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Abstract
The social and political developments of the last two centuries within the territory of the Republic of Estonia have shaped the present regional distribution of population and economy. Of all the social processes, special attention has to be drawn to the post‐World War II transition from an agricultural to an industrial society. This brought about intensive urbanization and led to the regional differences. At present, the process of transition to an information society exercises influence on social patterns. Of the political factors that have shaped the development of regional processes in Estonia, the politics of Russia (former Soviet Union) was the most influential. Estonia has been both directly involved and a separate political entity. Already for the second time the economy of the Republic of Estonia has had to reorient from the eastern markets to the western. This has also brought about sharp changes in the administration and development of the border regions, some of which have become backward. The regional economic development in Estonia today is mainly the combined result of the economic and social development of the Soviet era and the new processes that started with the transition period.