In the last years of the nineteenth century, Finnish
social
policy had as its goal a lessening of class friction. The
few
existing pieces of social legislation addressed the needs
of
specific groups rather than of society as a whole. After
the
Civil War, little was accomplished in welfare legislation.
A
woefully insufficient national pension plan was set up in
1937,
as were measures to aid needy mothers. It was only after
World
War II that Finnish social policy acquired the
characteristics
that in the next decades made it similar to other Nordic
systems
of social welfare.
According to Finnish sociologist Erik Allardt, the
hallmark
of the Nordic welfare system was its comprehensiveness.
Unlike
the welfare systems of the United States or most West
European
countries, those of the Nordic countries covered the
entire
population, and they were not limited to those groups
unable to
care for themselves. Examples of this universality of
coverage
were national flat-rate pensions available to all once
they
reached a certain age, regardless of what they had paid
into the
plan, and national health plans based on medical needs
rather
than on financial means. In addition, the citizens of the
Nordic
countries had a legal right to the benefits provided by
their
welfare systems, the provisions of which were designed to
meet
what was perceived as a collective responsibility to
ensure
everyone a decent standard of living. The Nordic system
also was
distinguished by the many aspects of people's lives it
touched
upon.
The Finnish welfare system differed from those of other
Nordic countries mainly in that its benefits were lower in
some
categories, such as sickness and unemployment payments;
otherwise, the Finnish system fit into the Nordic
conception of
social welfare. Finnish social expenditures constituted
about 7
percent of the country's gross domestic product
(GDP--see Glossary)
in 1950, roughly equal to what Sweden, Denmark,
and
Norway were spending. By the mid-1980s, Finland's social
expenditures had risen to about 24 percent of GDP,
compared with
the other countries' respective 35, 30, and 22 percent
(see
table 9, Appendix A). Less than 10 percent of these expenditures
was
paid for by Finnish wage earners; the remainder came
roughly
equally from the state and from employers. Until the
second half
of the 1970s, Finnish employers had paid a higher share of
social
outlays than had their counterparts in the other Nordic
countries. In response to the slowdown of the world
economy after
1973, there was some shifting of social burdens to the
state,
which made Finnish companies more price competitive
abroad.
Finland's welfare system also differed from those of
its
neighbors in that it was put in place slightly later than
theirs,
and it was only fully realized in the decade after the
formation
of the Red-Earth government in 1966
(see Finland in the Era of Consensus, 1966-81
, ch. 1). Just after World War II, the
Finns
directed their attention to maternal and child care. In
1957 the
government established an improved national pension plan
and
supplemented it in the early 1960s with private pension
funds.
Unemployment aid was organized in 1959 and in 1960, and it
was
reformed in 1972. Legislation of the 1950s and the 1960s
also
mandated the construction of a network of hospitals, the
education of more medical personnel, and, from 1963 to the
early
1970s, the establishment of a system of health insurance.
The
housing allowance system expanded during the 1960s to
reach everwidening circles of the population. Health-care officials
turned
away from hospital care in the 1970s, and they began to
emphasize
the use of smaller local clinics. By the 1980s, the
Finnish
welfare system was up to Nordic standards and had the
support of
most Finns. All major political parties were committed to
maintaining it, and its role in Finnish society seemed
secure for
the coming decades.
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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.)
|
|
Oil - consumption(bbl/day) | | 215,600 bbl/day (2008 est.)
|
|
Oil - exports(bbl/day) | | 133,000 bbl/day (2008 est.)
|
|
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
|
|
Natural gas - production(cu m) | | 0 cu m (2008 est.)
|
|
Natural gas - consumption(cu m) | | 4.735 billion cu m (2008 est.)
|
|
Natural gas - exports(cu m) | | 0 cu m (2008)
|
|
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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