Finland

   

Executive Capacity

#3
Key Findings
With a broadly evidence-based system, Finland falls into the top ranks internationally (rank 3) with regard to executive capacity. Its score on this measure has declined by 0.3 points relative to 2014.

Strategic planning is deeply integrated into policymaking. Evidence-based planning is enhanced using trial projects, as in the case of the basic-income experiment. The Prime Minister’s Office (PMO) has broad policy-review capabilities, and works closely with ministries. However, decision-making is based on ministerial consensus rather than PMO leadership. Interministerial coordination is strong at all levels.

RIA use is systematic. Evaluations have resulted in some concerns over the quality of the assessments. Interest organizations are regularly involved in the legislative process, although the role played by tripartite labor-market negotiations is weakening. Conflict within the Finns Party nearly led to a coalition collapse, but instead led to a split in the party, with moderates staying in the government.

While the current government’s agenda is comparatively focused, several proposals have already been abandoned. An ongoing reform that would create new, larger entities to provide the social and health services now provided by municipalities has been contentious. The government has exceeded standards set in some EU climate-related agreements.

Strategic Capacity

#2

How much influence do strategic planning units and bodies have on government decision-making?

10
 9

Strategic planning units and bodies take a long-term view of policy challenges and viable solutions, and they exercise strong influence on government decision-making.
 8
 7
 6


Strategic planning units and bodies take a long-term view of policy challenges and viable solutions. Their influence on government decision-making is systematic but limited in issue scope or depth of impact.
 5
 4
 3


Strategic planning units and bodies take a long-term view of policy challenges and viable solutions. Occasionally, they exert some influence on government decision-making.
 2
 1

In practice, there are no units and bodies taking a long-term view of policy challenges and viable solutions.
Strategic Planning
9
Strategic planning has considerable influence on government decision-making. The strategic goals contained in the government program are recorded in specific government-strategy documents. These strategy documents cover a one-year period and include a plan for pursuing priority goals, a notice of intent for upcoming key decisions and indicators for evaluating government performance. The implementation of the government program is assessed by a report halfway through the cabinet’s tenure, which defines how strategic goals should be attained through the rest of the cabinet’s time in office. The Prime Minister’s Office assists the prime minister and the government in their work and is responsible for the planning of social policy legislation that does not fall within the competence of any other ministry. The government often launches policy programs to ensure its key objectives are met. Meanwhile, the preparation and monitoring of programs is delegated to ministerial groups. In addition, the Committee for the Future deals with future-related matters. As a former entrepreneur, Prime Minister Sipilä has given the government program an even more strategic turn. For some of its policy objectives, the government utilizes trial projects to assess reform impacts. The basic income trial project, which will be run with 2,000 participants nationwide in 2017 and 2018, is an example of this kind of new strategic evidence-based planning.

Citations:
Basic income experiment; http://www.kela.fi/web/en/basic-income-experiment-2017-2018

How influential are non-governmental academic experts for government decisionmaking?

10
 9

In almost all cases, the government transparently consults with a panel of non-governmental academic experts at an early stage of government decision-making.
 8
 7
 6


For major political projects, the government transparently consults with a panel of non-governmental academic experts at an early stage of government decision-making.
 5
 4
 3


In some cases, the government transparently consults with a panel of non-governmental academic experts at an early stage of government decision-making.
 2
 1

The government does not consult with non-governmental academic experts, or existing consultations lack transparency entirely and/or are exclusively pro forma.
Scholarly Advice
7
The government predominately organizes the collection of scholarly advice informally, for example, by consulting scientific experts on committee report drafts. Some formal bodies, such as temporary working groups, ad hoc committees and permanent councils, also exist. In general, various permanent and non-permanent committees play an important role in structuring scholarly advice in government decision-making. An example of a permanent group that advises the government and ministries in research and technology matters is the Research and Innovation Council. A government resolution on a comprehensive reform of state research institutes and research funding was adopted in 2013; it aims to make more efficient and focused use of sectoral research to support governmental decision-making. Implementation of this resolution was underway from 2014 to 2017. The Prime Minister’s Office makes a yearly plan for realizing strategic research objectives and calls for the systemic use of research projects and data for decision-making, steering, and operating procedures. Projects under the government’s strategic research goals are managed by the Strategic Research Council at the Academy of Finland.

Interministerial Coordination

#1

Does the government office / prime minister’s office (GO / PMO) have the expertise to evaluate ministerial draft bills substantively?

10
 9

The GO / PMO has comprehensive sectoral policy expertise and provides regular, independent evaluations of draft bills for the cabinet / prime minister. These assessments are guided exclusively by the government’s strategic and budgetary priorities.
 8
 7
 6


The GO / PMO has sectoral policy expertise and evaluates important draft bills.
 5
 4
 3


The GO / PMO can rely on some sectoral policy expertise, but does not evaluate draft bills.
 2
 1

The GO / PMO does not have any sectoral policy expertise. Its role is limited to collecting, registering and circulating documents submitted for cabinet meetings.
GO Expertise
9
As a ministry in itself, the Prime Minister’s Office has the capacity to evaluate proposed policy. The primary function of the Prime Minister’s Office is to support the duties of the prime minister, who directs the work of government and coordinates the preparation and consideration of government business. The Prime Minister’s Office monitors the implementation of the government program and coordinates Finland’s EU policy. In addition, the Prime Minister’s Office is tasked with coordinating communications between the government and various ministries, planning future-oriented social policies, and promoting cooperation between the government and the various branches of public administration. The Prime Minister’s Office has four departments: European Union Affairs, Government Administration, Government Ownership Steering, and Government Communications. Additionally, it has three units: the Government Session Unit, Government Policy Analysis Unit and Government External Economic Relations Unit. The Prime Minister’s Office has a secretary of state, a permanent undersecretary of state and some 550 employees arranged within several task-specific departments. In addition, the steering of the Team Finland network takes place within the Prime Minister’s Office. Team Finland is a network tasked with promoting international trade and relations, improving the efficiency of business cooperation abroad, and increasing the ease with which Finnish customers can access international business services.

Citations:
http://vnk.fi/en/frontpage
http://team.finland.fi/en/frontpage

Can the government office / prime minister’s office return items envisaged for the cabinet meeting on the basis of policy considerations?

10
 9

The GO/PMO can return all/most items on policy grounds.
 8
 7
 6


The GO/PMO can return some items on policy grounds.
 5
 4
 3


The GO/PMO can return items on technical, formal grounds only.
 2
 1

The GO/PMO has no authority to return items.
GO Gatekeeping
7
The Prime Minister’s Office can return items envisaged for cabinet meetings on policy grounds. As the Prime Minister’s Office coordinates the drafting of proposals, and also arranges the agenda for cabinet meetings, there is rarely reason for it to return items. The rule is that ministers can place items on the cabinet’s agenda even against the wishes of the prime minister. The handling of conflicts can be delicate, especially in cases when the prime minister and minister represent different parties, and perhaps differing political interests which need to be reconciled. Yet controversial items are often discussed in informal meetings beforehand. A weekly institutionalized unofficial meeting of the cabinet led by the prime minister, called the Iltakoulu (evening sessions), plays an important function in consensual decision-making. In addition to the ministers, evening sessions are attended by the parliamentary group chairpersons of the parties in government, the Chancellor of Justice, the State Secretary to the Prime Minister and the Director of Government Communications.

To what extent do line ministries involve the government office/prime minister’s office in the preparation of policy proposals?

10
 9

There are inter-related capacities for coordination in the GO/PMO and line ministries.
 8
 7
 6


The GO/PMO is regularly briefed on new developments affecting the preparation of policy proposals.
 5
 4
 3


Consultation is rather formal and focuses on technical and drafting issues.
 2
 1

Consultation occurs only after proposals are fully drafted as laws.
Line Ministries
9
The guiding rule in Finland is that each ministry is, within its mandate, responsible for the preparation of issues that fall within the scope of government and also for the proper functioning of the administration. Given this framework, rather than line ministries involving the Prime Minister’s Office in policy preparation, the expectation is that the Prime Minister’s Office involves ministries in its own policy preparations. In practice, of course, the patterns of interaction are not fixed. For one thing, policy programs and other intersectoral subject matters in the cabinet program are a concern for the Prime Minister’s Office as well as for the ministries, and efforts must be coordinated. The government’s analysis, assessment and research activities that support policymaking across the ministries are coordinated by the Prime Minister’s Office (PMO). In addition, because decision-making is collective and consensual in nature, ministry attempts to place items on the cabinet’s agenda without involving the Prime Minister’s Office will fail. Finland has a recent tradition of fairly broad-based coalition governments; this tradition amalgamates ideological antagonisms and thereby mitigates against fragmentation along ministerial and sectoral lines.

Citations:
Jaakko Nousiainen, “Politiikan huipulla. Ministerit ja ministeriöt Suomen parlamentaarisessa järjestelmässä”, Porvoo: Werner Söderström Osakeyhtiö, 1992, p. 163.

How effectively do ministerial or cabinet committees coordinate cabinet proposals?

10
 9

The large majority of cabinet proposals are reviewed and coordinated first by committees.
 8
 7
 6


Most cabinet proposals are reviewed and coordinated by committees, in particular proposals of political or strategic importance.
 5
 4
 3


There is little review or coordination of cabinet proposals by committees.
 2
 1

There is no review or coordination of cabinet proposals by committees. Or: There is no ministerial or cabinet committee.
Cabinet Committees
10
Cabinet committees effectively prepare cabinet meetings. The government has four statutory cabinet committees: the Committee on Foreign and Security Policy (which meets with the president when pressing issues arise), Committee on European Union Affairs, Cabinet Finance Committee and Cabinet Committee on Economic Policy. Additionally, ad hoc cabinet committees can be appointed by the government plenary session. All these committees are chaired by the prime minister, who also chairs sessions of the Economic Council, the Research and Innovation Council, and the Title Board. In addition, there are several ministerial working groups. The primary task of these committees and groups is to prepare cabinet meetings by helping to create consensus between relevant ministries and interests. In all, a large majority of issues are reviewed first by cabinet committees and working groups.

How effectively do ministry officials/civil servants coordinate policy proposals?

10
 9

Most policy proposals are effectively coordinated by ministry officials/civil servants.
 8
 7
 6


Many policy proposals are effectively coordinated by ministry officials/civil servants.
 5
 4
 3


There is some coordination of policy proposals by ministry officials/civil servants.
 2
 1

There is no or hardly any coordination of policy proposals by ministry officials/civil servants.
Ministerial Bureaucracy
10
Cabinet meetings are prepared by ministry officials and civil servants. Findings from a large-scale analysis several years ago into the internal politics and practices of the cabinet and ministries emphasized the existence of a cyclical culture of dependence between ministers and senior officials. One expression of this mutual dependence, according to the same analysis, was that ministers put greater trust in the advice of their subordinate civil servants than in the advice of ministerial colleagues. This pattern extends to all aspects of the cabinet’s agenda. With regard to policy programs and similar intersectoral issues, coordination between civil servants of separate ministries happens as a matter of course. In specific matters, coordination may even be dictated. For instance, statements from the Ministry of Finance on economic and financial matters must be obtained by other ministries. On the whole, given the decision-making culture, civil servants in different ministries are expected to engage in coordination. An unwritten code of behavior prescribes harmonious and smooth activity, and ministers or ministries are expected to subject projects that are burdensome or sensitive to a collective examination and analysis.

Citations:
Jaakko Nousiainen, “Politiikan huipulla. Ministerit ja ministeriöt Suomen parlamentaarisessa järjestelmässä”. Porvoo: Werner Söderström Osakeyhtiö, 1992, p. 128; Eero Murto, Power Relationship Between Ministers and Civil Servants, pp. 189-208 in Lauri Karvonen, Heikki Paloheimo and Tapio Raunio, eds. The Changing Balance of Power in Finland, Stockholm: Santérus Förlag, 2016.

How effectively do informal coordination mechanisms complement formal mechanisms of interministerial coordination?

10
 9

Informal coordination mechanisms generally support formal mechanisms of interministerial coordination.
 8
 7
 6


In most cases, informal coordination mechanisms support formal mechanisms of interministerial coordination.
 5
 4
 3


In some cases, informal coordination mechanisms support formal mechanisms of interministerial coordination.
 2
 1

Informal coordination mechanisms tend to undermine rather than complement formal mechanisms of interministerial coordination.
Informal Coordination
10
Intersectoral coordination has generally been perceived as an important issue in Finnish politics, but rather few institutional mechanisms have in fact been introduced. One of these is the Iltakoulu (evening session). To a considerable extent, then, coordination proceeds effectively through informal mechanisms. Recent large-scale policy programs have enhanced intersectoral policymaking; additionally, Finland’s membership in the European Union has of course necessitated increased interministerial coordination. Recent research in Finland has only focused tangentially on informal mechanisms, but various case studies suggest that the system of coordination by advisory councils has performed well.

Citations:
Eero Murto, Power Relationship Between Ministers and Civil Servants, pp. 189-208 in Lauri Karvonen, Heikki Paloheimo and Tapio Raunio, eds. The Changing Balance of Political Power in Finland, Stockholm: Santérus Förlag, 2016.

Evidence-based Instruments

#2

To what extent does the government assess the potential impacts of existing and prepared legal acts (regulatory impact assessments, RIA)?

10
 9

RIA are applied to all new regulations and to existing regulations which are characterized by complex impact paths. RIA methodology is guided by common minimum standards.
 8
 7
 6


RIA are applied systematically to most new regulations. RIA methodology is guided by common minimum standards.
 5
 4
 3


RIA are applied in some cases. There is no common RIA methodology guaranteeing common minimum standards.
 2
 1

RIA are not applied or do not exist.
RIA Application
9
Systematic impact assessment is today a routine part of the Finnish legislative drafting process. Regulatory impact assessment activities have comprised, for instance, a series of evaluation reports by the Ministry of Foreign Affairs that deal with principles of development policy, partner countries and geographic regions. Furthermore, assessments have investigated the activities of the Ministry of Social Affairs and Health, and an international evaluation of the Finnish national innovation system, commissioned by the Ministry of Education and Culture and the Ministry of Employment and the Economy, has been performed. The general framework for regulatory impact assessments is grounded in a program-management system governing intersectoral policy programs. This framework was initiated in 2007 and is still valid as a guide to impact assessment. An independent Council of Regulatory Impact Analysis was established in December 2015 at the Prime Minister’s Office as part of the Sipiläs government program. The Council is responsible for issuing statements on government proposals and on their regulatory impact assessments. In April 2016, the government appointed the first term of the Council (April 2016 to April 2019). During 2016, the Council considered about twenty draft government proposals. The verdict has not been favorable as regards the overall quality of law-making, as the Council has found impact assessments to have been deficient in a significant proportion of proposals.

Citations:
“Impact Assessment in Legislative Drafting. Guidelines”, Ministry of Justice, Finland. Publication 2008:4;
Auri Pakarinen, Jyrki Tala and Laura Hämynen, “Regulatory Impact Assessment in the Finnish Government’s Proposals in 2009”, National Research Institute of Legal Policy, Research Communications no. 104;
“Better Regulation”, Helsinki, Ministry of Justice, 2014; http://oikeusministerio.fi/en/index/basicprovisions/legis;lation/parempisaantely.html
Prime Minister’s Office, Finland: “Finnish Council of Regulatory Impact Analysis”, http://vnk.fi/en/council-of-regulatory-impact-analysis.

Does the RIA process ensure participation, transparency and quality evaluation?

10
 9

RIA analyses consistently involve stakeholders by means of consultation or collaboration, results are transparently communicated to the public and assessments are effectively evaluated by an independent body on a regular basis.
 8
 7
 6


The RIA process displays deficiencies with regard to one of the three objectives.
 5
 4
 3


The RIA process displays deficiencies with regard to two of the three objectives.
 2
 1

RIA analyses do not exist or the RIA process fails to achieve any of the three objectives of process quality.
Quality of RIA Process
8
Impact assessment guidelines adopted in 2007 still provide a general framework for the process of regulatory impact assessment. The Revision Bureau of the Ministry of Justice’s Law Drafting Department monitors compliance with these impact assessment guidelines. Impact assessments cover the economic, administrative, environmental and social impacts of proposed legislation. The guidelines describe what kind of impact may be involved, how the impact may be assessed, and what methods and information sources are available. The guidelines also specify the extent to which this information must be provided in the assessments. For instance, assessments may deal with proposals’ potential economic impact on households, businesses and public finances as well as overall economic impact. Concerning methodology, guidelines recommend the use of statistical data, questionnaire data, expert analyses and when necessary, qualitative methods. Generally speaking, the regulatory impact assessment process is well-structured and of a high quality. However, in its 2017 assessment, the Finnish Council of Regulatory Impact Analysis found deficient impact assessments in a significant proportion of the draft government proposals and recommended a more regular use of quantitative measures and more time for reworking the draft proposals.

Citations:
Ministry of Justice (2008): “Impact Assessment in Legislative Drafting - Guidelines”. Helsinki, Publication 2008:4.
http://oikeusministerio.fi/fi/index/toimintajatavoitteet/lakiensaataminen/parempisaantely/vaikutustenarviointi/saadosehdotustenvaikutustenarviointiohjeet.html.
http://vnk.fi/en/article/-/asset_publisher/arviointineuvosto-vaikutusten-arviointien-tasoa-on-parannettava

Does the government conduct effective sustainability checks within the framework of RIA?

10
 9

Sustainability checks are an integral part of every RIA; they draw on an exhaustive set of indicators (including social, economic, and environmental aspects of sustainability) and track impacts from the short- to long-term.
 8
 7
 6


Sustainability checks lack one of the three criteria.
 5
 4
 3


Sustainability checks lack two of the three criteria.
 2
 1

Sustainability checks do not exist or lack all three criteria.
Sustainability Check
9
The Finnish government understands that regular and complete assessments of regulations are fundamental to the governing of complex and open societies and economies. In consequence, the country has a comprehensive regulatory impact assessment program in place. Also, Finland has formally adopted a regulatory impact assessment strategy that contains instructions to be carried out when drafting legislative proposals, complemented by separate instructions issued by ministries. Assessments involve the use of multiple indicator sets, various interests are consulted and different techniques used. Generally speaking, aspects of sustainability form an integral part of the assessment process. Variations between forecasts and actual outcomes are monitored over time.

Societal Consultation

#5

To what extent does the government consult with societal actors to support its policy?

10
 9

The government successfully motivates societal actors to support its policy.
 8
 7
 6


The government facilitates the acceptance of its policy among societal actors.
 5
 4
 3


The government consults with societal actors.
 2
 1

The government rarely consults with any societal actors.
Negotiating Public Support
8
In Finland’s consensus-oriented political system, interest organizations and associations are regularly consulted. Although the corporatist system adopted in the 1960s has now declined, the exchange of views and information with a variety of social interests is still part and parcel of the everyday activities of the Finnish government. Through various mechanisms such as committee hearings, joint-council memberships and expert testimony, bills and drafts are circulated to interested parties who are then invited to critique the draft legislation. Various laws and guidelines, such as the Act on the Openness of Government Activities, contain provisions on consultation and participation. By and large, the system functions reasonably well. Admittedly, consultation tends to favor organized groups and neglects outside participation. It is also the case that consultation is carried out mainly to build consensus rather than to gather support or assess impact. However, in the long run, this helps to generate public support for government policies. Still, recent developments indicate a weakening in the role played by the tripartite negotiation of labor-market agreements between the government, employers groups and employee organizations.

Policy Communication

#4

To what extent does the government achieve coherent communication?

10
 9

The government effectively coordinates the communication of ministries; ministries closely align their communication with government strategy. Messages are factually coherent with the government’s plans.
 8
 7
 6


The government coordinates the communication of ministries. Contradictory statements are rare, but do occur. Messages are factually coherent with the government’s plans.
 5
 4
 3


The ministries are responsible for informing the public within their own particular areas of competence; their statements occasionally contradict each other. Messages are sometimes not factually coherent with the government’s plans.
 2
 1

Strategic communication planning does not exist; individual ministry statements regularly contradict each other. Messages are often not factually coherent with the government’s plans.
Coherent Communication
8
Since the prime minister’s position is one of primus inter pares (first among equals), rather than one of absolute leadership, it is natural that the government’s policy positions are advanced through discussion and consultation rather than through directives and commands. Furthermore, as directives and commands would challenge the principle of freedom of speech, such communication would probably be regarded as illegitimate and foster opposition. In practice, therefore, contradictory statements are rare. However, the fact that Finland has a tradition of broad-based umbrella coalitions that accommodate diverse interests and ideological shadings serves to diversify communication. This has been true of communications from the Sipilä government, which have been notably vague and often undecided, reflecting tensions or even conflicts between the Finns Party and the other government parties. A conflict within the Finns Party in June 2017 almost led to dissolution of the government and new elections. The conflict was solved by the Finns Party parliamentary group splitting up into a radical group and a more moderate group (Blue Reform), the latter of which contained all of the party’s ministers and remained in the government coalition.

The existence of an agreed-upon and fairly detailed government plan in principle serves to streamline communications; however, the present Sipilä government has demonstrated that different interpretations of the plan can certainly arise.

Implementation

#6

To what extent can the government achieve its own policy objectives?

10
 9

The government can largely implement its own policy objectives.
 8
 7
 6


The government is partly successful in implementing its policy objectives or can implement some of its policy objectives.
 5
 4
 3


The government partly fails to implement its objectives or fails to implement several policy objectives.
 2
 1

The government largely fails to implement its policy objectives.
Government Efficiency
8
Given that Finland has lately been governed by broad or fairly broad coalition governments, the constitutional and political conditions for a satisfactory implementation of government plans have been good. A February 2013 session reviewing the implementation record under former Prime Minister Katainen (2011 – 2014) concluded that approximately 80% of the measures outlined in the government program had at that point been undertaken successfully. However, according to the review, the largest and most difficult program issues remained unsolved. Following a cabinet reshuffle, the government program under Prime Minster Stubb (2014 – 2015) was submitted to parliament in June 2014 and was fairly well received. The present Sipilä government announced its program at the end of May 2015; in comparison with earlier programs, which resembled a telephone directory in size, the Sipilä program is much shorter and more strategic and focused. The program announced five strategic priorities that are manifested in 26 key projects, the primary goal being to bring the Finnish economy onto a path of sustainable growth. An action plan for implementation was published in February 2016 and updated in April 2017; a Legislation Assessment Council was appointed in April 2016. Follow-up estimations are now web-published at regular intervals. As evident from these assessments, the government’s likelihood of success in implementing its objectives remains a somewhat open question. The government has already been forced to back away from several of its proposals.

Citations:
Ville Pitkänen, “Kenen ääni kuuluu hallitusohjelmassa?”, Kanava, 2015, Nr 6, pp. 40-42;
valtioneuvosto.fi/implementation-of-the-government-programme;
valtioneuvosto.fi/hallitusohjelman toteutus/karkihankkeiden-toimintasuunnitelma.;
“Finland, a land of solutions. Mid-term review. Government action plan 2017-2019.” http://valtioneuvosto.fi/documents/10184/321857/Government%20action%20plan%2028092017%20en.pdf/034211c9-84dd-43a7-8d7f-e5d055965a2c

To what extent does the organization of government provide incentives to ensure that ministers implement the government’s program?

10
 9

The organization of government successfully provides strong incentives for ministers to implement the government’s program.
 8
 7
 6


The organization of government provides some incentives for ministers to implement the government’s program.
 5
 4
 3


The organization of government provides weak incentives for ministers to implement the government’s program.
 2
 1

The organization of government does not provide any incentives for ministers to implement the government’s program.
Ministerial Compliance
8
A number of mechanisms are in place that serve to bind ministers to the government’s program. Government programs result from negotiations between the political parties forming the government; in consequence, the coalition partners and ministries closely monitor implementation. Cabinet agenda issues are generally prepared, discussed and coordinated in cabinet committees as well as in informal groups and meetings. On the whole, ministers are closely watched, and are expected to be integral parts of cooperative units. They would no doubt find it difficult as well as unrewarding to pursue narrow self-interests. Nevertheless, individual figures’ profile-raising attempts have been discernible in the present Sipilä cabinet, largely within the Finns Party.

How effectively does the government office/prime minister’s office monitor line ministry activities with regard to implementation?

10
 9

The GO / PMO effectively monitors the implementation activities of all line ministries.
 8
 7
 6


The GO / PMO monitors the implementation activities of most line ministries.
 5
 4
 3


The GO / PMO monitors the implementation activities of some line ministries.
 2
 1

The GO / PMO does not monitor the implementation activities of line ministries.
Monitoring Ministries
8
The government monitoring of ministries is indirect in nature and the same mechanisms that foster ministerial compliance tend to have monitoring functions as well. These include the preparation and coordination of matters in cabinet committee meetings as well as other formal and informal meetings. In general, the various forms of interministerial coordination also fulfill monitoring functions. However, these forms are characterized by cooperative and consultative interactions rather than critical interactions. While the Prime Minister’s Office does monitor ministries, the monitoring is implicit rather than explicit.

How effectively do federal and subnational ministries monitor the activities of bureaucracies and executive agencies with regard to implementation?

10
 9

The ministries effectively monitor the implementation activities of all bureaucracies/executive agencies.
 8
 7
 6


The ministries monitor the implementation activities of most bureaucracies/executive agencies.
 5
 4
 3


The ministries monitor the implementation activities of some bureaucracies/executive agencies.
 2
 1

The ministries do not monitor the implementation activities of bureaucracies/executive agencies.
Monitoring Agencies, Bureaucracies
8
All ministries use results-management practices to monitor agencies in their various task areas. In many cases, a balanced score system is used. However, not all agencies are monitored to the same extent. Some agencies, such as the National Funding Agency for Technology and Innovation (Tekes), which operates under the Ministry of Economic Affairs and Employment have a high degree of autonomy, with monitoring taking place only on a general level. Other agencies are accorded a somewhat lesser degree of autonomy. However, as a rule, they do have autonomy with respect to day-to-day operations. Monitoring takes many forms and a system of political undersecretaries of state has been designed to support the individual ministers in their monitoring activities.

To what extent does the central government ensure that tasks delegated to subnational self-governments are adequately funded?

10
 9

The central government enables subnational self-governments to fulfill all their delegated tasks by funding these tasks sufficiently and/or by providing adequate revenue-raising powers.
 8
 7
 6


The central government enables subnational governments to fulfill most of their delegated tasks by funding these tasks sufficiently and/or by providing adequate revenue-raising powers.
 5
 4
 3


The central government sometimes and deliberately shifts unfunded mandates to subnational governments.
 2
 1

The central government often and deliberately shifts unfunded mandates to subnational self-governments.
Task Funding
8
Municipal governments have a right to assess taxes, collecting more than twice as much as the central government in income taxes. A government grant system additionally enables local governments to continue to provide public services even when experiencing a funding gap. In essence, a portion of locally collected taxes is put into a common pool, from which transfers are made to financially weak local governments. The central government establishes strict standards and service-provision requirements intended to cover all citizens. However, local governments are tasked with providing these services, which means that some municipalities are unable to meet the standards without increasing taxes. Given that local government units differ greatly in size and resources, they are in unequal positions in terms of capacity and performance efficiency. A large-scale reform of municipalities and services, started in 2006 and yet unfinished, has led to a considerable reduction in the number of municipalities. Among other goals, the reform aims to secure sufficient financing and an efficient provision of services across the country. The government has also introduced a further and much contested reform project to create larger entities tasked with providing social and health services in a more efficient way (SOTE). However, according to assessments, the final compromise solution of 18 social services and health care entities is less satisfactory in terms of efficient funding and democratic organization than was an original proposal for a maximum of nine to 12 SOTE regions. At the time of writing, the final shape, structure, and outcome of the SOTE reform remains open and subject to critical public discussions.

Citations:
Government press release on “Government decision on next steps in reform package on health care, social welfare and autonomous regions”, http://vm.fi/en/article/-/asset_publisher/10616/hallitus-paatti-sote-uudistuksen-jatkosta-ja-itsehallintoalueista
http://alueuudistus.fi/en/frontpage

To what extent does central government ensure that subnational self-governments may use their constitutional scope of discretion with regard to implementation?

10
 9

The central government enables subnational self-governments to make full use of their constitutional scope of discretion with regard to implementation.
 8
 7
 6


Central government policies inadvertently limit the subnational self-governments’ scope of discretion with regard to implementation.
 5
 4
 3


The central government formally respects the constitutional autonomy of subnational self-governments, but de facto narrows their scope of discretion with regard to implementation.
 2
 1

The central government deliberately precludes subnational self-governments from making use of their constitutionally provided implementation autonomy.
Constitutional Discretion
9
Municipalities in Finland have a long tradition of independence in specific policy areas, while also implementing policies of the central government. In particular, municipalities are responsible for the implementation of educational, health care, social and infrastructural services. Municipalities may not be burdened with new functions or with financial or other obligations, nor may they be deprived of their functions and rights, except by an act of parliament. The control that the state exercises over municipalities does not imply any general state right to intervene. Control may be exercised only in accordance with specific legal provisions. Thus, subnational autonomy is guaranteed and protected by law. Still, the autonomy of local government may be curtailed in practice by financial pressures. The still pending SOTE reform which creates autonomous regions for the organization of social welfare and health care will lead to greater complexity in terms of financing structures, accountability, and responsibilities.

To what extent does central government ensure that subnational self-governments realize national standards of public services?

10
 9

Central government effectively ensures that subnational self-governments realize national standards of public services.
 8
 7
 6


Central government largely ensures that subnational self-governments realize national standards of public services.
 5
 4
 3


Central government ensures that subnational self-governments realize national minimum standards of public services.
 2
 1

Central government does not ensure that subnational self-governments realize national standards of public services.
National Standards
7
Since local authorities have the constitutional right to use their own discretion, the central government has limited capacity to ensure that national standards are consistently met. Local governments are separate from the central government, with municipal authorities recognized as existing independently of the state. Still, appeals to administrative courts regarding decisions taken by local authorities are possible on grounds that the decisions were not made in proper order or were otherwise illegal. In certain and very few specific matters, such as environmental or social-care issues, local government decisions must be confirmed by state authorities. The reform of municipalities and services now ongoing for years aims to increase the effectiveness of public-services provision in peripheral regions and improve local governments’ fiscal sustainability. The extent to which these reforms can meet the stated goals remains an open and much-debated question

Adaptability

#3

To what extent does the government respond to international and supranational developments by adapting domestic government structures?

10
 9

The government has appropriately and effectively adapted domestic government structures to international and supranational developments.
 8
 7
 6


In many cases, the government has adapted domestic government structures to international and supranational developments.
 5
 4
 3


In some cases, the government has adapted domestic government structures to international and supranational.
 2
 1

The government has not adapted domestic government structures no matter how useful adaptation might be.
Domestic Adaptability
9
Most important adaptations have resulted from Finland’s EU membership. Finland was among the first EU member states to adopt the euro and government structures have in several instances been adapted to EU norms. The Parliamentary Grand Committee is tasked with preparing and adopting EU legislation. Furthermore, oversight of the EU secretariat, responsible for the coordination of EU affairs, has been transferred from the Ministry for Foreign Affairs to the Prime Minister’s Office. A coordination system exists to ensure that Finland maintains positions in line with its overall EU policy. This system involves relevant ministries, a cabinet committee on EU affairs and various EU subcommittees. These subcommittees are sector-specific governmental organs and constitute the foundation for the promotion of EU affairs within the state’s structures. Finland is a member of the MOTAN donor network, which evaluates the work of international organizations and their organizational effectiveness. Also, the National Climate Change Adaptation Plan 2022 was adopted in 2014, introducing measures to mitigate the adverse consequences of climate change. The implementation of the plan is coordinated by a national monitoring group.

To what extent is the government able to collaborate effectively in international efforts to foster global public goods?

10
 9

The government can take a leading role in shaping and implementing collective efforts to provide global public goods. It is able to ensure coherence in national policies affecting progress.
 8
 7
 6


The government is largely able to shape and implement collective efforts to provide global public goods. Existing processes enabling the government to ensure coherence in national policies affecting progress are, for the most part, effective.
 5
 4
 3


The government is partially able to shape and implement collective efforts to provide global public goods. Processes designed to ensure coherence in national policies affecting progress show deficiencies.
 2
 1

The government does not have sufficient institutional capacities to shape and implement collective efforts to provide global public goods. It does not have effective processes to ensure coherence in national policies affecting progress.
International Coordination
8
Typically, global public goods are best addressed collectively, on a multilateral basis, with cooperation in the form of international laws, agreements and protocols. Finland is a partner to several such modes of cooperation and contributes actively to the implementation of several global frameworks. Finland is committed to the United Nations Framework Convention on Climate Change, Kyoto Protocol and EU legislation in its climate policy. The Ministry of the Environment is responsible for coordinating climate negotiations, and specifically, within the framework of the EU, Finland is committed to bringing down its national annual average carbon emissions. In 2017, Finland assumed the two-year chair of the Arctic Council, announcing her commitment to promote prosperity, development and environmental sustainability in the Arctic region. In 2016, Finland was the President of the Nordic Council of Ministers and in 2017 has taken the lead in the Nordic Council. These and other commitments notwithstanding, Finland cannot be regarded a dominant actor protecting global public goals. Given its relatively high level of knowledge, research capacities, and the existence of frameworks for policy coordination and monitoring, Finland does have the institutional capacities to participate in global governance. However, the capacities are not utilized to their fullest extent.

Citations:
www.motiva.fi/en/energy_in_finland/national_climate_and_energy_strategy
http://valtioneuvosto.fi/documents/10184/1427398/Ratkaisujen+Suomi_EN_YHDISTETTY_netti.pdf/8d2e1a66-e24a-4073-8303-ee3127fbfcac

Organizational Reform

#3

To what extent do actors within the government monitor whether institutional arrangements of governing are appropriate?

10
 9

The institutional arrangements of governing are monitored regularly and effectively.
 8
 7
 6


The institutional arrangements of governing are monitored regularly.
 5
 4
 3


The institutional arrangements of governing are selectively and sporadically monitored.
 2
 1

There is no monitoring.
Self-monitoring
10
The monitoring and evaluation of existing institutional models forms an important element of the Finnish political and administrative system. Earlier attempts to improve the proportionality of the electoral system and alter constituency sizes are examples of how evaluation and monitoring processes in Finland mainly focus on administrative and steering issues. A system of program management that introduced new measures for monitoring the government plan was implemented several years ago. This monitoring system has been adopted as well as improved by subsequent governments. The Stubb cabinet (2014 – 2015) made monitoring data publicly available. The same policy has been followed by the Sipilä cabinet. It is now customary to report online the developments toward realizing the 26 main goals and five main reforms listed in the government plan. Reports are updated monthly. The Secretariat for Government Strategy Work assists the government and ministries in implementing and monitoring the key projects and reforms.

Citations:
http://valtioneuvosto.fi/en/implementation-of-the-government-programme/information;
“Government Programme Monitoring Data”, https://www.avoindata.fi/data/fi/dataset/hallitusohjelman-seurantadata;
Valtioneuvoston kanslia, “Jyrki Kataisen ja Alexander Stubbin hallitusohjelmien loppuseuranta 2015”, http://valtioneuvosto.fi/documents/10184/321857/Hallitusohjelmien+loppuseuranta+032015.pdf/44d7de02-958c-4b1c-8633-201038a0f2f5;
Toimintasuunnitelma strategisen hallitusohjelman kärkihankkeiden ja reformien toimeenpanemiseksi 2015-2019. Päivitys 2016. Hallituksen julkaisusarja 2/2016.

To what extent does the government improve its strategic capacity by changing the institutional arrangements of governing?

10
 9

The government improves its strategic capacity considerably by changing its institutional arrangements.
 8
 7
 6


The government improves its strategic capacity by changing its institutional arrangements.
 5
 4
 3


The government does not improve its strategic capacity by changing its institutional arrangements.
 2
 1

The government loses strategic capacity by changing its institutional arrangements.
Institutional Reform
7
While institutional arrangements have not changed much, the Sipilä government has continuosly considered plans to promote and implement strategic aims within government and to reduce costs. These plans have included merging ministries and reallocating ministerial responsibilities, but the outcome of these efforts have been less than successful. Plans some years ago to merge the Ministry of Environment and the Ministry of Agriculture and Forestry were heavily opposed and later developments largely justified the criticism. Among other reallocation efforts, a merger of the Ministries of Justice and Employment failed to the extent that it became necessary to cancel the merger. Several factors, including the fairly high degree of independence accorded to Finnish ministries and broad nature of recent cabinets, tend to undermine policy coordination across government bodies, highlighting the need for reforms that improve coordination. The Sipilä government’s strategic goals are discussed regularly in Iltakoulu (evening sessions), an informal meeting between ministry staffers and heads of the parliamentary groups. The sessions serve as a venue for in-depth consultation and consensus-building.
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