Appendix B. Income Potential of Communities:

This appendix presents combined assessments of the income potential of rural communities. depending on age distribution of population. employment rates and the proportion of peasantry in the community. The calculations are based on the data of a household assessment made at the beginning of 1996. Methodological notes are given at the end of the table.

Comments on the Methodology

As a result of the statistical analysis of detailed factual data, five indicators were chosen to represent the social-economic situation in communities. among which one (T) can be considered as a resultant feature and the remaining four CD. H. L. F) as determining features.

T - represents the individual income tax paid to the/community in 1995 per one working age resident (in kroons).

D - is demographic development factor or coefficient of labour renewal (number of those below employment age per every 1000 above employment age).

H - is employment coefficient of persons able to work (number of employees able to work per every 1000 of working age).

L - represents the progress of households on labour market (number of employees per even,' 100 household).

F - shows proportion of peasantry in a community (number of farm family members per ever}' ] 000 persons in households).

In 1995 65% of local governments' revenues came from personal incomes (incl. 54.4% of individual incomes) and 35% of the total from subsidies. loans. transfers and residual items (incl. 22% of subsidies from the State budget).

After subtracting the numbers of Tallinn as well those of Tartu. Pämu and Narva from the corresponding combined data of the State (presuming that the budget incomes of the three last mentioned form the same proportions as in Tallinn). the proportions of budget incomes in Estonian countryside can conditionally characterised as follows:

In all probability it can be stated that in most budgets of rural communities the subsidies from the State budget are bigger than payments from individual incomes. Payments from individual incomes make up over 70% of the local revenues of communities. Therefore calculated (theoretical) values of the index T have been chosen as the assessment criteria of the present social-economic situation of a community.

The four theoretically presumable values of the index T have been calculated by simple regression equations, proceeding from the observed values of the predeterminable variables.

TL and TF.
TD = 484 + 0.45*D;
TH = -64 + 1.62*H;
TL = 377 + 6.93*L;
TF = 11472 - 2.73*F.

The average values of the corresponding indexes about the whole amount and selectives:

The corresponding whole amount is quite well represented by the selective communities both by the average indexes and variability rate.

Variation coefficients of indexes T. D. H. L. F (V; in per cent) and correlation coefficients (r; p > 0.95):

Community income potential is the geometrical average of the indexes TD, TH, TL, and TF.

Community income rate shows where the numerical value of income potential belongs:

The reduced combined index of community development potentials shows how favourably employment and the total effect of demographic reproduction and farm movement can affect the formation of income in communities.

The rates of indexes have been summarised. whereas the rate of TD has a double value - the gained number has been divided by 15.

Appendix C. Methods of Developing the Strategy

The basis of establishing the strategy has been brainstorming with the social workers of counties (16 three-days discussions with more than 300 participants), research about social development in 14 different regions of Estonia in 1995–1996 including 700 persons and followed up by the analysis of the results in every region in the presence of the regional management. Besides this, legal acts and their projects have been analysed. International congresses and seminars on the subject have been participated in. The first draft of the strategy project was introduced to researchers, social workers of communities and counties and the corresponding department of the Ministry of Agriculture to get proposals and amendments. Separate parts of the strategy (village development, supporting rural life, etc.) were discussed with the corresponding target groups.

REFERENCE MATERIALS

Statistics

Estonian regional statistics in 1995, Tallinn, 1996
Estonian Statistics Nr. 58, Tallinn, 1996
Estonian Statistics Yearbook 1996, Tallinn, 1996
Wages 2/96, Tallinn, 1996

Legal documents

Draft bill of Supporting Rural Life.
National Social Insurance Law. Draft bill dating from Sept. 25, 1996.
Arranging Payments of National Social Insurance. Government draft decree.
Explanation to Government draft decree “Arranging Payments of National Social Insurance.“
Law of Social Care.
Explanation to the bill changing Law of Social Care.
Establishing Subsistence Limits. Government draft decree.
Explanation to Government draft decree “Establishing Subsistence Limits“.
Law of Youth Labour.
Regulation for allocating poll tax to independent family doctors. Draft compiled by Mati Kallas,Nov. 25, 1995.
Establishing the system of re-socialising persons who have committed crimes. Concept and action plan until the year 2000, draft.
Quality requirements for training social workers. Edict of Social Minister, nr. 210, Nov. 11,1996.
Bill of General Medical Care.

Research

The amount of considerable research concerning rural social policy is remarkably little. This results in the present weak rural policy and the fact that human resources are very often not considered as resources even by ministeries.

A useful basic reference is “Facts about Estonian Rural Development Conditions in the Context of Transition Economy“ by A. Lõo.

IRD (Institute of Rural Development)

J. Ginter, Development of Regional Policy in Estonia, 1995
J. Ginter, Challenges for Rural Development in Estonia, 1996
Social development of the village (a book).
Generalised materials of the brainstorming of social workers.
The role and status of the rural women in 1995 (an article in Estonian and in English).
Course papers of social workers.
Development plans of communities.
Analysis by employment agency.

Bibliography

The programme of “Kodukant“ about Estonian villages and small towns
OECD Review of Estonian Agricultural Policy in 1986 – 1996
The project on different ways of development of special care in 1995 – 2000
The European Social Charter, Directorate of Human Rights Strasbourg, Council of Europe, 1992.
The European Social Charter and explanatory report, Council of Europe, Strasbourg, 3 May 1996
Sick Fund of Viljandimaa, Mati Kallas, first step in health care arrangement of applying the Law of Family Doctors and the resulting changes in the legislation, principles of financing health care and planning poll tax for ensuring the first step medical care.
Survey of Social Ministry about the use of allocated funds during the 9 months of 1996.