FINLAND

In comparison with the rest of the OECD, Finland's democracy functions exceptionally smoothly, with strong protections for individual civil liberties and participatory rights.

However, the country has no official constitutional court. Thus, judicial review in the strict sense does not exist, giving rule of law a somewhat different interpretation.

Finland's economic policy is strongly focused on growth through the development and innovative use of technology.

This has encouraged new business creation, particularly between 2005 and 2006. Minimum wage and collective bargaining agreements exist, but dismissal protection regulations are not strong.

Recent reforms have simplified the tax system. Budget surpluses have enabled debt repayment. In 2005, debt levels were among Europe's lowest, and the fiscal surplus was the euro zone's highest.

With a strong focus on equity, Finnish social policy largely prevents poverty, while providing support for parents of either sex to combine work with parenting.

Long-term health policy concentrates on preventative care, rather than expanding treatment. Citizens have access to a low-cost, comprehensive basic plan, but can pay for additional services.

Poverty among the elderly is uncommon. Pension reform in 2005 provided incentives to delay retirement.

Bordering Russia, Finland has eschewed official military alliances. However, NATO membership is frequently debated. The country cooperates in EU and NATO activities.

Internal security policy aims at preventing social exclusion, high-tech crime, and international crime.

Integration is difficult. Immigrants show high unemployment rates and low average education levels.

Sustainability is a key focus of Finnish policymakers. The country uses a high share of renewable energy, though nuclear power growth has left waste disposal questions unanswered. Maritime protection policies are strong.

R&D spending is high, though skewed toward applied research.

The public education system is very strong. Finnish students are consistently top performers in international rankings.

Strategic planning is deeply rooted in Finland's policy process. Budget frameworks have a five-year horizon, and the government reports annually on long-term strategic objectives.

The consensus-oriented system means the prime minister does not dominate. Senior ministry officials hold considerable responsibility, and interest organizations are regularly consulted.

Regulatory impact assessments are of good analytic depth.

Facing no second chamber, constitutional court or veto-holding head of state, the government's legislative power is strong.

In the period under review, 97 percent of government-sponsored bills were enacted.

Prime Minister Vanhanen's first cabinet adopted a new program management approach, seeking to make policy implementation and administrative procedures more effective.

Though a member of the EU and the euro zone, Finland's commitment to military nonalignment has limited its willingness to act in response to international events.

However, the country works closely with others at the EU and U.N. level, particularly with regard to integrating the Baltic States.

The first Vanhanen government paid close attention to administrative efficiency.

The Finnish Program Management campaign aimed at a more horizontal and strategic policy-making process, closing gaps left unaddressed by purely sector-based management

An issues-focused national broadcasting company, and good online resources, contribute to a well-informed citizenry.

Parliamentary committees have good oversight capability, producing well-informed reports.

Parties have evolved into organizations with systematic, problem-oriented agendas. Interest groups are influential, and make reasonable proposals.