Estonia has faced significant challenges in the struggle against poverty over the last few years. Poverty in Estonia has risen in recent times. The Eastern European nation has a population of roughly 1.3 million, with the most recent statistics establishing that around 22.8% of the population is at risk of living in poverty. While these numbers are daunting, solutions are being worked on by various parties, such as the World Health Organization (WHO), that will help ensure long-term recovery for the population.

Issues Being Faced

The high poverty levels in Estonia cannot be attributed to just one key factor. Several issues are contributing to the current crisis. However, one significant issue is the political divide facing the nation. Estonia’s rural and urban sectors are experiencing a high level of division as the Centre Party (representing the majority of the rural areas) lost more than half of its seats in parliament. At the same time, the Reform Party has seen electoral victories resulting in increased power and influence.

According to the Friedrich Ebert Foundation, roughly half of the Estonian population lives in the underrepresented rural regions, which also contain around two-thirds of municipalities. These rural communities lack many of the social and welfare services available to the urban areas of Estonia. Rural communities lack social programs and need to catch up in basic modern amenities. According to a survey by EUROSTAT, only 89% of rural Estonian households have access to the internet.

Urban Areas

While the division between resources available to rural and urban sectors contributes to Estonia’s struggles, this divide does not mean that urban areas are not also struggling. The amount of people living in relative poverty in Estonia has grown dramatically in the last few years. According to the most recent statistics, 48,000 Estonians live in absolute poverty, a rise from 18,000 in 2021. Additionally, the data indicates that nearly 303,900 Estonians now experience relative poverty, an increase of about 3,000 compared to the figures reported in 2021.

Another factor contributing to Estonia’s economic situation is the influx of immigrants arriving in the country. Low birth rates and declining quality of life have affected Estonia’s population. While immigration has positively impacted maintaining a healthy population count, the influx of immigrants has strained resources and heightened regional disparities. According to the Centre for Eastern Studies, around 49,400 immigrants arrived in Estonia in 2022. Immigrants tend to stick to Urban areas, which could further exacerbate the growing disparities between urban and rural communities already struggling to share social resources, potentially worsening poverty in Estonia.

Possible Solutions

Despite Estonia’s struggles, solutions are being proposed to right the ship and alleviate economic pressures on citizens. WHO has proposed several adjustments that could lead to more affordable health care for the most disadvantaged members of Estonian society. In summary, WHO suggests that the Estonian government adjust the Estonian Health Insurance Fund (EHIF) in the following ways:

• Close the gap in population coverage by changing the basis for entitlement to EHIF benefits to residents
• Increase and fine-tune benefits to better serve the people in most need
• Increase protection from all copayments, especially for households with low incomes
• Abolish balance billing for primary-care services to ensure that access does not depend on the ability to pay
• Reduce out-of-pocket payments in long-term health care
• Reduce out-of-pocket payments for outpatient medicines through incentives to prescribe and dispense the cheapest alternatives, price regulation and improvements to how over-the-counter medicines are sold and used

These suggestions from WHO are based on data gathered from various surveys conducted in Estonia from 2015 – 2023.

Wrap Up

Estonia is facing a period of hardship and uncertainty. Political unrest, a struggling population and regional divides are putting intense stress on the country’s economy and people. Yet, solutions are being presented to achieve lasting improvements in the struggle against poverty. As time marches, hope for Estonia’s recovery remains with assistance from guiding forces outside the country, such as WHO, working to solve poverty in Estonia.

– Beau Sansom
Photo: Flickr