| April | 21 |
| 2006 |
It's great when a good and brave man, who has transformed hundreds of thousands of lives for the better, gets acknowledged. Yesterday, Mart Laar, the former Prime Minister of Estonia, was awarded the Milton Friedman Prize. He is in superb company; the two previous winners were Peter Bauer and Hernando de Soto.
Anyone who has met Mart, as I have been privileged to do a number of times, cannot but be wowed by him. His achievement in Estonia is astonishing in its scope and success. As the citation puts it:
Throughout his public life, Laar has embodied the values of liberty and free choice recognized by the prize, and his dedication to these ideals helped him to lead his country to economic prosperity through a radical free market program.Today, Estonia is hailed as a model for emerging democracies and is cited as an example that ailing Western European economies should follow too. Consistently near the top of the Economic Freedom of the World Index, Estonia is now a member of NATO, the EU and the WTO, with well over 90 percent of its formerly state-run economy privatized.
When Laar took the reins of power of the newly independent country in 1992, he was only 32 years old, and Estonia was struggling to heal from the wounds of Soviet occupation. Laar believed that the way to ensure success for Estonia was to cultivate freedom and self-determination. In only two years in office, he negotiated the withdrawal of Russian troops from Estonian soil and introduced the kroon, one of Eastern Europe's most stable currencies. He also instituted a flat tax rate, a move, which has been widely copied . even in Russia. Under Laar, Estonia removed price controls, discounted useless regulations, and saw the largest real per capita income of any of the former Communist states.
But as Laar, who served two terms as prime minister, has pointed out, he is not an economist: "I had read only one book on economics . Milton Friedman's Free to Choose. I was so ignorant at the time that I thought that what Friedman wrote about the benefits of privatization, the flat tax and the abolition of all customs rights, was the result of economic reforms that had been put into practice in the West. It seemed common sense to me and, as I thought it had already been done everywhere, I simply introduced it in Estonia, despite warnings from Estonian economists that it could not be done. They said it was as impossible as walking on water. We did it: we just walked on the water because we did not know that it was impossible."
Truly, a well-deserved honour for a great man.

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Mr Laar is a true hero.
You're right in pointing out that he's not an economist. He started out as a young historian in the late 1980s, investigating the suppressed history of the 'Forest Brothers', the thousands of Estonians, Latvians and Lithuanians who hid out in the Baltic woods, resisting the brutal Soviet occupation of the Baltic states after the Second World War. This struggle for freedom had been completely suppressed by the Soviet authorities, ignored by the leftist academics in the west and are still all too little known today.
Despite pressure from the Soviet authorities, he travelled from village to village with his researchers, interviewing
the old men and women who'd escaped to the forest, fighting the Soviets and waiting for the help from the west which never came.
"Nobody believed that Estonia would, for decades and decades, be left in the hands of the Soviets," said Laar. "That wasn't even a possibility. It's only a question of time, everybody thought. But after decades went by, the idea about the West coming to their aid disappeared. The fight in the forest became a personal thing. These people fought because they simply wanted to die as free men."
Tens of thousands were killed, deported or imprisoned, with the revolt finally crushed by the Red Army in the mid 1950s. August Sabe was among the last of the Estonian Forest Brothers to survive. After years of living off the land he was found, at the age of 56, in 1978 by two KGB agents posing as fishermen. Refusing to the last to submit to capture he jumped into the lake, hooked himself to a submerged log and ended his own life a free man. Oskar Lillenurm, the last known Forest Brother, was found dead in Läänemaa county in the spring of 1980.
A film by Jonas Vaitkusÿs, 'Vienui Vieni', came out in 2004. The title - 'Utterly Alone' - sums up their struggle. What a great Hollywood film these stories would make, individual heroism pitted against cruel and crushing power, but I guess they're too busy bravely condemning Mcarthyism.
The liberation from Soviet communism, in which Mr Larr and the people of the Baltic nations played a heroic part, is one of the great wonders of our times, although I can think of one person who won't be celebrating Mr Laar's award.
"Whatever the merits, or demerits, of the many years thereafter during which Communism was in power in Moscow, it is a plain and indisputable fact that the very existence of the USSR encouraged working people everywhere to throw of the shackles of colonial rule." - Tony Benn writing in 1992.
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