Finland

The population of Finland is 5.4 million in a land area of approximately 131,000 square miles. One-fifth of the citizens live in the metropolitan Helsinki area. The population is ethnically homogeneous; about 94 percent are ethnic Finns. Finland gained independence from Russian rule in 1917, which is reflected in religious affiliations, as 1 percent of the population is Russian Orthodox in a predominantly Lutheran country. The former attachment to Sweden has left the country with a Swedish-speaking minority (5.4 percent), along with a Finnish speaking majority (91 percent).

Finland has progressed into a modern network society over the past few decades, following economic and political changes. Finland is characterized by the consensual, pragmatist, decision-making, and problem-solving behavior of its citizens. Civil society scores high in social capital and trust in institutions. There is a sharp contrast with work and nonwork domains of individual social activity.

The opening up of domestic financial markets in the late 1980s, joining the European Union in 1995, and the recession of the 1990s partly caused by the collapse of the Soviet Union changed the economic and political landscape of Finland. The deregulation of financial markets expanded investment opportunities of local businesses, dismantled formerly tightly knit financial blocks, and created a new Nordic capital base. European Union membership and the decrease in trade with Russia put Finland more clearly as a member of Western countries. The traditionally important, export-oriented forest industry has been on the decline, but the Nokia Corporation has become a new showcase for Finnish technical expertise in a more globalized economic environment. The collective effort in the creation of the Linux operating system in Finland exemplifies the cooperative approach in technical development. Cell [Page 290]phones are omnipresent, and there is a broadband network connection in 75 percent of the households.

The politics in Finland's multiparty system is best described as consensual. Under normal circumstances, the interests of key stakeholders are taken into account in the formative level of decision making. The openness for interest inclusion is contrasted by small, tightly knit, decision-making circles in both political and economic spheres of society, which at times has resulted in dubious political practices as well as cartel-type business dealings. However, in times of serious financial distress, the situation has been different because in these circumstances, the political elite tends to exclude interests from the decision-making arena. Labor markets have been marked until recently by government-aided, centralized bargaining among peak employee and employer organizations. Despite the individualistic flavor of Finnish work practices, extensive use of teamwork combined within traditional, hierarchical structures is a typical feature of Finnish work life.

Finland scores high in social capital; one form is the lively participation in voluntary associations. Initially, the tendency for informal organizations may well have originated from the low population density in this geographically large area, in which people were unable to encounter one another by chance; in fact, the participation in associations has increased in Finland even recently. Well-functioning institutions and the generalized trust that is placed in them lubricates economic and social transactions. Important in this respect is the large scope of good-quality public services in areas such as education and health, which are provided by civil servants. On an individual level of interaction, Finnish networks show a separation between work and other types of sociability. People do not spend their spare time with colleagues; one reason is the wealth of the citizens and availability of public services. There is thus little economic incentive to combine work and nonwork domains of personal life. Out of respect for others' opinions and a high tolerance for silence, Finns are often considered to be quiet in personal, face-to-face conversations, similar to citizens of other Nordic countries.

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