RMK on the stock exchange: a lifeline for state finances and forestry

“Unfortunately I have to make sad all those who rely on the cliché slogan “Estonians are forest people”. In a general sense, this is a historical expression that no longer has very close ties with modern man,” writes Fredi Kaasik. The image is illustrative Photo: Andras Kralla

By making Enefit Green overnight with RMK, we potentially connect a large number of people to forestry issues and make them interested in our nature, writes Fredi Kaasik, a forester working in the wood industry, in an article submitted to the competition of Edukas Eesti opinion.

We hear more and more talk about how the country is not short of money. This phrase is becoming a refrain in the anguished lullaby called budget. Instead of offering solutions, most of them go on to crush their political rival, and when they try to find opportunities in the little time left, even more new places of cost, not income, float to the surface.

So what do we do? The title contains a hint that is scary at first sight, but nevertheless a possible lifeline, which I will now start working on.

Return to the forest

To understand the context of my thinking, we must remember the crash two years ago, when the stock market bell rang for Enefit Green and the triumph of truly popular stocks began. In an instant, around 60,000 voices were raised in Estonia in favor of building wind turbines at work, at school and in groups of friends, so that in this way everyone could protect their investment. A positive consequence of this process has been the growth of general interest and awareness towards energy production.

I don’t know who was the real author of this plan and whether such a change in society’s attitude was planned or accidental, but in any case the result was brilliant. Previously politically unpopular decisions suddenly became feasible because support was guaranteed.

In essence, only two other extremes remain in the forestry debate: environmentalists and timber producers. It lacks a critical mass of balancing power.

Fredi Kaasik

Even in the case of RMK we could try to reawaken Estonians’ interest in the forest. Unfortunately I have to make all those who rely on the cliché slogan “Estonians are forest people” sad. In its general sense, it is a historical expression that no longer has close ties to modern man.

With my statement I am referring to the problem that the number of people aware of the forest is decreasing. This is also confirmed by universities, where 15 years ago there were several 20-person forestry master’s courses, now there are only a few new master’s students.

In essence, only two other extremes remain in the forestry debate: environmentalists and timber producers. It lacks a critical mass of balancing power. By realizing the so-called Enefit Green with RMK, we potentially connect a large number of people to forestry issues and make them interested in our nature. This way we also get a true picture of society’s expectations.

Victory, not collapse

A cynic might claim, on the basis of a well-worn idea, that after this, the last person in any state forest will feel the harvest in anticipation of the owner’s income. I calm down: allowing or not allowing logging in Estonia is governed by laws and regulations, which safely mitigate this risk. If there were a similar concentration of forest custodians and managers among us, as expected, then logically the collapse should not occur.

Write a successful idea and win more than 10,000 euros!

Edukas Eesti is a competition from Äripää, Helmes, Eesti Gaas, If Kindlustuse, Ellex Raidla Advokaadibüro, Swedbank and Verston, where we are waiting for ideas to update Estonia’s success story and accelerate development in the form of an opinion article.

You can participate in the competition with a maximum of two papers, the length of the article is a maximum of 5000 characters (including spaces). The central evaluation criteria are the originality of the ideas, the feasibility and the brilliant presentation. Grand Prix brings the winner 10,000 euros, the second place 3,000 and the third place 2,000 euros.

The jury is made up of the owners and managers of the organizing companies, the competition is conducted by the opinion editor of Äripäv. The competition ends March 31, 2024.

The competition entries will be published in the special section opened in the opinions section of Äripäiv and on the Eduka Estonia Facebook page. The competition work and the author’s photo can be sent HERE. For technical problems and further questions, write to us [email protected].

What do nature lovers have to gain? The opportunity to enter the circle of owners and interact with a greater number of people who are attentive to the forest, because if I am a shareholder, every news item containing the word “forest” will be clicked on by me.

What does the shareholder/citizen gain from it? He can acquire an extremely secure title, which is like a stone on the fireplace and is supported by real assets.

What does the industry have to gain? Society’s attitude towards the industry is becoming friendlier. Now, through the participation of the supplier, the industrialist’s interest is also at the service of the citizen’s interest. The creation of the industries necessary to create greater added value no longer faces a huge comparison, because a more expensive final product allows you to be more generous towards the supplier, and the increase in the price of lumber also means a greater dividend for RMK.

The biggest winner: the country

And finally the most acute question of state governance: what does the state have to gain? I must say that it is the State that will benefit the most from RMK’s grant.

First: the money invested in the stock market is collected by those who own it. It’s hard to imagine deploying planned money more easily and precisely to fill budget gaps.

Secondly: the opportunity to sell for the so-called second time the property of the state and citizens – the forest – to their own people and thus give investors a real sense of ownership, not the indirect knowledge that dividends from RMK will fill something in the budget.

Third: help the timber industry return to being the engine of the country’s economy, ensuring logging volumes and reducing bureaucracy, without fearing societal disapproval on the current scale.

Fourth: solve rural employment problems by stimulating the wood industry. Post-downsizing unemployment among people with lower educational attainment is particularly concerning.

What don’t I know?

Realizing the limits of my expertise, it is very liberating to openly admit that I cannot say one thing or the other in this series of solutions. Therefore, I leave the following technical questions to the professionals in my field:

• How to turn a for-profit state institution into a listed company?

• Can and how can the circle of shareholders by citizenship be limited so that the forest remains in the hands of citizens?

• How to include forests in the portfolio?

• How many RMKs to trade?

Before I get shot for inciting a sell-out of the country, I want to clarify the motivation behind my opinion piece. At the heart of all this is concern about the future of forestry. As a land and forest owner myself, a forester, a supporter of a sustainable lifestyle and also as a person working in the industrial sector, I have become full of desire to listen to simple chatter. Let’s now think together about how to ensure that our forest does not run out. As Ruja sang: “So that our forest does not run out! So that our forest does not turn into a forest!”

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2023-12-05 02:05:00
rmk-on-the-stock-exchange-a-lifeline-for-state-finances-and-forestry

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