FINLAND

At rank 3, Finland’s status performance is top-notch (+1 rank relative to SGI 2009).

The country represents in many ways a model democracy in which political liberties, the public deliberation of policies and freedom of expression are nurtured.

Following contraction in 2009, the general decline of the economy seems to have leveled out. SGI indicators suggest that a forceful post-recession exit strategy is under way.

Noteworthy are equitable education policies and generous R&D spending which have helped the country earn its reputation of being particularly innovative.

Together with Norway and Sweden, Finland leads the democracy category.

The electoral process is, apart from some secretiveness concerning political financing, largely fair. Access to information and civil rights protection are exceptionally good. Finland has continually achieved top positions in established rankings for political liberties and civil rights as well as those regarding press freedom.

Some minor shortcomings are apparent. The previously excellent performance regarding corruption has been deteriorating. Moreover, there is no agreement on a reform to increase proportionality of the Finnish electoral system. The appointment processes of justices, while formally transparent, do not stir up much attention and do not recieve full coverage by the media.

Finland moved up from position 9 to position 6 in the ranking of economic policy (relative to SGI 2009).

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

Although the crisis had a negative effect on long-term unemployment in the country, economic performance and competitiveness remain relatively strong compared with other OECD member states.

Taxation policies are well-balanced and perform effectively. Adjustments in recent years have made the taxation system less complex and more transparent. A fiscal consolidation program significantly reduced expenditures, and budget surpluses are helping pay down accumulated debt.

At rank 7, Finland’s social affairs rating remains quite high in international comparison.

Health care policy is efficient, achieving a very low infant mortality among other measures. However, local government resources for health care remain insufficient.

The income equalization system is one of the EU’s most efficient in terms of poverty reduction, though some relative poverty remains.

The state contributes to the expenses of child rearing. In pension policy, the country’s mix of public and private pension schemes appears efficient and able to prevent senior-citizen poverty.

Whereas Finnish immigration policy has traditionally focused on humanitarian issues, it has lately switched to a focus on work-driven immigration.

Finland’s external security strategy relies almost exclusively on its own military forces, which are based on compulsory military service, high standards of technical equipment and widespread citizen support for defense policy.

As long as accession to NATO remains just an option and not a policy, the external security policy of Finland revolves for the most part around the EU’s Common Security and Defense Policy.

Achievements in internal security are satisfactory. Although the rate of violent crime is relatively high, Finland is still one of the safest countries in Europe. Citizens tend to regard the police as the perhaps most reliable institution in society.

With a very strong record of sustainability, Finland continues to be the top performer in the resources category.

Enhancing environmental policy has been an objective since the 1970s. Nature reserves have been established, and the protection of forests is well developed.

Finland is a leader in terms of R&D spending, and has held this position for several years. However, this work has largely focused on applied research rather than basic research, and universities have not benefited much.

Investing in education has been central to Finland’s efforts to ensure competitiveness. The society holds high standards for education, and the principle of lifelong learning is important.

At position 4, Finland ranks among the top performers in the Management Index.

The prime minister is first among equals, which in Finland translates into a strong tradition of consultation within the cabinet. The prime minister’s staff has the expertise and power to coordinate ministries, and NGOs are regularly consulted in the policy-making process. The Vanhanen II cabinet successfully implemented most of its policy objectives.

International cooperation within EU and UN frameworks is substantial. Initiatives towards an enhanced self-monitoring are under way.

Finnish governments demonstrate accountability toward the parliament and intermediary organizations, but citizens’ participatory competence is a weak spot.

At rank 2, Finland shows exceptionally strong steering capability.

Strategic planning has considerable influence on decision-making. Scientific advice is solicited mostly through informal channels. The Prime Minister’s Office has significant capacity for evaluation of draft bills, with a variety of departments assigned to various governing tasks.

The country’s political system is heavily consensual, and interest organizations and associations are regularly consulted to ensure their inclusion in policy-making. This in turn helps generate public support for policies.

Though the prime minister’s position is one of primus inter pares rather than one of absolute leadership, policy communication is quite coherent.

Holding steady at rank 6, Finland’s policy implementation capacity is very high in cross-OECD comparison.

The country has been governed in recent years by broad-based coalition governments with decisive parliamentary majorities, establishing favorable conditions for smooth implementation. In general, the Vanhanen II cabinet achieved most of its policy objectives.

Government programs are the product of negotiations between the coalition parties, with coalition partners thus supervising implementation through the line ministries.

Municipal governments have a right to assess taxes, collecting twice as much in personal income taxes as the central government.

At rank 3, Finland’s institutional learning capacity has shown marginal gains relative to the SGI 2009, remaining near the top of the OECD list.

Domestic government structures have been adapted to the external environment in several instances. Finland was among the first wave of EU member states to adopt the euro. The country has actively participated in internationally coordinated activities, though involvement in UN Security Council missions has been fairly modest.

An initiative designed to improve self-monitoring aims at more efficient, transparent and accountable procedures in the legislative and implementation processes. Although no noteworthy changes in institutional arrangements were implemented during the review period, recent reorganizations certainly attest to the government’s willingness and capacity to initiate institutional reform.

At rank 8, Finland’s assessed level of executive accountability has seen marginal declines (-4 ranks) relative to the SGI 2009.

Citizens have on average a reasonable, if far from perfect ability to evaluate government policies. Information on governmental policies and decisions is widely available.

The legislature has strong executive oversight powers, with parliamentary committees playing an active and influential role. Reports drafted by committees provide the basis for virtually all parliamentary decisions.

The main newspapers, TV and radio stations offer substantive in-depth information on government decisions. Major parties propose plausible and coherent policies in their electoral programs, and NGOs enjoy considerable influence.