The Baltic economic model: some results of the 1990-2015 transformations

Abstract

During the last 25 years, the economy of the Baltic States has been developing in the conditions of sovereignty, both de facto and de jure. This period has been sufficient to identify regular patterns in the national economic models. Studies into the nature of the economic development of the Baltic States have a considerable practical and scientific significance. On the one hand, the three Baltic States are a part of the post-Soviet space. The nature, success or failures of their economies contribute to a more accurate assessment of Russia's development. On the other hand, it is the second decade of the Baltic States' EU membership, and the countries' experience is very relevant. The article identifies and analyses key characteristics of the Baltic States’ economic model. The author puts forward a hypothesis on two stages of the economic transformation undergone by the Baltic States. The first stage is characterised by a combination of transformation and modernisation whereas the second - by transformation accompanied by a number of destructive trends in the economy. The current economic model demonstrates limited stability, partly due to deliberately severed economic ties with Russia.