similar model.<br />

<strong>Rõivas</strong> adds that this is where the cross-border digital solutions also<br />

come handy.<br />

‘It was all very innovative at the time – the change in the mindset that<br />

signatures do not have to be painted on paper by pens, but you can do<br />

it online.’<br />

He also recalls being a member of the working group under the Ministry<br />

of Justice in 2000, which was investigating the possibility of whether<br />

people could vote via the internet.<br />

‘I was 21 at the time and I remember how the foreign media outlets<br />

started ringing us to find out whether it would be possible. We believed<br />

we could do it and create the necessary framework for it. Admittedly, it<br />

took us another five years, but by the time it was ready, Estonia became<br />

the first country in the world where people could vote online. As of<br />

now, every third person in Estonia votes online, without needing to go<br />

to a polling station. Again, this was fundamentally based on the decision<br />

to provide people with a secure online identity,’ <strong>Rõivas</strong> says.<br />

The words, ‘secure online identity’, are repeatedly emphasised by <strong>Rõivas</strong>,<br />

who often finds himself reassuring other foreign leaders on the subject<br />

when they visit Estonia and are given a brief on the country’s digital advancements;<br />

while Estonia is years ahead on this, most of the European countries<br />

are still contemplating whether to implement e-signatures or online voting.<br />

‘Our system is absolutely secure – it gives 100 per cent guarantee that<br />

the person who logs in is who he or she claims to be,’ <strong>Rõivas</strong> says convincingly,<br />

while talking about the backbone of Estonian e-services – the<br />

national ID card. The ID card carries embedded files which, using 2 048-<br />

bit public key encryption, enable it to be used as definitive proof of ID<br />

in an electronic environment.<br />

First cross-border digital exchange with Finland<br />

One of the prime examples <strong>Rõivas</strong> likes to bring out with foreign dignitaries<br />

while talking about e-Estonia is the e-health structure – a nationwide<br />

system which integrates data from Estonia’s different healthcare<br />

providers to create a common record for each patient, and which allows<br />

doctors to access a patient’s records easily from a single electronic file.<br />

‘Those Finnish pensioners who have holiday homes in Estonia might<br />

be interested that if a Finnish doctor prescribes medication in Finland,<br />

they could pick up their medicine in Estonia, removing the need to go<br />

back home to collect it,’ he says, characterising the distinguished ties<br />

between the two friendly countries.<br />

It all comes down to a clear political leadership when implementing<br />

these solutions, <strong>Rõivas</strong> underlines.<br />

While some sceptics have expressed opinion that the IT-tiger of Estonia<br />

might have become sleepier in recent years, the young and energetic<br />

PM disagrees and doesn’t worry that the world will get tired of Estonian<br />

e-story or catch up and even leave it behind.<br />

‘Estonia has done it on a level that no other country has before, which<br />

is why other countries are still interested of Estonian digital success stories.<br />

Technologically speaking, most can do it – if not, they can find IT<br />

firms in Estonia who will help them – but it is more difficult for others<br />

to reach a political consensus that provides an environment for various<br />

e-services and which is not easy to come in many countries. There is still<br />

mistrust surrounding using online signatures, for example,’ <strong>Rõivas</strong> says.<br />

The Prime Minister is confident that Estonia is far ahead with its digital<br />

formula. Yet, he emphasises that others do not need to invent the<br />

wheel again – Estonia has already introduced many IT innovations and<br />

others can imitate this with ease.<br />

‘It would be good for us if a large European country started using the ITsolutions<br />

we implemented. We already have the experience and therefore<br />

we have the confidence to try new ways and take the existing ones<br />

to new level. As for resources, there are many countries which have<br />

more money than Estonia and which can invest in e-solutions. But if<br />

they use this money to create hundreds of different systems that don’t<br />

comply with each other, it will be less effective than using a hundred<br />

times less money and creating one effective system – as has been the<br />

case in Estonia. We do not need to be ashamed – Estonian e-solutions<br />

are unique in the world,’ he says.<br />

The doctors can read test results as soon as they are entered, including<br />

image files such as X-rays, and in an emergency situation, can use a<br />

patient’s ID card to read time-critical information, such as blood group,<br />

allergies, recent treatments, ongoing medication or pregnancy, while patients<br />

have access to their own records, as well as those of their children.<br />

‘When President Obama visited Estonia in September last year, he said<br />

that he should have called Estonia when setting up the US health-care<br />

website. I actually believe that he meant it seriously. Our digital health<br />

records are more secure than keeping them in paper form would be.<br />

Take, for example, Michael Schumacher’s case, whose medical records<br />

The first Nordic cross-border IT-cooperation is already in place – Finland<br />

and Estonia will adopt the latest version of the Estonian-created data<br />

exchange layer X-Road, thus becoming the first two nations in Europe<br />

to develop a joint data exchange platform to make digital services mutually<br />

accessible for their inhabitants.<br />

The future of e-Estonia<br />

The Finnish-Estonian data exchange is the first time that another country<br />

has based its e-state infrastructure on a solution developed in Estonia,<br />

but <strong>Rõivas</strong> hopes that it will not be last.<br />

16<br />

LIFE IN ESTONIA #39 I 2015 FALL


‘The sky is the limit now. Everything is possible because the infrastructure<br />

behind Estonian information society e-services allows linking various<br />

e-service databases, both in the public and private sector, it is an<br />

open solution. Estonian e-solutions are unique in the world,’ he says,<br />

rejecting any suggestion that the ‘tiger’ is sleeping.<br />

<strong>Rõivas</strong> says that the Estonian national digital agenda spells out a package<br />

of next policy initiatives, from leading the development of crossborder<br />

digital public services – such as the one just introduced with Finland<br />

– and infrastructure to thorough redesign of many digital services<br />

towards greater user focus.<br />

‘We have to further develop our services, such as e-health, e-police,<br />

e-social services. There are many new steps to take – plus, we have to<br />

be sure that our e-services correspond not only to present challenges,<br />

but also that may arise in future – we have to be many steps ahead,’<br />

he goes on.<br />

One of the latest developments is a state-run, startup Estonian e-Residency<br />

– a state-issued, secure digital identity for non-residents which allows<br />

digital authentication and the digital signing of documents – thus<br />

moving clearly towards the idea of a country without borders. <strong>Rõivas</strong><br />

says that almost double the initial estimated amount of people have<br />

signed up to become e-residents of Estonia since the program’s launch<br />

at the end of 2014.<br />

The New Nordic<br />

Clearly appreciating the Nordic neighbourhood, <strong>Rõivas</strong> highlights the<br />

many similarities between Estonia and its Scandinavian neighbours, but<br />

he also identifies a few differences, as well.<br />

Set your time by Wooch - PM does it!<br />

The idea for Wooch was born in September 2014<br />

when four young men – Henri, Hallik Magnus Loos,<br />

Meelis Pihlap and Roland Sirg – decided to form a<br />

student company and produce watches. The young<br />

men’s mission is to offer the opportunity to experience<br />

time differently. The watches are beautiful, simple and of<br />

high quality. They have been handmade by the men themselves<br />

using oak – a symbol of strength and endurance. Each Wooch<br />

watch is unique and personal – each watch has its own pattern<br />

and story.<br />

One of the fans of Wooch watches is <strong>Taavi</strong> <strong>Rõivas</strong>, PM of Estonia,<br />

who has called it his favourite watch and who wears it with<br />

pride, often taking the opportunity to give it as a present to his<br />

colleagues. There are already three prime ministers in Europe<br />

today who wear the Wooch watch made by the best Estonian<br />

student company of 2015. In addition to the Estonian Prime Minister,<br />

the Italian PM Matteo Renzi and the Georgian PM Irakli<br />

Garibashvili.<br />

‘The Nordic countries are based on fundamentally strong values and<br />

are also very innovative. There is a certain rational attitude – and this is<br />

where Estonia definitely shares their values. But where we would like<br />

to do things a little bit differently or even better is to achieve an environment<br />

where our entrepreneurial culture is stronger and tax policies<br />

more flexible, than is generally the case in the other Nordics,’ he says.<br />

FALL 2015 I LIFE IN ESTONIA #39 17


I COVER STORY<br />

‘We have a very good reason why we need to find solutions where we<br />

need to be more innovative – we have not achieved the same living<br />

standard as the Nordic countries yet. Hence we have to try harder and<br />

our economic growth has to be concomitantly higher. But I believe that<br />

we can definitely achieve this,’ the Prime Minister optimistically states.<br />

<strong>Rõivas</strong> says there are a few advantages already that may help Estonia<br />

to catch up soon: ‘Estonia has for over 20 years conducted a very<br />

conservative budget policy – our public debt is the lowest in Europe.<br />

This is why we don’t need to put any pressure on companies, to tax<br />

them heavily – Estonia also has a long-standing system of low, simple,<br />

flat-rate taxes – and can invest more money into society instead. If<br />

we add here as little bureaucracy as possible to make the business<br />

environment as attractive as possible, the result is likely to be not bad<br />

at all,’ he says.<br />

The Prime Minister also stresses the importance of education where Estonia’s<br />

skills clearly qualify it as a Nordic country: ‘Where Nordic countries<br />

are also very strong is in education. And I’m glad that Estonia is<br />

also doing very well on this front, as the PISA tests show – for example,<br />

Estonian 15-year-olds rank second behind only Finland, and 12th out<br />

of 44 countries worldwide in problem-solving skills,’ <strong>Rõivas</strong> says.<br />

Governing over a country where kids start learning to code at the age<br />

of seven, the Prime Minister says more resources will be invested into<br />

IT-education: ‘Using computer before starting school will be as elementary<br />

as it was for us to know how to read or write before going to the<br />

first class.’<br />

But catching up with Scandinavia does not necessarily mean adopting<br />

Nordic-style welfare state, according to <strong>Rõivas</strong>: ‘There must be social<br />

justice, but Estonia cannot afford to be a country that is like a welfare<br />

state from the 20th century. The modern welfare state makes sure that<br />

everyone has fair chances. The help does not necessarily need to be in<br />

the form of financial support – it can provide opportunities instead –<br />

such as the case with Estonian work ability reform.’ he goes on.<br />

<strong>Rõivas</strong> is furthermore confident that 15 years from now, Estonia will<br />

have caught up with the Nordic countries completely. He says that his<br />

belief is based on the fact that Estonian society is built on solid foundation,<br />

with clear rules and business culture, topped up with forwardlooking<br />

innovation.<br />

‘In 2030, Estonia will be as safe and well protected, not to mention as<br />

wealthy as the Nordic countries, but even more innovative and flexible.<br />

This “New Nordic country” does not need to copy the other Nordic<br />

countries in everything. If we can be more open to new technologies as<br />

well as being more innovative – to be a test platform for new technological<br />

solutions, for example – then it is realistic that we catch up with<br />

the Scandinavian countries in wealth, too,’ he concludes.<br />

18<br />

LIFE IN ESTONIA #39 I 2015 FALL


Ruth Oltjer:<br />

Lady With a Mission<br />

By MARIKA MAKAROVA / Photos by OLGA MAKINA and private collection<br />

‘What are little girls made of?’ asks an Estonian children’s song.<br />

We ask the same question about one of the most talented businesswomen<br />

in Estonia – Ruth Oltjer. The answer is a sense of mission, professionalism,<br />

thoroughness, empathy, curiosity, eagerness to learn, femininity, and laughter.<br />

FALL 2015 I LIFE IN ESTONIA #39 19


I LAND & PEOPLE<br />

Ruth Oltjer<br />

Born 22 October 1959 in Tallinn.<br />

1978–1984 Faculty of Medicine, Treatment specialty,<br />

University of Tartu, Estonia.<br />

1988–1989 Cardiologist, University of Kaunas, Lithuania.<br />

1997–2002 International Business Administration,<br />

Denmark.<br />

1999–2001 Faculty of Economics, Master’s Degree,<br />

University of Tartu.<br />

2012 Estonian Entrepreneur of the Year<br />

Married to Andres Oltjer, mother<br />

of two grown-up daughters.<br />

‘I think that I save more lives today than I would be able to do as a<br />

doctor,’ says Ruth Oltjer without the least sense of self-promotion.<br />

The words ‘how can I help?’ are heard more than once during our<br />

conversation.<br />

‘Hundreds of thousands of lives could be saved each year, if hospital infection<br />

was under control. In addition to disinfecting and cleaning with<br />

antiseptics, this includes regulations to kill the viruses in the hospital and<br />

not transfer infections,’ explains Oltjer.<br />

Ruth Oltjer – whose educational background is in medicine and economics<br />

– is the combined founder, owner, manager and product developer<br />

of a small company called Chemi-Pharm, located in a leafy Tallinn<br />

suburb, and which produces disinfectant- and cleaning products as well<br />

as natural cosmetics.<br />

Caring about humanity and the environment, not just by its words but<br />

by its actions, has been the goal of this 18-year old company from the<br />

very beginning, exemplified by the fight against one of the biggest<br />

causes of death in many countries – hospital infection – which has been<br />

a major rallying cry for the company. If bacteria could feel fear, then the<br />

very name Chemi-Pharm would strike a huge amount of it in both the<br />

super-bacteria MRSA found in Indonesian and Malaysian hospitals as<br />

well as the Ebola virus, found in Sierra Leone.<br />

Mission Possible<br />

After malaria, tuberculosis and AIDS, hospital infection is the fourth biggest<br />

killer in the world, with some 7 million people dying and a further<br />

70 million becoming ill as a direct result each year.<br />

‘From the beginning, Chemi-Pharm has not only sold products but also<br />

offered training – a complete approach to how to develop and implement<br />

an infection control system both on the level of single institutions<br />

and on the level of the state,’ Ruth explains.<br />

In order to raise awareness about infections, Oltjer organises seminars<br />

in markets which are new for Chemi-Pharm, meets decision-makers at<br />

the state level and researches the local situation by visiting and advising<br />

hospitals and assisting with operations.<br />

In Indonesia, which has a very high death rate from hospital infections,<br />

Oltjer experienced the local situation first hand, operating together with<br />

an orthopaedist who had been trained in Sweden.<br />

‘We made 55 operations a day. It was like a production line: a dozen patients<br />

waiting in line and the medics moving from one to the other. One<br />

brigade prepared the patient, the second administered the narcosis, the<br />

third cut the wound open, we operated and the next team finished the<br />

operation. If just one patient has an infection, it is spread very easily,’<br />

she recalls her experiences.<br />

20<br />

LIFE IN ESTONIA #39 I 2015 FALL


Chemi-Pharm Ltd.<br />

• 1997 founded with Estonian and English capital<br />

• 2000 manufacturing started in Estonia<br />

• 2009, 2010, 2011, 2012, 2015 Certification of Estonian<br />

Successful Company<br />

• 2012 the exclusive cosmetics range D’Difference reached<br />

consumers. Certification of European Corporate Social<br />

Responsibility Award<br />

• 2014 turnover €3.85 million, profits €413 000.<br />

• 2015 I half-year export growth 45%<br />

• Over 100 products: disinfection agents, cleaning<br />

and maintenance products, natural cosmetics<br />

20 products with CE label<br />

• ISO 9001 certified in 2001, ISO 14001 certified in 2003,<br />

ISO 13485 certified in 2004<br />

• 17 export partners in most of the EU-countries,<br />

Russia, ex-Soviet countries, Asia<br />

• Headquarters and warehouse are in Tallinn<br />

• 30 employees.<br />

www.chemi-pharm.com<br />

In Malaysia, she witnessed a case where Norwegian doctors, after operating<br />

on twins born with a heart condition, admitted that even though<br />

their operation was a success, the children were likely to die of a hospital<br />

infection subsequently, since the hospital was unable to control the<br />

spread of it.<br />

And indeed as it turned out, a couple of days later, one of the twins<br />

caught the antibiotic-resistant MRSA and died (the other twin survived).<br />

Fortunately things seem to be moving in the right direction – the Malaysian<br />

state is prepared to develop an infection control system on the basis<br />

of European standards and they would include Indonesia. This means a<br />

total of 270 million people!<br />

Soul of a doctor<br />

‘Ever since I remember myself as a child, I was always playing the doctor.<br />

In primary school, when I was in the third grade, I dropped by the school<br />

nurse’s room every chance I got and she taught me to make injections<br />

and take blood samples,’ Ruth is very grateful to the woman who spotted<br />

her interest in becoming a doctor and really supported her.<br />

hospital during my studies, I sometimes needed to take my daughter to<br />

work. The department manager and nurses never said anything negative.<br />

I also had the best kid ever! She fell asleep straight away when put<br />

into her pram.’<br />

Dr. Oltjer, who completed her medical studies at the University of Tartu,<br />

is also a trained pregnancy therapist and light treatment doctor, founder<br />

of one of the first family doctor centres in Estonia and also active today<br />

advising patients with skin problems.<br />

We ask if going from medicine to business must have been a total life<br />

change? ‘No it wasn’t, though it did not happen overnight’, she explains.<br />

‘When I was already working as a doctor, I went back to the<br />

University of Tartu to study for a master’s degree in economics. I did<br />

think during the first lectures about whether I would make it through<br />

the course, because the only familiar word was ‘cycle’ and it wasn’t the<br />

type of cycle I was used to,’ she laughs, having eventually finished the<br />

degree cum laude.<br />

‘I have generally been very lucky with the people who are in my life,’ she<br />

says. ‘At university, my tutor allowed me to come to the lectures with<br />

my newly-born daughter; because my husband was in the army, I didn’t<br />

have an opportunity to leave my child. Also, when I was working in the<br />

She has done unexpected things before – at least it may seem so to others.<br />

She was the only girl in high school to study in the electronics class.<br />

According to Ruth it was engineer. Entering the business world came as<br />

a natural step, which was in the end due to health factors.<br />

FALL 2015 I LIFE IN ESTONIA #39 21


I LAND & PEOPLE<br />

In 2012, Ruth Oltjer was chosen the Entrepreneur Of The Year in Estonia. Each year, the Entrepreneur Of The Year<br />

country winners join together in Monaco to be inducted in to the World Entrepreneur Of The Year Hall of Fame.<br />

Better and different than competitors<br />

Working for fifteen years as a doctor, being regularly surrounded by very<br />

strong disinfectants and incidentally inhaling penicillin steam from boiling<br />

syringes, led to Ruth developing allergies and asthma.<br />

However, one day, when she was visiting a hospital in England, she<br />

discovered products which were not only odourless but which also did<br />

not irritate the skin. Initially she ordered them for herself and later on<br />

for her colleagues. At one point there were so many orders that she had<br />

to cut back on her working hours as a doctor in order to deal with the<br />

sheer volume.<br />

‘Giving up on improving old things and doing things better and in<br />

an innovative way whilst simultaneously caring about people and the<br />

environment – those are the key words behind the success of Chemi-<br />

Pharm,’ confirms the Estonian Entrepreneur of the Year 2012.<br />

‘We added silk protein into the antiseptics, thanks to which you can put<br />

on leather gloves immediately without having to wait ten minutes for<br />

the hands to dry. For conditions specific to Sierra Leone, we created liquids<br />

and gels which will protect hands for hours. Conversely, for those<br />

Islamic states where alcohol is forbidden, we have created water-based<br />

disinfectants – this was something that was never really paid attention<br />

to in the world before.’<br />

In 1997, Ruth Oltjer founded the company Chemi-Pharm together with<br />

her English partners and dedicated herself completely to business. In<br />

2000, they moved the product development and production to Estonia,<br />

in order to save on costs. Soon the company expanded to the other<br />

Baltic states and to Finland too.<br />

Today, the company has subsidiaries in Latvia, Lithuania, Malaysia and<br />

Singapore; distributors in Finland, Sweden, Norway, Austria, Russia, Poland<br />

and Pakistan. Products will soon be registered in Thailand and Indonesia<br />

and there are ongoing negotiations with Saudi Arabia, Kuwait<br />

and South Africa.<br />

Of the customer base of about 5 000, the main ones are medical institutions,<br />

dental practices and family medical centres, schools and<br />

kindergartens.<br />

Ruth feels comfortable in other cultural environments. But nonetheless<br />

she leaves nothing to chance, or at least she tries to reduce the amount<br />

of unknown factors to a minimum.<br />

Before going to her first business appointment in Singapore and Malaysia,<br />

she took a private training course from a local university which<br />

taught her how to do business as a foreigner in that environment.<br />

Oltjer also relies on the help of Estonian honorary consuls and embassies.<br />

And if a mistake happens – which can happen – for example she<br />

has attended a meeting in an Islamic country without covering her hair<br />

– she urges people to stay true to themselves.<br />

‘If you do things with a pure heart and with no malice, mistakes you<br />

make which arise from your own culture are generally forgiven,’ she<br />

explains<br />

22<br />

LIFE IN ESTONIA #39 I 2015 FALL


D’Difference by Nature<br />

A different approach is also evident in the newest ‘baby’ of Chemi-<br />

Pharm – the 100% natural exclusive cosmetics series D’Difference for<br />

both men and women, which came on the market in 2012.<br />

Officer (COO). Daughters Britta and Gretta have been active at Chemi-<br />

Pharm from early days. As teenagers, they helped to attach labels onto<br />

packages, as law students they offered legal advice. Whilst both daughters<br />

work for law firms today, they are still involved in the activities of<br />

their parents’ company.<br />

The real star of the cosmetic series are plant stem cells: ‘I had had contact<br />

with human stem cells before, but not with plant stem cells. They<br />

are incredibly similar! Incredibly!,’ Oltjer says with enthusiasm.<br />

‘We grow a plant stem cell and link it with the skin’s own bacteria so<br />

that it would nourish the skin stem cells with its own energy. The results<br />

are wonderful,’ she continues.<br />

These skin-renewing and elasticity boosting plant-derived stem cells,<br />

which stimulate collagen synthesis, come to Estonia from a laboratory in<br />

Japan. Our doctor met the lab owner in Singapore. The Japanese, who<br />

tend to consider Estonians as having a similar nature to themselves, had<br />

asked Ruth, after enduring many long meetings, whether it would now<br />

be possible to talk to the boss of the company!...<br />

I ask a fervent fan of Estonia who loves our marshes, algae from Saaremaa,<br />

pine tree wax and all the other natural products which can used<br />

for medicinal and other purposes, and who spends more than half a<br />

year travelling to business meetings abroad, where she gets her energy<br />

from? How does she relieve work stress?<br />

‘I have a white dog of my dreams – a young Swiss shepherd dog who<br />

gives me lots of energy, as well as having great daughters and a supportive<br />

family. I am a stranger to work stress for the simple reason that<br />

it is so crazily interesting all the time, and I also get to do what I love.”<br />

‘I guess sometimes they consider me to be the assistant to the boss,<br />

but not the boss herself! Now I have business cards, in two languages,<br />

printed on thick white paper and in golden letters, which I always give<br />

to them with the Japanese text on top. After all, secretaries do not have<br />

business cards in two languages,’ she laughs, reflecting on the peculiarities<br />

of doing business with the friendly Japanese people.<br />

Minerals found in the Dead Sea, which seems to incorporate the whole<br />

Mendeleev periodic table boast great skin healing and enhancing properties.<br />

Safflower oleosomes take care of the long-term moisturizing and<br />

nourishing of the skin, whilst anti-inflammatory plant extracts calm skin<br />

irritations stemming from the environment.<br />

Next to the ingredients, the right method is equally important. The active<br />

ingredients in the creams, masks, serums and other products by<br />

D’Difference are used as microsomes, which means it is known precisely<br />

how deep into the skin they penetrate, and what it is that they do there.<br />

‘Our product development team is so talented that we receive orders<br />

from many countries to develop recipes and technologies. We also have<br />

very close collaboration with several universities and laboratories in the<br />

world, for example in Canada, Japan, Finland and Singapore. As everybody<br />

puts their heart into this process, we also have good results,’ the<br />

manager acknowledges the contribution of her team. And why indeed<br />

shouldn’t one enjoy your work when you are taken care of as a member<br />

of the family?<br />

Family Business in Every Sense<br />

Chemi-Pharm is actually a family business, and in the direct meaning of<br />

the word as well as in a more general sense. Working hours are flexible,<br />

employees can take children or pets to work, and in summer lunch is<br />

enjoyed outside.<br />

Ruth’s husband, Andres Oltjer, an engineer by background, is the Manager<br />

of the Sales and Purchases Department in the company. Their Glasgow<br />

University-educated son in law Kristo Timberg is Chief Operating<br />

FALL 2015 I LIFE IN ESTONIA #39 23


I LAND & PEOPLE<br />

Oliver Wihler:<br />

the Expat<br />

Who Stayed By<br />

SILVER TAMBUR / Photos by ATKO JANUSON<br />

24<br />

LIFE IN ESTONIA #39 I 2015 FALL


Estonia, a tech-savvy and ever-globalising country,<br />

has lately been busy developing many initiatives<br />

to help and encourage foreign talent to relocate in<br />

the country. ‘Work in Estonia’, launched in April by<br />

Enterprise Estonia, is one of those ambitious<br />

welcoming programs that attempts to attract<br />

overseas professionals.<br />

But there are some expats who have been living and<br />

working in Estonia for a long time already – and seen<br />

the country’s transition through turbulent times to<br />

the more recent developments in joining the club of<br />

stable and relatively prosperous states.<br />

One of these is a programmer Oliver Wihler, originally from Switzerland,<br />

who works as a Coordinator of Development Teams at the Tallinn-based<br />

IT development branch of Kuehne + Nagel, the international logistics<br />

giant, which established an IT Center of Excellence in Estonia in 2013.<br />

‘There was so much noise in London – going out with colleagues at<br />

lunch, having a beer in the evening – there is a lot socialising. Conversely<br />

in Estonia, if you went out 15 years ago, there would usually be<br />

almost no one in the pub and there weren’t so many good restaurants<br />

back then either. Of course, these days, things have changed and there<br />

are many great places in Tallinn, and they are more busy too,’ Wihler<br />

says.<br />

His career in Estonia started with working for a small software company,<br />

which he helped to build up. Wihler then set up his own IT firm, which<br />

provided consultancy services, mainly for Finnish firms. The business<br />

grew fast, employing over 30 people in just two years, and it continued<br />

to do quite well for several years after that. However, as is often<br />

the case, problems came along, which eventually resulted in Wihler<br />

switching elsewhere, including a stint at Skype just before it was sold<br />

to Microsoft.<br />

Wihler first got to know Estonia purely by coincidence via a friend over<br />

15 years ago and soon afterwards found himself living and working<br />

here.<br />

‘I have to be honest – I didn’t know anything about the country beforehand<br />

because, when I went to school, Estonia was not even on the map.<br />

Of course, Estonia was in the headlines when it regained independence<br />

in 1991, but you sort of forgot that afterwards,’ he recalls.<br />

By the time Wihler visited Estonia, it was implementing some rapid economic<br />

reforms, its IT-tiger had started to roar, and the country was heading<br />

towards EU membership.<br />

‘When I first set foot here, a lot was already being transformed, but<br />

the contrast with Western Europe was still massive. Yet you could see<br />

that things were moving fast – there was a lot of change in the air and<br />

this was all very exciting, compared with Switzerland which is a great<br />

country, but was very static,’ he recalls, bringing to mind the dynamic<br />

atmosphere that first attracted him to come and try his luck in Estonia.<br />

What really sealed the deal for him, however, was high-speed Internet.<br />

‘I worked in London at the time, but you could only get dial-up internet,<br />

which was also expensive, over there, whereas in Estonia, I could get<br />

broadband piped into my apartment – and at a very affordable rate,’<br />

Wihler reminisces.<br />

He concedes that at the beginning, it was a big change of environment<br />

– from the hustle and bustle of London, with its active social networking<br />

– to the much more reserved Tallinn. But Wihler actually enjoyed<br />

that too.<br />

‘For me it was great – I got experience in people management, although<br />

I lost touch a little bit with the technological side of things,’ he says now.<br />

A few years ago, he landed his current position at Kuehne + Nagel,<br />

where he has been very satisfied with his career.<br />

This Swiss-based company with German roots accounts for roughly 10<br />

per cent of the world’s freight forwarding. Kuehne + Nagel had operated<br />

logistics side of its business in the country before, but in 2013,<br />

whilst looking for ways to boost the capacity of its existing Hamburg IT<br />

centre, decided to set up a department in Tallinn, responsible for global<br />

development. The company cited cultural fit, local talent and the high<br />

level of IT penetration as the reasons that favoured Estonia over other<br />

countries in the region.<br />

Wihler says that the company is super-happy in Tallinn – and so is he:<br />

‘It is very good to work for Kuehne + Nagel – it is a very professional<br />

environment. And the Estonian work ethic is very strong – people are<br />

curious and really want to know why we are doing something. As with<br />

everything here, the general rule is that people are very positive and<br />

really contribute actively to creating the software – the culture leans towards<br />

thinking, and this is what the company expected,’ Wihler notes.<br />

While he concedes that the work pace in Estonia is a little bit slower<br />

than in London, for example, this doesn’t somehow mean that people<br />

are less productive: ‘Perhaps because the environment is right, there<br />

aren’t many distractions which would slow someone down in a place<br />

with faster pace,’ he comments.<br />

In the meantime, sporty and energetic Wihler integrated well into Estonian<br />

society.<br />

FALL 2015 I LIFE IN ESTONIA #39 25


I LAND & PEOPLE<br />

‘Someone once told me that when you speak Estonian, you are Estonian<br />

– although I think that it is a bit harder than that. It does take time until<br />

people take you as their own. There are some Estonians who despise<br />

everything foreign. For example, I once got a call where an Estonian<br />

had a go at me for not speaking Estonian over the phone. He seemed<br />

sincerely upset, so it affected me a little bit,’ Wihler, who now speaks<br />

almost perfect Estonian, admits. But he emphasises that people are generally<br />

very welcoming in Estonia.<br />

moved to Estonia: ‘There isn’t much congestion on the roads here, unlike<br />

in Switzerland,’ he adds.<br />

Another asset, he mentions, is the clean air: ‘The clean air here is something<br />

you have to advertise; it is becoming a rarity in the world. And it’s<br />

the same with the clean water,’ he goes on.<br />

Wihler cites many reasons why he still is in Estonia, after all these years,<br />

and despite the fact that the sometimes unpredictable buzz of the early<br />

noughties that first attracted him, has been gradually been replaced by<br />

a more stable environment, just as in most other European countries.<br />

‘I have a bit of a nostalgic feeling about the Estonia at the peak of the<br />

change, but at the same time, it is great that the country has moved forward<br />

so much. Estonia needs to be proud of its success story,’ he says.<br />

Wihler expresses hope that Estonia stays flexible: ‘There’s the danger<br />

that people can get a bit complacent, but it is important not to rest<br />

on one’s laurels. I would like to see another startup becoming really<br />

successful, just a Skype was,’ he remarks, adding that by comparison,<br />

Switzerland is still creating its own start-up culture, whereas Estonia is<br />

clearly ahead on this front.<br />

Although he values his homeland Switzerland highly, Wihler appreciates<br />

the ease and speed with which he can get out of the town to a place<br />

where there is no one around.<br />

‘In Switzerland, it is not as easy as that,’ he notes, while insisting that<br />

the roads and infrastructure has improved immensely since he first<br />

In his day-to-day work, Wihler also deals with many foreign professionals<br />

who have also relocated to Estonia, and he is surprised how efficient<br />

the immigration services have become.<br />

‘When dealing with public services in Estonia, they are all so good, but<br />

especially the immigration services – they are super nice, super polite,<br />

and super-efficient. Even the restaurants are not better here,’ he laughs.<br />

He notes that a lot of this competence comes down to proper training,<br />

which he puts a lot of emphasis on.<br />

Over the 15 years he has been here, Wihler has seen many changes in<br />

Estonia, but there are some fundamental constants that have kept him<br />

here throughout.<br />

‘The quality of life is really high here now: you have almost a frictionless<br />

society, nice restaurants, clean air. Yes, the prices are also higher<br />

now – occasionally I’m surprised that they can be so high, especially<br />

in restaurants and hotels – but sometimes you don’t want to be seen<br />

as cheap country; too cheap is worse than too expensive,’ he remarks.<br />

Wihler says that what really matters is that the level of professionalism is<br />

really high: ‘Lots of companies have very good business etiquette here in<br />

Estonia. Honesty, respect, trust – that is why I’m still here,’ he concludes.<br />

26<br />

LIFE IN ESTONIA #39 I 2015 FALL


Become an e-Resident of<br />

Estonia. Online, of course<br />

Can you guess the one thing that connects Japan’s Prime Minister<br />

Shinzo Abe, The Economist’s editor Edward Lucas and president and<br />

CEO of Swedbank Group Michael Wolf? No? Well, they and more than<br />

4 200 other foreigners are all e-residents of Estonia.<br />

Global investors Michael Jackson, Paul Bragiel<br />

and Fadi Bishara (middle) after receiving their Estonian<br />

e-Residencies with e-Residency Program Director<br />

Kaspar Korjus (left) and the CIO of the Estonian<br />

Government <strong>Taavi</strong> Kotka (right)<br />

Last year, in October 2014, Estonia first introduced the idea of e-Residency<br />

and the interest was huge – almost immediately over 4 000 followers<br />

signed up see where this ‘crazy idea’ would develop. Now, over<br />

18 000 prospective e-residents worldwide have subscribed to the program<br />

newsletter.<br />

Today Estonia already has over 4 200 e-residents and currently several<br />

hundred are waiting for their e-Residency approval. There have been<br />

applicants from 113 countries, almost a half of them from neighbouring<br />

countries such as Finland and Russia, but also from much further afield<br />

places like Italy, India or the United States.<br />

Although the project managers of e-Residency dared to predict as many<br />

as 2 000 e-residents by the end of 2015, it is obvious that the number is<br />

going to exceed their wildest dreams, and reach a level more like 10 000.<br />

One of the advantages, and the key reason why applications are booming,<br />

is because it is so much easier to apply compared with what it was<br />

at the beginning. At the time of writing (May 2015) it is possible to apply<br />

for e-Residency online. You can also choose your desired pickup location:<br />

one of 38 Estonian embassies and consulates around the world,<br />

or an Estonian Police and Border Guard Board service point.<br />

Note that these people are not and will not become physical citizens of<br />

Estonia, nor will they become residents of Estonia. They will not necessarily<br />

become tax residents either and the e-resident digital ID is not a<br />

physical identification or a travel document.<br />

So what are the benefits of e-Residency and why do people apply? Since<br />

e-Residency is a platform for advanced government and business services<br />

which is open to virtually everyone on the planet, e-residents will<br />

have access to one of the world’s most advanced set of e-services, a<br />

set that this small Baltic country has been developing since the 1990s.<br />

e-Residency is likely to attract a veritable swarm of business entrepreneurs,<br />

freelancers and fans of the digital society in a way that can turn<br />

the whole idea of being a small country on its head.<br />

Estonia’s unofficial motto is that states can become bigger than the sum<br />

of their physical residents. Plus it would be a good idea to move your<br />

business to Estonia if you are interested in low amounts of red tape<br />

and high quality of e-services. And we already have some numbers to<br />

prove that the scheme is working – new e-residents have created 93<br />

companies in Estonia already, and altogether there are 284 companies<br />

in Estonia where e-residents are involved.<br />

FALL 2015 I LIFE IN ESTONIA #39 27


I STATE AND SOCIETY<br />

e-residents can create companies in minutes as opposed to the days or<br />

even months that the process can take in some regions of the world.<br />

They can administer their companies and assets in a hassle-free manner<br />

from anywhere in the world. They can sign and verify the authenticity of<br />

signed documents digitally without travelling. If they need to pay taxes<br />

in Estonia, they can take advantage of the world-famous Estonian tax<br />

interface which makes declaring taxes so easy that the whole process is<br />

over in only about five minutes!<br />

You can already access online payment service providers, and conduct<br />

e-banking and remote money transfers by establishing an Estonian<br />

bank account. Opening an account currently requires one in-person<br />

meeting at the bank, and is at the sole discretion of banking partners.<br />

The current list of basic services is growing rapidly, but the very success<br />

of Estonia’s e-Residency program depends on government and private<br />

sector cooperation in creating new applications.<br />

Currently several banks and start-ups are working on innovations that<br />

will make their services available to e-residents. At the beginning of<br />

September there was also an event called ‘Garage48 e-Residency’,<br />

where Garage48, Enterprise Estonia, the Ministry of Economic Affairs<br />

and Communications and the Information System Authorities teamed<br />

up to create an international e-Residency hackathon.<br />

‘Our goal is to draw attention to the fact that all developers and service<br />

providers are welcome to develop services to the open digital identity<br />

platform. The e-Residency platform could in many aspects be compared<br />

with the Apple App Store, as it allows to create many needed services<br />

to e-residents. It is very important that the new customer base is<br />

recognised by the developers and service providers, who may already<br />

offer their services to e-residents,’ says <strong>Taavi</strong> Kotka, the Government<br />

CIO, Deputy Secretary General of ICT at Ministry of Economic Affairs<br />

and Communications for Estonia.<br />

If this has whetted your appetite to find out more, and to get further<br />

instructions on how to apply, you can visit the e-Residency website at<br />

e-resident.gov.ee and start your application. It will cost you just €50 in<br />

state fee and a credit card processing fee of €0.99. We guarantee that<br />

this is worth it.<br />

Over the next few pages we will introduce you some notable e-residents<br />

of Estonia who are already using the benefits and helping us to revolutionize<br />

the world!<br />

e-residents receive a smart ID card which provides:<br />

• Digital identification and authentication<br />

• Digital signing of documents<br />

• Digital verification of document authenticity<br />

• Document encryption<br />

Estonia invites developers to integrate the secure<br />

and simple open ID platform with services requiring<br />

digital authentication and document signing.<br />

Choose your desired pickup location – one of 38<br />

Estonian embassies and consulates around the world,<br />

or an Estonian Police and Border Board (PPA) service point.<br />

Ottawa / Canada<br />

New York City / USA<br />

Washington D.C. / USA<br />

Helsinki / Finland<br />

Oslo / Norway<br />

St. Petersburg / Russia<br />

Riga / Latvia<br />

Stockholm / Sweden Vilnius / Lithuania<br />

Copenhagen / Denmark<br />

Moscow / Russia<br />

Minsk / Belarus<br />

London / United Kingdom Berlin / Germany Kiev / Ukraine<br />

Dublin / Ireland<br />

Varsaw / Poland<br />

Brussels / Belgium Prague / Czech Rep.<br />

Astana / Kazakhstan<br />

Paris / France Vienna / Austria<br />

Lisbon / Portugal<br />

Tbilisi / Georgia<br />

Rome / Italy<br />

Madrid / Spain<br />

Ankara / Turkey<br />

Tel Aviv / Israel<br />

New Delhi / India<br />

Cairo / Egypt<br />

Bejing / China<br />

Tokyo / Japan<br />

Shanghai / China<br />

Brazil<br />

Canberra / Australia<br />

28<br />

LIFE IN ESTONIA #39 I 2015 FALL


Finnish Entrepreneur Advises<br />

Fellow Finns to Become<br />

e-Residents<br />

Simo Hämäläinen (35) is not an Estonian<br />

e-resident, but he has lived in Estonia for seven<br />

years. He runs his bookkeeping company, Profia<br />

Arvestus OÜ, from Estonia and owns a residence<br />

permit. However he has daily contact<br />

with foreigners who have invested in Estonia<br />

and who are interested in doing business here.<br />

As soon as Simo heard about the idea of e-Residency,<br />

he began to recommend it to his clients<br />

and to assist in making applications, hence by<br />

now he is well aware of the advantages and<br />

disadvantages of e-Residency.<br />

‘Since, in addition to my own company which<br />

offers consultancy services, I organise training<br />

events on doing business in Estonia, I think<br />

that within those training sessions alone I have<br />

helped around a hundred entrepreneurs who<br />

have applied for e-Residency.<br />

There are also many people who are considering<br />

it,’ he says. Simo says that in addition to businessmen,<br />

there are ‘IT-geeks’, in a positive sense,<br />

who are just interested in the process without<br />

actually having a big need for it.<br />

During his years in Estonia, Simo Hämäläinen<br />

has managed his company himself and he<br />

has had an Estonian ID card from the very<br />

beginning.<br />

‘You could say I’m a serial entrepreneur,’ he<br />

continues, adding that he had already founded<br />

several companies in Finland. Profia Arvestuse<br />

OÜ is a service which helps investors who<br />

are interested in investing in Estonia. Simo’s<br />

main customers are companies based on Finnish<br />

capital who want to come to Estonia.<br />

The entrepreneur claims that e-Residency is a<br />

great initiative, which enables the easing of<br />

administrative processes, and that all his customers<br />

to date have been impressed with the<br />

speed of such processes.<br />

Even now when there are more applicants<br />

than the e-Residency team is able to process,<br />

meaning they call upon people to be patient<br />

as it may take more than one month to review<br />

applications, Simo says that it is still impressively<br />

quick how things function in Estonia. He<br />

realizes that the e-Residency project is still in its<br />

initial phase and there are many good things<br />

to come: ‘At first there was more hype around<br />

the project when the service itself had not yet<br />

really developed. But the fact that they managed<br />

to get so much interest in e-Residency<br />

demonstrates what a good reputation Estonia<br />

has as an e-state, and how much it has already<br />

proven itself.’ To be more specific, Simo<br />

enumerates the real benefits of the project as<br />

follows: the fact that a non-Estonian citizen<br />

can log into a bank account and use internet<br />

banking services and carry out transactions is<br />

a massive plus.<br />

Furthermore, a lot of time is saved in signing<br />

contracts with the whole digital signature<br />

opportunity.<br />

However, his clients have also experienced<br />

some misunderstandings. As an example he<br />

cites the chance of tax risks arising, in which<br />

case the Estonian Tax and Customs Board<br />

should advise e-residents from the very beginning<br />

and to map potential risks.<br />

At the same time, Estonian tax officials cannot<br />

really say for sure how tax officials of another<br />

country interpret local laws.<br />

‘It is an especially unfortunate case if a company<br />

is run from another country and unexpectedly<br />

it incurs tax duties in two states. Of course<br />

much depends on the kind of tax agreements<br />

that states have with one another,’ he explains.<br />

Also the so-called digital ID code which one<br />

receives with e-Residency is not a real proof of<br />

identity when things have to be organised outside<br />

the virtual environment. Third, Simo urges<br />

the leaders of the e-Residency project to really<br />

promote and introduce it in other countries so<br />

that those countries will adopt a similar thing.<br />

‘An ID card, electronic voting ‒ it is all modern<br />

infrastructure and this know-how should<br />

be shared. In addition it is important that, next<br />

to the state, the private sector is also active<br />

Simo Hämäläinen<br />

in creating services for e-residents because it<br />

makes the local business environment more attractive,’<br />

Simo goes on.<br />

Simo’s company offers accounting services,<br />

various consultancy services in taxation or in<br />

applying for activity licenses. They take care<br />

of paperwork, invoicing, notary appointments<br />

and taxes and also provide an address service<br />

and accounting service, so you can start business<br />

operations right away.<br />

Profia accounting service includes for instance<br />

accounting entries for all economic operations,<br />

submission of tax declarations, preparation of<br />

financial statements, annual statements, salary<br />

calculation and preparation of reports to Statistics<br />

Estonia and other services.<br />

Simo says that the outsourcing of accounting<br />

is also modern and cost-efficient way to<br />

save money on fixed costs: ‘I started to advise<br />

my friends about business activity in Estonia,<br />

and in the end there were so many enquiries<br />

that I got the idea to start a company to offer<br />

my services. There were no competitors in the<br />

market at the time.’<br />

Simo works with a team of five people, but<br />

says that he has managed to create a much<br />

larger collaboration network, including banks,<br />

law firms, public organisations, in other words<br />

all the involved parties necessary for business<br />

activities.<br />

FALL 2015 I LIFE IN ESTONIA #39 29


I STATE AND SOCIETY<br />

e-Residency<br />

Saves Time on Travel<br />

and Printing<br />

Finnish entrepreneur Jorma Tuomainen (32) says that he applied for e-Residency<br />

as soon as possible because he already had a company in Estonia and<br />

is planning to relocate here altogether in the near future. Now he wants to<br />

make the preparations for the move easier.<br />

‘e-Residency helps me run my company without constant travel, visiting notaries<br />

or printing, signing and scanning stacks of paper,’ he says.<br />

His company, Nordic Server Management (NSM), carries out server management<br />

for mostly web-based systems.<br />

‘Our clients are either software companies that want to provide full support<br />

(software+servers) for their clients or companies with an internal software<br />

development team, but no full-time system administrator or people<br />

to respond to incidents, and carry out continuous monitoring of services,’<br />

outlines Jorma.<br />

Stanislav Yurin<br />

Ukrainian Wants to<br />

Hold International<br />

Art Auctions via<br />

Estonia<br />

Stanislav Yurin (32) is from Ukraine and has been active in the ITbusiness<br />

for over 14 years in the country’s capital Kiev. Recently, after<br />

the remote registration service was introduced this spring, he also applied<br />

for e-Residency. His plan is to create an art selling auction service.<br />

‘Currently I’m running my own small IT consultancy service and also<br />

exploring different opportunities in internet businesses. Since I have<br />

been active for quite a long time, my ventures have ranged from mobile<br />

applications to work services and now we are looking into the idea of<br />

creating an art selling auction service’ he explains. The service is still a<br />

small venture since it is self-funded and the creators are exploring this<br />

side of the art world step by step. Yurin says that the need for such<br />

service stemmed, as they usually do, from a personal need: ‘My wife is<br />

an artist and we started selling her paintings. We have talked to different<br />

artists around Ukraine and worldwide, who would like to take part<br />

in such, more centralised auction service,’ he says.<br />

Before this, Yurin was also running and helping to do the accounting for<br />

various Ukrainian businesses and also has experience also with running<br />

US companies.<br />

Right now NSM is registered with a Finnish business ID, since most of its<br />

business is carried out in Finland by people physically in Finland: ‘This will<br />

of course change when I move to Estonia, since the company remains<br />

the same but tax residence will switch from Finland to Estonia,’ continues<br />

Jorma.<br />

‘I’m aware of services provided by Cyprus, Latvia or Belize for different<br />

kinds of international businesses. Although the IT-business is very well<br />

established in Ukraine and we have a large amount of qualified professionals<br />

here, problems occur when small companies try to run themselves<br />

internationally. We have very tight regulations and strict payment<br />

systems,’ Stanislav goes on. He describes two options that are usually<br />

available to small businesses: one, to fly to a well-developed country<br />

such as the UK and open a bank account and every time, when having<br />

any problems, you always have to buy a ticket and fly at short notice or<br />

use pricey and fragile remote legal services.<br />

‘This is quite expensive for a self-funded small business’ he warns. The<br />

second option is common to off-shore services like in Panama or Belize,<br />

but these schemes are not very well-regarded in most industries…<br />

‘So when I heard about the Estonian e-Residency service, I thought it<br />

would be somewhere in between these two options that I just described<br />

[above]. Estonia is a well-respected country in the EU, and has access<br />

to international IT markets, also well-established payment system and<br />

other IT services. Estonia is also situated quite close to Ukraine, so in<br />

case of problems, it would be cheaper to travel there,’ Yurin says.<br />

While this magazine was in the production stages, Yurin was still waiting<br />

for his e-Residency card, which he could pick up from the Estonian<br />

embassy in Kiev, and he was already looking forward to start benefiting<br />

from it.<br />

30<br />

LIFE IN ESTONIA #39 I 2015 FALL


Tuomainen adds, that right now he mostly uses e-Residency for updating<br />

records and signing contracts.<br />

‘Since I already had my company before e-Residency, I needed to visit<br />

the notary to get my new ID code to register a business, but I haven’t<br />

yet visited my bank to get my ID code added to their records instead of<br />

my Finnish personal ID. I have also heard that taxes are easy to file while<br />

being an e-resident, but I leave business taxes to professionals.’ he says.<br />

Jorma Tuomainen<br />

Yet there are already some details that even an occasional user like Jorma<br />

misses – like automatic information sharing: ‘It would be really nice<br />

if there were tick boxes in the e-Residency application which would<br />

switch from my old ID to the new in, for instance, the business register,<br />

with Swedbank etc., and the system would automatically notify selected<br />

institutions about ID change,’ suggests Tuomainen.<br />

‘This of course is no problem if you apply first for the e-Residency and<br />

then set up a company and bank account,’ he goes on.<br />

Tuomainen also believes that people from all over the world who live in<br />

unstable countries with dysfunctional business registration systems will<br />

be obvious candidates for Estonian e-Residency in the future.<br />

From Challenging<br />

Palestine to<br />

Tech-friendly Tartu<br />

Lama Mansour and Ismat Tuffaha are two young Palestinians who<br />

are managing their start-up Bold Knot (Bold Gadgets OÜ) from Estonia,<br />

in Tartu. They describe the product as ‘the world’s fastest phone charger,<br />

on a keychain’, effectively a USB battery pack that can be attached to<br />

a keyring.<br />

With relations between Palestine and Israel being as they are, the Palestinian<br />

start-ups residing in the region also face major challenges, since<br />

the bureaucracy goes through Israel. But Bold Knot, after being crowdfunded<br />

on Indiegogo for almost US$70 000 (the sum they initially aimed<br />

for was only US$15 000), reached out to Estonia, and found for themselves<br />

an accelerator, BuildIt. The guys then applied for e-Residency and<br />

are now full time e-residents.<br />

‘We are happy about having the e-Residency card, because we know it<br />

will be there for us when signing business deals and contracts or adjusting<br />

any information at the notary even if we were not physically present<br />

in Estonia,’ says Bold Knot product manager Lama Mansour. ‘We<br />

mostly use the services for internet banking. In Estonian banks, we can’t<br />

send more than €200 a day except through using the e-Residency card.<br />

Bold Knot<br />

I imagine that it would be particularly helpful if we were away from<br />

Estonia and we needed to sign company deals or papers; in that case<br />

it would be really handy. However she says that sometimes an evident<br />

drawback is that in an advanced tech world where everything is digitalized,<br />

using the e-Residency becomes complicated because it is a physical<br />

card and needs a physical card reader to use it: ‘Plus, you have to have<br />

the I-digital software installed on the laptop to be able to use it. This<br />

means that you won’t be able to use it anywhere and any time you want<br />

if you didn’t have these three elements [ie. the card, the card reader, and<br />

the software] plus the card’s two PIN numbers,’ explains Lama.<br />

The managers of the e-Residency program have already said that while<br />

Estonian citizens can use mobile-ID for transactions instead of the ID<br />

card and readers, they are trying to provide the same service also for<br />

e-residents within half a year.<br />

‘But I think it mainly facilitates things for us when we have to carry out<br />

any applications, like applying for residency, because they will have all<br />

our information and signatures stored at the Police and Border station,’<br />

concludes Lama.<br />

FALL 2015 I LIFE IN ESTONIA #39 31


I ECONOMY AND BUSINESS<br />

Ravi Belani:<br />

Even a New World War<br />

Will Not Stop the Pace<br />

of Innovation! By Holger Roonemaa / Photos by Raigo Pajula<br />

Why have so many Estonian companies won a coveted place in Ravi Belani’s<br />

highly regarded Alchemist accelerator? What is the likelihood of<br />

the Estonian e-Residency program conquering the world?<br />

Where is innovation heading and what will the next technological<br />

breakthroughs be? ‘Life in Estonia‘ met up with Belani during<br />

Estonia’s Friends International Meeting and looked for answers<br />

to these questions.<br />

32<br />

LIFE IN ESTONIA #39 I 2015 FALL


How aware are you of the e-Residency program and<br />

the concept of a governmental startup?<br />

I was not aware of it before. I had heard of it, of course, but I didn’t<br />

really know what it meant. I think it’s a fascinating idea though. What<br />

is really cool about it is that now other European countries are trying<br />

to adopt the same model. The question will become about what is the<br />

advantage of being an Estonian e-resident versus being a Finnish e-resident.<br />

It becomes a case of branding, services and constant innovation.<br />

What do you think about the concept that tomorrow,<br />

governments will be competing with each other for<br />

people, ie. for talent?<br />

I think it is fantastic that governments will compete for talent. It creates<br />

accountability to the governments and better services for consumers. I<br />

welcome that wholeheartedly. This actually bodes very well for countries<br />

that can move quickly. It also creates a better distribution of resources, if<br />

the best talent can go more fluidly to the best governmental programs.<br />

So straight off the bat, you had to pay 500 000 dollars just to start a<br />

company. Now Moore’s law has been applied to this sector as well. It’s<br />

literally a hundredth of the earlier cost now, because you can for example<br />

do it via Amazon as a service.<br />

So, the world is fragmenting differently. Instead of having these vertically<br />

integrated things, things are becoming horizontal. This is what <strong>Taavi</strong><br />

Kotka (Estonian government CIO) was talking about – can Estonia be a<br />

service? You can be anywhere in the world and being an Estonian is no<br />

longer specifically tied to Estonia as a locale.<br />

What’s fascinating is that you are seeing lots of localized differentiations<br />

in very personalized ways that never existed in the past, because all the<br />

hardware has been commoditized and all the infrastructure has been<br />

commoditized. At the same time, this hyper-localized differentiation is<br />

finding global communities around the world. That’s really fascinating!<br />

You can have Angry Birds start in Northern Europe and then spread all<br />

around the world and become a phenomenon.<br />

Right now there are so many people that are held captive by circumstance<br />

– by where they were born or the governments that they serve.<br />

This can happen on a dramatic scale. You can see an impoverished kid<br />

in India – where I am from; they are just born into that situation unfortunately.<br />

But it can even happen on a more local scale. You can be a top<br />

entrepreneur in a neighboring Baltic state, but you would still feel the<br />

need to become an Estonian e-resident. Fluidity is always good!<br />

There are lots of software startups, hardware startups,<br />

‘Internet of Things’, startups all around Europe<br />

and the States. Is there a different category for<br />

governmental startups or is the Estonian e-Residency<br />

startup a unique one?<br />

It couldn’t have been created anywhere else in the world. TransferWise,<br />

Skype all these companies are uniquely Estonian. They had to be born<br />

here, but they influence everything else. The idea of governments having<br />

competitive advantage is very interesting.<br />

Let’s say the e-Residency startup applied for a position<br />

in the Alchemist accelerator. Would it make it?<br />

Yes, it could. The question is what the vision of the people behind the<br />

e-Residency startup is of what they will become, and whether the government<br />

is a liability or an asset. If there is a way that they can exploit<br />

the services of a government, and have an unfair advantage in that, I<br />

think that would be fascinating.<br />

The idea of government competitive advantage is an interesting thing. I<br />

run an accelerator. There are tons of accelerators around the world and<br />

every region is trying to differentiate by competing on some differentiation.<br />

Usually it’s vertical.<br />

The thing that we tend to get scared about with businesses that are<br />

built on governments is that the system ultimately has the power. Facebook<br />

has had all these third party apps built on top of that and thus<br />

Facebook has slowly shut down their APIs and killed those companies.<br />

In Estonia there’s a gaming accelerator for example. You have to start<br />

somewhere to create an ecosystem of expertise. This is a classic strategy<br />

in any private industry, and I think that more than any time in the past,<br />

corporations are thinking of innovation in different ways, as are regional<br />

governments for that matter.<br />

I do think it’s a trend that’s accelerating. What’s happening in the world<br />

right now is that fixed costs are not as pronounced as they were in the<br />

past. What I mean by that is that you had to have really high fixed costs<br />

in terms of resources and labor. Ten years ago the bottleneck of starting<br />

a company was that you literally had to buy an Oracle database, so you<br />

had to have a database administrator. That hardware would cost you<br />

250 000 dollars minimum, then you’d have to pay 150 000 dollars for<br />

the administrator on top of that.<br />

So it’s always dangerous whenever you’re building on top of the platform<br />

precisely because you’re so dependent on the platform. If there<br />

was a company that would be able to make a ton of money off of<br />

Estonia’s services, the danger might be that if the Estonian government<br />

saw how much money they were making and then said ‘we need to<br />

take some of that income’…<br />

But you would own five per cent of e-Estonia!<br />

(Laughs.) That’s true! That would be attractive!<br />

And then you could sell it to Russia!<br />

Yeah, it would be very valuable for them!<br />

FALL 2015 I LIFE IN ESTONIA #39 33


I ECONOMY AND BUSINESS<br />

Let’s talk about Alchemist. I think there have been<br />

at least five companies in Alchemist that have<br />

an Estonian background?<br />

We’ve had Secured 3D and John Dogru, then we had Erkki Brakmann<br />

who is the CEO of DeltaBid, we also had Scoro and Fred Krieger and<br />

then Jürgo Preden who did Defendec. Opennode also got an offer to<br />

come and join us, but they never came.<br />

So that’s roughly five per cent of your companies.<br />

That’s a lot, isn’t it?<br />

That’s right. We’ve had around 100 companies altogether and Estonia is<br />

definitely the number one country from Europe. We’ve had three Danish<br />

companies, they’re second best.<br />

Why is that?<br />

We only do enterprise startups, so we’re not interested in consumer<br />

startups. I wasn’t planning on just admitting Estonian companies, but<br />

there is a very strong synergy between Estonia and the Alchemist in a<br />

couple of ways. One is that Estonia creates enterprise startups placed<br />

on real value.<br />

In the Valley the sexy thing is to do hot consumer startups and, of<br />

course, Estonia has created great consumer startups like Skype, but I<br />

think there is something in the work ethic here due to which Estonians<br />

see value in B2B software. Culturally this is a little bit unusual! In Silicon<br />

Valley most people would say the sexy thing is to do a dating app!<br />

When you’re in a B2B startup, it is much clearer<br />

where the money will come from. Maybe that’s<br />

part of the reason?<br />

Yeah. You’re focused on driving money and ROI (return on investment).<br />

I think that’s an Estonian cultural ethic that puts a lot of value on clear<br />

ROI. The second thing is that we only admit deeply technical teams and<br />

our program focuses on sales and marketing. A lot of Estonian companies<br />

are very strong technically, but they are also not too good in sales.<br />

There’s a strong need to have that sales training and have that access<br />

to the US market. Estonia is very transparent, there’s a hard work ethic,<br />

there’s honesty in how everything gets done. That is incredibly refreshing<br />

and nice. I don’t want to make generalizations but in general when<br />

we meet an Estonian company, we don’t question if what they’re saying<br />

is true or not true. We know that Estonians are very honest and to<br />

reiterate, that’s really nice.<br />

Do I get it right that the Alchemist is like a boutique<br />

accelerator? You don’t have hundreds of positions<br />

in your rounds?<br />

We differentiate based on quality not quantity. We will do 16 companies<br />

per class and we pride ourselves on being a premium accelerator. Y<br />

Combinator, which is the more famous accelerator, had 120 companies<br />

in their last class. So, as Y Combinator has had 120 companies in 12<br />

weeks, Alchemist has 16 companies in 6 months. We are very selective<br />

about the companies that we admit and we differentiate by offering a<br />

much more personalized, curated experience than some of the other<br />

accelerators.<br />

34<br />

LIFE IN ESTONIA #39 I 2015 FALL


Can you give me an idea about what<br />

the competition to get a place is like?<br />

a large timeline, you won’t find a sign of the Great Depression. Where<br />

was World War II? You couldn’t tell.<br />

We accept about five per cent of applicants. Usually we have around<br />

800 applications a year for around 40 seats.<br />

Can you give me some examples of<br />

any success stories?<br />

I don’t care if even we have another World War. The question is not<br />

whether innovation continues. It will. The only question is the issue of<br />

the price that you will get for that innovation. The valuations can fluctuate<br />

and when the market contracts, it can be a good thing in some<br />

sense. There’d be less competition, less capital that comes in.<br />

We’ve had 82 companies that have graduated, 41 have raised institutional<br />

capital, and eight have gotten acquired. Our first class graduated<br />

two years ago, so that’s not too bad a result. It’s hard to measure<br />

success yet though, because the oldest companies are just two years<br />

out of the program. In my opinion, acquisitions are not a good way to<br />

measure success. We don’t like our companies to be acquired. We’ve<br />

had companies that have raised 10 million dollars in capital – for example<br />

Cambrian Genomics, who are doing a DNA laser printer. Basically<br />

they print life.<br />

What does it mean, ‘print life’?<br />

You have computer scientists that can create fictitious genomes on their<br />

computers. If this or that genome existed, it would theoretically create<br />

a certain kind of protein or an organism, but – so far it’s all just on a<br />

computer.<br />

Right now it is very expensive to create a DNA string. It costs a dollar per<br />

base pair and there are billions of base pairs you’d need to create. What<br />

Cambrian Genomics is building is like a 3D printer for DNA. They can<br />

print a base pair for a penny. So people will e-mail them their genomes<br />

and their product that they ship back is a real DNA. Their first products<br />

are life forms that have never existed before.<br />

Is that even legal?<br />

It’s very scary, but as long as the genome is owned by the person who<br />

sends the material, there’s no regulation against it. Cambrian’s first<br />

product was a plant. Someone had put jellyfish DNA inside of a plant<br />

so the plant would fluoresce. You could plant it in the developing world<br />

where there is no electricity. The idea is that you would be able to read<br />

via the light it generates. The company raised 10 million dollars, and<br />

they are creating a product that is literally changing the world.<br />

You’ve said in one of your previous interviews<br />

that you don’t care much what the economy does<br />

because innovation and technology will always go<br />

on at their own pace. Given what’s going on in China,<br />

in Greece … Well, you seem to be really confident?!<br />

I don’t have to be confident. I just know that engineers don’t stop innovating<br />

just because the euro has deflated or China’s market went<br />

down a few percentage points. From a technical standpoint, technology<br />

is literally immune to all of that. It doesn’t matter if China drops<br />

another five per cent tomorrow. Innovation is going to continue. That’s<br />

just Moore’s law. If you look at Moore’s law and you map that out on<br />

It’s more difficult to be a mercenary when the markets are tight, because<br />

you can’t really do a startup just for the money. Right now, when<br />

the markets have been really hot, you have a lot of people that are like<br />

‘oh should I do investment banking? No, I wanna be a startup guy!’.<br />

Because startups are the cool thing; this is sort of nice but it also creates<br />

a problem, because you have all these people that are going into the<br />

market that are not really passionate, and they create noise and competition.<br />

I actually think that when the markets contract, I will enjoy it<br />

more in some sense.<br />

If I wanted to talk about an innovation bubble,<br />

you wouldn’t agree with me that such a thing<br />

might even exist?<br />

I don’t think there’s a bubble around the technologies. It is just a question<br />

of the valuations that people are giving for the startups, and also<br />

the fact that these valuations aren’t real. A lot of founders don’t know<br />

that when someone says Uber is worth 50 billion dollars, it isn’t necessarily<br />

really worth that. When someone values Uber at 50 billion dollars,<br />

they’re putting all these terms on their money that whatever amount<br />

they invest, it gets to be paid out first. This is not the same as a public<br />

market valuation. I do think there have been a lot of incredibly generous<br />

valuations that have not a function on the core technology but have a<br />

function on the markets and that there will be a contraction on that.<br />

Isn’t it a bit contradictory that on one hand<br />

the cost of establishing and running a startup<br />

has become so low, but at the same time<br />

the evaluations are rocketing?<br />

This is the really, really, fascinating thing about startups today. It has<br />

never been cheaper to start a company and for the companies that<br />

have become winners, the revenue ramps are steeper than they have<br />

ever been before. So this is the conundrum – there’s actually more value<br />

being created than ever before in the past.<br />

This is not a zero sum game. It’s not like it’s only a certain amount<br />

of value and now the cost of starting companies is going down and<br />

so the value should go down. Yes the costs are going down, but the<br />

amount of value being created is also an order of magnitude bigger<br />

than it was in the past. Slack is a classic example. This is the hot, new<br />

company that’s coming out of the Valley now that you are going to<br />

hear about in six or 12 months. This is the new Skype. If you look at<br />

how long it took Skype to get to a certain number of users, this has<br />

all been eclipsed by Slack.<br />

FALL 2015 I LIFE IN ESTONIA #39 35


I ECONOMY AND BUSINESS<br />

From being founded to becoming 18 months old, Slack went from a<br />

value of zero to 2.8 billion dollars. Their revenue has been growing at<br />

an unforeseen rate. It’s just amazing.<br />

Then the CPU rate accelerated past the acceleration of bandwidth rate<br />

which meant that things became centralized in PCs themselves. In the<br />

‘80s and ‘90s, you had PCs. Then in the ‘00s, you had bandwidth accelerating<br />

past the CPUs, which ultimately resulted in the Cloud.<br />

The conundrum is that value is not correlated to cost. It doesn’t cost<br />

a lot to create innovations and the pace of innovation creates these<br />

new waves so frequently now, there are so many disruptions that are<br />

happening that you can create huge amounts of value without any<br />

costs. The markets are valuing you based on how much revenue you<br />

are bringing in and that’s independent from how much it costs to get<br />

that revenue.<br />

Can you imagine what’s going to be going<br />

on in five years?<br />

I think there will be a lot of new trends. Everyone is talking about the<br />

‘internet of things’. The amount of data between physical objects is<br />

likely to dwarf the data in the traditional internet, where it’s people<br />

talking to servers.<br />

There used to be a trend where there was e-Everything like e-Estonia;<br />

now it’s smart-Everything. It’s so funny that those trends shift cyclically.<br />

The whole cloud-thing that everybody talked about for a while, you<br />

know, actually the cloud existed as early as the 1970s. It was just called<br />

mainframes back then.<br />

Everything decentralized again. The next shift will be that some of the<br />

things will move from the Cloud to hyper-localized smart devices. We<br />

are going to see that shift back, everything will be intelligent. This table<br />

is going to be intelligent.<br />

Do we need everything to be intelligent –<br />

this table we’re sitting at for example?<br />

Well in one way, all you need is air and food; but I think it would be a<br />

fantastic world if the table were intelligent!<br />

You just don’t know yet that you need<br />

the table to be intelligent?<br />

Yeah, you ‘don’t know that you don’t know’. That’s exactly right.<br />

What’s fascinating is this idea of who you are. A lot of your brain is in<br />

this computer right now. You probably don’t realize it, but you have<br />

outsourced stuff that you don’t normally have to think about into this<br />

laptop. Wouldn’t it be fantastic if you didn’t need a laptop for that, and<br />

what if this table was a visual graphical interface instead? The coolest<br />

things are the things we don’t know until we interact with them.<br />

36<br />

LIFE IN ESTONIA #39 I 2015 FALL


3DPrinterOS<br />

is Building The World’s<br />

Largest Virtual Factory<br />

By Holger Roonemaa / Photos by Alloria Winter Studios<br />

In a cramped room of the Mektory Innovation Centre, inside the Tallinn<br />

University of Technology campus, a dozen 3D printers are still running<br />

full speed at 8pm on a working day. This is no student club, but a company<br />

working on a global revolution in production. The company plans<br />

to build the largest connected factory in the world without owning a<br />

single production line! Meet 3DPrinterOS.<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

37


I ECONOMY AND BUSINESS<br />

‘Just as Windows made personal computers easy for the average person,<br />

we want to do the same with 3D printing,’ says John Dogru, CEO<br />

and one of the founders of the company. The US-born Dogru studied<br />

engineering and computer science and worked for companies such as<br />

Dell. These days he has hitched his life and career to Estonia’s wagon<br />

and specifically to the Tallinn-based company 3D Control Systems,<br />

which owns the trademark 3DPrinterOS.<br />

In other words, 3D printing is probably not something that your grandparents<br />

could do today. 3DPrinterOS solves these problems with their<br />

creation of the first standard operating system for 3D printing.<br />

The 3DPrinterOS software offers a simple-to-use, universal platform<br />

that works across the majority of 3D printers and what processes before<br />

took hours can now be done in mere seconds.<br />

‘The 3D printing market is growing at an incredible pace. Currently<br />

there are about 400 000 3D printers in the world and this figure is set<br />

to double every year,’ says Dogru.<br />

‘We built 3DPrinterOS in the cloud, so it’s infinitely scalable and platform-agnostic.<br />

This makes it easy for printers to be controlled and managed<br />

via any web-capable device,’ explains Dogru.<br />

Additionally, he says, it is desktop 3D printers, meant for the average<br />

person, which are experiencing the fastest growth. ‘Currently the volume<br />

of the 3D printing market stands at US$4.5 billion and is poised to<br />

grow to US$17.2 billion by 2020. Last year, 90 per cent of all printers<br />

sold were desktop printers and only 10 per cent were industrial printers.<br />

At the same time, 90 per cent of the revenue came from the sales and<br />

services of industrial printers. We’re going to see this trend reverse as<br />

the market grows and substantial revenue starts to come from desktop<br />

3D printing,’ states Dogru.<br />

In essence, what 3DPrinterOS is creating is the software for the virtual<br />

factory of the future. This could mean a revolution in production as well<br />

as disrupting the global supply-chain.<br />

‘We want to create the largest factory in the world without ever owning<br />

a single production line ourselves,’ says Dogru. Essentially, 3DPrinterOS<br />

will do the same for manufacturing as what Airbnb did for the hotel<br />

industry without owning a single hotel or what Uber did for the taxi<br />

services sector without owning a single vehicle.<br />

‘McKinsey has estimated a potential of generating an economic impact<br />

of US$230 billion to US$550 billion per year by 2025 with various 3D<br />

applications, the largest impact being expected from consumer uses,<br />

followed by direct manufacturing,’ he goes on.<br />

Most importantly – and this is where 3DPrinterOS comes in – the 3D<br />

printing market is extremely fragmented. Every manufacturer uses its<br />

own software for operating printers; generally, in order to start printing,<br />

a minimum of three different desktop applications have to be used<br />

simultaneously, and it can take hours to set up the various parameters<br />

and other technical details of the object to be printed.<br />

‘We will make the difficult journey from idea to physical product much<br />

easier and faster for home users and for larger industries,’ Dogru goes<br />

on. He says that they want to disrupt today’s process, where many companies<br />

wanting to set up production have to look to China and then<br />

pay a minimum of US$3 000 for moulds and order at least 20 000 items<br />

at once.<br />

With the old model, this can cost tens of thousands of dollars, and if<br />

things should go wrong, valuable time and resources can be wasted.<br />

‘Our idea is that instead of owning the equipment and taking a risk of<br />

building anything, you can build at the point of need and at the time<br />

of need,’ says Dogru.<br />

38<br />

LIFE IN ESTONIA #39 I 2015 FALL


For home users, 3DPrinterOS will create the opportunity to print products<br />

without owning a 3D printer. ‘Desktop 3D printers tend to stand<br />

idle. When they are connected to the network through our software,<br />

there will be an opportunity to print orders which have been received<br />

online,’ explains Dogru.<br />

This means that all over the world, thousands or even hundreds of thousands<br />

of mini-factories will spring into existence, which will be able to<br />

fulfill new orders automatically.<br />

‘The quality and speed of Desktop 3D printers is dramatically increasing<br />

every year. Instead of buying one high-end 3D printer which costs over<br />

US$100 000, it makes more sense to buy a hundred US$1000 desktop<br />

printers – even if some of them break down, the others will continue to<br />

work,’ says Dogru.<br />

The goal is for everyone to be able to connect their 3D printer to the<br />

world and set up their own mini-factory. ‘We are trying to radically reduce<br />

the latency between design to manufacturing to distribution – ultimately<br />

bringing it close to zero,’ continues Dogru.<br />

Growth is the number one goal for 3DPrinterOS: ‘It is our aim to grow<br />

into the largest connected factory. Today we are already connecting<br />

people who know nothing about 3D printing with printers all over the<br />

world,’ says Dogru.<br />

Today, just three months after their official launch, there has been more<br />

than 13 000 hours of 3D printing in over 94 countries via 3DPrinterOS.<br />

Recently they’ve partnered with the eNABLE project, which designs and<br />

provides 3D-printed prosthetic hands, to leverage the power of the<br />

3DPrinterOS network to build 1 000 hands for those in need in the next<br />

few months.<br />

The third largest contract manufacturer in the world, Jabil Circuit Inc.,<br />

a US$18.5 billion dollar behemoth who builds products for Apple, HP,<br />

Blackberry to name a few, has adopted the system and has seen usage<br />

of their printers proliferate as their engineers now have a simple, standard<br />

way to collaborate, prototype, and print across multiple 3D printers.<br />

Dogru says that the monthly growth of the company is about 20 per<br />

cent on average.<br />

3DPrinterOS is already the leading software in education. Top universities<br />

such as Duke, Purdue and Florida State in the U.S. use 3DPrinterOS<br />

to manage their entire 3D printing workflow. ‘We believe just as the first<br />

personal computers were distributed to universities, the best brains will<br />

continue to push early adoption,’ says Dogru.<br />

The company already has an educational program being implemented<br />

in Estonian schools. Some schools have 3D printers but, according to<br />

Dogru, the main drawback is the fact that the printers can cost thousands<br />

of dollars, break easily and their maintenance is expensive and<br />

time-consuming. ‘Instead of giving students the printer – which could<br />

cost €3 000 assembled – we are providing kits that are worth €500 and<br />

teaching them how to build it. They will then also know how to build a<br />

printer themselves and how to service it,’ explains Dogru.<br />

To date, a million dollars have been invested in the company. The majority<br />

of the round was funded by Microsoft co-founder, Paul Allen’s Vulcan<br />

Capital. They’ve invited exclusively value-added investors from Silicon<br />

Valley including Ravi Belani, the founder of the Alchemist accelerator;<br />

Ian McNish, founder of LinkedIn and is the current principal architect at<br />

Box; Ben Li of Zillionize and Steve King, the former CEO of Docusign to<br />

name a few. They are currently preparing for their Series A round.<br />

‘3D printing is just the beginning of the connected factory of the future.<br />

We want to build the software which makes one-click manufacturing<br />

possible,’ concludes Dogru.<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

39


I ECONOMY AND BUSINESS<br />

Scoro Wants You<br />

to Click Less and<br />

Achieve More<br />

The creator of unique business software claims that although<br />

thousands of similar service providers exist in the world,<br />

Scoro is simply so good that customers who value efficiency<br />

and time-saving will want to recommend this software even to<br />

competitors!<br />

By Ann-Marii Nergi<br />

40<br />

LIFE IN ESTONIA #39 I 2015 FALL


FRED KRIEGER<br />

Whilst Estonians know Fred Krieger more as a music businessman<br />

and song writer – last year was especially successful for<br />

him in this respect as hits he penned topped the charts – Fred<br />

really sees music as a hobby and, from an early age, he has<br />

been interested in programming and has educated himself in<br />

the field of IT in addition to his education in economics.<br />

In addition, he headed the IT division of the US media concern<br />

Metromedia in the early 2000s. Fred created the very first<br />

prototype of Scoro on his own a long time ago. Together with<br />

Product Manager Indrek Saarnak and the CTO of the company,<br />

Priit Matiisen, they reached the maturity to offer the<br />

product to customers on a larger scale. As is often the case,<br />

a new product is born out of a personal need and this was<br />

also true for Fred. ‘When running my companies I needed a<br />

solution which would help to run things more efficiently and<br />

systematically. Such a solution did not exist.’ Last year, Krieger<br />

lived for six months in Silicon Valley in California, in order to<br />

give himself an extra boost of inspiration. In addition to living<br />

in a different environment, it was a real challenge to run his<br />

company from a 10-hour time difference. But this was a great<br />

experience he says, which helped him to become even more<br />

focused.<br />

Customers from the USA to Iran<br />

According to Krieger, Scoro is different because, unlike many software<br />

companies which offer tools, Scoro offers a solution, which means it<br />

solves a cluster of problems simultaneously.<br />

Based on Estonian capital, Scoro combines the sales, financial and administrative<br />

processes necessary for running the daily business of any<br />

company. For example, Scoro enables users to link calendar events and<br />

tasks to certain projects and customers and, once the work is completed,<br />

it takes just one click to view detailed reports.<br />

There is no longer a need to brief your supervisor, project manager<br />

or colleague about the status of your activities, because everything is<br />

visible in Scoro. In addition you can manage your customers, projects,<br />

quoting, billing, expenses and collaboration all in one place. Most importantly,<br />

the information you need is available with just one click!<br />

The story of Scoro started six years ago. During the first four years, the<br />

company focused on the Estonian market, boosting efficiency for local<br />

customers.<br />

In the last two years, the company has started to expand to other markets.<br />

There are 26 employees working at Scoro today, but because of<br />

its wild plans and fast growth, the company still qualifies as an early<br />

stage start-up.<br />

‘We grew slowly and over a long period in the beginning, but it is our<br />

aim to at least double our size each year over the next five years,’ confirms<br />

Fred Krieger, founder and CEO of Scoro.<br />

It is more complicated technically and in terms of marketing and the system<br />

requires a proper foundation. A foundation, however, needs either<br />

a lot of time or a lot of money, and Scoro has grown on own capital and<br />

in an organic way. Today 5 000 users all over the world use Scoro and,<br />

although most of them are located in the Baltics today, there are satisfied<br />

customers as far afield as the Netherlands, USA, South Africa and Iran.<br />

Scoro’s second office is located in Latvia, where customers from not only<br />

Latvia, but also Lithuania and Russia are serviced. Scoro’s customers are<br />

companies in the professional services industry. In Estonia this includes<br />

the majority of local real estate brokers and media outlets.<br />

‘We have got a strong hold on the Estonian market and our main focus<br />

now is outside Estonia,’ says Krieger.<br />

Whilst a lot of companies – if not thousands, but at least hundreds of<br />

them – offer business software solutions globally, Krieger is convinced<br />

that Scoro is unique. More often than not it is the customers who find<br />

Scoro and not the other way around.<br />

If you insert certain keywords into a search engine, we come out first on<br />

a multitude of different keywords. There are lots of companies entering<br />

the software market but there is still a lot of space for specific solutions<br />

and specific tools. When you do something better than others and design<br />

it more elegantly, customers will come to you and also recommend<br />

your product to others, even competitors.’<br />

‘In the first year, our main effort went into building the product platform.<br />

We wanted to first guarantee quality and then to start active<br />

sales. We were not able to start as a typical start-up, because our software<br />

provides critical functions for our customers. It takes more than<br />

just a basic offer.’<br />

The company owes much of its success to competent advisors who<br />

are very experienced in the field of technology. For example, Ravi Belani,<br />

Managing Director of the Alchemist Accelerator and Lecturer at<br />

Stanford University or the German venture capitalist Mike Reiner, cofounder<br />

of Startup AddVenture and Startup Wise Guys.<br />

FALL 2015 I LIFE IN ESTONIA #39 41


I ECONOMY AND BUSINESS<br />

The ‘Big Brother’ syndrome<br />

Krieger explains that companies often try to solve their administrative<br />

problems bit by bit, and by using a separate tool for each problem. Such<br />

a fragmented approach ends up too much of a strain because different<br />

tools do not complement each other or a mammoth solution may be<br />

more, not less, time-consuming to use. This is where Scoro comes to the<br />

rescue – the software integrates data from different software applications<br />

into its system to solve critical problems.<br />

‘Of course Scoro does permit the making of certain activities and projects<br />

confidential, but if the development team sees what the sales<br />

team is working on and the sales team sees the efforts of their colleagues,<br />

then the software also has a motivating function. For managers<br />

the benefits of Scoro are obvious because it helps to make processes<br />

transparent.’<br />

It all boils down to effective time-management. ‘One of the main reasons<br />

why customers like our solution is the fact that, unlike with other<br />

similar services, you do not have to make ten clicks to get something<br />

done – it just takes one or two clicks. On a busy day, you end up saving<br />

several hours,’ Krieger states. He adds that he is surprised to see large<br />

corporations abroad still using Excel for administration and reporting.<br />

Isn’t there a risk of the ‘Big Brother syndrome’ for employees when using<br />

the system – the feeling that my boss is watching my every step?<br />

Krieger answers that if you have a healthy relationship with your employer,<br />

such a problem will not occur – after all, you are paid a salary<br />

for the work which should be visible in public calendars and everyone<br />

wants to work as efficiently as possible.<br />

42<br />

LIFE IN ESTONIA #39 I 2015 FALL


Wazombi Labs is no ordinary<br />

Estonian startup. Their headquarters<br />

is in Tartu and not in<br />

Silicon Valley, Boston, London or<br />

Tallinn for that matter. They are<br />

not competing for a place in<br />

an incubator or an accelerator.<br />

They make no effort to attract<br />

investments from business angels<br />

or venture capital funds. And they<br />

are not working on the creation<br />

of yet another app, but rather<br />

developing and producing gadgets and<br />

helping customers all over the world<br />

to create product prototypes.<br />

Wazombi Labs<br />

No Ordinary Estonian<br />

Startup<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

43


I ECONOMY AND BUSINESS<br />

Moreover, the company, which was only founded a year and a half ago,<br />

is making profits and experiencing growth both in terms of staff and<br />

economic indicators.<br />

Customers from countries like Japan, Israel, Germany and Great Britain<br />

value the services they receive so highly that they often adjust their activities<br />

to match the ideas of Wazombi. Customers often travel to Tartu<br />

to find out just what is happening to their products.<br />

‘It is our philosophy to always go the extra mile when it comes to the<br />

needs of our customers. We dedicate ourselves totally to their needs<br />

and we expect our customers to match our efforts,’ explains Raido<br />

Dsilna, one of the founders and the Manager of Wazombi.<br />

Wazombi’s business is everything from product design to production,<br />

from the development of fine electronics to serial production. They help<br />

customers develop prototypes of different products as well as creating<br />

and marketing their own products.<br />

‘We are not just service providers ‚– we want to include our ideas in<br />

each product,’ says Dsilna. He explains that before signing contracts<br />

with customers they always ask ‘why’ questions. Why is this product<br />

needed? Why should it be made like this, with that particular functionality<br />

and design? ‘If we ask three why-questions but do not receive<br />

a reply we like, we do not want to contract that customer because it<br />

means we will not believe in our collaboration. Customers need to be<br />

brave enough to think along with us,’ Dsilna continues.<br />

Dsilna says that there are hardly any hardware startups in Estonia which<br />

Wazombi has not cooperated with. Wazombi considers itself to be a<br />

mentor for younger companies, which means helping them to create a<br />

product prototype together with teams that have potential: ‘We want<br />

a partnership, we invest our time and dedication in these start-ups and<br />

we ask for a small share in return,’ he says.<br />

Wazombi was founded by four guys. Dsilna himself used to work for<br />

years for the online-casino software company Playtech, which has a<br />

development centre in Tartu.<br />

He is a specialized graphic designer who worked on mobile games at<br />

Playtech, heading a team of 25 people. At the end of 2013, he teamed<br />

up with the robotics specialist Martin Meisalu, the engineer and hardware<br />

specialist Tiit Rätsep who worked at ABB, and Kristjan Habicht,<br />

the leading architect of the Playtech mobile team.<br />

‘It dawned on us that we would not be able to do something meaningful<br />

within the machinery of a large corporation, so we got together to<br />

change something. This is how Wazombi Labs was born,’ recalls Dsilna.<br />

The company soon outgrew its first base on the narrow Vallikraavi street<br />

in Tartu, and moved to the premises of a large former factory, where<br />

experimental production had been carried out in 1960s.<br />

‘In symbolic terms, the similar kind of experimental production has returned<br />

to the building,’ says Dsilna. Enthusiasm and experimentation<br />

are the two keywords which characterize Wazombi.<br />

44<br />

LIFE IN ESTONIA #39 I 2015 FALL


Wazombi’s main business is building gadgets which use bluetoothbased<br />

low-energy technology. As an example, Dsilna gives a Japanese<br />

corporation whose name he is not allowed to reveal. ‘We produce a socalled<br />

smart doorlock solution for them. In larger offices there is often a<br />

need to provide different people with different access levels. Our smart<br />

doorlock is based on Bluetooth, hence it is a virtual key. When the right<br />

person is at the right door, the door will identify the virtual key in his or<br />

her mobile phone and the lock will open,’ explains Dsilna. Japan is looking<br />

for a high tech solution to this issue in Estonia.<br />

Wazombi’s portfolio also includes a place in the final of the Make<br />

It Wearable competition, organized by Intel, where the British Arc<br />

Pendant (a gadget worn around the neck which measures heartbeat,<br />

steps, pace and vibrates gently to tell you which direction to<br />

walk in as well as taking voice commands) developed on the basis<br />

of a prototype created by Wazombi, was ranked among the top 10<br />

innovative wearables.<br />

Another example of products currently in development at Wazombi is<br />

the smart curtain system, which works on the basis of solar energy and<br />

fits the blinds of diverse producers. It enables users to automatically lift<br />

or lower blinds when light conditions change or to adjust the height of<br />

the blinds at all windows with the help of your mobile phone.<br />

Dsilna says that one of the aims of Wazombi is to show that there is no<br />

need to move to China when working on product development. ‘We<br />

only use Estonian and European partners, even our printing plates are<br />

produced in Estonia.’<br />

Wazombi has successfully survived the critical first year of business and<br />

things are really about to get interesting, Dsilna believes. ‘Clients trust<br />

us and keep coming back to us.’<br />

At the end of the year Wazombi plans to bring something onto the<br />

market specially for cat lovers – the special playing ball ‘Rollycat’, which<br />

is controlled via Bluetooth on the mobile phone. The ball is controllable<br />

on your mobile and takes away the pressure from cat owners to play<br />

with their pets. Rollycat works automatically, which means that it starts<br />

to play with your cat even when you may be at work. Special sensors<br />

measure how much and at what intensity the cat played during the day<br />

and provides users with the data. Hence it is a fitness tracker for cats.<br />

Lack of movement is actually the number one cause of health problems<br />

with cats.<br />

FALL 2015 I LIFE IN ESTONIA #39 45


I ECONOMY AND BUSINESS<br />

Manufacturing Company<br />

Fortaco Has a Vision<br />

for Narva By Ann-Marii Nergi / Photos by Madis Veltman and SCANPIX<br />

The CEO and President of Fortaco Group<br />

Lars Hellberg wants to reshape Estonia’s third<br />

largest city, right by the border between Estonia<br />

and Russia. ‘Narva Reborn’ is a vision that will make<br />

Narva a better place to create more business,<br />

to live and to visit.<br />

46<br />

LIFE IN ESTONIA #39 I 2015 FALL


FORTACO<br />

Lars Hellberg<br />

Fortaco Group is a unique manufacturing company<br />

operating in the heavy equipment market. In 2013,<br />

Fortaco’s net sales totaled 216 million euros, with approximately<br />

2 300 employees. Fortaco has production<br />

sites in Finland, Estonia, Poland, Hungary and Slovakia.<br />

Fortaco was created through a merger of Komas<br />

and Ruukki Engineering businesses in 2012. CapMan<br />

funds is the owner of the company.<br />

Lars Hellberg has a wide experience in leading large and well-known<br />

industries around the world. Before Lars Hellberg was appointed as the<br />

president and CEO of Fortaco Group with headquarters in Helsinki, he<br />

served on as President of PowerTech division and executive vice president<br />

at Wärtsilä Corporation since 2004.<br />

He has held various positions at Wärtsilä with a focus on the industrial<br />

operations, R&D and a strong focus of establishments in all the BRIC<br />

countries (ie. Brazil, Russia, India, China). Prior to that, he was a member<br />

on the board of management at Saab Automotive AB, executive director<br />

for the customer satisfaction and quality division and also member<br />

of General Motors Europe executive board for quality between 2001<br />

and 2004.<br />

He began his career in 1985 at Volvo Cars AB, where he worked until<br />

2001. There he held various positions eg. research engineer within advanced<br />

engineering, project director for power train and vehicle development<br />

programs, general manager for Volvo Car Operations BV and<br />

vice president of Global Business & Volume Optimization within the<br />

Marketing, Sales & Services. Lars Hellberg is a Swedish national and has<br />

worked mostly outside of Sweden in Europe, Asia and the US.<br />

Lars Hellberg<br />

Lars Hellberg, what is ‘Narva Reborn’ and<br />

how did this project came to life?<br />

I guess I’ll have to start from the beginning. Fortaco is a rather new<br />

company, only in existence since January 2013. Fortaco consists of acquisitions<br />

of other companies together with one that was acquired and<br />

merged into Fortaco – Finnish cargo-handling machinery company Cargotec,<br />

which already had an operation in Narva.<br />

I took the on position of CEO and president of Fortaco in October 2013<br />

and I was invited to Narva the following month to meet the minister of<br />

economic affairs Juhan Parts.<br />

My experience from the past in China, Korea, Russia, etc. is that if you<br />

want to partake in these kind of developments, you need to work with<br />

local government and make sure that they are on board with you. It is<br />

also vital that the national government is at least aware of the project<br />

and stays informed.<br />

What is the concept of ‘Narva Reborn’?<br />

The ultimate goal is to secure the attraction of more business, companies<br />

and people with skills to stay or move to Narva. For example in<br />

engineering, it is quite difficult today to attract engineers who want to<br />

move to Narva from other parts of Estonia still more from outside of<br />

Estonia.<br />

We also want to welcome our customers who are not from Estonia,<br />

as we are exporting 100 per cent of our products. So when we bring<br />

in representatives of new large, global corporations like Atlas Copco,<br />

Volvo, Kalmar, Brook etc to Narva, in all respects, it has to be said that<br />

Narva is not the best and nicest place to be and stay overnight.<br />

By that time it was already clear that we had a fantastic factory, but the<br />

question was how to make it even more attractive both to customers<br />

and employees alike? Today we can say that Narva city hasn’t been<br />

party to any major developments of the kind there have been in Tallinn<br />

or in other cities in Estonia. So when meeting Mr Parts, we discussed<br />

the situation and we agreed that the region needs some kind of boost<br />

in development. We started to build a team around us and named the<br />

project ‘Narva Reborn’.<br />

The only hotel in Narva dates from the ‘60s and I think it has been<br />

barely renovated since then. But now we need to make sure that there<br />

is a proper theatre, a hotel and other critical places like this in the heart<br />

of city.<br />

This is the key concerning how to make Narva reborn – via new investment<br />

and by making the whole city a better place to live and we think<br />

we could help bringing potential investors to Narva.<br />

So it is not only a Fortaco project, but it embraces the whole city. We<br />

started to form a project team with multiple participants – Enterprise Estonia,<br />

local government from Narva as well as the Ministry of Economic<br />

Affairs and Communications.<br />

Right now we already have an agreement with Vabalava theatre, which<br />

is already operating in Tallinn, and they are going to invest and build<br />

another Vabalava in Narva in one of our facilities (where there also used<br />

to be a theatre).<br />

FALL 2015 I LIFE IN ESTONIA #39 47


I ECONOMY AND BUSINESS<br />

We are slowly creating awareness, and what we are getting<br />

in return are very dedicated people.<br />

Our factory in Narva is our best factory and the third biggest<br />

in the group with the revenue more than 30 million<br />

euros this year. We have also managed to raise its profitability.<br />

We have in total 10 factories in the Fortaco Group<br />

– also in Poland, Slovakia, Hungary and Finland.<br />

In addition was our original idea to support the development of Narva as<br />

the natural logistical hub between Europe and Russia. This idea is still just<br />

as valid for the future as it was 400 years ago when Narva was founded.<br />

How much is Fortaco investing in all this?<br />

We ourselves are considering either enlarging our factory area or moving<br />

to a new factory outside the city centre, and the investment is estimated<br />

at roughly 10 million euros. It will cost four million euros for the<br />

equipment and up to six million euros, if we stay at our current location,<br />

in order to construct the factory enlargement, since our responsibility is<br />

the factory where we have developed the business very nicely.<br />

We are thinking of expanding the Narva factory by 50 per cent, so that<br />

the number of employees, which is today 370, will continue up to 500<br />

people in the coming years.<br />

But we want to support other investors. Fortaco actually owns quite a<br />

lot of real estate in Narva and in the centre of the city, but we are not using<br />

all of it. So we have been trying to find buyers for the units we don’t<br />

need, and we want to sell them only in alignment with the ‘Narva Reborn’<br />

philosophy, so that the renovated buildings can benefit all society.<br />

The Vabalava theatre outlined above is going to be located in one of our<br />

buildings, and we also have an old office building that could be turned<br />

into a renovated hotel. The Estonian architecture and construction consultancy<br />

Sirkel & Mall have already come up with a vision of how the<br />

building could look like. So we are looking for investors for the hotel<br />

and I hope we already have some candidates.<br />

So Fortaco’s goal is that Narva becomes a better<br />

place to live for Fortaco’s (future) employees?<br />

Yes, our starting point was to make Narva more attractive for employees<br />

and also for its clients. Of course we have to mention that the situation<br />

and tension between Russia and Europe has reduced the pace compared<br />

to when we started the project.<br />

But you are not quitting?<br />

No-no-no! We are definitely in Narva and we want to develop further.<br />

I think ‘Narva Reborn’ has also enlightened the people from Narva and<br />

its local government, giving them the sense that ‘hey, we need to do<br />

something together!’.<br />

excellent.<br />

At the same time, our factories are safe. For example,<br />

in Narva, there have already been 700 days without any<br />

workplace incidents – in our business this is quite unique.<br />

In other factories, the best case is usually half of that time.<br />

Furthermore the quality and delivery performances are<br />

When I entered the business, Narva factory had only one client and that<br />

was the former owner Cargotec. Now we are producing for ten new<br />

customers. In my previous job in Wärtsilä Group I myself was a customer<br />

of this type.<br />

And as a customer you always have to evaluate not only the current<br />

situation, but also the future. And when you see a factory that hasn’t<br />

got the right skills or safe environment, you start to wonder if that supplier<br />

is the best for you. So my job is to think about all aspects of how<br />

to secure a future for Narva factory.<br />

Do you think this is enough – a hotel and a<br />

theatre – to make a city a better place to live?<br />

I think that we still lack further support to develop the social life in<br />

Narva. Things are changing, but they are not yet in the phase where<br />

we could easily attract people from Tallinn or outside Estonia to come<br />

to Narva.<br />

Right now you have 370 people working<br />

in the factory. Are they locals?<br />

There are a few people working at the factory who are not from Narva<br />

who have come from Tallinn. But the whole management team of the<br />

factory is local, which is also unique. The willingness and openness of<br />

our Narva team people to take on improvements, as the industry speaks<br />

virtually every day about how to make things more effective and ‘smarter’,<br />

is really setting an example to others.<br />

The factory also has great working conditions as noted above; it was<br />

renovated and rebuilt by the former owner in 2008. We understand<br />

that employees in our factory appreciate our developments, they support<br />

us and that altogether it is very important to feel that there is a<br />

future for the company and the factory.<br />

In the coming years you are planning to hire about<br />

200 new employees. What kind of skills are most<br />

needed?<br />

Since we are in the production business, it means that most of our<br />

workforce is blue-collars and we train them ourselves. We also enjoy<br />

great collaboration with vocational schools.<br />

48<br />

LIFE IN ESTONIA #39 I 2015 FALL


But if we think about project managers, engineers,<br />

designers, then we definitely have issues<br />

to find that kind of skill-set. Even if young people<br />

learn these skills, they usually want to move<br />

away from Narva – that is also one thing we<br />

want to halt, the rate of internal emigration.<br />

You have a very successful career<br />

behind you and as you mentioned<br />

before, you have worked in no less<br />

than 28 countries. Have you done<br />

anything like this before with any<br />

other city?<br />

I spent seven or eight years working in China<br />

and elsewhere in Asia with Wärtsilä Group<br />

(one of the largest companies in Finland, which<br />

provides power solutions for the marine and<br />

energy markets and has more than 17 700 employees<br />

and has a revenue of about 4.7 billion<br />

euros).<br />

During my time there as a group vice president<br />

we were constructing factories in China, South<br />

Korea, Russia. My clear experience from that<br />

time is that you have to work closely with the<br />

local government. For instance we built a factory<br />

in Penza in Russia (800 km from Moscow)<br />

and we worked with local government and also<br />

spent a lot of time in Moscow’s ministries to be<br />

sure that everything was in order.<br />

But in other cities we haven’t experienced this<br />

kind of need as in Narva. Penza was a little bit<br />

more developed and in China there were so<br />

many investment projects going on anyway.<br />

Did it take much time for you to<br />

convince the supervisory board or<br />

the owners of Fortaco Group for<br />

this Narva project?<br />

No. It was a clear indication from the representative<br />

of the owner also that there needs to be<br />

a parallel development with our factory. I think<br />

that we can put it like this – ‘Narva Reborn’ is<br />

to ensure that Fortaco can grow the business<br />

profitably, but also to make the city attractive<br />

to have the best workforce.<br />

How does the local government<br />

help Fortaco?<br />

Local government is always important when<br />

it comes to discussing business opportunities,<br />

permission and bureaucracy. Furthermore the<br />

questions with infrastructure – just recently<br />

they renovated the road to the factory.<br />

What do you think, how long-term<br />

is your project? How long does it<br />

take to make people want to come<br />

(back) to North-Eastern Estonia?<br />

It is not a short-term and of course it depends<br />

what is the final expectation, on market developments<br />

and all the other uncertainties that<br />

exist. But I guess it takes at least five years. But<br />

I assure you that there are already changes<br />

going on – more and more shops are being<br />

opened for example. When people believe,<br />

things tend to get done.<br />

How often do you come across<br />

other investors who still have<br />

prejudice toward Narva as a city<br />

or even Estonia as a country?<br />

I am going to be frank – it’s still difficult to<br />

find investors for the region in the eastern<br />

part of Estonia and it has been like this for<br />

some time. I don’t think it is even so much<br />

due to hesitations about the situation with<br />

Russia, but because there needs to be business<br />

reasons to make investment.<br />

Cargotec have made a massive investment;<br />

there is big power plant near Narva which<br />

has invested a lot, and a number of logistical<br />

companies investing in Narva. But there<br />

is room for much more. Estonia is a beautiful<br />

country and I strongly believe in investing<br />

here.<br />

The investors who have<br />

big plans for the former<br />

Kreenholm factory facilities<br />

are also Swedish. Maybe you<br />

even have plans to combine<br />

your ideas, because they would<br />

also like to give a new lease of<br />

life to an old manufacture?<br />

Yes, I have met the owners in Stockholm<br />

(the owners of Narva Gate OÜ are<br />

Mats Gabrielsson, Carl Andreas Claesson,<br />

Lars Kenneth Eriksson and Per Johan<br />

Damne).<br />

Of course, they have a fantastic vision, but<br />

they are located a little bit off the core city.<br />

Also, the size of investment needed in their<br />

project is hundreds of millions of euros. But<br />

I am convinced that the heart of the city of<br />

Narva will be in the same place as it is now<br />

and I hope to see Kreenholm to also be<br />

developed going forward<br />

EAS Supports Foreign<br />

Investors with Building<br />

Relationships and<br />

Giving Advice<br />

Ruth Vahtras, Project manager in Estonian<br />

Investment Agency / EAS<br />

I have already been cooperating with the<br />

Narva factory from 2007 when it was<br />

owned by Cargotec and continuing with<br />

Lars Hellberg and his team since October<br />

2013.<br />

We have already had 11 meetings with<br />

different ministries, institutions (eg. the<br />

Ministry of Education and Research, The<br />

Ministry of Culture, Environmental Investment<br />

Centre, the city of Narva, Ida-Viru<br />

county government, Ida-Virumaa Industrial<br />

Areas Development (IVIA), Töötukassa<br />

(Estonian Unemployment Insurance Fund),<br />

Narva college, Narva vocational school<br />

etc.) to use the Team Estonia model, by<br />

which we are trying to bring together different<br />

parties around the table at the same<br />

time, to discuss and find solutions.<br />

I have been in Enterprise Estonia for 10<br />

years, but in 1988 I created Estonia’s biggest<br />

travel agency Estravel. I know what it<br />

means to be an entrepreneur and manage<br />

a company, therefore I am trying to help in<br />

every way to bring the state representitives<br />

closer to my customers and to thus save the<br />

customer’s time.<br />

Enterprise Estonia (EAS) is a service provider<br />

and a business facilitator in Estonia. Companies<br />

will benefit from our free, qualified<br />

and confidential advice as we gather all the<br />

relevant legal and technical information required<br />

to carry out successfully your investment<br />

project in individual branches of industry,<br />

technologies and markets, as well as<br />

on political and economic framework conditions<br />

in Estonia or in EU common market.<br />

My job is to work together with customers,<br />

building relationships in order to gain a better<br />

understanding of the information needs<br />

and requirements.<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

49


I CREATIVE ESTONIA<br />

Kalev Mark Kostabi, a US artist with Estonian roots,<br />

staged a concert, exhibition and TV-show at<br />

the Tallinn Art Space Gallery on 15 August, 2015.<br />

The event is portrayed in the documentary film<br />

‘Kalev is at home’. This humorous title speaks<br />

volumes to every Estonian as it refers to<br />

the Estonian national epic Kalevipoeg, which<br />

ends on an optimistic note: the hero Kalev will<br />

return home to bring a new life to Estonians.<br />

According to linguists, Kalev is an ancient male<br />

name and its root etymology goes back to<br />

the original meaning of the word ‘strong’.<br />

Kalev<br />

Returns<br />

Home By<br />

Heie Treier<br />

continues on p. 59 ><br />

50 LIFE IN ESTONIA #39 I 2015 FALL


PORTFOLIO_KALEV MARK KOSTABI<br />

Progress of Beauty I 213 X 162 I oil on canvas, 1987<br />

51


52<br />

TBT I 60 X 50 I oil on canvas, 2015


The Other and Beyond I 150 X 150 I oil on canvas, 2006-2015<br />

53


Blacklash I 121 X 228 I oil on canvas, 1991<br />

54


How to Get Ahead I 60 X 60 I oil on canvas, 2009-2012<br />

55


56<br />

Embracing Desire I 45 X 60 I oil on canvas, 2015


Significant Others I 30 X 25 I oil on canvas, 2015<br />

57


58<br />

Artful Dodger I 60 X 45 I oil on canvas, 2009-2014


Tallinn Art Space gallery, run by Jaak Visnap, specializes in lithography,<br />

which carries the old and respected tradition of graphic art that has<br />

become more or less exclusive in the digital culture of today.<br />

The Kostabi Show<br />

The format of the show has been fine-tuned over the years at Kostabi<br />

World – a painting factory in New York which has been in continuous<br />

operation since 1987. Over time, whilst the title has changed, the<br />

content has not. At this event, paintings which have come from the socalled<br />

factory receive a title – the last step before a painting is finished<br />

and signed.<br />

Three famous people (Kostabi usually uses the<br />

word ‘illuminates’) participate in each show<br />

and propose various titles and the audience<br />

votes either for or against. The title with the biggest<br />

collective vote wins the show. The person who proposed<br />

the winning title is awarded US$20.<br />

In the past, the show has taken place in the English language in<br />

New York, naturally, and equally naturally in Italian in Rome, and<br />

now in Estonian in Tallinn itself. Each cultural context provides its<br />

own flavour. The shows in New York are often the most entertaining,<br />

piquant and full of humour.<br />

In a sense, such a TV-show format is genius because it forces the<br />

audience to watch paintings, which they normally wouldn’t see,<br />

and to analyse them, which they normally wouldn’t do. Each painting<br />

receives a title in an effective and fast way, which does<br />

not reflect the content of the painting passively, but adds<br />

an active verbal meaning.<br />

Service I bronze, 1986<br />

The beginning<br />

Having escaped the Soviet occupation as war refugees, Kalev Mark Kostabi’s<br />

parents, Rita and Kaljo, met in the 1940s at the Estonian House<br />

in Los Angeles. Rita, a piano teacher, came from Tallinn. Kaljo Kostabi<br />

came from the Võru county in southern Estonia from the midst of the<br />

large and vigorous Kostabi family, and he brought with him the local<br />

tradition of making music instruments. In the USA, Rita and Kaljo raised<br />

three sons and a daughter.<br />

The two younger sons, Kalev and Indrek, have long been collaborating<br />

in the Kostabi World, which brings together factory production of paintings<br />

and music, and business.<br />

Whereas Indrek Kostabi used to be a musician who played guitar in<br />

punk bands, he has now also actively shaped his career as an artist. He<br />

paints brooding portraits with spiky hair, which can naturally be linked<br />

to punk culture.<br />

The arrival of the young and ambitious Mark Kostabi in New York in 1982<br />

became a turning point in his life in more ways than one. Having painted<br />

realistic works of his parents on the basis of family photographs as a<br />

teenager, and other drawings resembling comic books and pictograms,<br />

he saw the grand Giorgio de Chirico retrospective in MoMA in 1982.<br />

De Chirico is the master of Italian metaphysical painting, whose more<br />

innovative creative period was in the early 20th century. De Chirico’s<br />

impact on the young Mark Kostabi must have been particularly momentous,<br />

as from it he received an understanding of what his own artistic<br />

signature was to be for the rest of his life.<br />

FALL 2015 I LIFE IN ESTONIA #39 59


Let this be a Lesson I 213 X 304<br />

oil on canvas, 2002<br />

The recipe of being an artist<br />

Kostabi’s iconic painting style is a combination of the metaphysical use<br />

of colour (mysterious halos), which is linked to surrealism (subconscious<br />

and a puzzle). His drawings are dominated by faceless figures (a generalising<br />

message), comic-book-like dynamics (narrative) and the irony of<br />

the post-modernism of the 1980s.<br />

Add to this the impact of the East Village scene of the early 1980s,<br />

where painting was a race against the clock and the Stock Exchange<br />

bubble influenced the art world for the first time ever. Plus the shine<br />

of Andy Warhol. Plus ‘media-gymnastics’, for which Kostabi invented a<br />

new genre – ‘kostabism’. Plus factory production.<br />

The blue-black-white colour combination, as a reference to the Estonian<br />

tricolor, is a repetitive undercurrent in his paintings. So is the motif of a<br />

sphere, which refers to the Idla women gymnasts on the family photographs<br />

dating back either to the Tallinn of 1930s or the Stockholm of<br />

1940s. One of the gymnasts was young Rita, and this is probably where<br />

the definition of ‘beauty’ in Kostabi’s paintings comes from.<br />

As of today Mark Kostabi has created his own little art universe which<br />

he runs from Rome and New York. He is actively collaborating with<br />

leading Italian and Estonian musicians and has moved more into this<br />

world at a time when his painting factory in New York continues to<br />

operate at full speed. Having studied piano under his mother’s tuition<br />

and possessing the skill of perfect pitch, he has written pieces of music<br />

which the late composer Lepo Sumera has adapted for the orchestra.<br />

Let’s hope that one day those are published as music sheets and turned<br />

into songs which joint choirs perform at the national Song and Dance<br />

Celebration in Tallinn.<br />

Kalev returns home<br />

The name Kalev has no significant meaning in the USA. In Estonian it is a<br />

typical man’s name. We have the Kalev chocolate factory, the Kalev stadium<br />

and the Kalev swimming hall. We used to have the Kalev basketball<br />

team, which was a championship-winning team in the Soviet Union.<br />

All of this signalled the arrival of the painter of the new, postmodern<br />

age. In comparison to the modernist painter, the difference is great and<br />

is also a matter of principle – the modernist was alone, painting in isolation<br />

in his studio, worshipping an idealist philosophy and the aesthetics<br />

based on it. The conflict has been written into the relationship between<br />

the two approaches, and Kostabi made this conflict the basis whence<br />

to advertise his works.<br />

In the eyes of the art world, Kostabi has remained the disobedient ‘artist<br />

as pagan’ type, characterised by the philosopher Jean-François Lyotard<br />

in his famous 1979 book ‘The Postmodern Condition’. According to<br />

Lyotard, it is a type of artist who creates his own rules instead of bending<br />

to existing ones. Still this particular artist discussed here can boast<br />

several collaborative projects with art museums and art critics in different<br />

countries.<br />

Untitled I 54 X 55 I litography, 2015<br />

60<br />

LIFE IN ESTONIA #39 I 2015 FALL


In the USA, Kalev has been the ‘secret name’ of Kostabi within family<br />

circles. His father Kaljo only used to call him by that name. The fact<br />

that all sons were given traditional names was supposed to maintain<br />

the connection to their fatherland. The name Indrek is also part of<br />

the Estonian literary classic canon, referring to the 5-volume novel by<br />

Tammsaare called ‘Truth and Justice’.<br />

News of the young and successful artist Kalev reached Estonia in 1988,<br />

the year of the Singing Revolution, which led to Estonia’s independence.<br />

It was a period of euphoria in the Eastern European countries, a period<br />

of freedom and one of becoming free.<br />

Young writers such as Kauksi Ülle, Sven Kivisildnik, Karl-Martin Sinijärv,<br />

Piret Viires, Indrek Särg, Neeme Kahusk founded the Estonian Kostabi<br />

$ociety which started to publish books and the weekly cultural paper<br />

‘Kostabi’. It was one of the first privately-initiated publishing activities<br />

after the collapse of the strictly regulated and censored Soviet regime.<br />

‘Kostabi’ was published for about three years.<br />

Fluid Memory I 30 X 30 I oil on canvas, 2015<br />

The first ‘Kostabi’ was issued in 1991 just after Estonia regained independence.<br />

It looked like punk journalism – full of laughter and irony,<br />

with a haphazardly designed appearance, and barely-readable text.<br />

It seems the first western computers had reached Estonia, and some<br />

members of the Kostabi $ociety started to actively bring more computers<br />

into the country. They wrote manifestos claiming computers to be<br />

the future and especially suited to the introverted nature of Finno-Ugric<br />

peoples. Recalling this is strange, almost as if they had predicted the era<br />

of Skype and Transferwise.<br />

Contemporary art in the newly-free Eastern Europe turned now to computers<br />

and new technology, which signified the political rejection of and<br />

moving away from the Soviet empire and the young generation’s thirst<br />

for the new.<br />

15 August, 2015<br />

Love is a Game I 30 X 30 I oil on canvas, 2015<br />

The latest Kostabi performance, with the concert, exhibition and TVshow<br />

took place in Tallinn Art Space. This gallery, run by Jaak Visnap,<br />

specializes in lithography, which carries the old and respected tradition<br />

of graphic art that has become more or less exclusive in the digital culture<br />

of today. Kalev Mark Kostabi used free moments to create lithography.<br />

Those were the artist’s first drawings on the massive lithographic<br />

stone, from which prints were made with the historic graphic press.<br />

The vocalist Greesi Desiree Langovits, who has won a Grammy together<br />

with the Estonian Philharmonic Chamber Choir, performed music written<br />

for Kostabi’s text. The earlier instrumental pieces were now complemented<br />

by vocals. The song dedicated to the powerful art critic Clement<br />

Greenberg – the soldier of modernist art in the USA with whom artists<br />

of the Kostabi generation also here in Estonia have had most to argue<br />

with – seemed especially significant.<br />

All of it will be pulled together into the three-part documentary film<br />

‘Kalev is at home’ which will be available soon.<br />

State of the Union I 30 X 30 I oil on canvas, 2015<br />

FALL 2015 I LIFE IN ESTONIA #39 61


I CREATIVE ESTONIA<br />

Kostabi World<br />

In 1987, inspiring extensive international press coverage, Mark Kostabi<br />

founded Kostabi World, his large New York studio known for openly<br />

employing numerous painting assistants and idea people.<br />

Kostabi has been profiled on 60 Minutes, Eye to Eye with Connie<br />

Chung, A Current Affair, Nightwatch (with Charlie Rose), The Oprah<br />

Winfrey Show, Lifestyles of the Rich and Famous, Nonsolomoda, West<br />

57th, CNN, MTV and numerous television programs throughout Europe<br />

and Japan. In print he has been featured in The New York Times, People,<br />

Vogue, Architectural Digest, The Face, Playboy, Forbes, New York Magazine,<br />

The Sunday Telegraph, Domus, Corriera Della Sera, Panorama,<br />

Artforum, Art in America, ARTnews, Flash Art, Arte, Arte In and Tema<br />

Celeste.<br />

Retrospective exhibitions of Kostabi’s paintings have been held at the<br />

Mitsukoshi Museum in Tokyo (1992) and the Art Museum of Estonia in<br />

Tallinn (1998). Kostabi’s work is in the permanent collections of the Museum<br />

of Modern Art, the Metropolitan Museum of Art, the Guggenheim<br />

Museum, the Brooklyn Museum, the National Gallery in Washington<br />

D.C., the Museum of Contemporary Art, Los Angeles the Corcoran<br />

Gallery of Art, the Yale University Art Gallery the National Gallery of<br />

Modern Art in Rome and the Groninger Museum in the Netherlands.<br />

Kostabi has designed album covers for Guns ‘N’ Roses (Use Your Illusion)<br />

and The Ramones (¡Adios Amigos!), Seether Holding Onto Strings<br />

Better Left to Fray, Jimmy Scott (Holding Back The Years), Glint (Sound<br />

in Silence), RK: Roman Klun (Kingsway), Psychotica (Espina) and numerous<br />

products including a Swatch watch, Alessi vases, Rosenthal espresso<br />

cups, Ritzenhoff milk glasses, and a Giro d’Italia pink jersey.<br />

Kostabi is also known for his many collaborations with other artists including<br />

Enzo Cucchi, Arman, Howard Finster, Tadanori Yokoo, Enrico<br />

Baj and Paul Kostabi.<br />

Kostabi has performed music as a soloist and with other musicians<br />

including Ornette Coleman, Jerry Marotta, Tony Levin, Tony Esposito,<br />

Stefano di Battista, Olen Cesari, Aaron Comess, Richard Hammond,<br />

Amedeo Ariano, Marco Siniscalco, Stefano Nunzi, Puccio Panettieri, Pat<br />

Daugherty, Roman Klun and Paul Kostabi. His compositions have also<br />

been performed independently by Rein Rannap, Kristjan Järvi, Maano<br />

Männi, Delilah Gutman and the Estonian National Symphony Orchestra.<br />

His debut album, I Did It Steinway was released on Artists Only Records<br />

in October 1998. Produced by Dale Ashley & Charles Coleman,<br />

the album features original compositions by Kostabi, and was recorded<br />

entirely at Merkin Concert Hall in New York City.<br />

Kostabi’s other releases include: Songs For Sumera, New Alliance and<br />

The Spectre Of Modernism.<br />

62<br />

LIFE IN ESTONIA #39 I 2015 FALL


Last year’s design award, Bruno, was given to What? – a humorous plywood<br />

clothes hanger-light created by designer Tarmo Luisk.<br />

Wood in the Hands<br />

of the Designer By Anneliis Aunapuu<br />

Estonians have a special relationship with woodwork.<br />

Although modern lifestyle changes have<br />

naturally taken us further away from these<br />

traditions, new technologies today are opening up<br />

new horizons for this ancient art. Rediscovered<br />

woodwork is thus like an old flame rekindled.<br />

When the President of Estonia made his opening speech at a wooden<br />

house design contest, he claimed that in terms of trees per capita, Estonia<br />

is perhaps only succeeded by some sparsely populated island in the<br />

South Seas. That was not so much a challenge to statisticians, as it was<br />

putting things into perspective.<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

63


I CREATIVE ESTONIA<br />

From forest folk to high-tech nation<br />

Fortunately there are still a few amongst us who remember the art of<br />

living together with trees, paying attention to the annual circle of nature<br />

– when should a tree be left to grow and when should it be cut down,<br />

how to care for it and treat it so that the properties of the material<br />

would not diminish, but improve, and so on.<br />

Such know-how is especially concentrated in the workshops of local<br />

music instrument makers. Before World War II, dozens of piano workshops<br />

were operating in Estonia, where wood was a material which<br />

people were as familiar with as they were with the back of their own<br />

hand. The Estonia Piano Factory produces world-renowned pianos even<br />

today.<br />

However the production of wooden furniture in Estonia lacks vibrancy<br />

at present. Regardless of the efforts of designers, cooperation is being<br />

slow to take off. On the other hand, there are young and entrepreneurial<br />

people who are smitten with the character and opportunities offered<br />

by wooden materials, as well as with the associated new machines and<br />

technology, and they are certainly excited to experiment and innovate.<br />

Grünberg has not forgotten her dream of producing furniture from<br />

bent plywood. She has created a large collection of designs and prototypes.<br />

Those are still waiting for a producer courageous enough to go<br />

into production on our small market. The design has great potential – it<br />

is effective and has grown out of experience, but the realization of the<br />

idea is still up in the air.<br />

From woodworking lathes to plywood<br />

Our fathers still remember the woodworking lathes of their fathers (ie.<br />

our grandfathers), which were operated with the foot like a spinning<br />

wheel. Since then, machinery has become more powerful and complex,<br />

enabling the reshaping the look of the wood and giving it new qualities.<br />

The use of plywood took off in Estonia at the end of the nineteenth century.<br />

The furniture factory Luther began to produce bent plywood products<br />

– chairs with plywood bottoms, suitcases, small cylinder-shaped<br />

children’s cases and large round boxes for hats.<br />

In post-war years, the Luther factory was renamed the Tallinn Plywood<br />

and Furniture Factory. Malle Grünberg, who worked there for years as<br />

designer, was able to produce effective products from bent plywood,<br />

which attracted attention at trade fairs, but unfortunately the legendary<br />

factory was nevertheless closed down.<br />

From plywood to 3D printer<br />

These days it is also possible in Estonia to carry out fine laser cutting.<br />

The only limitation of the advanced technology is the relative twodimensional<br />

nature of products which can be created – as the plywood<br />

layer becomes thicker, the machine tends to burn it. One of the ways to<br />

give some depth to products is by playing around with separate layers<br />

which have been cut out – for example in the interesting decorative<br />

platters of KR Stuudio.<br />

64<br />

LIFE IN ESTONIA #39 I 2015 FALL


This striving for the easiest way to turn wood into a 3D product might<br />

be accomplished by mixture combination of wood fiber and resin<br />

(known as MDF) plus the newcomer in the world of technology – the<br />

3D printer. After this, anyone is free to predict what wood will look like<br />

in the future.<br />

We are once again at crossroads. The dream of well-designed wooden<br />

products, which are made of local raw materials and area also eminently<br />

marketable, is yet to become reality. But as the Chair of the Union of Designers,<br />

Ilona Gurjanova, said, it may be the advent of the 3D printer<br />

which will put an end to the long-lasting conflict between designers<br />

and production.<br />

Estonian jewellery-makers are also playing around with wood. Combined<br />

with precious metals and -stones, the wood naturally becomes<br />

quite valuable. The most well-known range for its uncompromising<br />

use of wood is Tanel Veenre’s jewellery range called Big Trophies. His<br />

newest collection, ‘Batwoman’, offers ladies the opportunity to wear<br />

wooden bats as accessories (tvj.ee/series/batwoman).<br />

Perhaps 3D printers will enable us to spend less on product development<br />

and thus results will be reached faster, together with designers?<br />

Makeover of wood<br />

Small producers are not so easily put off. Locals also tend to buy wooden,<br />

ethno-rustic household items – cutting boards, ladles and butter<br />

knives made of wooden blocks with woodgrain running in different<br />

directions are practical, and their design is met with the approval of<br />

even the fussiest customers.<br />

These products are appealing, with a surface finishing of wood which<br />

brings out its amazing colours and effective features.<br />

In addition, one can find a more experimental and artistic approach to<br />

wood, surprising material choices and combinations. Karl Annus, for<br />

example, is a designer who has won much acclaim and customers over<br />

the last few years. His brand is eyewear with wooden frames!<br />

Another exciting product is wooden bow-ties, the success of which<br />

came as a surprise even for the authors (a family business called Wooden<br />

Lifestyle) and is probably homage the image cultivated by the President<br />

of Estonia, Toomas-Hendrik Ilves.<br />

There are also more ambitious designs: the use of wood to house electrical-<br />

and smart appliances; the trio called Ööbik have even constructed<br />

an electric bicycle which is fully compliant with EU standards!<br />

Last year’s design award, Bruno, was given to What? – a humorous plywood<br />

clothes hanger-light created by designer Tarmo Luisk. The natural<br />

wood surface is decorated with embroidery by the textile designer<br />

Monika Järg. Students of the Estonian Academy of Arts are testing<br />

plywood in lighting design.<br />

FALL 2015 I LIFE IN ESTONIA #39 65


I CREATIVE ESTONIA<br />

The latter have also invented a smart, reusable way of<br />

bending plywood.<br />

The need to liven up top world design product like the iPhone serves as<br />

a red flag to designers as it demonstrates the major weakness of mass<br />

production – the lack of individuality. In search of individuality, people<br />

have started to value the parts of wood which used to be considered<br />

offcuts or of lesser quality – damaged parts, layers of pith or even bits<br />

of bark. The defect has thus become an effect!<br />

Shortcomings in quality are made up for by contemporary finishing; the<br />

vacuum method guarantees the infiltration of preservatives into porous<br />

wood.<br />

Changing design ideals<br />

The popularity of decorative covers for technical gear demonstrates that<br />

customers tend to get bored with mass product design. To give some<br />

examples from wooden items, the company Beam offers covers for<br />

phones and earphones (madebybeam.com). Similar products, but with a<br />

wider range of colours and designs, are offered by KOOR wood (www.<br />

koorwood.eu).<br />

An example of this is the young Kersti Teenu, who has discovered<br />

an unexpected but quite successful way of self-realisation by changing<br />

strange pieces of wood into designer watches! The demand for these<br />

products is growing (see: facebook.com/TeenuWatch).<br />

Both more and less playful and stylish wooden designs can be found at<br />

the Estonian Design House in Kalarand in Tallinn (estoniandesignhouse.<br />

ee) or from the NuNordik shop at the Tallinn Art Hall at the Freedom<br />

Square. And of course – online.<br />

66<br />

LIFE IN ESTONIA #39 I 2015 FALL


Estonia – a Test Site<br />

for the Self-driving<br />

City By Maris Hellrand / Photos by Tõnu Tunnel<br />

Tallinn Architecture Biennale addresses changes<br />

to the city space once self-driving cars hit the streets.<br />

Curator of TAB 2015 is Marten Kaevats, an urban planner,<br />

architect and community activist.<br />

FALL 2015 I LIFE IN ESTONIA #39<br />

67


I CREATIVE ESTONIA<br />

What might an ideal smart city look like by 2030?<br />

Project by Arhitekt Must<br />

For Estonia, the ideal might be that 90 per cent of traffic in both the<br />

cities and the countryside are self-driving cars.<br />

As a result, the circulation system of this society and psycho-geography<br />

will have changed immensely. Self-driving cars that have taken over the<br />

streets and roads by 2030 could provide a great symbol for a whole<br />

new mind-set: human consumption will change profoundly once we<br />

are prepared to give up the current symbol of freedom and status – a<br />

personal car.<br />

By 2030 it will be common sense that sharing a car makes economically<br />

more sense than owning a car, and this is a big step towards a sharing<br />

economy on a much wider scale.<br />

From personal experience, I’ve spent a lot of time transporting things<br />

around in order to deal with silly logistics. All this annoying activity,<br />

whilst it is of course also a defining feature of today’s economy, will become<br />

a thing of the past. This will manifest in a totally different situation<br />

of traffic flows, which the urban space will have to adjust to.<br />

For Estonia it would make most sense if people prefer community based<br />

systems - when a local community owns the hardware and decides how<br />

to share it. This would include all sorts of transport means as well as<br />

tools – all these will be much more accessible to people. It’s really a<br />

question of interface, because a screen and space are both user interfaces,<br />

nothing more.<br />

What is the big change for the citizen?<br />

Life for people will change quite remarkably: the whole space around a<br />

person will be sending them feedback. But this should be arranged in<br />

such a way that a person has the final control over the kind of feedback<br />

they receive. To imagine that my hat will whisper to me the arrival time<br />

of a bus scares me personally! However, the option that the first car to<br />

drive over a pothole sends a signal to maintenance robots who will arrive<br />

immediately to fix it, sounds like a good plan.<br />

The key factor is that a person has a choice of how much he or she wants<br />

to be part of the data exchange.<br />

Data is a very sensitive issue, even in the context of advertising. If we are<br />

able to implement smart data protection laws today, it will be possible for<br />

people to trust the environment and the state.<br />

A community’s trust for the system will make life much more convenient.<br />

A swipe or a touch of one’s own smart device will help us to move around<br />

easily and solve other needs as well.<br />

The movement of people will be free when streetlights can react to smart<br />

devices, cars drive completely safely etc. But in today’s world the traffic<br />

situation has created a background of fear in the city. Before sending our<br />

children off we always need to remind them to be careful. But when the<br />

reason for these fears disappear, we will feel much freer. The space will<br />

become much friendlier regardless how we move around – be it by selfdriving<br />

car, bicycle or roller-skates etc. Furthermore, we will be much more<br />

flexible in work due to good connectivity both virtually as well as in reality.<br />

Of course the notion of work will change with technological development.<br />

Many professions are likely to disappear – drivers, car mechanics,<br />

etc. On the one hand this will create unemployment, but on the other<br />

hand people will have more free time. The possibilities for remote work<br />

will thus be much better.<br />

68<br />

LIFE IN ESTONIA #39 I 2015 FALL


What is the role of an architect and urban<br />

planner in this development?<br />

Which steps are needed from the state and<br />

the society for this technological development?<br />

Planning will need to enter a new dimension. The architect has to understand<br />

and predict the technological revolution beyond buildings in<br />

order to plan for the future space.<br />

Cars and traffic will require much less space, so there will be more public<br />

space leftover. But that’s the tricky part – what to do with this new<br />

large public space. I have calculated that the major streets of Tallinn<br />

could fit as many as 600 000 trees when traffic is optimized by selfdriving<br />

cars. Today’s roads with their busy traffic will transform into a<br />

safe social environment.<br />

For the smart space the focal spots need to be planned carefully. We<br />

have to take into account that self-driving cars will cause a ‘super urban<br />

sprawl’. So smart planning doesn’t plan buildings but rather the movement<br />

of people – walking, cycling routes, getting around.<br />

Quite a few strategic decisions are needed, primarily about the data<br />

that all smart devices around us are collecting. Privacy is a crucial question.<br />

Self-driving cars are again a great symbol – these are machines that<br />

collect and save a lot of data about what’s happening around us, where<br />

and when we move.<br />

All this points to bigger questions of the paradigmatic change of the<br />

society. Who owns the data? What can he do with it? What are the<br />

rights of the user for his/her data?<br />

Estonia is today an ideal model country to test these technologies as we<br />

already have a great digital foundation – the ID card and a great level<br />

of public trust towards digital technology. But the innovation in Estonia<br />

needs to be taken to the next level; we can’t rely on the success of the<br />

ID card much longer.<br />

The planners will need to figure out focal points where people want to<br />

go, and where they will want to spend time. More focus will be on city<br />

centres that will have more space for diverse small businesses. When<br />

the traffic space diminishes it will be possible to create a denser service<br />

space. There will be more event space that needs to be filled with content,<br />

is another way of putting it.<br />

At the same time there is the danger that a lot of non-space will<br />

emerge. This is an opportunity for the architects – to build strong identity<br />

networks into these spaces. Big data helps to predict these spaces<br />

and adjust the planning accordingly. All these are topics for this year’s<br />

Tallinn Architecture Biennale which will involve and include scientists<br />

and researchers from other fields to complement the work of architects.<br />

Tallinn could be a model city for all these new options.<br />

It’s about time to start thinking of a self-driving Estonia - a whole country<br />

covered by a network of self-driving cars. Estonia would be an ideal<br />

testing ground for the whole world. We are not big enough to be a<br />

development centre for this technology but we could be the first to<br />

implement a comprehensive system.<br />

In Estonia the public trust in data protection is very high; this however is<br />

not the case everywhere. Isn’t trusting the government with one’s data<br />

the biggest obstacle for the development of such a self-driving community?<br />

People are scared of any Orwellian scenario.<br />

FALL 2015 I LIFE IN ESTONIA #39 69


I CREATIVE ESTONIA<br />

in consideration that people will in due course be sharing self-driving<br />

cars. Until now the planning has followed a modernist approach. The<br />

city is divided into separate spaces for residential, production, business<br />

properties etc. but these notions are out-dated; the reality is mixed use.<br />

Why does someone need to go through the whole application process<br />

of changing the set purpose of use for a plot if he wants to open a café<br />

in a residential area? This should be so much more flexible.<br />

Also the public transport needs an overhaul. Does Tallinn still need public<br />

transport at all when there are self-driving cars in the city? We need<br />

to plan for this already today.<br />

How can people adjust to these rapid changes<br />

especially when they start to shape our public<br />

space?<br />

I’m discussing this topic just now with a French friend who doesn’t have<br />

a great trust in his government and makes a lot of daily efforts to leave<br />

as small a digital trace as possible. Mistrust is indeed the biggest obstacle<br />

for the ‘third industrial revolution’. The questions of privacy and data<br />

protection are crucial. I still would like to remain optimistic. A negative<br />

scenario is possible but it can be avoided with smart decisions. Estonia<br />

should aim to become a “‘little brother”’ by doing in data protection<br />

what Switzerland has done in banking – to become the beacon of data<br />

protection. In big countries with centralized systems it is very hard to<br />

build this kind of trust. If Estonia manages to develop a positive example<br />

it could be an inspiration for others.<br />

It is only a matter of time before self-driving cars become part of our<br />

daily lives anyway and everywhere. At a time when data moves freely<br />

across borders people will be looking for a place where they can trust<br />

the system. It’s only a matter of time when large car companies will start<br />

selling not physical cars but rather traffic kilometres. This means that<br />

they will also need to possess a lot of information about the movement<br />

of their users.<br />

How can a person feel safe and secure within<br />

this development?<br />

Changing the mind-set is most difficult, especially for politicians. So<br />

far opening a large new traffic junction has been regarded as a massive<br />

achievement for a politician; from now on this will no longer be<br />

the case. The thinking needs a proper ‘software update’. When talking<br />

about future trends the acceptance by the community is the key aspect.<br />

Estonians may well consider themselves tech-savvy but many aspects of<br />

that are not yet self-evident.<br />

I have a steam engine in our summer cottage – it’s used to heat the<br />

sauna. The steam engine started the first industrial revolution. Today the<br />

pace is much quicker; we literally need to invent a steam engine every<br />

day to keep up with the global development. The human nature cannot<br />

adjust so quickly. So information and education are crucial in order to<br />

understand the changes and take advantage of them.<br />

All of that is of course part of our lives already today – while standing<br />

next to a golden field of wheat in Southern Estonia and conducting this<br />

interview via Skype, it seems very real that in Estonia we need to talk<br />

about smart space not just in the cities.<br />

For a country so sparsely populated smart solutions would provide an<br />

immense logistical advantage. A smart city that we address at TAB<br />

should also inspire regional development of a small country like Estonia.<br />

This is a great testing ground for the concepts of smart cities.<br />

The other side of the coin is social cohesion – open government, participation<br />

and involvement. The feedback system of the society needs to<br />

become more effective. The future planning can only happen through<br />

participation of the community – hyper local planning. Tallinn has seen a<br />

positive development over the last few years – local community festivals<br />

prove that people care about their environment and want to shape it.<br />

Community involvement has resulted in a change of physical environment<br />

– a busy street has been adjusted to the needs of local people,<br />

with more space for pedestrians and cyclists. These small steps act like<br />

‘acupuncture’ for the city and have an empowering effect on people.<br />

What are the things in today’s Tallinn that<br />

are hopelessly out-dated?<br />

Firstly the public transport system was established in a very different<br />

era, so the whole network was developed with an out-dated mind-set<br />

in today’s terms. The whole traffic flow needs to be rethought taking<br />

70<br />

LIFE IN ESTONIA #39 I 2015 FALL


Martin Lazarev<br />

is a designer, illustrator<br />

and inventor. Among other<br />

things he has invented what<br />

is to date the tiniest ID card<br />

reader available.<br />

Virtual City<br />

a Home for Estonia’s<br />

e-Residents and New City<br />

Planning Ideas<br />

Andrus Kõresaar<br />

partner and creative director<br />

at KOKO Architects:<br />

Enabling a local home or work<br />

address for e-residents by creating<br />

a virtual architecture allows<br />

the enhancement of Tallinn as<br />

a futuristic utopia. The skyline<br />

and image of the city will<br />

certainly change in a very<br />

exciting way if the number of<br />

e-residents one day exceeds<br />

the number of physical Estonian<br />

residents. The e-resident<br />

doesn’t have to live in a house<br />

or an apartment with an architectural<br />

form that follows<br />

the laws of gravity; it’s his or<br />

her free choice with the virtual<br />

architect what the residency<br />

looks like.<br />

Estonian IT strategy’s latest hit,<br />

the e-Residency has inspired<br />

the designer and illustrator<br />

Martin Lazarev to come up with<br />

an idea for a virtual city that<br />

could offer virtual living space<br />

for Estonia’s e-residents.<br />

What started as a joke in the KOKO architecture<br />

bureau has fast become a real possibility<br />

as Martin explains: ‘We thought, it would be<br />

nice if the e-residents would have somewhere<br />

to “live”. How about if we create a second<br />

layer of Tallinn, where architects could create<br />

a SIM-city-like environment where e-residents<br />

can rent apartments and have a real address<br />

in Estonia.’<br />

Now the work is well in progress to get a real<br />

framework off the ground, to start a tender for<br />

development and maybe one day offer virtual<br />

addresses to millions of e-residents of Estonia.<br />

In a way it is of course just a publicity stunt for<br />

the e-Residency project. So far the e-Residency<br />

has appealed to business people who can start<br />

companies, open bank accounts, pay taxes<br />

and do their everyday business in Estonia. This,<br />

Martin thinks, has excluded a potential younger<br />

target group: ‘The 20-somethings are not<br />

interested in doing business yet. But they would<br />

be a great potential target group for e-Residency<br />

if it offers a certain fun factor,’ he states.<br />

Martin thinks Estonia could benefit enormously<br />

if the virtual layer of Tallinn would for example<br />

offer access to all virtual museums of the<br />

city. The possibilities of fun services for virtual<br />

tourists are endless. In other words a website<br />

as a tourism marketing tool is so last century!<br />

How about a virtual train-ride above and<br />

around Tallinn’s UNESCO heritage Old Town?<br />

You could stop any time, enter the virtual versions<br />

of real historical buildings, explore them<br />

immediately or save it for later. The many great<br />

new museums would have a true incentive to<br />

develop their virtual versions to attract public<br />

on a different level. This would be a real tourist<br />

magnet.<br />

However, for Martin the idea goes beyond the<br />

touristy fun factor: ‘The virtual layer of Tallinn<br />

could interact with the real life city and the<br />

two worlds could start supporting each other.<br />

A virtual city government is a real possibility<br />

and being free and liberal it could start having<br />

an impact on the city governance in real life’.<br />

He picks two examples from city planning,<br />

where a virtual city could be beneficial right<br />

now: ‘When the new building of the Estonian<br />

Art Academy was planned there were more<br />

than 200 entries, which were judged by a commission.<br />

In a virtual city we could test each blueprint<br />

in the actual environment for a while and<br />

let the (e-)residents decide which one fits best.<br />

Or take Linnahall – the former giant concert<br />

hall from 1980 that has been unused for many<br />

years. In a virtual layer we could easily brainstorm<br />

and test different solutions and maybe<br />

find something that nobody has even thought<br />

of so far. This virtual solution could inspire real<br />

life ideas. It would be possible to test ideas<br />

what and how to change in the city without<br />

any cost. It would be cool to call for worldwide<br />

competition to create new imaginary<br />

buildings for Tallinn. A virtual competition for<br />

a city would be unique and quite a perk for<br />

architects and students. Become an e-resident<br />

and get a flat in an interesting building with a<br />

great view!’<br />

So in that way the virtual city would open up<br />

great tourism marketing potential for the city,<br />

for the e-Residency by widening the potential<br />

target groups of e-residents, create a whole<br />

new business for Estonia’s flagship IT sector,<br />

promote Estonian architecture and design and<br />

maybe even take the democracy to a whole<br />

new level.<br />

FALL 2015 I LIFE IN ESTONIA #39 71


I TOURISM<br />

Photos by MART VARES<br />

Epic Estonia<br />

Experiencing Estonia’s<br />

Quirky and Unconventional<br />

Attractions<br />

This summer about 300 Swedes visited Estonia to enjoy the most epic<br />

once-in-a-lifetime experience Estonia has to offer. These people became<br />

digital ambassadors of Estonia to spread the beauty this country has to<br />

offer around the rest of the world.<br />

The ‘Epic Estonia’ campaign was based around the insight that people<br />

increasingly book their holidays based on what other people say about<br />

their own experiences. The campaign used 97 themes in recognition of<br />

the number of years since Estonia first declared independence in 1918.<br />

Each one of these 97 trips was individually designed with a special twist,<br />

to celebrate the wide variety of unique attractions that Estonia has to<br />

offer.<br />

So forget everything you have heard about travelling in Estonia and have<br />

a look at a selection of these epic adventures.<br />

Ainars Fogts ‘Awesome experience!’<br />

72<br />

LIFE IN ESTONIA #39 I 2015 FALL


#28<br />

Scubadiving in the world’s only underwater prison<br />

When the prison was closed, pumps that kept the quarry and the prison<br />

dry were shut down.<br />

Ainars Fogts went scuba diving in the underwater prison in Rummu<br />

quarry close to Tallinn. This eerie place, which once held about a thousand<br />

inmates, is now an amazingly popular and mesmerizing beach.<br />

According to legend, water rose so quickly that it covered a large mining<br />

excavator and other equipment that could have been taken to a<br />

higher ground well in time.<br />

Rummu quarry was used as a mining site for Vasalemma marble (a kind<br />

of limestone) for many years. Most of the workforce came from among<br />

the detainees of Murru prison.<br />

At Rummu, you are going to find submerged buildings and other things<br />

that form a unique underwater museum, and a paradise with unusually<br />

clear water (due to the limestone bedrock) for swimmers and divers.<br />

FALL 2015 I LIFE IN ESTONIA #39 73


I TOURISM<br />

Matilda Andersson ‘Unforgettable time together.’<br />

#56<br />

Cooking lamb in an earth oven according to<br />

the old traditions at Muhu Wine Village<br />

In the Luscher ja Matiesen wine house on the island of Muhu, Matilda<br />

Andersson and her friends prepared lamb underground according to<br />

ancient traditions. This delicacy was prepared for 11 hours and all extra<br />

ingredients of the meal were found from other parts of Muhu island.<br />

For instance, there is an ostrich farm where you can get ostrich eggs<br />

for breakfast, or you can visit Muhu Bakery where you make your own<br />

Muhu bread or find herbal tea components from the meadow near the<br />

seashore.<br />

74<br />

LIFE IN ESTONIA #39 I 2015 FALL


Fanny Staaf ‘Pure Magic.’<br />

#27<br />

Hot air ballooning at Kõue Manor<br />

Fanny Staaf stayed in the luxurious boutique hotel Kõue Manor, which<br />

is surrounded by striking nature. In order to experience the wonderful<br />

surroundings, what could be better than a hot air balloon ride above<br />

Kõue Manor and village? Seeing the beautiful landscape from such a<br />

height is a both extreme and romantic experience.<br />

#52<br />

Night canoeing in Soomaa<br />

Petra Månström went canoeing in the Soomaa Natural Park. The park<br />

is actually an extensive wilderness area, containing large peat-bogs and<br />

thick forests interwoven by numerous rivers and the floodplains. In Estonian,<br />

the word ‘soomaa’ literally means ‘swamp land. The epic experience<br />

encompassed mid-night canoeing together with beavers, hearing<br />

wolves howling, fish splashing and other sounds of wild nature during<br />

night time.<br />

Petra Månström ‘True balm for the soul.’<br />

FALL 2015 I LIFE IN ESTONIA #39 75


I TOURISM<br />

Bread Day<br />

EXPORide<br />

32 Swings and<br />

a Full House –<br />

Estonian Pavilion<br />

at EXPO in Milan<br />

Andres Kask / Project Manager of the Estonian representation<br />

The World Exhibition in Milan is still open for<br />

a few more months. Participating in EXPO has<br />

been the largest PR event for Estonia this year,<br />

with the aim of representing Estonia well in<br />

the world and helping our businesses to increase<br />

opportunities for themselves. Estonia’s participation<br />

at EXPO is organised by Enterprise Estonia.<br />

The Estonian pavilion, designed by the architecture bureau Kadarik<br />

&Tüür Arhitektid and built by Redaelli Costruzioni S.p.A., differs from<br />

many other pavilions because it is open from three sides of the building.<br />

This means that visitors do not have to queue for hours in the heat and<br />

it creates a good mood already when entering. The permanent exhibition<br />

‘Powered by Estonia’ is open every day and introduces Estonia<br />

from many aspects of science to business. On the first floor of the restaurant<br />

you will find the Estonian Rye Restaurant, which serves Estonian<br />

dishes and five types of Estonian beer and, in addition, 32 swings where<br />

anybody who wants can rest their feet and enjoy themselves.<br />

On the second floor, there is the Estonian souvenir shop, where, for<br />

example, the producer of wooden wall panels, Reliefwalls, showcase<br />

their product, and who have already received their first contract directly<br />

due to exposure on EXPO.<br />

Rye Days<br />

Although the Estonian pavilion has the smallest budget of all the selfbuilt<br />

pavilions, CNN selected it as one of the 22 most interesting pavilions<br />

at EXPO and the local newspaper Corriere della Sera ranked it in<br />

the top 10 of pavilions with the most beautiful terrace.<br />

The pavilion will close its doors on 31 October. If everything goes well, it<br />

will enjoy a second life, but where and in what format you can find out<br />

in the next issue of ‘Life in Estonia’.<br />

Estonian pavilion can be followed both in social media and<br />

other online sources at www.expoestonia.eu<br />

76<br />

LIFE IN ESTONIA #39 I 2015 FALL


Fashion Show<br />

Kiiking<br />

Events at the EXPO Estonia pavilion to date<br />

• The Estonian pavilion opened its doors on 1 May, 2015. Estonia is<br />

the only Nordic-region country at EXPO; the neighbouring pavilions<br />

are Oman and Russia.<br />

During the four months of being open, the Estonian pavilion has<br />

been visited by twice as many visitors as Estonia has inhabitants<br />

(on July 12, the number of visitors first exceeded the number of<br />

Estonian inhabitants of 1.3 million).<br />

We have hosted many business delegations, for example from<br />

France, Monaco, United Arab Emirates and Lithuania. Every day,<br />

visitors are greeted by guides who have been clothed in Amanjeda<br />

by Katrin Kuldma and also UP by the designer Reet Aus.<br />

• The Estonian pavilion opened its series of events in May, with the<br />

tourism sector seminar for local tourism journalists and representatives<br />

of the tourism industry.<br />

• In the beginning of July, Italian entrepreneurs participated in the<br />

Estonian transport- and logistics seminar and learned about the<br />

services and business opportunities available in Estonia. Estonian<br />

companies represented included the Port of Tallinn, Port of Paldiski,<br />

Estonian Railways and GoSwift. Nearly 40 representatives of the<br />

Italian logistics and transport sector participated in the event.<br />

• August started with the Rye Days, which introduced the history of<br />

cultivating rye, rye products and fresh bread baked on location. The<br />

event helped to value rye as the national grain of Estonia through<br />

centuries. The winter rye variety ‘Sangaste’ is the oldest known type<br />

of rye in the world which is still in production. The seed of ‘Sangaste’<br />

rye is preserved in the World Gene Bank. By the way, in 1893,<br />

‘Sangaste’ rye won first place at the EXPO in Chicago.<br />

• In August, the Ray-bike (a push bike invented in Estonia) competition<br />

took place.<br />

• In early June, the Estonian national day took place, with various<br />

events in the pavilion. The event was visited by President Toomas<br />

Hendrik Ilves, who was given an Estonian flag to be hoisted at EXPO<br />

by the ten-member EXPORide bicycle team. Events which took on<br />

the day included trying to break the Guinness record in ‘kiiking’<br />

and the opening of the exhibition ‘Powered by Estonia’. Before the<br />

reception in the evening, people were able to enjoy the concert by<br />

the Estonian Philharmonic Chamber Choir and the Tallinn Chamber<br />

Orchestra, who performed music by Arvo Pärt.<br />

• In June, Estonian models living in Milan participated in the fashion<br />

show of the Embassy of Fashion. The red carpet was rolled out and<br />

visitors could enjoy the creations of designers Aldo Järvsoo, Riina<br />

Põldroos and Ketlin Bachmann-Põldroos.<br />

The bravest visitors could try out kiiking – a sport invented in Estonia.<br />

Over four days, the Estonian Kiiking Union introduced the<br />

sport, which is becoming more well-known in the world, to the<br />

EXPO-going public, and which had already attracted a lot of attention<br />

in Milan during the Estonian National Day.<br />

• On 16 September the attempt to make the new world record in<br />

kiiking is to take place.<br />

• In October Prime Minister <strong>Taavi</strong> <strong>Rõivas</strong> will visit the pavilion with an<br />

IT-business delegation. At the IT conference to also be held at the<br />

pavilion, we will introduce the Estonian e-state success story and<br />

speakers are due to include well-known and acclaimed Estonian IT<br />

specialists.<br />

FALL 2015 I LIFE IN ESTONIA #39 77


I TOURISM<br />

Kiiking – Defying Gravity<br />

A particularly extreme Estonian form of the old<br />

playground swings has developed into a sport,<br />

called kiiking. Invented by Ado Kosk in the 1990s,<br />

kiiking derives from the Estonian word kiik, which,<br />

perhaps unsurprisingly, means ‘swing’.<br />

Riding on a swing is one of the oldest forms of entertainment, be it<br />

alone or in a group, in many parts of the world, for young and old alike.<br />

In the past, each village in Estonia would have a traditional wooden<br />

swing in the marketplace, where people would meet up to celebrate<br />

the end of the harvest or to have a party on Jaanipäev (Midsummer<br />

night). One of the main reasons why kiiking is close to Estonian hearts<br />

is that our great-great-great grandparents very likely met each other on<br />

a swing – this is where we began in other words! Swings have brought<br />

Estonians together for centuries.<br />

To achieve a swing, the person begins to 'pump' by squatting and<br />

standing up on the swing. The swing will thereby gain momentum and<br />

will, with the right amount of pumping, carry a person right over the<br />

fulcrum. While regular swings can be made of different materials such<br />

as wood, rope or metal, kiiking swings are strictly constructed from<br />

metal or modern composite materials.<br />

Kosk observed that it became more difficult to swing over the fulcrum<br />

as the arms of the swing became longer. He then designed and patented<br />

telescoping swing arms, to gradually extend the arms for an<br />

increased challenge. In a competitive kiiking scenario, the person able<br />

to swing over the fulcrum with the longest swing arms is declared the<br />

winner. Currently, there are three kiiking swing models in operation,<br />

with the maximum shaft length of the tallest swing being eight metres.<br />

The roots of this more extreme form of swinging – kiiking as we know<br />

it today – stem back to 1993, when Ado Kosk built two kiiking swings.<br />

Whereas for safety reasons a regular swing does not allow the user<br />

to pass over the top bar, with its main purpose being for leisure, the<br />

inventor of kiiking designed one of the swings to pass over the spindle<br />

for the first time, which inspired him to create the new sport. Unlike<br />

with a normal swing, in kiiking a person is fastened to the swing base<br />

by the feet. Safety is paramount; without the right measures in place,<br />

kiiking can be very dangerous, or even fatal.<br />

Many kiiking world records have been set since the sport first emerged<br />

– the first Guinness World Record of 7.01 metres in the men’s category<br />

was set in 2001. This record wasn't broken until 2004, by one<br />

centimetre (7.02 metres). On 16 September, 2015 a group of Estonian<br />

kiiking enthusiasts are planning an attempt to set a new Guinness<br />

World Record at EXPO Milan. Currently, the Estonian record in kiiking<br />

is held by Kaspar Taimsoo (7.08 m) (men's) and by Kätlin Kink (5.94<br />

m) (women's).<br />

www.kiiking.ee<br />

78 LIFE IN ESTONIA #39 I 2015 FALL


Practical<br />

Information<br />

for Visitors<br />

Visitors arriving in Estonia with visa<br />

must have national passports valid at<br />

least 3 months after their planned departure<br />

from Estonia.<br />

Children aged 7 to 15 years of age<br />

must have their own passport when<br />

travelling to Estonia or be registered<br />

in their parents’ passport, including<br />

a photo next to the name. Persons<br />

above 15 years must have a separate<br />

travel document with a photo.<br />

Arrival<br />

By plane: The modern and user-friendly Tallinn<br />

Lennart Meri Airport is located just 3 km<br />

from the city centre and provides an easy access<br />

to most hotels and restaurants located in<br />

the city centre. Among other amenities, travellers<br />

have access to a free WiFi area in the<br />

popular border crossing in eastern Estonia on<br />

the Russian border is Narva, located on the St.<br />

Petersburg-Tallinn road. Other border crossings<br />

with Russia include Luhamaa, Koidula<br />

and Murati. On the Estonian-Russian border,<br />

all traffic is subject to border formalities both<br />

when entering and leaving Estonia.<br />

By coach: When travelling between the Baltic<br />

states and nearby locations such as Poland and<br />

Germany, coach travel might be the most convenient<br />

option. Regular connections to Tallinn<br />

and Tartu depart from all major cities in the<br />

Baltic countries and St. Petersburg. Eurolines<br />

and Lux Express offer comfortable Riga Airport<br />

transfers from Tallinn, Pärnu, Klaipeda, Vilnius,<br />

Panevezys, and Šiauliai. Prices start from €20.<br />

By train: An overnight train service from Moscow<br />

to Tallinn is available.<br />

For more travel details, please consult the<br />

sources below: www.visitestonia.com<br />

(Estonian Tourist Board), www.riik.ee/en.<br />

Tourist information centres are located in all<br />

larger towns.<br />

The Tallinn Tourist Information Centre in the<br />

Old Town is located at 4 Kullassepa Street - no<br />

more than 10 steps from the Town Hall Square<br />

(ph.: + 372 645 7777, e-mail: turismiinfo@<br />

tallinnlv.ee). A wide selection of maps, brochures<br />

and publications in several languages<br />

(largest selection in English) can be found<br />

at local bookstores and tourist information<br />

centres.<br />

Visa<br />

Estonia is part of the Schengen visa area, granting<br />

the nationals of EU and EEA member states<br />

free entry to Estonia. The required travel document<br />

for entry is a national ID card or passport.<br />

In addition to the citizens of EU and EAA<br />

states, nationals of numerous countries can<br />

extend their visit up to 90 days in any 6-month<br />

period. The required travel document for entry<br />

is a valid passport. A comprehensive list of<br />

countries is available at the Ministry of Foreign<br />

Affairs website at www.vm.ee/eng. Citizens<br />

of countries not listed require a visa to enter<br />

Estonia.<br />

transit zone. The airport’s 24-hour customer<br />

service telephone is +372 6058 888.<br />

Tartu Airport is situated near Tartu, hosting frequent<br />

flights to Helsinki.<br />

By ship: The Port of Tallinn, hosting over 6<br />

million passengers annually, is undoubtedly<br />

the main gateway to and from Estonia. Large<br />

passenger ferries depart daily to Helsinki and<br />

Stockholm. Cruises from Tallinn to St. Petersburg<br />

depart less frequently. The 85-km Tallinn-<br />

Helsinki ferry journey takes approximately<br />

2 hours, and slightly less by hydrofoils and<br />

catamarans in service from spring until late<br />

autumn. Travellers should note that different<br />

ferry lines depart from different terminals and<br />

harbours. The City Port with its four terminals<br />

is a 10-15 minute walk from Tallinn Old Town;<br />

the Paldiski-Kapellskär line uses the Port of<br />

Paldiski, about 50 km from Tallinn.<br />

By car: Visitors from Central and Western<br />

Europe can drive to Estonia via Latvia. Ikla<br />

and Valga border checkpoints greet travellers<br />

entering or departing the country. The most<br />

Customs<br />

The limit on import of alcoholic beverages<br />

from outside the EU is one litre for beverages<br />

over 22% alcohol content, and two litres for<br />

beverages up to 22%, and four litres for wine.<br />

Import of tobacco and tobacco products from<br />

non-EU countries is limited to 40 cigarettes or<br />

100 cigarillos or 50 cigars or 50 grammes of<br />

tobacco products. Counterfeit goods, including<br />

pirated CDs, video and audio tapes, are<br />

prohibited by law. A special export permit is<br />

required for specimens of plants and animals<br />

of endangered species, protected species and<br />

hunting trophies (please contact the Nature<br />

Conservation Department, Ministry of the Environment<br />

for details). Articles of cultural value<br />

produced in Estonia more than 50 years ago<br />

also require special permits (please contact the<br />

National Heritage Board).<br />

We suggest travellers consult with the Estonian<br />

Customs Board help desk (ph.: +372 880<br />

0814 or www.customs.ee) for details.<br />

FALL 2015 I LIFE IN ESTONIA #39 79


I TOURISM<br />

Getting Around<br />

Estonia<br />

Inter-city public<br />

transportation<br />

Public buses are the easiest, cheapest and<br />

most convenient solution for visiting Tartu,<br />

Pärnu and any other larger Estonian town.<br />

Buses from Tallinn to Tartu depart in every 30<br />

minutes and to Pärnu every hour. On weekdays,<br />

seats to these destinations are almost always<br />

available even immediately before departure<br />

(watch out for special events). For weekend<br />

travel or trips to more remote locations<br />

with fewer connections, it is advisable to buy<br />

a ticket in advance. The Tallinn Bus Terminal is<br />

located at 46 Lastekodu Street. The timetable<br />

is also available online at www.bussireisid.ee<br />

and ticket information is available by phone:<br />

+372 6800 900.<br />

Trains from Tallinn to Tartu leave 3-4 times a<br />

day, and it takes a little more than 2 hours to<br />

get to Tartu. The Balti Station is situated just<br />

outside the Tallinn Old Town and sea port, a<br />

taxi or tram No. 2 (from the port). Trains are<br />

comfortable and you can use WiFi in the first<br />

class.<br />

Travelling by car<br />

Travellers hoping to see more of the country<br />

and the rural areas it would be best advised<br />

to travel by car. The roads are quite good and<br />

traffic is light. Crossing Estonia from north<br />

to south or west to east by car takes approximately<br />

three to four hours. All major car<br />

rental agencies have offices in Tallinn. It is also<br />

possible to rent the car in Estonia and drop it<br />

off at a rental agency in Latvia or Lithuania. The<br />

speed limit in rural areas is 90 km/h and in cities<br />

50 km/h. In some areas the highway speed<br />

limit is increased during the summer months.<br />

Headlights and seat belts (front and back) must<br />

be on at all times. Acceptable blood alcohol<br />

limit in Estonia is up to 0.2 % BAC.<br />

Local Transport<br />

Taxis: Taxis must clearly display their fares,<br />

driver’s taxi service licenses, and a meter. The<br />

initial charge for entering a taxi ranges from<br />

2 to about 4 euros. Different taxi companies<br />

have different rates, but the average charge<br />

per kilometre is 0.5 euros. There is no additional<br />

charge for ordering the taxi by phone,<br />

and it usually takes the cab just five to ten minutes<br />

to arrive. All taxi drivers must give you a<br />

receipt (in Estonian, ask for “Kviitung, palun”).<br />

Locals usually give the exact fare and no tip.<br />

Public transportation: Tallinn has a public<br />

transport network of buses, trams and trolley<br />

buses. Schedules are posted at bus stops and<br />

tickets available at newsstands (the yellow and<br />

blue “R-kiosks”) and from the driver. Check<br />

the prices and timetable for Tallinn bus lines<br />

for any bus stop at www.tallinn.ee/eng.<br />

Tickets for<br />

Visitors<br />

The Public Transport Card Ühiskaart may be<br />

purchased for a couple of euros. Smart card<br />

and e-tickets can be purchased from post offices<br />

and online at www.pilet.ee. Personalise<br />

the card for a small charge at the point of<br />

sale or for free at www.pilet.ee/yhiskaart.<br />

If you are using pay-as-you-go credit, your<br />

smart card automatically calculates the cheapest<br />

fare within the next 24 hrs (never more<br />

than one-day travel card). Validate your journey<br />

with the Ühiskaart immediately after entering<br />

the public transport vehicle.<br />

You can also buy tickets from kiosks and from<br />

the driver (single ticket €1.60 and student ticket<br />

€0.80). Try to have the exact change (cash<br />

only) when purchasing from the driver. The<br />

ticket is valid for one journey only in that specific<br />

vehicle. Discounts are available only for<br />

ISIC Scholar and Student Card holders. Holders<br />

of a validated TallinnCard are entitled to<br />

a free ride.<br />

Accommodations<br />

All major hotels in Tallinn have been newly<br />

built or completely renovation in recent years.<br />

Despite annual additions to the number of hotels<br />

and rooms, it can nonetheless be difficult<br />

to find a hotel room on a short notice (particularly<br />

over the weekend). For the best selection,<br />

we urge visitors to Tallinn and the rest of Estonia<br />

to book hotel rooms in advance. For more<br />

details, see the Estonian Tourist Board website<br />

at www.visitestonia.ee.<br />

Money<br />

Estonia uses Euro and Estonians are keen users<br />

of card payment facilities, with most hotels,<br />

stores and restaurants accepting Visa, MasterCard,<br />

Eurocard, Diner’s Club and American<br />

Express.<br />

Traveller’s checks can be exchanged in most<br />

banks but are less likely to be accepted in<br />

shops. Eurocheque is the most widely accepted<br />

traveller’s check, but American Express and<br />

Thomas Cook are also accepted.<br />

Banks can be found scattered around the centre<br />

of all major Estonian towns. Most banks in<br />

Tallinn are open from 9 a.m. until 6 p.m. on<br />

weekdays, while some offices are also open<br />

on Saturday mornings and offer currency exchange<br />

services. Exchange offices can also be<br />

found in larger hotels, the airport, harbour,<br />

railroad station and major shopping centres.<br />

ATMs are conveniently located around town<br />

with on-screen instructions in English, Russian<br />

and Estonian.<br />

80<br />

LIFE IN ESTONIA #39 I 2015 FALL


celebrate Midsummer Eve and the Victory<br />

Day in commemoration of the 1919 Battle of<br />

Võnnu, and June 24 is St. John’s Day (Midsummer).<br />

August 20 is the Day of Restoration of<br />

Independence (1991). December 24 (Christmas<br />

Eve), December 25 (Christmas Day) and<br />

December 26 (Boxing Day) are usually spent at<br />

home with families.<br />

Drinks<br />

The main drinks in Estonia are beer, wine and<br />

vodka. In the 1930s Estonian vodka made<br />

it into the Guinness Book of Records as the<br />

strongest vodka in the world (96º). Local<br />

brands of beer enjoy a very strong market position<br />

in Estonia. The two main breweries are<br />

Telephones and<br />

Internet<br />

Estonian country code is 372. Dial 00 for outbound<br />

international calls.<br />

The GSM mobile phone system is available;<br />

please check compatibility with your operator.<br />

Public Internet access points have been set<br />

up all over Estonia. They are located in local<br />

libraries and post offices. There are over 100<br />

wireless free Internet zones around the country,<br />

many of them in rather unexpected places<br />

- beaches, Old Town squares, stadiums, and<br />

concert halls.<br />

Emergencies<br />

112 is the emergency number for ambulance,<br />

police and fire department. The police can<br />

also be reached directly at 110. Emergency<br />

numbers can be dialled free of charge. Select<br />

pharmacies are open 24-hours-a-day in many<br />

major towns. The one in Tallinn is located at 5<br />

Tõnismägi (opposite the Estonian National Library);<br />

the one in Tartu is located in the Town<br />

Hall building (Town Hall Square).<br />

National Holidays<br />

Estonians celebrate January 1 as New Year’s<br />

Day, a rather slow and quiet day as people<br />

recover from the festivities. Shops open late<br />

and banks are closed. February 24, Independence<br />

Day, is celebrated with a parade of the<br />

Estonian Defence Forces at Vabaduse väljak<br />

(Freedom Square). May 1 is a bank holiday,<br />

similar to Good Friday and May Day. June 23<br />

is the biggest holiday of the year as Estonians<br />

Food<br />

Traditional Estonian cuisine consists of simple<br />

peasant food, such as cottage cheese, potatoes<br />

and bread, all of which are still important<br />

components of the local diet. The Estonian<br />

dark bread is the main staple missed by Estonians<br />

abroad. Typical Estonian dishes do not<br />

feature prominently on restaurant menus, and<br />

traditional home cooking is more likely to appear<br />

at small eateries in remote areas.<br />

Modern Estonian cuisine is based on the ageold<br />

tradition of locally sourced, pure ingredients,<br />

influenced by Scandinavian, German<br />

and Russian cuisines. Estonian culinary scene<br />

has been on the rise for about a decade now<br />

with new gourmet restaurants popping up frequently<br />

all across the country. The list of the<br />

top 50 Estonian restaurants can be found at<br />

www.flavoursofestonia.com<br />

Saku and A. Le Coq. Saku is Tallinn-based, and<br />

its corporate colour is navy blue while A.Le Coq<br />

is brewed in Tartu and its colour is red. There<br />

are also many smaller breweries. A full list of Estonian<br />

beers is posted at www.BeerGuide.ee<br />

Spirits also include some traditional liqueurs.<br />

The famous Vana Tallinn (Old Tallinn) has a 45º<br />

alcohol content, and is coincidentally made<br />

from 45 ingredients - the recipe is known only<br />

to a handful of people. Indeed, the legendary<br />

19th-century kristallkümmel (caraway liqueur)<br />

has made its long-awaited comeback.<br />

Estonian wines, made from currants or other<br />

local berries, are rather sweet. Wine lovers<br />

usually prefer imported wine, of which there<br />

is an ever-increasing selection at stores and<br />

vinoteks. A very popular and refreshing nonalcoholic<br />

drink is kali, made of bread, malt, rye<br />

or oats flour and yeast; it has a characteristically<br />

dark brown colour.<br />

FALL 2015 I LIFE IN ESTONIA #39 81


I TOURISM<br />

Entertainment<br />

The entertainment scene in Estonia is vibrant<br />

year-round, providing visitors and locals alike<br />

with a long list to choose from. Concerts, festivals,<br />

theatre and parties – Estonia has it all. Opera<br />

and ballet theatres in Tallinn and Tartu offer<br />

world class plays for affordable prices starting as<br />

low as 10 euros. For more information on the<br />

concert schedule see www.concert.ee; the<br />

programme for the national opera is posted<br />

at www.opera.ee. Tickets can be bought at<br />

the box offices or via ticket agencies located in<br />

all larger supermarkets, or via Internet www.<br />

piletilevi.ee, www.piletimaailm.com and<br />

www.ticketpro.ee<br />

Even the most sceptical museum-goer is bound<br />

to find something intriguing in Estonia’s large<br />

selection of museums, which feature everything<br />

from history, art, photography to toys,<br />

chocolate, musical instruments, even wax figures<br />

and many other topics. Most museums<br />

are closed on Tuesdays and many on Mondays<br />

as well. It is advisable to have cash on hand<br />

as many museums do not accept credit cards.<br />

Tallinn is also bustling well into the night with<br />

booming and blooming club scene. Clubs are<br />

usually open and packed with energised vibes<br />

from Thursday to Sunday, with Friday and Saturday<br />

drawing the liveliest of crowds. In addition<br />

to local and resident DJs, clubs frequently<br />

present guest performers from London, the<br />

US and other club hubs. For those looking for<br />

a more mellow night on the town, Tallinn’s<br />

street are brimming with bars and pubs, many<br />

of which offer live music even on weekdays.<br />

Rather take in a movie? Films in cinemas are<br />

shown in the original language with subtitles.<br />

Shops<br />

Quality handicrafts, designer goods<br />

and food are available at supermarkets<br />

and smaller boutiques in all larger<br />

towns. Typical opening times of supermarkets<br />

in Tallinn are from 9 a.m. until<br />

9 p.m. Department stores close a few<br />

hours earlier on Sundays and, in smaller<br />

towns, may be closed on Sundays. Smaller<br />

food shops may have shorter opening<br />

hours. Some 24-hour shops can be found<br />

as well. Other shops usually open at 9<br />

a.m. or 10 a.m. and close at 6 p.m. or 7<br />

p.m.; they often close early on Saturdays<br />

and are closed on Sundays. Most shops<br />

accept credit cards, with the exception of<br />

smaller stores and stores in rural areas. Alcohol<br />

is sold from 10 a.m. to 10 p.m.<br />

Souvenirs<br />

Souvenir and shopping preferences vary<br />

hugely but there are certain souvenir gifts<br />

that have gladdened many a heart. Estonian<br />

handicraft comes in many forms. There<br />

are woollen sweaters and mittens with local<br />

ethnic patterns, linen sheets and tablecloths,<br />

crocheted shawls and veils, colourful woven<br />

rugs, handmade jewellery and glassware,<br />

baskets, and an array of wooden spoons and<br />

butter knives made from juniper. Fine and applied<br />

art for show and purchase is on display<br />

at art galleries around the country, featuring<br />

graphics, glass, ceramics, hand-painted silk<br />

scarves and leatherwork. Various herbal teas<br />

from wild plants are available at pharmacies.<br />

Local honey – pure or flavoured, e.g. ginger, is<br />

another delicious treat. In rural areas, you may<br />

find hand-milled flour. And those who keep<br />

coming back swear by the Estonian black rye<br />

bread. To bring home local spirits, popular<br />

choices include Vana Tallinn or kristallkümmel<br />

liqueur or local beer. And there is no place better<br />

than Estonia to buy Estonian music.<br />

Crime<br />

Although common sense is advisable in all<br />

destinations, Estonia gives no particular reason<br />

to be excessively worried. Do not walk the<br />

unlit and abandoned areas alone at night. Do<br />

not leave bags or items of value in the car, as<br />

not to tempt car thieves or robbers. Pickpockets<br />

may operate at crowded tourist destinations<br />

in Tallinn, so make sure your wallet and<br />

documents are stored safely.<br />

Language<br />

The Estonian language is the only official language<br />

of Estonia and spoken by about a million<br />

people worldwide. Many people are fluent<br />

in English, particularly the younger urban<br />

generation. Knowledge of foreign languages<br />

is naturally a must for hotel staff and numerous<br />

other professions in the service sector. A<br />

great number of people also speak Finnish<br />

due to Finland’s close proximity and the great<br />

number of Finnish tourists. German is less<br />

widely spoken and Russian language is spoken<br />

mainly by the older generation. Estonians do<br />

not expect short-term visitors to master the local<br />

language. Still, local people are thrilled and<br />

pleased to hear a foreigner say “Tere!” (Hi!) or<br />

“Aitäh (Thank you) in Estonian.<br />

Estonians<br />

Estonians are typical Nordic people – they are<br />

reserved, not too talkative and speak rather<br />

monotonously, with very little intonation. All<br />

this may give one the impression of coldness<br />

bordering on rudeness. But rest assured, this is<br />

not the case, and the speaker may actually be<br />

extremely well-meaning, even excited. There<br />

are several well-known Estonian sayings, such<br />

as “Think first, then speak”, “Weigh everything<br />

carefully nine times before making a<br />

move”, and “Talking is silver, silence is gold”.<br />

It is, therefore, no wonder that the people are<br />

not very good at small talk, do not waste too<br />

much time on grand introductions, and usually<br />

come straight to the point. This is why Estonians’<br />

English may sometimes sound shockingly<br />

direct. There is, however, often a subtle irony<br />

involved in Estonians’ utterances - delivered<br />

with a serious face and just the slightest twinkle<br />

of the eye.<br />

Estonians are relatively individualistic. There is a<br />

saying that five Estonians mean six parties. Even<br />

though people agree on the final objective, they<br />

insist on reaching it in their own ways. Estonians<br />

also value their privacy. In the old days, it<br />

was said that the neighbour’s house was close<br />

enough if you could see the smoke from the<br />

chimney. Modern, tight-packed urbanites flock<br />

to remote countryside on the weekends to enjoy<br />

more space and privacy.<br />

Even though guests at birthday parties and<br />

concerts are rather quiet and subdued in the<br />

onset, they warm up eventually and turn into<br />

a direct opposite of their day-character, as you<br />

are likely to see in Tallinn’s clubs.<br />

82<br />

LIFE IN ESTONIA #39 I 2015 FALL


FIND YOUR DREAM JOB IN THE<br />

ESTONIAN TECH PARADISE!<br />

Job listings and practical info on<br />

» workinestonia.com


BECOME AN E-RESIDENT!<br />

e-Residency offers to every world citizen a government-issued<br />

digital identity and the opportunity to run a trusted company online.<br />

» e-resident.gov.ee<br />

» e-estonia.com<br />

» investinestonia.com

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!