HISTORY OF BALTIC CITIZEN´S FINANCIAL SELF-HELP

Historically, i.e. until WWII, the FINANCIAL SYSTEMS IN ESTONIA, LATVIA AND ALSO IN LITHUANIA were very CLOSE TO THE GERMAN SYSTEM.

This article chooses the INHERITED, formerly very SUCCESSFUL STRUCTURES AS ORIENTATION FOR THE REHABILITATION of the national financial systems because this will be SAFER THAN relying on IMPORTED INNOVATIONS.

Another reason for the recommendation is the fact that these SYSTEMS have SURVIVED IN GERMANY where they still are strong and because they have been permanently UP-DATED and improved.

In view of all this, most of the specific proposals take GERMAN EXAMPLES as REFERENCES. They are so specific that translating them into English could cause misunderstandings..

GERMAN LANGUAGE

To-day, in the Baltic region, as everywhere in Europe, English is the “lingua franca” in international relations. UNTIL WWII, GERMAN was understood and spoken EXTENSIVELY IN THE BALTIC REGION, not only when communicating internationally. All PUBLICATIONS of more than merely local importance were written IN GERMAN or, at least, translated into this language.

The historic DOCUMENTS, especially those OF LIVONIA, OLD-ESTONIA AND CURONIA which the web-site articles are referring to, are completely written in GERMAN.

RESUME

The RECONSTRUCTION OF THE BALTIC REGION FINANCIAL SYSTEMS will only be COMPLETE when COMMUNITY ORIENTED FINANCIAL INSTITUTIONS will be able to COMPETE with the merely profit oriented finance bodies.


Such systems have to GROW FROM BELOW, UNDER the RESPONSIBILITY OF THE CITIZENS.

STRICT, PERMANENT AND IN-DEPTH SELF-AUDIT IS INDISPENSABLE, from the first steps on.



COMBINING INHERITED PRACTICES AND MODERN KNOW-HOW FOR FORGING THE FUTURE

The HERITAGE OF FINANCIAL ECONOMY PEOPLE’S SELF-HELP PRACTICES AND STRUCTURES can be taken from the documentations in the archives – as the author did himself.

MODERN KNOW-HOW can be obtained from GERMAN COMMUNITY ORIENTED FINANCIAL SECTOR BODIES. Most of the know-how is, or “public domain” or its use does not require big expenditures.


The ESSENTIAL basics should be generated, following the following RANKING:

1.

COMPREHENSIVE, PERMANENT AND IN-DEPTH AUDITING, as applied in ‘Association Audit’ (in German: ‘Verbandsprüfung’) by German co-operative and so-called Savings Banks, since it generates CONFIDENCE among the public and by State authorities and opens access to OFFICIAL SUPPORT PROGRAMMES



2. PREPARATION AND CONTINUOUS IMPROVEMENT OF PROFESSIONAL PERFORMANCE OF PERSONNEL, focusing especially self-audit and creating an AUDITORS CORPS

3. STRUCTURING FROM THE GRASS-ROOTS, following the principles of direct and indirect DEMOCRACY

BACK TO THE ROOTS AS EXAMPLE FOR EUROPE – EAST AND WEST

The combination of the ‘back-to-the-roots’ modality with the acquisition of STATE-OF THE-ART KNOW-HOW does NOT require BIG SEED CAPITAL BUT CONVICTION, and the virtues of STEADINESS, COMMUNITY NEEDS COMMITMENT, HONESTY AND THRIFT.

Estonia has shown that difficult times – the actual crisis – can enable reforms. The country was able to join the Euro community, not in spite – but because of the crisis.

Even such a small country can WIN REPUTATION WITHIN EUROPE-WIDE by re-habilitating the traditions of economic culture in the Eastern Baltic Sea region and by winning partners for this task.

Not only the Eastern reform countries would benefit but also the ‘old’ market economies in the West which would be encouraged to open the doors for the RIGHT CONSEQUENCES to CORRECT MISTAKES which became apparent during the crisis and which were due to the neglect of the principles described above.

Self-help systems, aiming at improving the situation of low and middle income earners, in the hands of the citizens, are a DYNAMIC tool and, therefore, far BETTER tool THAN CHARITY. Donations, anyhow, are decreasing what alone makes the execution of the proposal mandatory.