Finland
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Republic of Finland
Geography
Area: 337,113 sq. km. (130,160 sq. mi.); about the size of New
England, New Jersey, and New York combined.
Cities: Capital--Helsinki (pop. 560,500). Other cities--Espoo
(213,000), Tampere (195,500), Vantaa (178,500), Turku (173,000).
Terrain: Low but hilly, more than 70% forested, with more than
60,000 lakes.
Climate: Northern temperate.
People
Nationality: Noun--Finn(s). Adjective--Finnish.
Population: 5.2 million.
Population growth rate: 0.16%.
Ethnic groups: Finns, Swedes, Lapps, Sami, Roma, Tatars.
Religions: Lutheran 89%, Orthodox 1%.
Languages: Finnish 93%, Swedish 6% (both official); small Lapp-
and Russian-speaking minorities.
Education: Years compulsory--9. Attendance--almost 100%. Literacy--almost
100%.
Health: Infant mortality rate--3.8/1,000. Life expectancy--males
74 yrs., females 82 yrs.
Work force (2.6 million; of which 2.3 million are employed): Public
services--32%; industry--21%; commerce--15%; finance, insurance,
and business services--13%; agriculture and forestry--6%; transport
and communications--7%; construction--6%.
Government
Type: Constitutional republic.
Constitution: July 17, 1919.
Independence: December 6, 1917.
Branches: Executive--president (chief of state), prime minister
(head of government), Council of State (cabinet). Legislative--unicameral
parliament. Judicial--Supreme Court, regional appellate courts,
local courts.
Subdivisions: Six provinces, provincial self-rule for the Aland
Islands.
Political parties: Social Democratic Party, Center Party, National
Coalition (Conservative) Party, Leftist Alliance, Swedish People's
Party, Green Party.
Suffrage: Universal at 18.
Economy (2004)
GDP: $171.6 billion (EUR 142.7 billion).
GDP growth rate: 3.0%.
Per capita income: $29,000.
Inflation rate: 0.7%.
Natural resources: Forests, minerals (copper, zinc, iron), farmland.
Agriculture, forestry, fishing and hunting (3.5% of GDP): Products--meat
(pork and beef), grain (wheat, rye, barley, oats), dairy products,
potatoes, rapeseed.
Industry (25.7% of GDP): Types--metal (including electronics and
electrical equipment) and engineering, forest products, chemicals,
shipbuilding, foodstuffs, textiles.
Trade: Exports--$61.04 billion. Major markets--EU 53%, U.S. 6.4%,
Russia 8.9%, China 4.1%. Imports--$45.17 billion. Major suppliers--EU
55%, Russia 12.8%, U.S. 4.7%, China 4.3%.
HISTORICAL HIGHLIGHTS
The origins of the Finnish people are still a matter of conjecture,
although many scholars argue that their original home was in what
is now west-central Siberia. The Finns arrived in their present
territory thousands of years ago, pushing the indigenous Lapps
into the more remote northern regions. Finnish and Lappish--the
language of Finland's small Lapp minority--both are Finno-Ugric
languages and are in the Uralic rather than the Indo-European
family.
Finland's nearly 700-year association with the Kingdom
of Sweden began in 1154 with the introduction of Christianity
by Sweden's King Eric. During the ensuing centuries, Finland played
an important role in the political life of the Swedish-Finnish
realm, and Finnish soldiers often predominated in Swedish armies.
Finns also formed a significant proportion of the first "Swedish"
settlers in 17th-century America.
Following Finland's incorporation into Sweden in
the 12th century, Swedish became the dominant language, although
Finnish recovered its predominance after a 19th-century resurgence
of Finnish nationalism. Publication in 1835 of the Finnish national
epic, The Kalevala--a collection of traditional myths and legends--first
stirred the nationalism that later led to Finland's independence
from Russia.
In 1809, Finland was conquered by the armies of
Czar Alexander I and thereafter remained an autonomous grand duchy
connected with the Russian Empire until the end of 1917. On December
6, 1917, shortly after the Bolshevik Revolution in Russia, Finland
declared its independence. In 1918, the country experienced a
brief but bitter civil war that colored domestic politics for
many years. During World War II, Finland fought the Soviet Union
twice--in the Winter War of 1939-40 and again in the Continuation
War of 1941-44. This was followed by the Lapland War of 1944-45,
when Finland fought against the Germans as they withdrew their
forces from northern Finland.
Treaties signed in 1947 and 1948 with the Soviet
Union included obligations and restraints on Finland vis-a-vis
the U.S.S.R. as well as territorial concessions by Finland; both
have been abrogated by Finland since the 1991 dissolution of the
Soviet Union (see Foreign Relations).
GOVERNMENT AND POLITICAL CONDITIONS
Finland has a mixed presidential/parliamentary system with executive
powers divided between the president, who has primary responsibility
for national security and foreign affairs, and the prime minister,
who has primary responsibility for all other areas. Constitutional
changes made in the late 1980s strengthened the prime minister--who
must enjoy the confidence of the parliament (Eduskunta)--at the
expense of the president. Finland's 1995 accession to the European
Union (EU) has blurred the line between foreign and domestic policy;
the respective roles of the president and prime minister are evolving,
and plans are under consideration to rewrite the constitution
to clarify these and other issues. For instance, the prime minister
has now been given responsibility for EU relations.
Finns enjoy individual and political freedoms, and
suffrage is universal at 18. The country's population is relatively
ethnically homogeneous. Immigration to Finland has significantly
increased over the past decade, although the foreign-born population,
estimated at only 2% of the total population, is still much lower
than in any other EU country. Few tensions exist between the Finnish-speaking
majority and the Swedish-speaking minority.
President and cabinet. Elected for a 6-year term,
the president:
Handles foreign policy, except for certain international
agreements and decisions of peace or war, which must be submitted
to parliament, and EU relations, which are handled by the prime
minister;
Is commander in chief of the armed forces and has
wide decree and appointive powers;
May initiate legislation, block legislation by pocket
veto, and call extraordinary parliamentary sessions; and
Appoints the prime minister and the rest of the
cabinet (Council of State). The Council of State is made up of
the prime minister and ministers for the various departments of
the central government as well as an exofficio member, the Chancellor
of Justice. Ministers are not obliged to be members of the Eduskunta
and need not be formally identified with any political party.
Parliament. Constitutionally, the 200-member, unicameral Eduskunta
is the supreme authority in Finland. It may alter the constitution,
bring about the resignation of the Council of State, and override
presidential vetoes; its acts are not subject to judicial review.
Legislation may be initiated by the president, the Council of
State, or one of the Eduskunta members.
The Eduskunta is elected on the basis of proportional
representation. All persons 18 or older, except military personnel
on active duty and a few high judicial officials, are eligible
for election. The regular parliamentary term is 4 years; however,
the president may dissolve the Eduskunta and order new elections
at the request of the prime minister and after consulting the
speaker of parliament.
Judicial system. The judicial system is divided
between courts with regular civil and criminal jurisdiction and
special courts with responsibility for litigation between the
public and the administrative organs of the state. Finnish law
is codified. Although there is no writ of habeas corpus or bail,
the maximum period of pretrial detention has been reduced to 4
days. The Finnish court system consists of local courts, regional
appellate courts, and a Supreme Court.
Administrative divisions. Finland has five provinces
and the self-ruled province of the Aland Islands. Below the provincial
level, the country is divided into cities, townships, and communes
administered by municipal and communal councils elected by proportional
representation once every 4 years. At the provincial level, the
five mainland provinces are administered by provincial boards
composed of civil servants, each headed by a governor. The boards
are responsible to the Ministry of the Interior and play a supervisory
and coordinating role within the provinces.
The island province of Aland is located near the
60th parallel between Sweden and Finland. It enjoys local autonomy
and demilitarized status by virtue of an international convention
of 1921, implemented most recently by the Act on Aland Self-Government
of 1951. The islands are further distinguished by the fact that
they are entirely Swedish-speaking. Government is vested in the
provincial council, which consists of 30 delegates elected directly
by Aland's citizens.
Military. Finland's defense forces consist of 35,000
persons in uniform (26,000 army; 5,000 navy; and 4,000 air force);
the country's defense budget equals about 1.6% of GDP. There is
universal male conscription under which all men serve from six
to 12 months. As of 1995, women were permitted to serve as volunteers.
A reserve force ensures that Finland can field 400,000 trained
military personnel in case of need.
Political parties. Finland's proportional representation
system encourages a multitude of political parties and has resulted
in many coalition governments. Political activity by communists
was legalized in 1944, and although four major parties have dominated
the postwar political arena, none now has a majority position.
The Center Party (Keskusta), traditionally representing rural
interests, gained a slight plurality in Finland's parliament in
the general election of March 2003, narrowly defeating the ruling
Social Democratic Party (SDP) by a 24.7% to 24.5% margin. The
Center then formed a three-party governing coalition with the
SDP and the Swedish People's Party. The Green Party, which had
withdrawn from the government in spring 2002 in protest to the
government decision to approve building a fifth nuclear reactor,
remained in the opposition, as did the National Coalition Party
(conservatives). The National Coalition leads the opposition in
parliament. The Left Alliance, a combination of socialists left
of the SDP and a number of former communists, maintains representation
in parliament but is not a significant factor in most policy decisions.
The Center Party's leader, Anneli Jäätteenmäki,
became Finland's first female prime minister in April 2003. However,
she resigned amid a scandal over the leak of classified materials
2 months after taking office. She was replaced as prime minister
by the Center Party's new chairman, Matti Vanhanen.
Principal Government Officials
President--Tarja Halonen
Prime Minister--Matti Vanhanen
Foreign Minister--Erkki Tuomioja
Ambassador to the United States--Jukka Valtasaari
Ambassador to the United Nations--Marjatta Rasi
Finland's embassy in the United States is located
at 3301 Massachusetts Avenue, NW, Washington, DC 20008; tel: 202-298-5800;
fax: 202-298-6030.
ECONOMY
Finland has an industrial economy based on abundant forest resources,
capital investments, and high technology. Traditionally, Finland
has been a net importer of capital to finance industrial growth;
in recent years it has become a net exporter of capital. Finland
has one of the best performing economies in the EU and Europe.
The Finnish economy has made enormous strides since
the severe recession of the early 1990s. Finland successfully
joined the euro zone and has outperformed euro-area partners in
terms of economic growth and public finance. Even under the difficult
circumstances of the last few years, the Finnish economy has performed
reasonably well--though the pace of activity has slowed considerably
and remains subject to volatility. Finnish GDP growth slowed sharply
from 5.1% in 2000 to 1.2% in 2001, largely as a result of a collapse
in exports. The economy picked up slightly in 2002, when GDP growth
amounted to 2.2% and hovered around 2.0% in 2003. In 2004, the
government cut taxes and tempered inflation in order to incite
private consumption to prompt a growth in GDP. This successfully
raised GDP by 3.7%. However, growth was predicted to slow to 2.2%
for 2005.
Unemployment has decreased significantly since 1994,
although the 8.9% unemployment rate for 2004 remained above the
EU average. A relatively inflexible labor market and high employer-paid
social security taxes hamper growth in employment. However, the
government expected unemployment to drop to 8.5% for 2005.
Exports of goods and services contribute 33% of
Finland's GDP. Metals and engineering (including electronics)
and timber (including pulp and paper) are Finland's main industries.
The United States is Finland's most important trading partner
outside of Europe. With a 4.7% share of imports in 2003, the United
States was Finland's sixth-largest supplier after Germany, Russia,
Sweden, the United Kingdom, and France. The total value of U.S.
exports to Finland in 2003 was $2.1 billion. Major exports from
the United States to Finland continue to be machinery, telecommunications
equipment and parts, aircraft and aircraft parts, computers, peripherals
and software, electronic components, chemicals, medical equipment,
and some agricultural products. The primary competition for American
companies comes from European suppliers, especially German, Swedish,
and British. The main export items from Finland to the United
States are ships and boats, paper and paperboard, refined petroleum
products, telecommunications equipment and parts, and automobiles.
In 2003, the United States was Finland's fourth-largest customer
after Germany (11.8%) and Sweden (9.9%) with an export share of
8.1%, or $4.7 billion. However, trade is only part of the totality:
the 10 biggest Finnish companies in the United States have a combined
turnover that is three times the value of Finland's total exports
to the United States. About 2% of the Finnish GDP comes from exports
to the United States.
Except for timber and several minerals, Finland
depends on imported raw materials, energy, and some components
for its manufactured products. Farms tend to be small, but farmers
own sizable timber stands that are harvested for supplementary
income in winter. The country's main agricultural products are
dairy, meat, and grains. Finland's EU accession has accelerated
the process of restructuring and downsizing of this sector.
FOREIGN RELATIONS
Finland's basic foreign policy goal from the end of the Continuation
War with the U.S.S.R. in 1944 until 1991 was to avoid great-power
conflicts and to build mutual confidence with the Soviet Union.
Although the country was culturally, socially, and politically
Western, Finns realized they must live in peace with the U.S.S.R.
and take no action that might be interpreted as a security threat.
The dissolution of the Soviet Union in 1991 opened up dramatic
new possibilities for Finland and has resulted in the Finns actively
seeking greater participation in Western political and economic
structures. Finland joined the European Union in 1995.
Relations With the Soviet Union and With Russia
The principal architect of the post-1944 foreign policy of neutrality
was J.K. Paasikivi, who was President from 1946 to 1956. Urho
Kekkonen, President from 1956 until 1981, further developed this
policy, stressing that Finland should be an active rather than
a passive neutral. This policy is now popularly known as the "Paasikivi-Kekkonen
Line."
Finland and the U.S.S.R. signed a peace treaty at
Paris in February 1947 limiting the size of Finland's defense
forces and providing for the cession to the Soviet Union of the
Petsamo area on the Arctic coast, the Karelian Isthmus in southeastern
Finland, and other territory along the former eastern border.
Another provision, terminated in 1956, leased the Porkkala area
near Helsinki to the U.S.S.R. for use as a naval base and gave
free access to this area across Finnish territory.
The 1947 treaty also called for Finland to pay to
the Soviet Union reparations of 300 million gold dollars (amounting
to an estimated $570 million in 1952, the year the payments ended).
Although an ally of the Soviet Union in World War II, the United
States was not a signatory to this treaty because it had not been
at war with Finland.
In April 1948, Finland signed an Agreement of Friendship,
Cooperation, and Mutual Assistance with the Soviet Union. Under
this mutual assistance pact, Finland was obligated--with the aid
of the Soviet Union, if necessary--to resist armed attacks by
Germany or its allies against Finland or against the U.S.S.R.
through Finland. At the same time, the agreement recognized Finland's
desire to remain outside great-power conflicts. This agreement
was renewed for 20 years in 1955, in 1970, and again in 1983 to
the year 2003, although the subsequent dissolution of the Soviet
Union led to the agreement's abrogation.
The Finns responded cautiously in 1990-91 to the
decline of Soviet power and the U.S.S.R.'s subsequent dissolution.
They unilaterally abrogated restrictions imposed by the 1947 and
1948 treaties, joined in voicing Nordic concern over the coup
against Soviet leader Mikhail Gorbachev, and gave increasing unofficial
encouragement to Baltic independence.
At the same time, by replacing the Soviet-Finnish
mutual assistance pact with treaties on general cooperation and
trade, Finns put themselves on an equal footing while retaining
a friendly bilateral relationship. Finland now is boosting cross-border
commercial ties and touting its potential as a commercial gateway
to Russia. It has reassured Russia that it will not raise claims
for Finnish territory seized by the U.S.S.R. and continues to
reaffirm the importance of good bilateral relations.
Multilateral Relations
Finnish foreign policy emphasizes its participation in multilateral
organizations. Finland joined the United Nations in 1955 and the
EU in 1995. As noted, the country also is a member of the North
Atlantic Treaty Organization's (NATO) Partnership for Peace as
well as a member in the Euro-Atlantic Partnership Council.
Finland is well represented in the UN civil service
in proportion to its population and belongs to several of its
specialized and related agencies. Finnish troops have participated
in UN peacekeeping activities since 1956, and the Finns continue
to be one of the largest per capita contributors of peacekeepers
in the world. Finland is an active participant in the Organization
for Security and Cooperation in Europe (OSCE) and in early 1995
assumed the co-chairmanship of the OSCE's Minsk Group on the Nagorno-Karabakh
conflict.
Cooperation with the other Scandinavian countries
also is important to Finland, and it has been a member of the
Nordic Council since 1955. Under the council's auspices, the Nordic
countries have created a common labor market and have abolished
immigration controls among themselves. The council also serves
to coordinate social and cultural policies of the participating
countries and has promoted increased cooperation in many fields.
In addition to the organizations already mentioned,
Finland became a member of the following organizations: Bank for
International Settlements, 1930; International Monetary Fund,
1948; International Bank for Reconstruction and Development, 1948;
General Agreement on Tariffs and Trade (GATT), 1950; International
Finance Corporation, 1956; International Development Association,
1960; European Free Trade Association, 1961; Asian Development
Bank, 1966; Organization for Economic Cooperation and Development,
1969; Inter-American Development Bank, 1977; African Development
Bank, 1982; Multilateral Investment Guarantee Agency, 1988; the
Council of Europe, 1989; European Bank for Reconstruction and
Development in Central and Eastern Europe, 1991; World Trade Organization,
1995; and INTELSAT, 1999. Finland entered Stage Three of EMU (the
European Monetary Union) in 1999. All the Nordic countries, including
Finland, joined the Schengen area in March 2001.
U.S.-FINLAND RELATIONS
Relations between the United States and Finland are warm. Some
200,000 U.S. citizens visit Finland annually, and about 5,000
U.S. citizens are resident there. The United States has an educational
exchange program in Finland which is comparatively large for a
west European country of Finland's size. It is financed in part
from a trust fund established in 1976 from Finland's final repayment
of a U.S. loan made in the aftermath of World War I.
Finland is bordered on the east by Russia and, as
one of the former Soviet Union's neighbors, has been of particular
interest and importance to the United States both during the Cold
War and in its aftermath. Before the U.S.S.R. dissolved in 1991,
longstanding U.S. policy was to support Finnish neutrality while
maintaining and reinforcing Finland's historic, cultural, and
economic ties with the West. The United States has welcomed Finland's
increased participation since 1991 in Western economic and political
structures.
Following the dissolution of the Soviet Union, Finland
has moved steadily toward integration into Western institutions
and abandoned its formal policy of neutrality, which has been
recast as a policy of military nonalliance coupled with the maintenance
of a credible, independent defense. Finland's 1994 decision to
buy 64 F-18 fighter planes from the United States signaled the
abandonment of the country's policy of balanced arms purchases
from East and West. The final aircraft rolled off the assembly
line in August 2000.
In 1994, Finland joined NATO's Partnership for Peace;
the country also is an observer in the North Atlantic Cooperation
Council. Finland became a full member of the EU in January 1995,
at the same time acquiring observer status in the Western European
Union.
Finland generally welcomes foreign investment. Areas
of particular interest for U.S. investors are specialized high-tech
companies and investments that take advantage of Finland's position
as a gateway to Russia and the Baltic countries.
Principal U.S. Embassy Officials
Ambassador--Marilyn Ware
Deputy Chief of Mission--Amy Hyatt
Public Affairs Counselor--Bill Davnie
Political Section Chief--Greg Thome
Labor Attache (Pol)--David Allen Schlaefer
Economic Section Chief--John Clarkson
Management Officer--Charles F. Werderman
Commercial Officer--Robert Peaslee
Defense Attache--Robert Byrd
Consular Officer--Pirkko Urli
Regional Security Officer--Gerry Oman
Agricultural Officer--Peg Thursland (resident in Stockholm, Sweden)
The U.S. Embassy in Finland is at Itainen Puistotie
14, Helsinki 00140; tel: 358-9-616-250; fax: 358-9-174-681.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers.
Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling
abroad may be obtained from the Office of Overseas Citizens Services
at (202) 647-5225. For after-hours emergencies, Sundays and holidays,
call 202-647-4000.
The National Passport Information Center (NPIC)
is the U.S. Department of State's single, centralized public contact
center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators
for TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m.,
Eastern Time, excluding federal holidays.
Travelers can check the latest health information
with the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site
at http://www.cdc.gov/travel/index.htm give the most recent health
advisories, immunization recommendations or requirements, and
advice on food and drinking water safety for regions and countries.
A booklet entitled Health Information for International Travel
(HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements,
currency and customs regulations, legal holidays, and other items
of interest to travelers also may be obtained before your departure
from a country's embassy and/or consulates in the U.S. (for this
country, see "Principal Government Officials" listing
in this publication).
U.S. citizens who are long-term visitors or traveling
in dangerous areas are encouraged to register their travel via
the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related
assistance and market information offered by the federal government
and provides trade leads, free export counseling, help with the
export process, and more.
STAT-USA/Internet, a service of the U.S. Department
of Commerce, provides authoritative economic, business, and international
trade information from the Federal government. The site includes
current and historical trade-related releases, international market
research, trade opportunities, and country analysis and provides
access to the National Trade Data Bank.
