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Why is Estonia's economic growth since independence from the Soviet Union outpacing the other Baltic nations?

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Final answer:

Estonia's outstanding economic growth among the Baltic nations post-independence can be attributed to its rapid integration with Western Europe, its cultural alignment with Northern Europe, and its early adoption of digital technology and e-governance.

Step-by-step explanation:

Since regaining independence from the Soviet Union in 1991, Estonia has experienced significant economic growth compared to its Baltic neighbors, Latvia and Lithuania. One of the key factors contributing to Estonia's success has been its early and consistent orientation towards Western Europe for trade and development, as well as the implementation of a market economy with democratic governance. Unlike its neighbors, Estonia integrated more rapidly with Northern Europe, sharing similarities in religion, traditions, and culture, often considering itself a part of Northern Europe rather than Eastern Europe. This identity has helped Estonia to foster economic ties and integrate its economy with the more affluent Western European countries.

Additionally, Estonia's approach to technological advancement has played a critical role. Estonia embraced the digital revolution early on, implementing e-governance initiatives and attracting foreign investments through innovative policies. These factors, combined with a robust educational system and governmental policy aimed towards economic freedom and innovation, have positioned Estonia as a frontrunner in the region.

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