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Finland-Finland in the Era of Consensus, 1966-81
Finland
Index
The parliamentary elections of 1966 marked a major
turning
point in Finnish politics. As in most of the recent
Finnish
parliamentary elections, the main debate centered on
domestic
issues. One issue in 1966 was the need to promote economic
development in the northern part of Finland, which was
lagging
behind the more prosperous southern part of the country.
The
parliamentary elections were a great victory for the
socialist
parties, which gained 103 seats, their first absolute
majority in
parliament since 1916 (see
table 4, Appendix A). Changes
in the
leadership of the SDP--which under a new party chairman,
Rafael
Paasio, had become more temperate in its attitude toward
the
Soviet Union--had made the SDP a viable partner in the
government. Kekkonen thereupon took the major step of
allying his
Kesk with the SDP and with other leftist parties in order
to help
achieve a greater measure of cooperation in Finnish
politics. The
Red-Earth coalition was thus revived, and the communists
enjoyed
their first participation in government since 1948.
Center-left
coalition governments dominated Finnish politics for
several
elections after 1966, and this cooperation among center
and left
parties contributed to a growing consensus in Finnish
political
life.
The core of the developing consensus politics was the
participation of all market sectors in major economic
decisions.
This had begun earlier, but was now intensified. A
milestone, for
example, was the conclusion in March 1968 of the Liinamaa
Agreement, the first comprehensive settlement among the
economic
interest groups that regulated agricultural prices,
workers'
wages, and industrial productivity. This agreement brought
together the trade union organization, SAK, the employers'
organization, STK, and the Confederation of Agricultural
Producers (Maataloustuottajain Keskusliitto--MTK). The
agreement
was made possible in large part by Kekkonen's active
intervention. In succeeding years, the creation of package
deals
to regulate conflicts among the various sectors of the
economy
became a regular feature of political life. One important
government-sponsored meeting among these various economic
interests, at the Korpilampi Motel near Helsinki in 1977,
led to
the coining of the phrase "the spirit of Korpilampi" to
describe
this growing spirit of cooperation.
Another milestone in Finland's development was reached
in
1969 with the amalgamation of two competing trade union
organizations--the smaller, communist-dominated SAJ and
the
larger, Social Democrat-dominated Confederation of Finnish
Trade
Unions (Suomen Ammattiyhdistysten Keskusliitto--SAK)--into
the
Central Organization of Finnish Trade Unions (Suomen
Ammattiliittojen Keskusjarjestö--SAK). By the 1980s, it
had
succeeded in organizing about 85 percent of Finland's
total work
force, one of the highest percentages in the world.
Between the watershed election of 1966 and the late
1980s,
there were several more parliamentary elections.
Throughout these
elections, the SDP remained the largest party, and Kesk,
the KOK,
and the SKDL competed for the next three positions. A
series of
center-left governments came into power from 1966 to the
1980s,
and these generally broad-based coalitions--together with
the
package deals for regulating conflicts in the
economy--helped to
make this period the most politically stable in the
history of
the Finnish Republic. Although there was some instability
at the
cabinet level, where until recent years there was a new
cabinet
nearly every year, the presidency added stability; between
1946
and the late 1980s, Finland had only three presidents.
The pathbreaking center-left cabinet of 1966, which was
headed by the Social Democrat Rafael Paasio as prime
minister,
lasted until 1968 (see
table 5, Appendix A). Conflicts
over
economic issues, especially incomes and prices policy,
brought
the downfall of the Paasio cabinet and the formation of a
new one
under the Social Democrat, and head of the Bank of
Finland, Mauno
Koivisto. This cabinet, which lasted until the
parliamentary
election of 1970, included the three socialist parties,
Kesk, and
the SFP.
In spite of the growing consensus in Finnish politics,
the
1970s witnessed increased votes for non-government parties
and
sustained conflicts in parliament. In the 1970
parliamentary
elections, for example, Kesk lost about one-third of its
strength, and the KOK, which was not part of the
government, rose
from fourth place among parties to second. Even more
striking,
the SMP, which relied on small, economically vulnerable
farmers,
increased its vote almost tenfold. In addition, the
conflicts
among the parties were so intense that no coalition could
be
established, and, instead, a nonpartisan caretaker
government was
installed. It lasted sixty-three days. Finally, a
broad-based
coalition was established under the Kesk politician Ahti
Karjalainen. This coalition included Kesk, the SDP, the
SKDL, the
SFP, and the Liberal People's Party (Liberaalinen
Kansanpuolue--
LKP). The SKDL withdrew from this government in 1971
because of
conflicts within the party. Karjalainen's coalition fell
in late
1971 because of disagreement over economic issues,
especially
inflation, the balance of payments, and growing
unemployment. New
parliamentary elections were called for early 1972, two
years
ahead of schedule. Another nonpartisan caretaker
government held
power until the election.
The results of the 1972 elections were similar to those
of
the 1970 elections, except that the KOK fell from second
place to
fourth. Political conflicts among the parties, however,
still
kept a workable coalition from being formed, and, as a
result, a
minority SDP government was created with Paasio as prime
minister. It lasted five months. President Kekkonen's
direct
intervention helped to bring about the formation of a
coalition
under the Social Democrat Kalevi Sorsa in the fall of
1972; this
four-party coalition included the SDP, Kesk, the SFP, and
the
LKP. The Sorsa government held together until the 1975
parliamentary election, an uncommonly long time in recent
Finnish
history.
Finland's growing economic difficulties, which stemmed
from
the world economic crisis that began in 1973, provided the
background for the parliamentary elections of 1975. The
SKDL
increased its vote to almost 19 percent, making it the
second
largest party. Following the election, the parties were
reluctant
to agree on terms for a coalition government. Kekkonen
thereupon
appointed Keijo Liinamaa, a retired Kesk leader, as prime
minister of a caretaker government that lasted about five
months.
Kekkonen's direct, public intervention made possible the
formation of a large, five-party (the SDP, Kesk, the SKDL,
the
SFP, and LKP) coalition with the Kesk politician Martti
Miettunen
as prime minister. The following year, the SDP and the
SKDL left
the coalition as a result of conflicts with the other
parties.
The Miettunen government fell in 1977 because of Finland's
continuing economic difficulties, and a center-left
government
was formed under Kalevi Sorsa, Finland's sixtieth
government in
sixty years. Included in the five-party coalition were the
SDP,
Kesk, the SKDL, the SFP, and LKP. The following year, the
SFP
withdrew from the coalition because of conflicts with the
other
parties, but the Sorsa government lasted until the 1979
parliamentary election.
The main issues in the 1979 parliamentary election were
unemployment and taxation. The election witnessed a
resurgence of
the KOK, which became the second largest party, behind the
SDP,
but was still excluded from governmental coalitions (see
table 6,
Appendix A). A major political crisis, called the
"Midsummer
Bomb," was unleashed by a Kesk leader's incautious
statement that
the KOK was kept out of power because it was unacceptable
to the
Soviets, although in reality domestic political
considerations
may have played a role in its exclusion from the
government.
Another protest against the established consensus was
registered
in the 1979 election by the Finnish Christian League
(Suomen
Kristillinen Liitto--SKL), which represented a religious
backlash
against secularization and which polled 4.8 percent of the
total
vote. Nevertheless, a center-left coalition was
established under
Koivisto; the coalition included the SDP, Kesk, the SKDL,
and the
SFP, and it lasted until early 1982, when Koivisto was
elected
president.
Corresponding to the growth of political consensus in
Finland
was the increase in social consensus: the divisions of
previous
decades, especially the conflicts between language groups
and
between the working class and the middle class,
diminished.
The Swedish-speaking minority declined steadily in the
twentieth century from 350,000, or 13 percent of the
population,
in 1906 (the year the SFP was founded to protect the
interests of
Swedish speakers), to about 300,000, or 6 percent of the
population, in the 1980s. The decline has been attributed
both to
emigration to Sweden (largely for economic reasons) and to
the
gradual Finnicization of society. Swedish remains one of
the two
official languages of Finland, nevertheless, and a
separate
Swedish-language educational establishment is maintained
(see Swedish-speaking Finns
, ch. 2).
The slow decline of the communist vote in Finland since
the
1960s has been interpreted as a sign that the wounds
caused by
the civil war have gradually healed and that Finland has
achieved
a larger measure of national integration. In the seven
parliamentary elections from 1945 to 1966, the SKDL won 20
to 25
percent of the popular vote and a correspondingly large
representation in parliament. Active participation in the
government, beginning in 1966, was followed by a decline
in its
electoral success. In 1969, Finnish communists dropped the
aim of
revolution from their program.
One major problem that developed in these years,
however, was
the urban-rural cleavage, which was compounded by regional
differences. The relatively urbanized, industrialized, and
prosperous south and west contrasted strongly with the
basically
rural, agrarian, and less prosperous north and east. The
protest
vote was typically stronger in the north and the east than
it was
elsewhere. The government has tried to relieve discontent
with
subsidies for the smaller, less-prosperous farmers and
through
other social welfare measures
(see Agriculture
, ch. 3).
During the postwar era, Finland changed from a
primarily
agrarian society to an urban society, from a land of
peasant
proprietors to a modern society with a predominance of
urban-
dwelling, white-collar and blue-collar workers
(see Demography
, ch. 2;
Social Structure
, ch. 2). Along with the changes in
social
and in economic circumstances went changes in popular
attitudes;
in particular, cosmopolitanism increased. Just as modern
productive technology has made possible an unprecedented
material
prosperity, so also has modern communications technology
speeded
the diffusion of new ideas, breaking down Finland's
cultural
isolation. In the process, however, traditional values
have come
under assault by cultural imports from Western Europe.
President Kekkonen exerted a formidable influence on
Finland's development during his long tenure as president
from
1956 to 1981. He was re-elected in 1962 and in 1968 by
larger
percentages of votes than any other Finnish president had
ever
received. In 1973 his term of office was extended for four
years
by special act of parliament. This extension, it now
appears, was
designed to reassure the Soviets that Finnish foreign
policy
would remain the same, despite the free-trade agreement
with the
EEC that was concluded in 1973. It was evidence of
Kekkonen's
international stature that he hosted the Conference on
Security
and Cooperation in Europe from 1973 to 1975, a conference
that
culminated in the signing of the Helsinki Accords in 1975.
By
then Kekkonen was generally recognized as indispensable to
Finnish politics, and he was re-elected again in 1978 with
the
support of all major parties. Bad health forced him to
resign in
October 1981 at the age of 81; he lived in retirement
until his
death in 1986. His successor as president, the Social
Democrat
Mauno Koivisto, began his term of service in January 1982.
The great majority of the Finnish people and their
political
parties have continued to agree on the Paasikivi-Kekkonen
Line as
the basis of Finland's foreign policy. Only a few
political
extremists have opposed it, and they have been excluded
from any
role in formulating foreign policy. A tiny splinter group
from
the conservatives appeared during the 1970s as a protest
against
Kekkonen's allegedly too pro-Soviet foreign policy. Since
1980
this group has been called the Constitutional Party of the
Right
(Perustuslaillinen Oikeistopuolue--POP), but it has
achieved
virtually no influence.
* * *
Although there are a number of useful historical works
about
Finland, in English, the best sources are in Swedish and
Finnish.
A good introduction to Finnish history is Eino Jutikkala's
A
History of Finland. Anthony F. Upton's well regarded
The
Finnish Revolution, 1917-1918 deals with a crucial
episode in
modern Finnish history. Risto Alapuro's State and
Revolution
in Finland is a sophisticated examination of the
social
forces involved in the formation of the Finnish state. C.
Leonard
Lundin's Finland in the Second World War was a
pioneering
work when it appeared in 1957 and is still considered the
definitive book on the subject in English. Lundin's essay
on
Russification in Edward C. Thaden's Russification in
the
Baltic Provinces and Finland, 1855-1914 is a solid
work on
that subject. D.G. Kirby's Finland in the Twentieth
Century is an interpretive history of the period
through the
1970s. Among the best available works that analyze the
development of Finland's foreign policy since World War II
is Roy
Allison's Finland's Relations with the Soviet Union,
1944-
84. There is a useful collection of speeches by
President
Urho Kekkonen, edited by Tuomas Vilkuna titled
Neutrality: The
Finnish Position. (For further information and
complete
citations,
see
Bibliography.)
Data as of December 1988
- Finland-Chapter 4 - Government and Politics
- Finland-Transport Equipment
- Finland-Principles of Criminal Justice
- Finland-Orthodox Church of Finland
- Finland-Revivalist Movements Within the Lutheran Church
- Finland-Lapps
- Finland-Banking and Finance
- Finland-The Rise of Finnish Nationalism
- Finland-Economic Development
- Finland-Forestry
- Finland-Energy
- Finland-The Winter War WORLD WAR II, 1939-45
- Finland-The Establishment of Finnish Democracy
- Finland-Civil Service
- Finland-THE ARMED FORCES
- Finland-Aland Islands
- Finland-Macroeconomic Policy
- Finland-Mobile Police
- Finland-Tourism
- Finland-Fisheries
- Finland-DEFENSE SPENDING
- Finland-Chapter 1 - Historical Setting
- Finland-CONSTITUTIONAL FRAMEWORK
- Finland-Industrial Policy
- Finland-AGRICULTURE, FORESTRY, AND FISHERIES
- Finland -Country Profile
- Finland-Sentencing and Punishment
- Finland-Medieval Society and Economy
- Finland-Class Structure
- Finland-Local Administration
- Finland-Conscription and Reserve Duty
- Finland-The Constitution
- Finland-Health Problems
- Finland-Security Police
- Finland-United States
- Finland-Finnish-Soviet Cooperation
- Finland-Primary and Secondary Education
- Finland-Family Aid
- Finland-FOREIGN RELATIONS
- Finland-Machine Building
- Finland-Income Security Classified as Welfare
- Finland-Police Training
- Finland-ECONOMY
- Finland-ROLE OF GOVERNMENT
- Finland-Balance of Payments
- Finland-Agricultural Policy
- Finland-President
- Finland-GEOSTRATEGIC SITUATION
- Finland-Finnish Security Policy Between the Wars
- Finland-Navy
- Finland-Employee Pension Plans
- Finland-DEMOGRAPHY
- Finland-Chapter 3 - The Economy
- Finland-Child-Care Services
- Finland-Command Structure
- Finland-Finland
- Finland-The Parliamentary Election of 1983
- Finland-CRIMINAL JUSTICE SYSTEM
- Finland-Chapter 2 - The Society and Its Environment
- Finland-The Presidential Election of 1988
- Finland-Employment
- Finland-Legal System
- Finland-Army
- Finland-The Effects of the War
- Finland-MINORITY GROUPS
- Finland-Structure of the Economy
- Finland-Finland in the Era of Consensus, 1966-81
- Finland-The Lapland War
- Finland-NATIONAL SECURITY
- Finland-Domestic Arms Production
- Finland-THE POSTWAR ERA
- Finland-Protection of the Environment
- Finland-Farms and Farmers
- Finland-Metal Industries
- Finland-Landform Regions
- Finland-Social and Economic Developments
- Finland-Unemployment Insurance
- Finland-The Kalmar Union
- Finland-Minerals
- Finland-Services for the Disabled
- Finland-Organization of the Health System
- Finland-TREATY COMMITMENTS AFFECTING NATIONAL SECURITY
- Finland-Industrial Relations
- Finland-Agriculture
- Finland-The Continuation War
- Finland-Transportation and Communications
- Finland-FOREIGN ECONOMIC RELATIONS
- Finland-Mass Media
- Finland-Status of Women
- Finland-Adult Education
- Finland-Health System
- Finland-PUBLIC WELFARE
- Finland-Sickness Insurance
- Finland-Organization of the Welfare System
- Finland-Size, External Boundaries, and Geology
- Finland-THE RUSSIAN GRAND DUCHY OF FINLAND, 1809-1917
- Finland-Drug Enforcement
- Finland-The Parliamentary Election of 1987
- Finland-SOURCES OF EQUIPMENT
- Finland-Income Security Programs Classified as Social Insurance
- Finland-Soviet Union
- Finland-SOCIAL STRUCTURE
- Finland-The Communist Party of Finland
- Finland-Climate
- Finland-The Swedish People's Party
- Finland-Foreword
- Finland-Acknowledgments
- Finland-THE ARMED FORCES IN NATIONAL LIFE
- Finland-Housing
- Finland-Training and Education
- Finland-POLITICAL DYNAMICS
- Finland-Air Force
- Finland-Central Criminal Police
- Finland-Council of State
- Finland-Legislature
- Finland-Finnish Direct Investment Abroad
- Finland-Ties to West European Markets
- Finland-Electoral System
- Finland-The Reformation
- Finland-Basic Metals
- Finland-Welfare Services
- Finland-The Finnish Civil War
- Finland-Constitutional Development
- Finland-National Pension Plan
- Finland-MILITARY HERITAGE
- Finland-Other Industries
- Finland-Public Finance
- Finland-ENERGY AND MINERAL RESOURCES
- Finland-INDEPENDENCE AND THE INTERWAR ERA, 1917-39
- Finland
- Finland-GEOGRAPHY
- Finland-Higher Education
- Finland-Domestic Developments and Foreign Politics, 1948-66
- Finland-Arms Acquisitions from Foreign Suppliers
- Finland-Smaller Parties and the Greens
- Finland-GEOGRAPHY
- Finland-Jewish and Muslim Communities
- Finland-TRANSPORTATION AND COMMUNICATIONS
- Finland-Foreign Trade
- Finland-The Cold War and the Treaty of 1948
- Finland-Urbanization
- Finland-Regional Economic Integration
- Finland-Interest Groups
- Finland
- Finland-Wood-Processing Industries
- Finland-CIVIL DEFENSE
- Finland-Growth of the Social Welfare System
- Finland-LIVING CONDITIONS
- Finland-Farm Production Patterns
- Finland-ORIGINS OF THE FINNS
- Finland-EDUCATION
- Finland-FAMILY LIFE
- Finland-GROWTH AND STRUCTURE OF THE ECONOMY
- Finland-Role of Religion
- Finland-The Center Party
- Finland-Chapter 5 - National Security
- Finland-The Social Democratic Party
- Finland-Internal Migration
- Finland-Frontier Guard
- Finland-Uniforms and Insignia
- Finland-Preface
- Finland
- Finland-Marriage
- Finland-THE ERA OF SWEDISH RULE, c - 1150-1809
- Finland-Incidence of Crime
- Finland
- Finland-The National Coalition Party
- Finland-Provincial Administration
- Finland-Police Organization
- Finland-External Migration
- Finland
- Finland-Conditions of Service
- Finland-Neutrality
- Finland-CONCEPTS OF NATIONAL SECURITY
- Finland
- Finland
- Finland
- Finland-RELIGION
- Finland-The Presidential Election of 1982 and Koivisto's Presidency
- Finland
- Finland-UNITED NATIONS PEACEKEEPING ACTIVITIES
- Finland-Swedish-speaking Finns
- Finland-SOCIETY
- Finland-Occupational and Wage Structure
- Finland-Western Europe
- Finland-Organization and Duties of the Lutheran Church
- Finland-SERVICES
- Finland
- Finland-Workmen's Compensation
- Finland-Development of the Health System
- Finland-INDUSTRY
- Finland-Electrical Equipment and High Technology
- Finland-Services for Substance Abusers
- Finland-United Nations and Third World
- Finland-HUMAN RESOURCES
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Background | | Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999.
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Location | | Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia
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Area(sq km) | | total: 338,145 sq km land: 303,815 sq km water: 34,330 sq km
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Geographic coordinates | | 64 00 N, 26 00 E
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Land boundaries(km) | | total: 2,654 km border countries: Norway 727 km, Sweden 614 km, Russia 1,313 km
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Coastline(km) | | 1,250 km
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Climate | | cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes
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Elevation extremes(m) | | lowest point: Baltic Sea 0 m highest point: Haltiatunturi 1,328 m
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Natural resources | | timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone
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Land use(%) | | arable land: 6.54% permanent crops: 0.02% other: 93.44% (2005)
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Irrigated land(sq km) | | 640 sq km (2003)
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Total renewable water resources(cu km) | | 110 cu km (2005)
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Freshwater withdrawal (domestic/industrial/agricultural) | | total: 2.33 cu km/yr (14%/84%/3%) per capita: 444 cu m/yr (1999)
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Natural hazards | | NA
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Environment - current issues | | air pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations
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Environment - international agreements | | party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling signed, but not ratified: none of the selected agreements
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Geography - note | | long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
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Population | | 5,250,275 (July 2009 est.)
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Age structure(%) | | 0-14 years: 16.4% (male 438,425/female 422,777) 15-64 years: 66.8% (male 1,773,495/female 1,732,792) 65 years and over: 16.8% (male 357,811/female 524,975) (2009 est.)
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Median age(years) | | total: 42.1 years male: 40.5 years female: 43.7 years (2009 est.)
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Population growth rate(%) | | 0.098% (2009 est.)
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Birth rate(births/1,000 population) | | 10.38 births/1,000 population (2009 est.)
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Death rate(deaths/1,000 population) | | 10.07 deaths/1,000 population (July 2009 est.)
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Net migration rate(migrant(s)/1,000 population) | | 0.68 migrant(s)/1,000 population (2009 est.)
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Urbanization(%) | | urban population: 63% of total population (2008) rate of urbanization: 0.8% annual rate of change (2005-10 est.)
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Sex ratio(male(s)/female) | | at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.68 male(s)/female total population: 0.96 male(s)/female (2009 est.)
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Infant mortality rate(deaths/1,000 live births) | | total: 3.47 deaths/1,000 live births male: 3.78 deaths/1,000 live births female: 3.15 deaths/1,000 live births (2009 est.)
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Life expectancy at birth(years) | | total population: 78.97 years male: 75.48 years female: 82.61 years (2009 est.)
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Total fertility rate(children born/woman) | | 1.73 children born/woman (2009 est.)
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Nationality | | noun: Finn(s) adjective: Finnish
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Ethnic groups(%) | | Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006)
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Religions(%) | | Lutheran Church of Finland 82.5%, Orthodox Church 1.1%, other Christian 1.1%, other 0.1%, none 15.1% (2006)
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Languages(%) | | Finnish 91.2% (official), Swedish 5.5% (official), other 3.3% (small Sami- and Russian-speaking minorities) (2007)
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Country name | | conventional long form: Republic of Finland conventional short form: Finland local long form: Suomen tasavalta/Republiken Finland local short form: Suomi/Finland
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Government type | | republic
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Capital | | name: Helsinki geographic coordinates: 60 10 N, 24 56 E time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
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Administrative divisions | | 6 provinces (laanit, singular - laani); Ahvenanmaan Laani (Aland), Etela-Suomen Laani (Southern Finland), Ita-Suomen Laani (Eastern Finland), Lansi-Suomen Laani (Western Finland), Lapin Laani (Lapland), Oulun Laani
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Constitution | | 1-Mar-00
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Legal system | | civil law system based on Swedish law; the president may request the Supreme Court to review laws; accepts compulsory ICJ jurisdiction with reservations
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Suffrage | | 18 years of age; universal
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Executive branch | | chief of state: President Tarja HALONEN (since 1 March 2000) head of government: Prime Minister Matti VANHANEN (since 24 June 2003); Deputy Prime Minister Jyrki KATAINEN (since 19 April 2007) cabinet: Council of State or Valtioneuvosto appointed by the president, responsible to parliament elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 15 January 2006 (next to be held in January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment; Prime Minister VANHANEN reelected 17 April 2007 election results: percent of vote - Tarja HALONEN (SDP) 46.3%, Sauli NIINISTO (Kok) 24.1%, Matti VANHANEN (Kesk) 18.6%, Heidi HAUTALA (VIHR) 3.5%; a runoff election between HALONEN and NIINISTO was held 29 January 2006 - HALONEN 51.8%, NIINISTO 48.2%; Matti VANHANEN reelected prime minister; election results 121-71 note: government coalition - Kesk, KOK, VIHR, and SFP
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Legislative branch | | unicameral Parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms) elections: last held 18 March 2007 (next to be held March 2011) election results: percent of vote by party - Kesk 23.1%, Kok 22.3%, SDP 21.4%, VAS 8.8%, VIHR 8.5%, KD 4.9%, SFP 4.5%, True Finns 4.1%, other 3.4%; seats by party - Kesk 51, Kok 50, SDP 45, VAS 17, VIHR 15, SFP 9, KD 7, True Finns 5, other 1
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Judicial branch | | Supreme Court or Korkein Oikeus (judges appointed by the president)
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International organization participation | | ADB (nonregional member), AfDB (nonregional member), Arctic Council, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UNMIS, UNMOGIP, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
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Flag description | | white with a blue cross extending to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag); the blue represents the thousands of lakes scattered across the country, while the white is for the snow that covers the land in winter
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Economy - overview | | Finland has a highly industrialized, largely free-market economy with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important; Finland's ratio of exports to GDP has risen from a quarter to 37% over the past 15 years. Finland excels in high-tech exports such as mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Although Finland has been one of the best performing economies within the EU in recent years and its banks and financial markets have avoided the worst of global financial crisis, the world slowdown has hit export growth and domestic demand and will serve as a brake on economic growth in 2009 and 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise. During 2009, unemployment will climb to over 8% of the labor force. Long-term challenges include the need to address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.
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GDP (purchasing power parity) | | $194 billion (2008 est.) $192.4 billion (2007 est.) $184.8 billion (2006 est.) note: data are in 2008 US dollars
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GDP (official exchange rate) | | $271.9 billion (2008 est.)
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GDP - real growth rate(%) | | 0.8% (2008 est.) 4.1% (2007 est.) 4.9% (2006 est.)
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GDP - per capita (PPP) | | $37,000 (2008 est.) $36,700 (2007 est.) $35,300 (2006 est.) note: data are in 2008 US dollars
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GDP - composition by sector(%) | | agriculture: 2.8% industry: 32.4% services: 64.9% (2008 est.)
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Labor force | | 2.703 million (2008 est.)
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Labor force - by occupation(%) | | agriculture and forestry 4.5%, industry 18.3%, construction 7.3%, commerce 16%, finance, insurance, and business services 14.5%, transport and communications 7%, public services 32.4% (2008)
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Unemployment rate(%) | | 6.4% (2008 est.) 6.9% (2007 est.)
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Population below poverty line(%) | | NA%
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Household income or consumption by percentage share(%) | | lowest 10%: 3.6% highest 10%: 24.7% (2007)
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Distribution of family income - Gini index | | 29.5 (2007) 25.6 (1991)
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Investment (gross fixed)(% of GDP) | | 20.6% of GDP (2008 est.)
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Budget | | revenues: $143.8 billion expenditures: $132.3 billion (2008 est.)
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Inflation rate (consumer prices)(%) | | 4.1% (2008 est.) 2.5% (2007 est.)
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Stock of money | | $NA (31December 2008) $NA (31 December 2007) note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
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Stock of quasi money | | $NA (31 December 2008) $NA (31 December 2007)
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Stock of domestic credit | | $241.1 billion (31 December 2008) $225.4 billion (31 December 2007)
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Market value of publicly traded shares | | $NA (31 December 2008) $369.2 billion (31 December 2007) $265.5 billion (31 December 2006)
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Public debt(% of GDP) | | 33.7% of GDP (2008 est.) 46.8% of GDP (2004 est.)
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Agriculture - products | | barley, wheat, sugar beets, potatoes; dairy cattle; fish
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Industries | | metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing
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Industrial production growth rate(%) | | 0.4% (2008 est.)
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Current account balance | | $5.518 billion (2008 est.) $10.12 billion (2007 est.)
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Exports | | $96.62 billion (2008 est.) $90.2 billion (2007 est.)
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Exports - commodities(%) | | electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber
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Exports - partners(%) | | Russia 11.6%, Sweden 10%, Germany 10%, US 6.4%, UK 5.5%, Netherlands 5.1% (2008)
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Imports | | $87.51 billion (2008 est.) $78.22 billion (2007 est.)
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Imports - commodities(%) | | foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains
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Imports - partners(%) | | Russia 16.3%, Germany 15.7%, Sweden 13.6%, Netherlands 6.3%, China 5.1%, UK 4.2% (2008)
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Reserves of foreign exchange and gold | | $8.346 billion (31 December 2008 est.) $8.385 billion (31 December 2007 est.)
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Debt - external | | $339.5 billion (31 December 2008) $314.1 billion (31 December 2007)
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Stock of direct foreign investment - at home | | $84.44 billion (31 December 2008 est.) $88.69 billion (31 December 2007 est.)
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Stock of direct foreign investment - abroad | | $116 billion (31 December 2008 est.) $114.2 billion (31 December 2007 est.)
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Exchange rates | | euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)
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Currency (code) | | euro (EUR)
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Telephones - main lines in use | | 1.65 million (2008)
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Telephones - mobile cellular | | 6.83 million (2008)
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Telephone system | | general assessment: modern system with excellent service domestic: digital fiber-optic fixed-line network and an extensive cellular network provide domestic needs international: country code - 358; submarine cables provide links to Estonia and Sweden; satellite earth stations - access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean regions); note - Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden)
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Internet country code | | .fi; note - Aland Islands assigned .ax
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Internet users | | 4.383 million (2008)
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Airports | | 148 (2009)
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Pipelines(km) | | gas 694 km (2008)
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Roadways(km) | | total: 78,141 km paved: 50,914 km (includes 700 km of expressways) unpaved: 27,227 km (2009)
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Ports and terminals | | Hamina, Helsinki, Kokkola, Kotka, Naantali, Pori, Raahe, Rauma, Turku
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Military branches | | Finnish Defense Forces (FDF): Army, Navy (includes Coastal Defense Forces), Air Force (Suomen Ilmavoimat) (2007)
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Military service age and obligation(years of age) | | 18 years of age for male voluntary and compulsory - and female voluntary - national military and nonmilitary service; service obligation 6-12 months; mandatory retirement at age 60 (2008)
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Manpower available for military service | | males age 16-49: 1,169,910 females age 16-49: 1,121,187 (2008 est.)
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Manpower fit for military service | | males age 16-49: 962,479 females age 16-49: 920,297 (2009 est.)
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Manpower reaching militarily significant age annually | | male: 33,784 female: 32,621 (2009 est.)
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Military expenditures(% of GDP) | | 2% of GDP (2005 est.)
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Disputes - international | | various groups in Finland advocate restoration of Karelia and other areas ceded to the Soviet Union, but the Finnish Government asserts no territorial demands
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Electricity - production(kWh) | | 77.24 billion kWh (2007 est.)
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Electricity - production by source(%) | | fossil fuel: 39% hydro: 18.7% nuclear: 30.4% other: 11.8% (2001)
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Electricity - consumption(kWh) | | 86.9 billion kWh (2008)
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Electricity - exports(kWh) | | 3.335 billion kWh (2008 est.)
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Electricity - imports(kWh) | | 16.11 billion kWh (2008 est.)
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Oil - production(bbl/day) | | 9,789 bbl/day (2008 est.)
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Oil - consumption(bbl/day) | | 215,600 bbl/day (2008 est.)
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Oil - exports(bbl/day) | | 133,000 bbl/day (2008 est.)
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Oil - imports(bbl/day) | | 347,400 bbl/day (2008 est.)
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Economic aid - donor | | ODA, $1.023 billion (2007)
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Oil - proved reserves(bbl) | | 0 bbl
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Natural gas - production(cu m) | | 0 cu m (2008 est.)
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Natural gas - consumption(cu m) | | 4.735 billion cu m (2008 est.)
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Natural gas - exports(cu m) | | 0 cu m (2008)
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Natural gas - proved reserves(cu m) | | 0 cu m (1 January 2009 est.)
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HIV/AIDS - adult prevalence rate(%) | | less than 0.1% (2007 est.)
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HIV/AIDS - people living with HIV/AIDS | | 2,400 (2007 est.)
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HIV/AIDS - deaths | | fewer than 100 (2003 est.)
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Literacy(%) | | definition: age 15 and over can read and write total population: 100% male: 100% female: 100% (2000 est.)
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School life expectancy (primary to tertiary education)(years) | | total: 17 years male: 17 years female: 18 years (2006)
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Education expenditures(% of GDP) | | 6.4% of GDP (2005)
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