Billionaire says Estonia is an 'open society'

TALLINN - Even one of the richest men on the planet has agreed: a decade has made all the difference here.

Internationally famous hedge fund manager and globe-trotting philanthropist, George Soros, came to the capital city last week to celebrate the tenth anniversary of the organization he founded, the Open Estonia Foundation, and to announce that Estonia's progress has rendered some of the non-profit organization's original functions obsolete.

"[OEF] was a major grant-giving organization. Now that role is finished," he said at a press conference, explaining that now, Estonia, like Ireland, has turned itself around economically, politically and socially.

Since 1990, OEF has given tens of millions of kroons to the non-profit sector and to students for scholarships at universities such as Cambridge and Oxford.

OEF will now eliminate its scholarships and project grants and restructure itself into three parts: a Public Policy Institute, the Baltic-American Partnership Fund, and its connection to the rest of his network. The budget will also be cut to $2 million this year, he said, and within two years, less than $1 million will be allotted.

The Hungarian-born Soros drew bewildered laughs when asked where the money to fund the organizations comes from - his own pocket.

He gains nothing from the organizations, he said, except a "good feeling." Soros is reported to be worth about $5 billion.

The foundation was begun to promote the idea of an "open society," a term popularized by the philosopher Karl Popper in his 1945 book, "The Open Society and its Enemies," which heavily influenced Soros' thinking and work.

OEF's Web site characterizes an open society as one that is reliant on the rule of law, with a democratically-elected government, a diverse and vigorous civil society, and a respect for minorities and minority opinions.

The fund focuses primarily on initiatives in education, civil society, independent media, Internet and e-mail communications, publishing, human rights, arts and culture, and social, legal, and economic reform.

OEF is just one link in Soros' 24-organization philanthropic network, which is sometimes dubbed an "alternate ministry of culture" and invests more money in certain countries than, for example, the U.S. government does in them. The entire Soros fund gives away roughly $400 million annually, from Kazakhstan to Romania to Haiti.

Soros' stay also included a meeting with Prime Minister Mart Laar, to whom he introduced the plans for the re-organization.

Laar expressed pleasure and appreciation over Soros' contributions and acquainted him with the government's action plan for joining the European Union, noting that the decisions being made are a prerequisite for the development of the Estonian society and economy in preparation for accession, according to a Baltic News Service report.

Soros voiced his continued support for Estonia's bid to join the Union, saying it is already "quite qualified for becoming a member."

He used Estonia as an example of a successful transition country, contrasting it to Russia's dire situation.