Final answer:
Estonia's rapid economic growth post-independence is credited to its swift transition to a market economy, democratic governance, and alignment with Western European institutions like the EU and NATO, as well as its focus on developing a technology-driven economy.
Step-by-step explanation:
The economic growth of Estonia since its independence from the Soviet Union is attributed to several factors including the early adoption of a market economy, democratic governance, integration into Western European economic structures, and a focus on technology and innovation. Estonia acted swiftly after independence to establish a free-market economy and democratically elected government. These reforms boosted the private sector and attracted foreign investment.
Furthermore, Estonia's decision to align economically with the European Union (EU) and the North Atlantic Treaty Organization (NATO) membership facilitated access to new markets and integration with Europe's economic landscape. This, coupled with Estonia's cultural and geographic alignment with northern Europe, helped solidify its economic ties with more developed economies. Unlike many post-Soviet states, Estonia focused on developing industries like technology, which have leveraged the skills of its workforce to create a dynamic and competitive technological sector often referred to as 'e-Estonia'.
Estonia's success story is often contrasted with the slower growth of other former Soviet states that faced challenges modernizing their old industries and dealing with a legacy of government controls. By embracing market reforms and integrating with Western economic systems, Estonia has handily outpaced its Baltic neighbors in economic growth since its independence.