Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/finland.bkg

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#CARD:Finland:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  FINLAND

August 1990
OFFICIAL NAME:  Republic of Finland

PROFILE
Geography
Area: 337,113 sq. km. (130,160 sq. mi.); about the size of New England,
New Jersey, and New York combined.
Cities: Capital-Helsinki (pop. 484,399). Other cities-Tampere (167,335),
Turku (163,655).
Terrain: Low but hilly, more than 70% forested, with more than 60,000
lakes.
Climate: Cool; mean annual temperature in Helsinki (1977-86) +5 C (41
F); July +17  C (63 F); January -6 C (21 F).

People
Nationality: Noun-Finn(s). Adjective-Finnish.
Population (1989): 4,971,844.
Annual growth rate (1989): 0.4%.
Ethnic groups: Finns, Swedes, Lapps, Gypsies, Tartars.
Religions (1987): Lutheran 88.7%, Orthodox 1.1%.
Languages: Finnish 93.6%, Swedish 6%.
Education: Years compulsory-9. Attendance-almost 100%. Literacy-almost
100%.
Health (1989):  Infant mortality rate-6/1,000. Life expectancy-males 71
yrs., females 79 yrs.
Work force (1989, 2,559,000): Agriculture-8.7%. Industry, commerce, and
finance-53.3%. Services (public and personal)-24.7%.  Government-5.4%.
Transport (storage and communication)-7.1%.

Government
Type: Constitutional republic.
Constitution: July 17, 1919. Independence: December 6, 1917.
Branches: Executive-president (chief of state), prime minister (head of
government), Council of State (cabinet).  Legislative-Unicameral
parliament.  Judicial-Supreme Court, regional appellate courts, local
courts.
Subdivisions: 12 provinces, provincial self-rule for the Aland Islands.
Political parties: Four largest, in order: Social Democratic Party
(SDP), National Coalition (Conservative) Party, Center Party, Leftist
Alliance.
Central government budget (1989): $28.91 billion.
Defense (1989): 1.4% of GDP.
Flag: Light blue cross on a white field.

Economy
GDP (1989): $114.9 billion.  Annual growth rate: 5% (GDP).  Per capita
income (1989 est.): $23,153.  Inflation rate (1989): 6.6%.
Natural resources: Forests, minerals (copper, zinc, iron), farmland.
Agriculture (3% of GDP): Products-meat (pork and beef), grain (wheat,
rye, barley, oats), dairy products, potatoes, rapeseed.
Industry (27% of GDP): Types-metal and steel, forest, foodstuffs,
textile and clothing.
Trade (1989): Exports-$23.2 billion: paper and paperboard, machinery and
equipment, ships, lumber, woodpulp, chemicals.  Major markets-USSR
14.5%, Sweden 14.4%, UK 12%, FRG 10%, US 6.4%.  Imports-$24.6 billion:
fuels and lubricants, machinery and equipment, including motor vehicles,
basic manufactures, chemicals; foodstuffs.  Major suppliers-FRG 17.3%,
Sweden 13.6%, USSR 11.4%, US 6.3%.
Official exchange rate (1989): 4.295 Finnmarks=US$1.
Fiscal year: Calendar year.

Membership in International Organizations
 UN and some of its specialized and related agencies, including the
International Bank for Reconstruction and Development (IBRD),
International Monetary Fund (IMF), General Agreement on Tariffs and
Trade (GATT), International Finance Corporation (IFC), International
Development Association (IDA); Bank for International Settlements (BIS);
Asian Development Bank; Inter-American Development Bank (IDB); Council
of Europe; Nordic Council; European Free Trade Association (EFTA);
European Community (EC)-free trade agreement; Organization for Economic
Cooperation and Development (OECD); INTELSAT.

PEOPLE
 The origins of the Finnish people are still a matter of conjecture,
although most scholars agree that their original home was in what is now
west-central Siberia. The Finns arrived in their present territory
thousands of years ago, pushing the indigenous Lapps into the more
remote northern regions.
 The Finnish language is Finno-Ugric, of the Uralic language family (of
which Hungarian and Estonian also are a part) and not Indo-European.
Lappish, the language of the small Lapp minority, also is Finno-Ugric.
 Swedish became the dominant language following Finland's incorporation
into Sweden in the 12th century. Finnish recovered its predominance
after a resurgence of Finnish nationalism in the 19th century. Today,
although 94% of the people speak Finnish as a first language, both
Finnish and Swedish are official languages.
 The population is ethnically homogeneous with no sizable immigrant
population.  Few tensions exist between the Finnish-speaking majority
and the Swedish-speaking minority.
 Finns are highly literate, and poetry has played a key role in Finnish
history. Publication in 1835 of the Finnish national epic, The Kalevala,
a collection of traditional myths and legends, first stirred the
nationalism that led to independence in 1917.
 An important theme in Finnish literature is humanity's unity with
nature, which identifies human fate with impersonal forces and which
gives Finnish literature a somber, sometimes tragic, sometimes heroic,
tone. Another theme is the importance of the common people-the Finnish
folk. One of the country's major writers, Frans Emil Sillanpaa, received
the Nobel Prize for literature in 1939.
 Finland is one of the most active publishing countries in the world.
Although major literary works have been translated into English, Finnish

music, because it does not require translation, is better known.  This
is especially true of the works of Jean Sibelius who, along with many
other Finnish artists, was profoundly influenced by The Kalevala.
 Finns also are outstanding in other artistic fields; their jewelry,
textile, glass, and furniture designs have gained prominence throughout
the world.
 Finland enjoys complete religious freedom as well as free education
through the university level. An extensive social welfare system,
constituting about one-fifth of the national income, includes a variety
of pension and assistance programs and a comprehensive health insurance
program.
  In the mid-1970s, the educational system was reformed with the goal of
equalizing educational opportunities. Beginning at age 7, all Finnish
children are required to attend a "basic school" of nine grade levels.
After this, they may elect to continue along an academic (lukio) or
vocational (ammattikoulu) line. However, most pursue vocational studies.
About one child in four receives a higher education in this highly
competitive system.  The number of openings in higher educational
institutions is less than the demand.
HISTORY Finland's nearly 700-year association with the  Kingdom of
Sweden began in 1154 with the introduction of Christianity by Sweden's
King Eric. During the ensuing centuries, Finland played an important
role in the political life of the Swedish-Finnish realm, and Finnish
soldiers often predominated in Swedish armies. Finns also formed a
significant proportion of the first "Swedish" settlers in 17th-century
America.
 In 1809, Finland was conquered by the armies of Czar  Alexander I and
thereafter remained an autonomous grand duchy connected with the Russian
Empire until the end of 1917. On December 6, 1917, shortly after the
Bolshevik Revolution in Russia, Finland declared its independence. In
1918, Finland experienced a brief but bitter civil war that colored
domestic politics for many years.
 During World War II, Finland fought the Soviet Union twice-in the
Winter War of 1939-40 and again in the Continuation War of 1941-44.
This was followed by the Lapland War from 1944-45 when Finland fought
against the Germans as they withdrew their forces from northern Finland.
 The Treaty of Peace, signed at Paris on February 10, 1947, limited the
size of Finland's defense forces and provided for the cession to the
Soviet Union of the Petsamo area on the Arctic coast, the Karelian
Isthmus in southeastern Finland, and other territory along the former
eastern border. Another provision, terminated in 1956, leased the
Porkkala area near Helsinki to the USSR. for use as a naval base and
gave free access to this area across Finnish territory. The peace treaty
also called for Finland to pay to the Soviet Union reparations of 300
million gold dollars (amounting to an estimated $570 million in 1952,
the year the payments ended). The United States was not a signatory to
the treaty because it had not been at war with Finland.
GOVERNMENT Under the Finnish constitution, political power is divided
between the Eduskunta (parliament) and the president of the republic,
with the highest executive power vested in the president.
 Elected for a 6-year term, the president:
 -- Handles foreign policy, except for certain international agreements
and decisions of peace or war, which must be submitted to parliament;
 -- Is commander in chief of the armed forces and has wide decree and
appointive powers;
 --  May initiate legislation, block legislation by pocket veto, and
call extraordinary parliamentary sessions; and
 -- Appoints the cabinet.
 The Council of State is made up of the prime minister and ministers for
the various departments of the central government as well as an
ex-officio member, the Chancellor of Justice. Ministers are not obliged
to be members of the Eduskunta and need not be formally identified with
any political party.
 Constitutionally, the 200-member, unicameral Eduskunta is the supreme
authority in Finland.  It may alter the constitution, bring about the
resignation of the Council of State, and override presidential vetoes;
its acts are not subject to judicial review. Legislation may be
initiated by the president, the Council of State, or one of the
Eduskunta members.
 The Eduskunta is elected on the basis of proportional representation.
All persons 18 or older, except military personnel on active duty and a
few high judicial officials, are eligible for election. The regular
parliamentary term is 4 years; however, the president may dissolve the
Eduskunta and order new elections at any time.
 The judicial system is divided between courts with regular civil and
criminal jurisdiction and special courts with responsibility for
litigation between the public and the administrative organs of the
state. Finnish law is codified. Although there is no writ of habeas
corpus or bail, the maximum period of pre-trial detention was recently
reduced to 4 days. The Finnish court system consists of local courts,
regional appellate courts, and a supreme court.
 Finland's 12 provinces are divided into cities, townships, and communes
administered by municipal and communal councils elected by proportional
representation once every 4 years. The 11 mainland provinces are
administered by provincial boards composed of civil servants and each
headed by a presidentially appointed governor. The boards are
responsible to the Ministry of the Interior and play a supervisory and
coordinating role within the provinces.
 The island province of Aaland is located near the 60th parallel between
Sweden and Finland. It enjoys local autonomy by virtue of an
international convention of 1921, implemented most recently by the Act
on Aaland Self-Government of 1951. The islands are further distinguished
by the fact that they are entirely Swedish speaking. Government is
vested in the provincial council, which consists of 30 delegates elected
directly by Aaland's citizens.

Principal Government Officials
President-Mauno Koivisto
Prime Minister- Harri Holkeri
Foreign Minister-Pertti Paasio
Ambassador to the United States-Jukka Valtasaari
Ambassador to the United Nations-Klaus Tornudd

 Finland maintains an embassy in the United States at 3216 New Mexico
Avenue, NW, Washington, DC 20016 (tel. [phone]).

POLITICAL CONDITIONS
 Finland's proportional representation system encourages a multitude of
political parties and has resulted in many coalition governments.
 Political activity by communists was legalized in 1944. Although four
major parties have dominated the postwar political arena, none has a
majority position. The largest is the Social Democratic Party (SDP),
which commands the support of nearly 25% of the electorate, mainly among
the urban working class but also with some support among small farmers,
white-collar workers, and professionals. The SDP's rival on the left is
the Leftist Alliance, formed in May 1990, which replaces the People's
Democratic League (SKDL), the parliamentary group in the Eduskunta that
represented the Finnish Communist Party. The SKDL's parliamentary
effectiveness and potential participation in government were impaired,
however, by the deep split in the Communist Party between its "moderate"
majority and "hardline" minority.
 The two other major parties are the Center Party, traditionally
representing rural interests, and the Conservative Party, which draws
its major support from the business community and urban professionals.
 In the February 1988 election, President Koivisto won a new 6-year
term.  Parliamentary elections in March 1987 led to the formation of a
"red-blue" coalition government that includes both the SDP and the
National Coalition (Conservative) Party.

ECONOMY
 Finland has a dynamic industrial economy based on abundant forest
resources, capital investments, and technology. In the 1980s, Finland's
economic growth rate was one of the highest of industrialized countries.
 Exports contribute more than 20% of the gross domestic product (GDP);
combined exports of goods and services amount to about 25% of GDP.
Exports and imports of goods total about 40% of GDP.  Timber and steel
are the main industries, but other industries produce manufactured goods
ranging from electronics to motor vehicles.  Finnish-designed consumer
products such as textiles, porcelain, and glassware are world famous.
 Finland is self-sufficient in dairy products and meats, as well as in
grains in good harvest years, but it imports large amounts of fruits and
vegetables.  Farms tend to be small, but sizable timber stands are
harvested for supplementary income in winter.
 Except for timber and several minerals, Finland depends on imported raw
materials, energy, and some components for its manufactured products.
Traditionally, Finland is a net importer of capital to finance
industrial growth.
 Finland imported 70% of its energy in 1989.  Oil imports met 31% of
Finnish requirements while nuclear power provided 15%, coal 11%, and
natural gas 6%.  Domestic energy sources include hydroelectric power,
peat, and wood products.

DEFENSE
 Finland's active duty defense forces are limited by the 1947 Treaty of
Peace to 41,900 troops (army 34,400, navy 4,500, air force 3,000). The
country has military conscription under which all young men serve from 8
to 11 months. A reserve force of about 700,000 ensures readiness as one
means of deterring involvement in war. The basic tenet of Finnish
security policy is that, while foreign policy is important, the nation's
ability to defend itself is a prerequisite for a successful policy of
neutrality.

FOREIGN RELATIONS
 Finland's basic foreign policy goal since 1944 has been to avoid
great-power conflicts and to build mutual confidence with the Soviet

Union.  Although the country is culturally, socially, and politically
Western, Finns realize they must live in peace with the USSR and take no
action that might be interpreted as a security threat.
 The principal architect of the post-1944 foreign policy was J.K.
Paasikivi, who was president from 1946 to 1956.  Urho Kekkonen,
president from 1956 until 1981, further developed this policy, stressing
that Finland should be an active rather than a passive neutral. This
policy is now popularly known as the "Paasikivi-Kekkonen Line."
 In April 1948, Finland signed an Agreement of Friendship, Cooperation,
and Mutual Assistance with the Soviet Union, under which Finland is
obligated (with the aid of the Soviet Union, if necessary) to resist
armed attacks by Germany or its allies against Finland, or against the
USSR through Finland. At the same time, the agreement recognizes
Finland's desire to remain outside great-power conflicts. This agreement
was renewed for 20 years in 1955, again in 1970, and most recently in
1983 to the year 2003.
 Finland joined the United Nations and the Nordic Council in 1955, is a
full member of the European Free Trade Association, and in 1973 signed a
free trade agreement with the European Community. It also has entered
into free trade agreements with Czechoslovakia, Bulgaria, Hungary,
Poland, and the German Democratic Republic; a 15-year economic
cooperation agreement with the Soviet Union, last extended in 1980; and
a cooperation agreement with the Council for Mutual Economic Assistance.
 Finland also emphasizes cooperation with the other Scandinavian
countries and has been a member of the Nordic Council since 1955.  Under
the council's auspices, the Nordic countries have created a common labor
market and have abolished immigration controls among themselves. The
council also serves to coordinate social and cultural policies of the
participating countries and has promoted increased cooperation in many
fields.
 In recent years, Finland has emphasized its participation in
international organizations. In proportion to its population, Finland is
well represented in the UN civil service. Finnish troops have
participated in UN peacekeeping activities since 1956 and Finns now
serve with UN forces in the Middle East and with the UN good offices
mission in Afghanistan.
 Finland has hosted major international meetings such as the first and
final stages of the Conference on Security and Cooperation in Europe
(CSCE). The summit-level CSCE meeting in July and August 1975 brought 35
heads of state from Europe and North America to Helsinki for a
conference unique in diplomatic history.  Finland also hosted a 10th
anniversary CSCE commemorative meeting in the summer of 1985 and will
host the next CSCE review meeting in 1992.

US-FINNISH RELATIONS
 Relations between Finland and the United States are cordial. It has
been longstanding US policy to support Finnish neutrality while
maintaining and reinforcing Finland's historic, cultural, and economic
ties with the West. Economic and trade relations between Finland and the
United States are active.  President Reagan proclaimed 1988 the Year of
US-Finnish Friendship.
 The US educational exchange program in Finland, comparatively large for
a West European country of Finland's size, is financed in part from a
trust fund established in 1976 from Finland's final repayment of a US
loan made in the aftermath of World War I.

Principal US Officials
Ambassador-John Giffen Weinmann
Deputy Chief of Mission-Max N. Robinson
Public Affairs Officer-William P. Kiehl
Chief, Political Section-William Kushlis
Chief, Administrative Section-William J. Burke, Jr.
Defense and Air Attache-William A.J. Mackie
Chief, Economic Section-Lawrence E. Butler
Commercial Attache-Donald G. Plants (Acting)
Consul-Robert O. Tatge

 The US Embassy in Finland is at Itainen Puistotie 14 B, Helsinki 14
(tel. 171931). The public affairs section is located at Kaivokatu 10 A,
Helsinki 10 (tel. 176599).

TRAVEL NOTES:
 Climate and clothing: Helsinki's winter climate is similar to Boston's;
summer temperatures rarely exceed +24 C (75 F). Northern and parts of
interior southern Finland sometimes experience Arctic conditions in
mid-winter. Buildings are well-heated. Bring warm outdoor clothing
during late autumn, winter, and early spring. Sweaters and raincoats are
recommended for other seasons.
 Health: Public health standards are similar to those in the United
States.  Tapwater is potable. Medical facilities are good.
 Telecommunications: Telephone and telegraph services are efficient and
available to most parts of Finland and the world. Helsinki is seven time
zones ahead of eastern standard time.
 Transportation: Bus and taxi service is available in most cities as
well as tram and subway service in Helsinki. At least one US carrier
provides US-Finland flights 5 days a week. Finnair flies to New York
daily and offers flights to Los Angeles several days a week. Flights to
many European cities depart Helsinki daily. Finland's domestic air
network is one of the best in Europe. The country also has efficient
rail and long-distance bus service. Roads are well maintained; nearly
all major highways ,and most important secondary roads are paved.
 Tourist attractions: With many islands and lakes, evergreen forests,
and granite outcroppings, Finland's countryside is striking. Many
tourists enjoy cruises on stately historic steamers that travel on
Finland's biggest lake, Saimaa. Lapland, with its flora and reindeer,
also is popular.

 Available from the Superintendent of Documents, US Government Printing
Office, Washington, DC 20402: American University. Area Handbook for
Finland. 1974. US Department of Commerce. "Finland." Foreign Economic
Trends and Their Implications for the United States. International
Marketing Information Series: Published annually.
 Political Parties (In order of respective seating placement) Leftist
Alliance  - 16 Social Democrats - 56 Rural Party - 8 Free Democrats  - 1
Center Party - 40 National Coalition Party - 53 Swedish People's Party -
13 Greens  - 4 Christian League - 5

 Published by the United States Department of State --  Bureau of Public
Affairs  -- Office of  Public Communication --  Editorial Division --
Washington, DC -- August 1990 -- Editor:  Juanita Adams
 Department of State Publication 8262 -- Background Notes Series  --
This material is in the public domain and may  be reprinted without
permission; citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office, Washington,
DC  20402.(###)


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