The first security policy issue Finland faced upon
becoming
independent concerned the Aland Islands. Settled by Swedes
in
about the sixth century A.D., the islands were
administered as
part of Finland as long as Finland was part of Sweden. In
1809
they were transferred to Russian sovereignty, where they
remained
until the Russian Revolution. Throughout this period,
almost all
of the inhabitants of the Aland Islands, the Alanders,
continued
to be Swedish speakers. During the chaos of the Russian
Revolution, the Alanders began negotiations to be united
with
Sweden, a move that was later supported in a plebiscite by
96
percent of the islands' inhabitants. The Swedish
government
welcomed this move, and in February 1918 sent troops who
disarmed
the Russian forces and the Red Guards on the islands. The
Finns
felt that the Swedish intervention in the Aland Islands
represented an unwarranted interference in the internal
affairs
of Finland. Tension rose as both countries claimed the
islands,
Sweden emphasizing the principle of national
self-determination
and Finland pointing to its historical rights and to the
need to
have the islands in order to defend Finland's southwestern
coast.
Germany then moved into the islands as part of its
intervention
in the civil war and forced out the Swedes; later that
year,
however, Germany handed the islands over to Finland. The
Finns
arrested the Aland separatist leaders on charges of
treason. In
1920 both countries referred the matter to the League of
Nations,
which ruled the following year in favor of Finland. The
Swedes
were placated by the demilitarization of the islands as
well as
by the grant of extensive autonomy to the Alanders, a
settlement
that still obtained in 1988.
Finland's interwar security policy was dominated by
fear of
an attack by the Soviet Union. Two of its priorities were
to end
the conflict between Finland and the Soviet Union--that
had
continued unofficially since the civil war--and to settle
the
Soviet-Finnish boundary. Negotiations were held
intermittently
between 1918 and 1920, leading in October 1920 to the
signing of
the Treaty of Dorpat. In it, Finland received all of the
land it
had held under Russian rule plus the Petsamo area, which
gave
Finland a port on the Arctic Ocean. At this point, Finland
controlled more territory than it had at any other time in
its
history. The Soviet-Finnish border on the Karelian Isthmus
was
drawn only thirty kilometers from Leningrad (formerly St.
Petersburg). The new border caused some Soviet
apprehension
because it placed the city and the vital naval base at
Kronstadt
within the range of the Finns' heavy artillery.
Finland's relations with the Soviet Union had been
problematic from the beginning, because of the Finns'
strong
historical distrust for Russia and the inherent
incompatibility
of the two political systems. The Finns saw themselves as
occupying an exposed outpost of Western civilization, an
attitude
that was well expressed in a poem by Uuno Kailas that
included
the verse:
The mistrust between the countries had been
strengthened by
the
tsarist policies of Russification, by the Bolsheviks'
participation in the Finnish revolution, and by continued
Soviet
efforts to foster subversion in Finland. From the Soviet
viewpoint, the Greater Finland agitation and the
blossoming of
ideological anti-communism in Finland posed a threat. In
1932 the
Soviet Union and Finland signed a ten-year non-aggression
pact,
which, however, did not mitigate the mutual
distrust--illustrated
in part by the Soviets' cessation of all trade between the
two
countries in 1934--that was to culminate in war.
In dealing with the Soviet threat, Finland was unable
to find
effective outside help. The Finns sought assistance first
from
the other Baltic states, and in March 1922 an agreement
was
signed by Finland, Estonia, Latvia, and Poland. The Finns
soon
realized, however, that in a crisis no substantial help
would be
forthcoming from these countries, and they thereupon
sought
support through active membership in the League of
Nations. The
breakdown of collective security in the 1930s led the
Finns to
seek security through a collective neutrality with the
other
Nordic states, but that arrangement offered no effective
counterweight to the Soviets. The more powerful Britain
and
France did not take a major interest in the Baltic area.
Throughout this period, the Finnish ruling circles had
been
strongly pro-German in outlook, in large part as a result
of the
civil war. For this reason, the Soviets developed the
suspicion
that Finland would allow Germany to use its territory as a
base
from which to invade the Soviet Union. Although Soviet
fears were
unfounded, the Finns did little to allay them. In 1937 a
German
submarine flotilla visited Helsinki, and it was greeted
warmly by
the people and by the government. In April and in May
1938, the
Finnish government presided over two great celebrations,
marking
the twentieth anniversary of the entry of German troops
into
Helsinki and of the entry of Mannerheim's forces into
Helsinki,
respectively, events that numerous prominent Germans
attended.
The Finns were also indiscreet in allowing a German naval
squadron to visit Helsinki. Soviet suspicions were fuelled
again
by the visit to Finland in June 1939 of the German army
chief of
staff, General Franz Halder, who was received by the
government
in Helsinki and who viewed Finnish army maneuvers on the
Karelian
Isthmus. In summation, Finnish foreign policy between the
wars
was genuinely unaggressive in relation to the Soviet
Union, but
it lacked the appearance of unaggressiveness, a deficiency
that
Finland since World War II has been at pains to remedy.
With German help, Finland established regular armed
forces in
1918 to 1919, using the army of the Whites as a
foundation.
Beginning in the 1920s, conscription was introduced, and
most
Finnish males were trained for military service. Finnish
military
doctrine presumed an essentially defensive war in which
Finland's
forests, lakes, and other geographical obstacles could be
exploited to advantage. The Defense Review Committee, in
its
report of 1926, called for the establishment of a Finnish
army of
thirteen divisions, equipped with the most modern arms, as
the
surest means of deterring a possible Soviet invasion.
Because of
budget restraints, however, these recommendations were
instituted
only in part, so that when the Soviet Union did attack in
November 1939, Finland had only nine available divisions,
and
their equipment was generally inadequate. Beginning in
1931,
however, General Mannerheim had contributed ably to
Finnish
military preparations from his position as chairman of the
Defense Council, and thousands of citizens spent the
summer of
1939, without pay, strengthening the Mannerheim Line of
fortifications on the Karelian Isthmus. The line later
proved to
be the anchor of Finland's defenses in this important
area.
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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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