🇪🇪 Estonia

Estonia is the world's most digitally advanced country — this Baltic nation of 1.3 million people lets you do almost everything online, from voting to starting a company in 15 minutes. GDP is about $40 billion. Estonia launched e-Residency in 2014, allowing anyone in the world to start an EU-based business digitally — over 100,000 people from 170 countries have signed up. Skype was built here. The country went from Soviet republic to EU and NATO member in just 13 years (1991-2004), one of the fastest geopolitical transitions in modern history. Tallinn's medieval old town is one of the best-preserved in Europe.

IT and digital services, electronics, and wood products are the main sectors. Finland and Sweden are the top trade partners — the Helsinki-Tallinn ferry route is one of the busiest in the world. Estonia has a flat 20% income tax and no corporate tax on reinvested profits, attracting startups. The country has more unicorn startups per capita than any other in Europe (Skype, Wise, Bolt, Pipedrive). GDP growth has been volatile, hit hard by the energy crisis and Russian trade disruption.

Estonia's e-government system saves the equivalent of 2% of GDP annually in reduced bureaucracy. The country has more startups per capita than Silicon Valley. Estonia's Kiiking is a national sport where competitors try to swing over the top of a giant swing — the current record is a 7.02-meter arm length.

Estonia's digital-first model is a genuine competitive advantage that other countries are trying to copy. The Russia risk is real (30% of the population is ethnic Russian), but NATO membership provides security. A small country doing big things.