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Introduction and history of finland

发布时间:2018-01-01
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PART I. INTRODUCTION AND HISTORY:

Finland is a place with a character all on its own, where East and West merge. The history, culture and religion of the country set the Finns squarely among the people of Western Europe; and yet the eastern influence is strong. A similar contrast characterizes the Finnish landscape. Southern Finland features groves of deciduous trees such as oak, while the central region is dotted with lakes and conifer forests, and the north is a land of bare fells, open expanses and dwarf birch.

A varied landscape

A sparsely populated country in the far northeastern corner of Europe, Finland is nevertheless a midsized European state in terms of land area. Almost one quarter of the country's territory lies north of the Arctic Circle, making Finland the world's northernmost country together with Iceland. In the south and west, Finland is bounded by the Baltic Sea, offering a direct sea route to the Continent. The broken coastline in the southwest gradually gives away to the Saaristomeri, or Archipelago Sea, unique in the world for the multitude, variety and closeness of its islands. All in all, Finland's territorial waters count over 80,000 islands, the two largest being the main island of the Aland group and Kemio, just southeast of Turku.

Finland lies on the western fringe of the Eurasian boreal coniferous zone, the taiga. The forests are characterized by a paucity of species; the only trees of any economic significance are pine, spruce, birch and to a lesser extent, alder and aspen. Although Finland extends from the northern boundary of the oak zone to the bare subarctic fells, the country has no mountain ranges proper. The highest altitudes are in the country's northwestern ‘arm', the Econokio region, an outlier of the Scandic fells featuring Finland's highest peak Haltiatunturi (or Halti, 1328 metres).

The lie of the land is characterized by small-scale variation. Most of the country is low-lying, and slopes gently towards the south or southeast. Eastern Finland is dotted with lakes and high hills; the rolling landscape of Central Finland gives way in the west to the Ostrobothnian plains, with hillocks and lowlands in other coastal areas. The bare, rugged fells of Lapland are separated by Canyons gouged by turbulent rivers.

Natural resources and Environment

Finland has a wealth of natural resources in terms of both raw materials and sources of energy. Most of these' including the most important resource, wood' are renewable. Finland's overall forest reserves are Europe's fourth largest after Russia, Sweden and Germany. Annual forest growth amounts to almost 75 million cubic metres. Another major resource is water, which is used by both households and industry, and as a source of energy.

Non-renewable resources derive from inorganic nature. Finland's bedrock contains many rock types suitable for use as industrial raw material. Ore resources are also varied; even some promising diamond and gold deposits have been discovered in recent years. The most valuable non-renewable resources are gravel, sand, clay and peat (classified as non-renewable because it takes so long to form).

The environment is exceptionally intact and unpolluted. Nevertheless, the Finns have been paying increasing attention to conservation in the last few years. The most important sector of environmental protection is water preservation. Visitors need a special permit to enter one of the 19 nature reserves. The 32 national parks serve the purposes of research, education and recreation. Various biotopes, such as bogs, waters, tundra and forests are protected in the national parks. There are also special conservation areas for wet-lands, deciduous groves, shores, and old-growth forests.

In accordance with the EU nature and bird directives, the goal of the Natura 2000 conservation programme is to ensure the preservation of biodiversity in the European Union. The programme protects 12 per cent of Finland's area.

Population

The Finn's forefathers first came to the shores of Finland sometime between 9000 and 8000 B.C. They found a barren coastline, laid water by the retreating continental ice shelf. The settlers arrived from at least two different directions, east and south. Finland has remained settled ever since that time. Over the centuries, new waves of settlers arrived from different directions, but they were all assimilated into the earlier population.

Extremely sparsely settled for many centuries, Finland has seen prolonged period of population growth in the 20th century. The population first surpassed three million 1014 and attained four million in 1950. As a result of the postwar baby boom, the population reached four and a half million in 1965. Around this time, the birth rate sagged, and what with mass emigration to Sweden in search of jobs, the population actually decreased in 1969 and 1970.

Population growth picked up somewhat in the 1980's, as many emigrants returned and the birth rate increased. The five-million mark was reached in 1991, and by spring of 2000, Finland had a population of 5,171,302. Demographically, the country is characterized by a high proportion of working-age people and a steadily aging population. Children (0-14) account for less than one fifth of the population, while the proportion of senior citizens (over 65s) is now over 16%. Over two thirds of the Finns are in the working-age category (15 to 64).

Over 51% of the country's population are women. This is primarily due to a higher mortality rate among men; more boys are born than girls. Women account for more than two thirds of the senior citizens category. The population is unusually homogenous, as the only indigenous ethnic minorities are the Sami of Lapland and the Romany.

The proportion of foreigners is among the lowest in Europe. At the end of 1998, a bare 85,060 foreign citizens were living in Finland. The number of immigrants from the Former Soviet Union, however, has grown rapidly in recent years. The country has received only a limited number of refugees, some 15,000 in all. In 1997, 973 persons applied for asylum in Finland.

Language

The official languages in Finland are Finnish and Swedish; Sami has official status within the Sami home region. Finnish, a language belonging to the Finno-Ugric family, holds an uncongested dominant position, being the mother tongue; most of them live on the south or west coast in the Aland Islands.

Finnish is a very distinctive language and the only non-Indo-European language of the European Union. It is characterized by fine shades of meaning sometimes hard to pin down precisely, and an affinity for natural phenomena, with many onomatopoeic words for natural sounds. Perhaps because of this ‘different' quality of the language, no satisfaction translation has ever even produced of the greatest and the most Finnish of all Finnish novels. Few people outside of the country's border speaks Finnish, the language can be studied at more than 70 universities abroad today.

History

Until the twelfth century, Finland was a religious and political hinterland, coveted by its western neighbor Sweden and the Catholic Church on the one hand, and by its eastern neighbor the Principality of Novgrorod (later Russia) and the Orthodox Church on the other. In 1155 or thereabouts the Swedes made a military expedition, latter known as the First Crusade, to the southwest coast of Finland, which gave them a base for spreading the Christian religion and consolidating their secular power. In 1238 the Swedes strengthened their hold on Finland with the Second Crusade, taking them far inland into the region of Hame. (navalhistory.dk)

With the Swedes tightening their grip on western Finland, Novrogod pushed in form the east to the region of Karelia. Alarmed by the development, Sweden embarked on its Third Crusade in 1293, reaching the mouth of the Gulf of Finland and building a fortress at Viipuri (Wiborg). Thus Sweden had won the race for the conquest of Finland. The treaty of Pahkinasaari (schlusselberg, today Petrokrepost) established the border between Sweden and Novrigod, leaving only the eastern part of Karelia to the latter. (Klinge, 2000)

King Gustav Vasa of Sweden confiscated the property of the Catholic Church throughout the country and ordered his subjects to convert to Lutherianism. Thus, western and southern Finland came within the sphere of influence of West European culture, whereas the Russo-Byzantine culture left its imprints on the eastern parts of the country. The annexed Finnish provinces became known in Sweden as ‘the Eastland' a name first recorded in the 1340s. The principal town of this region and the bishop's see was Turku, founded in the mid thirteenth century. (Klinge, 2000)

As part of Sweden, the Finns had some say in the affairs of the nation. In 1362, they were granted the right to take part in the election of the king, and they also sent representatives to the Diet of the Estates. At the end of the Middle Ages, Finland had a population of some 350,000. Most of these were small farmers; even the largest towns were still of very modest size. (Klinge, 2000)

Gustavuz Vasa ascended to the Swedish throne in 1523. He pursued a dual policy of increasing both the power and the revenues of the Crown. The Reformation, started just before this is Germany by Martin Luther, suited the royal plans perfectly, and so the Church of Rome rapidly lost its position to Lutheranism. The Reformation marked the beginning of the cultural role of vernacular languages. Mikael Agricola, Bishop of Turku and the father of written Finnish translated numerous works into the vernacular, including the New Testament (1548). The full text of the Bible was first published in Finnish almost a century later, in 1642. In the seventeenth century, Sweden expanded its territory around the whole Baltic Sea, pushing the eastern border of Finland further east as a result. (Klinge, 2000)

Political

The historical foundation of Finland was the Scandinavian yeoman farmer's society. It is the only republic to have developed on this basis; and yet the Finnish President has a far greater political role than the monarchs of the other Scandinavian countries.

Finland is a democracy with parliamentary representation. Political power is vested in the people and wielded by the Parliament. Parliament is the supreme legislative body comprising 200 members elected for a four-year term. In addition to its role as legislator, Parliament has extensive powers to supervise the Government's actions in preparing decisions taken by the European Union and in formulating Finland's position.

The Finnish Constitution guarantees to all citizens' extensive individual rights corresponding to those enumerated in the UN Declaration of Human Rights. The status of the Swedish-speaking minority is guaranteed in the Constitution and in the Language Act, its offshoot: in practice, this status is problem-free. Citizens are free to conduct their official business in either Finnish or Swedish, as they prefer. There has been no tension between the language groups for many decades now.

The head of the state is the President of the Republic, elected by direct popular vote for a six-year term. The President directs Finland's foreign and security policy jointly with the Government. The Government nominates and the President appoints and dismisses ministers and leading civil servants, judges and officers. The President is also commander-in-chief of the defence forces. The President submits Government bills to Parliament, and ratifies Acts of Parliament and approves decrees on their implementation as well as on administrative matters. Although not directly answerable to Parliament, the President must rely on the support of the Government, which in turn must have Parliament's confidence. In theory the supreme guardian of the administration, in practice the President always bases his or her decisions on the proposal of the competent minister; these decisions only acquire the force of law once ratified by the minister in question.

Leadership of foreign and security policy was for many years the President's most important prerogative. Its constitutional definition remained unchanged until the year 2000, although in practice, the President's power varied according to Finland's security policy situation and the political personality of the incumbent.

Finland has had a system of general and equal suffrage since 1906, which is when women received the vote. The voting age is 18. Over one third of all MPs are women. The parliamentary elections are held on a proportional basis, which favours remote, sparsely settled regions and large parties. Nonetheless, new political and non-aligned movements spring up constantly, often playing a major role particularly in local elections.

The three biggest parties dominate the political scene. Following the civil war, the Social Democratic Party steered the labour movement in the direction of a Western-type democracy. During the years of uncertainty following the Second World War, the Social Democrats were the mainstay of the struggle against the Soviet Pressure and the communists bid for the power.

The three main parties are followed by three mid-sized parties. The Left-Wing Alliance is the heir to the once mighty communist movement. The Greens first appeared on the political scene in the early 1980's and have gradually consolidated their position, entering the Government for the first time in the late 1990s.

Religion

The Catholic Church extended its hold over most of Finland in the 12th century, when the Swedes conquered the western Finland, Christianizing it in the process. Meanwhile, the Principality of Novrogod was busy propagating the Orthodox creed in Karelia and eastern Finland. The Lutheran doctrine of Reformation took over from the Catholic Church during the 16th century, since which Finland and the other Nordic countries have been the foremost stronghold of Lutheranism in the world.

In principle, the Finnish State is neutral in religious matters, but the Evangelical-Lutheran Church is mentioned in the Constitution Act, and its administration and activities, as well as those of the Finnish Orthodox Church, are regulated by the Church Act, issued by Parliament. Both Churches have extensive autonomy, and their funding is secured by the right to levy a tax on their members. This is in fact provides most of their income. Parishes keep population registers and are responsible for the upkeep of church buildings of cultural and historical value and of graveyards. When a Parliament convenes, the opening ceremonies always include an Evangelical-Lutheran service.

The Evangelical-Lutheran congregations had 4,400,000 members in 1998, or 85.2% of the population. Several large and influential revivalist movements operate within the Church. They were established in the nineteenth century by charismatic lay preachers and priests. The archbishop see is Turku. There are eight dioceses; all of the country's Swedish speaking congregations belong to the diocese of Borga (Porvoo).

Finland's second largest religious community is the Orthodox Church, which has 54,000 members, or 1.1% of the population. The Church is under the direct protection of the patriarchate of Constantinople. The archbishop's see is Kuopio, and there are three dioceses, Helsinski, Karelia and Oulu.

The Pentecostal revival movement numbers some of 50,000 baptized members plus a considerable number of their children. Jehovah's Witnesses have 17,000 members in Finland, the Free Church of Finland has 13,000, the Catholic Church 6,000 and the Jewish congregations 1,100 members. The number of Muslims has increased more than tenfold over the last ten years, but only a handful ‘fewer than one thousand' is registered as members of official religious communities.

Over 634,000 of Finns, or 12.3 % of the population are classified as non-denominational. During the 1990s, the number of people leaving the Church has slightly exceeded those joining it. There are few atheists, however, as half of those who are not members of the Church consider themselves to be Christians and only 16% count themselves atheist. ‘Schools provide religious teaching according to the confession of the majority of the pupils in the school. If at least three pupils belong to a particular denomination, their parents or guardians can demand instruction in that confession. Pupils who do not belong to any denomination study different philosophies of life, if their parents or guardians so wish.'(expat-finland.com)

Education

Finland has a system of compulsory education for all children between the ages 7 and 17. NO tuition is charged. The school system ensures that virtually a 100 percent literacy rate is achieved. Finnish is one of the easiest languages to learn to write, as there is almost complete matching between pronunciation and spelling, with one letter for one phoneme.

All children must attend comprehensive school for nine years. After that several avenues of further education are available, ranging from vocational school to upper secondary, followed by college and university. All stages of education ‘including university' are free of charge for students.

There are about twenty universities and colleges. Gaining admission is usually difficult. Entrance examinations are held in the summer, and the selection is normally based on a combination of performance at school and in the entrance exams. In addition to the formal school system, the extensive network of publicly and privately run institutions offer many opportunities for adult education.

Health Care Systems

The emphasis on Finnish health care policy is on the availability and equitable allocation and use of the services. The goal is to make public health services equally available to all, regardless of social status, income or place of residence.

Primary responsibility for providing health services rests with the local authorities. Most municipalities have at least a health centre to provide basic services. The country is divided into 21 hospital districts which provide specialized services and operate hospitals. Moreover, the universities run central hospitals which provide medical care and train physicians. Finland's health spending is average by OECD standards: in 1998 overall expenditure on health services was about 6.5% of GDP and 16% of all social expenditure. The only fee charged by health centres is an annual enrolment fee of FIM 100. Moreover, public sickness insurance covers part of any other medical costs. Hospitals charge patients FIM 125 per night and FIM 100 per outpatient visit. The average replacement ratio provided by sickness and accident insurance (allowance per gross earnings) is just under 70% of annual income.

In terms of health indicators, Finland is one of the leading European countries. Infant mortality was 0.39 per mille in 1996, lowest in the world. Prenatal care and child welfare clinics have a long history in Finland. The Mannerheim League for Child Welfare was founded back in 1920 to promote the safety of children, young people and families. Although at the time the public welfare system did not extend to child health care and protection, the League promptly set up a nationwide network of clinics providing advice and aid to expectant mothers and families with children. These clinics are now run by the local authorities.

Various forms of preventive and rehabilitative action are also available. One of the keystones of preventive health policy is cancer screening aimed at detecting the disease at an early stage. Mortality from cancer is low compared with most other countries. The results have been so encouraging that in the 1990s health policy has focused increasingly on prevention and rehabilitation.

Culture

The Finns have a special respect for culture. J.V. Snellman, a 19th century statesman and the leading Finnish philosopher, wrote that a small nation's power was in its culture; it was the only means to advancement. Though, a Swedish-speaker himself, Snellman was an enthusiastic propagator of the Finnish language and literature. His grand idea was the making of a unified Finnish nation; and made it was. The idea of national education spread across the social spectrum, down to the lowliest peasant. Even today, culture enjoys significant government support, the most striking results being seen in the field of music.

The standard-of-living survey carried out that once every ten years provides interesting data on the hobbies and interests of the Finns. The Finns spend an average of around two hours watching television. TV series and entertainment programmes have the highest viewer ratings, followed by newscasts and sports events. Sports are a crucial ingredients of Finnish culture.

Labor Force

In 2000, the labor force in Finland reached to a number of 2.6 million. According to the Encyclopedia of the Nations, the distribution of the labor force in Finland are as follows: ‘32% were engaged in public services, 22% in industry, 14% in commerce, 10% in finance, insurance, and business service, 8% in agriculture and forestry, 8% in transport and communications, and 6% in construction.' The rate of unemployment from the period of mid-1960s to the mid-1970s, there was a fluctuation in the total workforce between 1.5% and 4%. And since then, there has been a steady increase in the unemployment rate, which has reached to 8.5% in 2002. (Encyclopedia of the Nations)

The right to form and join unions is legal in Finland. Additionally, unions are not regulated by the government or political parties in Finland. ‘Labor relations are generally regulated by collective agreements, usually one or two years in duration. Disputes over their terms are heard by a labor court, the verdict of which is final. Although mediation of labor disputes is provided for by law, work stoppages have occurred.' (Encyclopedia of the Nations)

Child labor is strictly prohibited in Finland, and regulations are strictly enforced by the labor ministry. Moreso, minimum wages is not established or regulated by the government either rather it is established by industry in collective bargaining negotiations. Legal working hours is 40 per workweek and five days. Employers are enforced to provide health benefits to their employees and ensure that all safety standards are effectively enforced. (Encyclopedia of the Nations)

PART II. ECONOMY AND GOVERNMENT

Finland's economy is largely manufacturing based. However, World66.com has dubbed the country as ‘a highly poor industrialized largely free-market economy with per capita output roughly that of the U.S. UK France Germany and Italy.' Foreign trade is highly important in Finland's economy as about 30% of its GDP is represented by the export trade; the major products of the country include wood metals and engineering industries. Majority of Finland's raw materials are imported aside from its production of timber and various minerals. Energy and various components of its manufactured goods are from foreign manufacturers.

Climate is a major disadvantage in Finland, as the weather is very cold, agricultural development is mainly self-sufficient on the basic production of demanded products. Since the recession of 1990-92, the economy has recovered providing more opportunities for job in the rural population where forestry serves as a major export earner. The recession in 1990-1992 was caused by the economic depression influenced by the foreign markets and the barter system arrangement between Finland and the Soviet Union. The trades between the two countries were through barter of Soviet's oil and gas with Finland's manufactured goods. ‘The Finns voted in an October 1994 referendum to enter free market the EU and Finland officially joined the Union on 1 January 1995. Attempts to cut the unacceptably high rate of unemployment and increasing integration with Western Europe will dominate the economic picture over the next few years. Despite high unemployment and moderate GDP growth of 3.9% anticipated for 1998 inflation is forecast to rise to 2.5%.' (world66.com)

The following figures were quoted from World66.com which stated that as of 1997, it was estimated that Finland's GDP in terms of purchasing power parity has reached to $102.1 billion. The GDP real growth rate for the same year was 4.6% and the GDP per capita was $27,300 in 2003. In 2005, Finland's economic sector consists of 7% agriculture, 37% industry, and 56% services. It was estimated that the consumer price index in 1997 has reached to 1.2%.

Finland has a total labor force of 2.533 million and the distribution by occupation are as follows: public services 30.4% industry 20.9% commerce 15.0% finance insurance and business services 10.2% agriculture and forestry 8.6% transport and communications 7.7% construction 7.2%. As of 1997, the unemployment rate was reported at 14.6%.

The national budget consists of $33 billion revenues and $40 billion expenditures as of 1996. The nation's debt from foreign finance totaled to $30 Billion as of the year 1993. Economic aid was reported in 1993 which came from ODA which amounts to $355 million.

The national currency used in Finland is Euro. The exchange rates between 1993-1998 ranges to markkaa (FMk) per US$1'5.4948 (January 1998) 5.1914 (1997) 4.5936 (1996) 4.3667 (1995) 5.2235 (1994) 5.7123 (1993). The country uses calendar year for its accounting statement.

The economic recession that hit the global marketplace has also affected Finland's economy. The export sector has experienced decline and the industrial production was down for the first time in a decade. Finland's GDP growth in 2001 was among the lowest among the Euro nations which was recorded at 0.7% only, and unemployment rate was remained above the average rate of 9% compared with other European nations. The only sector that remained strong was the service sector specifically the accounting which accounts for over 60% of the country's GDP. The government implemented counter measures to economic recession in 2004 which included cutting of taxes and tempered inflation. The objective of the said strategies was to prod private consumption and promote the growth of the country's GDP. The estimated GDP growth in 2005 was 1.6%, and was forecasted to increase to 2.5% in 2006 and 2.7% in 2007. These figures are way below the growth rates experienced by the country in the latter periods of the 1990s. The 2005 inflation rate was 1.3% which rose to 1.8% in 2006 and 2% in 2007. The unemployment rate was also above average compared to EU's at 8.9 percent in 2005. ‘The relatively inflexible labor market and high employer-paid social security taxes hamper growth in employment.' (encyclopedia.com)

PART III. BUSINESS AND INDUSTRY

Business and industry in Finland consisted of industrial and agricultural. The industries consisted of metal products, shipbuilding, pulp and paper, copper refining, foodstuffs, chemicals, and textiles clothing. The industrial production growth rate was recorded at 7.4% in 1995. Electricity capacity in Finland in 1995 has reached to 14.143 million kW while electricity production in the same year reached 58.626 billion kWh. Electricity consumption per capita was 13.181 kWh. (world66.com)

The products produced by the agriculture sector in Finland include cereals, sugar, beets, potatoes, dairy, cattle, and the annual fish catch is about 1600 metric tons. Exports total value in 1996 amounted to $38.4 billion in commodities such as paper and pulp, machinery, chemicals, metals and timber. Trading partners of Finland include EU (Germany 13.4% UK 10.4%) countries which account to 46.5%, Sweden 10.1%, US 6.7%, Japan 2.6%, and Russia 4.8% in 1995. Total imports value in 1996 was $29.3 in commodities such as foods, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile, yarn and fabrics, fodder and grains. Importing partners include EU which is 44% (Germany 16.6% UK 8.0%), Sweden 11.7%, US 7.1%, Russia 7.1%, and Japan 6.3% in 1995. (world66.com)

Industry

The industrial progress since the end of the World War II has been notable in Finland. The factors that contributed to the progress include ‘the forced stimulus of reparation payments, large quantities of available electric power, increased mining operations, growing mechanization of agriculture and forestry, development of transportation and communications, and steady foreign demand for Finnish exports.' (Encyclopedia of the Nations) As of 2005, the value of production and the labor force size and the electronics and electrical industry were the most valuable source of income, replacing the metal industry.

Another significant source of national income is the food, pulp and paper, machinery, chemical, and shipbuilding industries. The Helsinki, Tampere, Turku, Lappeenranta, Lahti, Jyv ‘skyl', and the valleys of the Kymi and Kokem'ki rivers, and coastal towns like Kotka, Rauma, and Pori were the most important industrial regions in Finland in 2005. ‘The state no longer owns a majority of the outstanding stock in most industrial companies.' (Encyclopedia of the Nations)

The range of industry growth in Finland was from 25% of GDP in 1990 to 28.4% in 2000 and 30.2% in 2004. The growth rate is typical for a developed country where the increases are centered on the services sectors. There was a 22% labor force employed in the industry in 2004. The most popular industry in Finland is the making of cellular telephone handsets, where they become the world leader. Other popular and strong industries in Finland are the paper machinery, medical devices, and instruments for environmental measurements.

‘Nokia, the largest company in the country, produces the most mobile telephones in the world (it is, however, nearly 90% foreign-owned, especially by American pension foundations). Biotechnology is an increasingly important sector, with strength in pharmaceuticals, biomaterials, diagnostics, and industrial enzymes. Finland's biotechnology industry ranked sixth in Europe in 2005. The software industry is one of Finland's most promising industrial sectors; currently, there are more than 3,000 software companies in Finland, many of them start-ups or in early growth stages. The electrical engineering industry's roots go back to the late 19th century: the company founded by Gottfried Str'mberg, who built generators and electric motors, is now a profitable arm of the Asea Brown Boveri Group. Finnish companies such as Instru, Vaisala, and Neles (now part of Metso) have succeeded in areas such as industrial automation and medical and meteorological technology. Metso, formed from Valmet and Tampella, is today the world's leading producer of paper machines. Although certain fashion (Luhta and Marimekko) and footwear (Palmroth) design companies are important, the previously strong “heavy” textile industry' making cotton, woolen, and other fabrics' has virtually disappeared due to foreign competition.' (Encyclopedia of the Nations)

PART IV. FUTURE FORECAST

Erkki Liikanen, Governor of the Bank of Finland, said in connection to the publication of the Bank of Finland's economic forecast for 2007 - 2009, “The greatest challenge facing the incoming Finnish Government relates to the imminent contraction of working-age population that starts as early as 2010. Liikanen further argued that 'Economic growth will not be able to continue as it has before, with future economic growth becoming almost entirely dependent on improvements in labour productivity.” (Bank of Finland)

Some other forecasts from the Bank of Finland are the expected rapid economic growth and the general government surplus which will be heightened by the risk of higher increases in public spending more than before. The Bank also stressed that the economic growth had already peter out in the second half of 2006. The decreasing number of working age people has added to the pressure on the finances faced by the general government. The implication of the ageing population is that it will not help bring down the tax revenues but rather, it will increase pension and health care expenditures of the country. Around 200,000 people are expected to be deducted from the working group by the year 2020 which is equivalent to 3.5 million revenues. Liiken also said, ‘It is therefore essential that growth in public spending will be kept moderate in the forthcoming electoral period. The framework of government spending limits should be maintained. Sustainability can also be boosted by actions designed to improve labour productivity in public services.' (Bank of Finland)

The latest forecast of the Bank of Finland also indicated that the general government surplus with regards to the GDP will likely increase close to 4% in the year 2007-2009. The EMU times recorded that Finland has outpaced the increases on the rate of wages compared with the EU countries. Despite, it has not seriously affected the competitiveness of Finnish manufacturing output in terms of price, as it was able to maintain a fair growth in production as well. According to Statistics, the Finnish wage earners have even gathered more advantages from the economic improvement as the value-added share of labour income in GDP has not changed much in the recent years. (Bank of Finland) As Liikanen pointed out “Future incomes policy solutions must continue to uphold price stability and employment”. They should leave room for company-specific solutions that take differences in productivity into account. Such contracts serve to enhance the economy's adaptability to the impact of globalization and population ageing and help sustain productivity. (Bank of Finland)

The growth in economy of the world and in Finland has now subsided according to the latest forecast of the Bank of Finland. This year, GDP growth will be 3% and remain somewhat lower in 2008-2009. ‘Employment growth continues brisk this year, but will then start to peter out along with the declining number of working-age population. The housing market showed signs of calming down in 2006 in the wake of higher interest rates. Since December 2005, the Governing Council of the ECB has raised its key interest rates by a total of 1.75 percentage points to 3.75%. “Monetary policy continues to be on the accommodative side and the key interest rates moderate. The Governing Council monitors very closely all developments so that risks to price stability over the medium term do not materialise”, says Liikanen. In addition to the economic forecast, the Bank of Finland's Euro & talous journal, published today contains two articles. Samu Kurri presents the new monthly indicator produced at the Bank of Finland for the volume of industrial output. Juha Kilponen and Jouko Vilmunen report on their calculations, made using the Bank of Finland's Aino model, concerning the macroeconomic effects of switching from taxing labour to taxing consumption.' (Bank of Finland)

Part VI. Personal Reflection

Researching about a nation has helped me changed a lot in terms of perspective and expectations. The globalization has proved that it really has great influence in the way a nation is improving. Economic balance has to be managed based upon the need of the people on products and services compared with the capability of the country to produce and those products that are remained as a surplus can gain more money if sold outside the country. The economic crisis that is happening in the world economy has really its effect on individual country such as Finland. The range of the impact is very high that many sectors of the economy have been declined.

I have learned and proved that the ageing population has a big influence on the rising medical and health care costs of a country. The amount spent by the government on this sectors far extended the amount of expenditure spent on other activities. Although critical, the expenditures are quite disturbing.

I have learned that Finland's powerful industries are in the manufacturing sector, specifically the electrical and electronics industries. The technological investments in the country is high and because of this, their exported products are the products of this sector of the industry.

It changed my perspective of the globalization and the economic crisis, as expected, this phenomenon has resulted to downturns of if not all, by majority of the country's industrial production however, Finland has weathered despite the global crisis and continued to produce exports. It also changed my perspective in view of economic developments, I have proved that developed countries are more dependent on service manufacturing just like Finland is.

In general, this research activity has given me a great opportunity to learn about a great country and has allowed me to explore on their many good attributes. I believe that everyone should be given this same chance as the benefits are numerous to students like me.

References

Economy. Creative Commons License. World66.com. Retrieved on December 16, 2009 from: http://www.world66.com/europe/finland/economy

Finland' Labor. Encyclopedia of the Nations. Retrieved on December 16, 2009 from: http://www.nationsencyclopedia.com/Europe/Finland-LABOR.html

Klinge, M. A Brief History of Finland. Otava Publishing Company Ltd. 160 pages

Religion in Finland & Places of Worship. Stuart Allt Web Design, 2004 - 2009. Retrieved on December 16, 2009 from: http://www.expat-finland.com/living_in_finland/religion.html

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