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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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#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 />
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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 />
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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 />
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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
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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 />
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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
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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
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