This paper focuses on Estonias post-communist transition and attempts to de
termine why it has been more successful than the other two Baltic states. L
ithuania and Latvia. It proposes that the central factor conditioning the o
utcome of the Baltic states' transition process was their different experie
nces during the Soviet period. Although the post-independence reform progra
m itself played a crucial role in Estonia's successful transition, the pape
r concludes that the seeds for the countrys achievements can actually be fo
und in its Soviet legacy: Estonia's selection of policies, their implementa
tion and the resulting positive outcome were all dependent on favorable con
ditions which had been established in Estonia during the Soviet period. Sig
nificantly, these positive conditions had not been created in the other two
Baltic states. (C) 2001 The Regents of the University of California. Publi
shed by Elsevier Science Ltd. All rights reserved.