FINLAND

The electoral process in Finland is free and fair. Since 2000, the constitution has included provisions granting Finnish citizens the right to participate in national elections and referendums. Registered political parties have the right to nominate candidates; however, since 1975, under the principle that all voters should have the right to influence the nomination process, electoral associations of at least 100 enfranchised citizens have also the right of nomination. Still, the role of these associations has been marginal.
In a similar manner, candidates for presidential elections can be nominated by any political party that is represented in the Finnish parliament at the time of nomination. Candidates may be nominated also by groups of at least 20,000 enfranchised citizens. Presidential candidates must be Finnish citizens by birth; people under guardianship and those in active military service cannot be candidates in parliamentary elections. The procedure for registering political parties is regulated by the Party Law of 1969. Parties which fail to elect representatives to parliament in two successive elections are removed from the list of registered parties. However, by gathering the signatures of 5,000 supporters, a party may be registered anew.

The access of candidates and parties to media and means of communication is fair in principle, but practical considerations that relate to limitations in terms of time and channel space restrict somewhat the access of smaller parties and their candidates to television debates and appearances. Given the increased impact of such appearances on electoral outcome, this bias in terms of access is somewhat problematic from the point of view of fairness and justice. However, the restrictions are in terms of size and importance only and are not about ideology or the government-opposition divide. Access to newspapers and commercial forms of communication is unrestricted, but is in practice dependent on the economic resources for campaign management of parties and individual candidates. Candidates are, however, required to report their sources of income used for campaigning.

Electoral provisions stipulate universal adult suffrage with secret elections; the voting age is 18. Voting is not compulsory. Finnish citizens living abroad are entitled to vote, but foreigners living in Finland cannot vote, although permanent residents may vote in municipal elections. The population registration center maintains a register on persons eligible to vote and sends a notification to those included in the register; thus citizens do not need to register separately to be able to vote. A system of advance voting has been adopted since the 1978 parliamentary elections, and the proportion of ballots cast in advance has risen significantly. In the parliamentary elections of 2007, advanced polling stations were maintained at almost 400 locations all over the country. In the municipal elections of 2008, electronic voting was tested but will not be utilized in further elections. Instead, the government has decided to keep an option for Internet voting in the future.

Ranking first for several years, Finland was ranked only fifth in Transparency International’s Corruption Perceptions Index in 2009. This was because of secretive political financing scandals in 2008 and again in 2009. Parties and politicians were accused of violating the law by failing to disclose the source of campaign funds; also, the law in question was faulted for lacking any penalty for violations. An opinion poll showed that 60% of respondents said politicians’ credibility had dropped as a result of the scandals, and there was much speculation about whether business executives and others had been donating money to campaigns in order to garner favorable political decisions. In consequence, the parties have decided to open their records, and the government has been drafting new campaign finance legislation that will force the political elite to disclose political money sources and will also provide for independent and efficient monitoring.

The independence of media is nowadays a matter of course in Finland. Media independence is guaranteed by the Act on the Exercise of Freedom of Expression in Mass Media from 2003 and supported by public and political discourse, in which free and pluralist media is considered an important means for debates among citizens and the formation of public opinion. According to Reporters without Borders’ Worldwide Press Freedom Index 2009, Finland was ranked first along with Denmark, Ireland, Norway and Sweden. Finland’s national broadcasting company, Yleisradio, is a public broadcaster owned by the Finnish state and is funded through private television broadcasting license fees and a television fee. Governed by a parliamentary council, Yleisradio operates five national television channels, a dozen radio channels and some 25 regional radio stations. In their operation, freedom of speech is regarded a political right and broadcasting activities an impartial means for the mediation of differing opinions and debates.

Finland’s media landscape is indeed pluralistic, as the country supports a large number and variety of newspapers and magazines. According to Freedom House’s 2008 press freedom survey, Finland boasts an impressive newspaper readership, ranking third in the world for circulation in relation to population. Two hundred newspapers are published, 31 of which are dailies. Previously a good portion of newspapers were financially and ideologically connected to political parties and acted as mouthpieces for the respective parties. This has now changed, and already in 1998 independent newspapers represented no less than 95% of the total circulation. As a rule, newspapers are privately owned but publicly subsidized; the ownership structure is therefore diversified. The position of regional newspapers remains strong, and they provide a great variety of print media at the national and the regional level. In 2004 parliament liberalized a media law that had placed restrictions on Internet publishers and service providers; the Internet is now open and unrestricted and more than 60% of all citizens have regular access. In 2009 Finland defined Internet access as a universal service that must be available to everyone. The national broadcasting company, Yleisradio, operates several national and regional television and radio channels, and supplies a broad range of information online. Although state-owned and controlled by a parliamentary council, Yleisradio is generally viewed as unbiased. Yleisradio is complemented by several private broadcasting companies.

The public’s access to government information is in principle unrestricted. In accordance with the Finnish constitution of 2000, every Finnish citizen has the right of access to public documents and recordings. This right implies access to documents and recordings in the possession of authorities, unless their publication has for some compelling reason been restricted by a government act. However, special categories are secret and exempt from release, including documents that relate to foreign affairs, criminal investigations, the police or the security police, military intelligence and so on. Such documents are usually kept secret for a period of 25 years, unless otherwise provided by law. Finland was also among the first countries to sign the Council of Europe Convention on Access to Official Documents in 2009. The act on the openness of government activities (1999) stipulates that persons asking for information are not required to provide reasons for their request; responses to requests must be made within 14 days. Appeals to any denial can be made to a higher authority and then to the Administrative Court. The chancellor of justice and the parliamentary ombudsman can also review the appeal. Most probably, the policy of openness and electronic access is a key reason for the low levels of corruption in Finland.

Civil rights are widely respected and protected in Finland. Since the early 1980s, Finland has received the highest possible rankings on civil rights in annual freedom rankings by Freedom House. The law provides for freedom of speech, which is also respected in practice. Furthermore, Finns enjoy full property rights and freedom of religion, with the government officially recognizing 55 religious groups. Freedoms of association and assembly are respected in law and practice; workers have the right to organize, bargain collectively and strike.

Political liberties are effectively protected in Finland, and Finland has for decades now received the highest scores concerning political rights and civil liberties in Freedom House surveys. Finnish law provides for freedom of speech, and this freedom is upheld in practice. Finns also enjoy freedom of religion, and freedoms of association and assembly are upheld in law and in practice. Workers have the right to organize, bargain collectively and strike; approximately 80% of workers belong to trade unions. Women enjoy equal rights and liberties in Finland. The criminal code covers ethnic agitation; human trafficking is a criminal offense. The constitution guarantees the indigenous Saami population (less than 1% of the population) cultural autonomy and the right to pursue their traditional livelihoods.

Rights of ethnic and religious minorities are as a rule well protected in Finland, and the criminal code covers ethnic agitation as well as penalizes anyone who threatens a racial, national, ethnic or religious group. The rights of the Swedish-speaking minority in Finland are widely respected and Finnish and Swedish are the two national languages of Finland. Implemented and still pending reforms of the regional administrative apparatus, however, are in some violation of the rights of the Swedish-speaking population. The Aland Islands, whose inhabitants speak Swedish, have for historical reasons extensive autonomy and a parliament of their own, as well as one permanent seat in the national legislature. All in all, Finland has often been seen as a forerunner concerning its efforts to put forth an effective minority protection policy.
Cases of discrimination are rare. However, ethnic minorities and asylum seekers report occasional police discrimination, and Finland has on occasion been found in violation of Article 6 of the European Convention on Human Rights and Fundamental Freedoms. Roma individuals, who make up a very small part of the population, are widely marginalized.

The rule of law is one of the basic pillars of Finnish society. When Finland was ceded by Sweden to Russia in 1809, the strict observation of prevailing Swedish laws and legal regulations became one of the most important tools for avoiding and circumventing Russian interference in Finnish affairs. From this emerged a political culture which demands legal certainty, condemns any fusion of public and private interest and prevents public officeholders from abusing their position for private interests.

Clearly, the predominance of the rule of law is weakened by the lack of a constitutional court in Finland. The need for one has been discussed from time to time, but plans have always been blocked by leftist parties. The parliament’s Constitutional Law Committee has in fact acquired a position that resembles that of a constitutional court in other countries. The implication of this is that parliament is controlled by an inner-parliament, and this makes the Constitutional Law Committee arrangement a poor compensation for a regular constitutional court. Also, although courts are independent in Finland, they do not decide on the constitutionality and the conformity with law of acts of government and administration. Instead, the supreme supervisor of legality in Finland is the Office of the Chancellor of Justice. Together with the parliamentary ombudsman, this office supervises authorities’ compliance with the law and the legality of the official acts of the government, its members and of the president of the republic. The chancellor is also charged with supervising the legal behavior of courts, authorities and civil servants.

There are three levels of courts: local, appellate and supreme. The final court of appeal is the Supreme Court; there is also a supreme administrative court as well as an ombuds office. The judiciary is independent from the executive and legislative branches. Supreme Court judges are appointed to permanent positions by the president of the republic; they are independent of political control. Supreme Court justices appoint lower court judges. The ombudsman is an independent official elected by parliament. The ombudsman and deputy ombudsman investigate complaints by citizens and conduct investigations. While formally transparent, the appointment processes do not stir up much attention and are not fully covered in media.

Since 2000 Finland has been ranked as one of the countries with the lowest level of perceived corruption in Transparency International’s annual Corruption Perceptions Index. In 2009, Finland ranked sixth in the world. Since May 2005, a law criminalizing the acceptance of a bribe was made effective. The auditing of state spending is strict. In a like manner, corruption rarely occurs in the economic sector. In 2008 and 2009, however, several political corruption charges were brought to light; Prime Minister Matti Vanhanen and other politicians were involved in campaign funding scandals. This inspired discussions on campaign financing and bribery laws.

At the onset of the global economic crisis in 2008, Finland’s economy was in a good position. However, owing to the recession, public finances fell into deficit, and in 2009 the economy contracted by 7.6%. In the coming years, it will be a challenge of economic policy to work out and implement a post-recession exit strategy, in which measures that support growth are combined with general government adjustment measures; however, the impact of the recession on public finances has been so considerable that it will take a number of years to recover. Also, the aging of Finland’s population sets restrictions for economic growth and at the same time poses a challenge for the sustainability of public finances, especially as it comes to financing pensions.
A stability program was endorsed by the government in February 2010, which presented Finland’s economic policy objectives and projected implementations up to 2013. Whereas the general decline in the economy now seems to have leveled off and a gradual growth in GDP is expected, the recession will leave an enduring mark on the balance of general government finances and its debt ratio. The general government deficit is expected to deepen in 2010 to 3.6% of GDP: the debt-to-GDP ratio will rise to over 56% by 2013. Finland’s medium-term target for general government is set in the program at a structural surplus of 0.5% of GDP; however, this objective will not be achieved without new and significant additional measures.

Labor market policy in Finland has been only partially successful in implementing strategies against unemployment. The achievements in terms of, for instance, long-term unemployment, low-skilled unemployment, youth employment and elderly employment are satisfactory, but far from excellent. This is due to several interrelated factors. Finland is a large but sparsely populated country, and geography therefore becomes an obstacle to the smooth mobility of the labor force. Also, globalization has turned into a threat against labor market strategies, as companies out of cost-related considerations are moving their production facilities to an increasing extent outside the country, contributing to unemployment and weakening job security. Concerning labor market regulations, a system of minimum wages and collective agreements are operating, but more attention should be given to matters of dismissal protection. In many sectors, temporary work contracts make it difficult for employees to plan and organize their careers and lives. In the current assessment period, the government has among other things set off an amendment of a program on wage subventions for employing unemployed persons under the age of 25. Furthermore, a strategy for more flexicurity in the labor market was implemented in June 2009 and a development strategy for the creative economy was set up in October 2008.

Enterprise policy has managed to clear the way for a high degree of competitiveness, and Finland ranks ninth in the IMD World Competitiveness Scoreboard 2009 and sixth in the World Economic Forum’s Global Competitiveness Index 2009-2010. Finland has also been fairly successful when it comes to eliminating bureaucratic red-tape and market regulation. The Ministry of Trade and Industry bears the overall responsibility for the promotion of exports and the internationalization of enterprises, as well as managing export promotion policy to ensure that Finnish enterprises have at least equal internationalization conditions and operating possibilities in the market compared to competitors. With public services and subsidies, enterprises operating in the home market are encouraged to internationalize their business. Enterprise policy has internalized the thought that economic growth is closely linked to the development of technology and its innovative applications. As evident from the good Finnish competitiveness performance, inputs in the development of technology and innovation have indeed created preconditions for sustainable economic growth. The environment for innovation has been developed in a way which not only responds to changes but also foresees future needs.

Taxation policies in Finland are well-balanced and perform effectively. Adjustments in recent years have made the taxation system less complex and more transparent and at the same time, the tax burden of wage earners and pensioners has been diminishing. While demand for vertical equity is fully satisfied, the same is less true of horizontal equity. By and large, taxation policies are competitive and generate sufficient revenues. As evident also from the low degree of tax evasion as compared to many other countries, taxation policies are approved by the public, which largely regards taxation as a necessary means for securing the continued health of the country’s welfare state.

The collapse of markets in the Soviet Union caused an economic crisis in Finland in the early 1990s, and the level of indebtedness increased sharply. However, a fiscal consolidation program significantly reduced expenditures, and Finland enjoyed budget surpluses and was able to pay down accumulated debt. Finland’s net debt management strategy has been successfully implemented despite the challenges created by the current international financial crisis and has maintained an even exemplary low debt-management strategy. As a result, the Finnish state’s debt management strategy and risk management are used as a benchmark for other countries. The level of indebtedness has been reduced to less than 30% of GDP, and according to a poll among international banks, Finland had the most impressive sovereign funding team of 2009. However, economic growth must be improved further to offset the impact of the country’s aging population. The budgetary situation of municipalities has become more fragile.

Health policies in Finland have certainly promoted some aspects of public health, the very low level of infant mortality being one example and an efficient health insurance system being another. Other aspects, however, remain neglected. In particular, the ageing of the population and non-sufficient local government resources for health care have led to problems. The system of a low-cost, basic health care plan covering all medical needs and provided by communal health care agencies is challenged by a shortage of physicians willing to work for public health care centers. Many formerly municipal clinics are now run by private companies, which also provide physicians with more attractive employment conditions. The government is therefore challenged to maintain basic health care as well in rural regions. Shortcomings in municipal basic health care especially affect persons who are not covered by occupational health care (such as the chronically ill, the unemployed, the elderly and the poor).
These problems are clear and preventive measures have been scheduled in planning documents, as is evident from the high spending input in Finland during recent years on preventive and health programs. A central document is the 2015 public health program, which outlines targets for Finland’s national health policy. The main focus of the strategy is health promotion and prevention strategies, rather than developing the health service system. The program is a cooperation venture which provides a broad framework for health promotion across different sectors of administration and acknowledges that public health is largely determined by factors outside health care, such factors being, for instance, lifestyle, the environment and product quality. Concerning future measures for promoting health care information, Finland’s national objective is to secure the access of information for those involved in care, and the means used to achieve this objective have included a comprehensive digitalization of patient data as well as the development of the national health care infrastructure and information network solutions.

Social policy has largely prevented poverty in Finland. In terms of poverty rate and life satisfaction, the Finnish rankings are excellent from a comparative point of view. The Finnish income redistribution system has in fact proved to be one of the most efficient in the European Union when it comes to poverty reduction. Still, although there is no absolute poverty in Finland, relative poverty prevails. Generally speaking, of those who have experienced poverty, one-third are subject to persistent poverty, another third to occasional poverty and a final third to borderline poverty. During recent years and due to the economic crisis, the number of people exposed to long-term unemployment has been increasing, and this, of course, adds to the general level of poverty. Interestingly, there is a strong consensus in the Finnish population on the causes of poverty, as Finns have blamed the flaws and inadequacies of the labor market and thus emphasize a structural explanation of poverty. The National Action Programme of Finland, within the framework of the European Year for Combating Poverty and Social Exclusion 2010, identifies the following key objectives: enhancing child welfare, reducing health inequalities, combating the risk of poverty of older women living on national pensions, as well as structural unemployment affecting elderly men in particular.

The state contributes to the expense of raising children by offering financial support and child care arrangements, including a family leave system as well as maternity grants, child maintenance support, child care allowance, subsidized day care and so on. While such efforts have practically eradicated child poverty, the fertility rate has for some time not been encouraging and the number of families with children has declined. In 2008, however, a turning point in fertility was reached as the largest number of babies in the 10 preceding years was born. As female employment is high, family policy has not yet fully succeeded in solving the challenge of how to combine parenting and employment. The erosion of a traditional family structure in recent years has certainly added to the difficulties, creating single-parent households in which the mother or father works full-time. Primary child care responsibility still falls to women, and mothers opt for part-time employment more often than do fathers. Policies encouraging more men to opt for parental leave are therefore needed, as are more flexible child care options for parents working full-time. In the face of municipal austerity it has been discussed whether the right for child care should be restricted only to parents who are employed. So far, the Ministry of Social Affairs and Health adheres to the universal right on child care after parental leave.

Pension policy in Finland has been successful. The pension system has two pillars, a residence-based national pension and an employment-based, earnings-related pension. In addition, private pension schemes exist. The mixture of public and private pension schemes appears functional and able to mediate unfavorable outcomes. For instance, in regards to the poverty rate for people aged 65 or older, Finland has been able to steer clear from the classic problem of poverty in old age. Still, the population in Finland is ageing, which creates problems in terms of labor force maintenance as well as fiscal capability. A reform of the pension system in 2004-2005 aimed at a more flexible policy and at creating incentives for older workers to keep working until 68 years of age. Preliminary evaluations indicate that the reform might be successful, and the employment rate of older individuals has been increasing. However, pension levels have increased only marginally and the purchasing power of retirees has been decreasing relative to that of wage earners. A recent attempt from a part of government to raise the pension age has been received unfavorably from opposition parties and labor market organizations, and will most probably fail.

Whereas the Finnish immigration policy previously dealt with humanitarian concerns, focusing on refugees and return immigration, it has lately assumed the task of promoting work-based immigration. During the last 10 years or so, the number of foreigners in Finland has almost doubled. However, the number is still low in absolute terms. Several factors, like geography, the difficulty of learning the Finnish language, and also prevailing negative attitudes toward immigrants in society at large, have prevented large-scale immigrant inflows. Finland’s willingness to integrate foreign immigrants has perhaps not been overwhelming and integration policies have been only partly successful. Foreign-born unemployment is still high: whereas a good 70% of immigrants satisfy labor-force age requirements, only a good 40% are actually employed. The figures for foreign upper-secondary education and foreign-born tertiary attainment are less than impressive, and immigrant education levels remain lower than those of Finnish natives. The rules for the acquisition of nationality are strict, and are duly enforced. In the period under assessment, no major governmental initiatives in migration and integration policy were made.

The external security strategy of Finland relies heavily on the country’s own military forces, which are based on compulsory military service, high standards of technical equipment and general support on behalf of the citizenry for defense policy. Given its history, the potential security risks related to neighboring Russia are observed closely. While the current external security policy is functional and very effective in terms of cost/benefits, joining NATO remains a serious option for the country’s future security policy. As long as NATO remains just an option and not a policy, however, Finland’s external security policy revolves for the most part around the EU’s Common Security and Defense Policy. Cooperation in security-related issues with the Nordic countries remains an important pillar as well. More generally, Finland endeavors to strengthen multilateral cooperation and international law as well as to increase global security by reducing inequality and social exclusion.

Finland’s achievements in internal security are satisfactory. In fact, although the rate of violent crime, with homicides in particular, is relatively high, Finland is still one of the safest countries in Europe. As evident from opinion polls, citizens tend to regard the police as the perhaps most reliable institution in society. While expenditures on public order and safety are still fairly modest, Finland certainly has the preparedness to identify problem areas and take measures to eliminate them. In 2004, the government established the first program on internal security. This program conjoins security matters from a cross-sectoral perspective and takes account of security challenges in all areas of society, from social cohesion over border security to environmental matters. The first internal security program was modified and expanded in 2007. A national civilian crisis management strategy has also been initiated by the current government.

The Finnish performance in terms of sustainability has been good, although not excellent. A concern for environmental issues is a part of the public consciousness in Finland, and large-scale efforts since the 1970s at institution-building for the purpose of enhancing environmental policy have in several respects proved to bear fruit. For instance, nature reserves have been established, and the protection of forests is instituted. Furthermore, less-polluting technologies have been introduced in the industrial sector. Still, Finland has, because of climate factors, quite specific problems to tackle and the rather modest achievements in terms of emission and energy spending must partly be seen against this background. Obviously, these geographical factors will create obstacles to pursuing a truly effective environmental policy in the future.
The most influential but also the most contested policy decision in the period under assessment concerns the building of new nuclear energy plants. The current government endorses two new nuclear energy plants within the framework of its energy and climate strategy. Public opinion is divided; nearly half of the population is opposed to building new nuclear plants. Another major policy initiative during the assessment period regards the reform of legislation on waste treatment and responsibilities.

Finland is a forerunner in terms of R&D spending, and has held this position for several years. The results have been quite impressive considering indicators such as science and technology degrees and triad patents, yet perhaps less so in high-tech employment. Still, Finland’s reputation as a high-tech country is well-earned. However, the focus of R&D has been about applied research to the disadvantage of basic research, and universities and other basic research institutes have not benefited much. In the long run, the level of applied research of course being dependent on the level and achievements of basic research, this bias will no doubt have negative consequences for product development and productivity. Moreover, the technology transfer from universities to industry leaves something to be desired and academic entrepreneurship is not well developed. The government has launched a national innovation strategy which will attempt to enhance the environment for innovation and improve competitiveness.

Investing in education has been central to Finland’s efforts for competitiveness, and the ambition of education policy is to ensure that the entire population has access to education and training. Generally speaking, Finnish people have a high standard of education, and the principle of lifelong learning is important in all education provisions. Basic education is free, and municipalities are responsible for providing education to all local children. Also, basic education must be provided near a pupil’s home. There are about 4,000 comprehensive schools in Finland, and each year some 60,000 children start the first grade. By and large, the education system has met with undeniable success. In the OECD’s Program for International Student Assessment (PISA), Finland has consistently been among the highest scorers worldwide, and in tertiary education, the World Economic Forum has ranked Finland first in the world in enrollment and quality and second in mathematics and science education. There are some 20 universities and some 30 polytechnics in the country, and although entrance examinations require a relatively high level of knowledge, some 60% to 70% of each annual cohort enters higher education. However, the need to adapt to present globalization processes in the field of education tends to blur the distinction between vocational and academic qualifications, and may pose in the future a threat to the quality of the Finnish system.