Neivelt: Estonia attracting wrong type of foreign investments
15.02.2012, 10:59Estonian banker Indrek Neivelt who at present runs a bank in Russia believes that this type of foreign investment that Estonia is attracting now is not helping to increase wealth in the country.
“If Estonia wants to increase its national wealth, it should actually reject the type of foreign investments that are pouring in today,” Neivelt said.
The banker added that these were mainly simple manual jobs that foreign investments were being used on in Estonia and these will not increase the national wealth.
“Instead, we should attract investors who would transfer to Estonia head office functions such as development, marketing, etc. It’s not important if they are local or foreign investments,” said Neivelt.
He added that if Estonia was really keen on catching up with, say, Finland, it should tell Finnish retail giant Kesko to shelve its current plans of building a large logistics centre in Estonia and ask Ericsson and Enics to take their assembly plants away from Estonia.
“We should explain to Finns that they are wrong in moving their production to Estonia since soon they would have to move it back or go to, for instance, Latvia.
Since no-one is telling Finns that, I assume that no-one in Estonia is taking this let’s-catch-up-with-rich-countries promise seriously,” concludes the banker.