Over the centuries, Finland underwent various political
changes, but its society and economy remained fairly
static. At
the beginning of the nineteenth century, Finland was a
predominantly agrarian country; about 90 percent of its
population was engaged in farming. The scourges of war and
famine
had kept down the population, which in 1811 numbered just
1
million, only about 4 percent of which lived in cities.
Except for some copper, Finland was without important
mineral
deposits. During the nineteenth century, its sole natural
resource was timber, and this became to be the basis on
which
industrialization was launched. By the mid-nineteenth
century,
wood was beginning to be in short supply in Central Europe
and in
Western Europe, but at the same time it was needed in
unprecedented quantities for railroad ties, mineshaft
supports,
construction, and paper production. Finland thus found a
ready
and expanding market for its wood.
The development of the lumber industry was retarded for
a
time, however, by the lack of a modern economic
infrastructure.
Into the breach stepped the Finnish government, which
promulgated
a number of measures aimed at creating the needed
infrastructure.
Railroads and inland waterways were developed, beginning
in the
1850s and the 1860s, to connect the interior of the
country with
the coast; and harbor facilities were built that, through
merchant shipping, connected Finland with the rest of the
world.
In addition, the Bank of Finland and the monetary system
were
reorganized, antiquated laws restricting economic activity
were
repealed, and tariff duties on many items were reduced or
were
abolished; thus, the Finnish government promoted
industrialization and general progress in Finland.
The 1860s and the 1870s witnessed a tremendous boom in
the
Finnish lumber industry, which put Finland on the road to
industrialization. Between then and 1914, the lumber
industry
spawned a number of associated industries for the
production of
wood pulp, paper, matches, cellulose, and plywood. The
profits
earned in these industries led in turn to the creation of
numerous other enterprises that produced, among other
things,
textiles, cement, and metal products. Finland's leading
trading
partner by 1910 was Germany, followed by Russia and
Britain. The
trade in lumber products also stimulated the rise of a
relatively
large and modern Finnish merchant marine, which, after
1900,
carried about half of Finland's foreign trade. Meanwhile,
however, the steady conversion of merchant shipping from
woodenhulled sailing ships to iron-hulled and steel-hulled
steamships
curtailed Finland's traditional export of naval stores.
The growth of industry was accompanied by the emergence
of an
urban working class. As in early industrialization
elsewhere, the
living and working conditions of the new industrial
laborers were
poor, and these laborers sought to improve their situation
through trade unions. Trade unions were legalized in 1883,
and
soon a number of them were established, including, in
1907, a
national trade union organization, the Finnish Trade Union
Federation (Suomen Ammattijarjestö--SAJ). Workers founded
a
political party in 1899 to represent them in the Diet, and
in
1903 it was renamed the Finnish Social Democratic Party
(Suomen
Sosialidemokraattinen Puolue--SDP). By the elections of
1907, the
SDP was already the largest single party in politics. Both
the
SAJ and the SDP were heavily influenced by their
counterparts in
Germany, and, as a consequence, their doctrines had a
pronounced
Marxist character. The SDP grew even more radical, in part
because of the resistance of the middle class parties to
virtually all aspects of social reform, but also because
of its
strict adherence to the Marxist dogma of class conflict.
One
example of its radicalism was its persistent unwillingness
to
cooperate with any of the other political parties. Another
was
its program, which began in 1911 to change from upholding
the
right of farmers to own their own land to demanding that
land be
nationalized--a change that cost the SDP most of its
support
among agricultural laborers.
In spite of industrialization, Finland in the early
twentieth
century was still predominantly an agrarian state.
Agriculture
also had undergone modernization, however, a process that
had had
a significant impact on Finland. The introduction of the
potato
in the eighteenth century had significantly reduced the
threat of
famine; the gradual introduction of scientific
agricultural
techniques during the nineteenth century had brought about
further increases in productivity.
The ultimate consequence of this increased agricultural
productivity was a significant increase of the population
from
865,000 in 1810 to 2,950,000 in 1910. Some of this surplus
rural
population was absorbed by the growing urban factory
centers, but
the rest of these people were forced to stay on the land.
Because
the amount of arable land in Finland was limited, about
twothirds or more of the agricultural population was
relegated to
the status of tenant farmers and landless agricultural
laborers.
These people's lives were precarious because of their
large
numbers and their dependence on the vagaries of the
harvests. The
tsarist government did little on their behalf, and the
Diet,
which was dominated by middle-class interests, showed no
great
concern for them. As a result, from about 1870 to 1920,
approximately 380,000 people left Finland, more than 90
percent
of them for the United States. Of those remaining in
Finland,
many were initially attracted by the SDP, until its
pronounced
atheistic outlook and its aim of nationalizing land
alienated
them. A program of land reform, begun after independence,
eventually integrated these agricultural laborers into the
Finnish economy.
One expression of popular discontent with the status
quo
during the nineteenth century was the rise of religious
movements
that challenged the formalistic and rationalistic Lutheran
state
church. Of special significance was the Pietist movement,
in
which the farmer-evangelist Paavo Ruotsalainen (1777-1852)
was
the most important figure
(see Lutheran Church of Finland
, ch.
2). The Pietists popularized the notion of personal
religion, an
idea that appealed to the agrarian population. Pietism
eventually
had much influence within the Lutheran Church of Finland;
it was
also influential among Finnish emigrants to the United
States,
where, among other things, it provided an effective
counterweight
to Finnish political radicalism.
|
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
|
|
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.)
|
|
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.)
|
|
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.)
|
|
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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