Concerns about Estonia's economic outlook and that of its traditional export markets, along with Russia's ongoing war in Ukraine, raise questions about our competitiveness and what we can do to strengthen it. Estonia has a strong global brand, which is a vital and economically significant investment for us.

Switzerland is known worldwide for its high-quality watches, delicious chocolate and cutting-edge medical technology. The "Swiss Made" label has become synonymous with quality in people's minds. According to the Global Soft Power Index, which measures the reputation and influence of countries, Estonia is primarily known globally through two narratives: as a great place to do business and as an influential player in international relations.

Decisions to invest, relocate or travel here are shaped by what people think and know about us. Research firm Bloom Consulting has calculated that even a 0.1-point positive shift in Estonia's reputation (on a five-point scale) would result in a 12 percent increase in investments and a 15 percent boost in tourism revenue. Such growth would also lead to greater income for the country.

Estonia a strong brand in the world

According to research firm Brand Finance, Estonia's national brand ranks 47th in terms of strength globally. Considering the size of the country among 193 nations, this is a strong result. Over the past three years, we have increased the strength of our brand by approximately 10 percent, largely due to our strong international reputation for maintaining business simplicity, excellence in education and, in recent years, our support for Ukraine.

For ten consecutive years, Estonia has been at the top of the OECD tax competitiveness rankings. A favorable business environment has become Estonia's calling card, shaping the country's story on the global stage. Although the changing economic and security landscape requires adaptation, we must simultaneously find ways to maintain our competitive edge and key selling points to attract foreign capital, so we don't lose our position or our narrative.

In the past 2.5 years, Estonia's international recognition and reputation have been significantly influenced by the war in Ukraine. Estonia is seen as a bold country that stands up for democratic values, which, according to recognition surveys, has contributed to increased awareness and trust in us.

A clear, values-based foreign policy reassures the rest of the world that Estonia is a reliable partner, making it safe to invest here and conduct business with us. It also underscores the fact that everything we say and do has an impact on our reputation and, consequently, our economic success.

Just as people are hesitant to entrust their wallet to a stranger, they are often reluctant to do business with a country they know little about. The better our reputation, the more people will want to visit, study and do business in Estonia. Greater recognition provides assurance that the world cares about our success. Right now, our most well-known narratives globally are about entrepreneurship and standing up for democratic values.

Prudent investment

In order for the value of our brand to continue growing, we must invest in it. Over the past three years, Estonia's brand has become stronger and more valuable in the eyes of the world, according to Brand Finance, which focuses on national brand evaluation.

Based on last year's reputation survey and Estonia's macroeconomic indicators, they have calculated the value of Estonia's brand at €47 billion, marking a 5.3 percent increase compared to the previous year. This growth demonstrates that the Estonian brand is strong and contributes to economic growth through exports, tourism, foreign investment and attracting talent.

We don't have the luxury of buying recognition and visibility, but, as is typical for us, we can achieve it through bold new ideas and meaningful actions – such as our pioneering efforts in digitalizing government services and legislation, our competitive tax system, the world's first e-residency program, our strong educational system, the World Cleanup Day initiative that originated here and the creativity and ambition of our people who have built a powerful technology sector.

To strengthen our national brand, we need consistent and well-thought-out steps, whether through new technological solutions, sustainability initiatives or deepening international cooperation.

Interest in our stories remains high, and we can now share them with the world more thoughtfully and purposefully. This is an investment that supports both our economy and Estonia's position on the global stage.

--

Follow ERR News on Facebook and Twitter and never miss an update!