Finland
2007 Country Review
http://www.countrywatch.com
Acknowledgement There are several people without whom the creation of the 2007 edition of the CountryWatch Country Reviews could not have been accomplished. Robert Kelly, the Founder and Chairman of CountryWatch envisioned the original idea of CountryWatch Country Review as a concise and meaningful source of country-specific information, containing fundamental demographic, socio-cultural, political, economic, investment and environmental information, in a consistent format. Special thanks must be conveyed to Robert Baldwin, the Co-Chairman of CountryWatch, who championed the idea of intensified contributions by regional specialists in building meaning content. Today, the CountryWatch Country Reviews simply would not exist without the research and writing done by the current Editorial Department at CountryWatch. The team is responsible for hundreds of thousands of pages of current information on the 194 recognized countries of the world. This Herculean task could not have been accomplished without the unique talents of Mary Ann Azevedo, Jennifer Colley, Julie Zhu, Ryan Jennings, Nichole Boutte-Heiniluoma, Ryan Holliway, Jasper Mason, Anne Marie Surnson and Michelle Hughes within the Editorial Department. These individuals faithfully expend long hours of work, incredible diligence and the highest degree of dedication in their efforts. For these reasons, they have my utmost gratitude and unflagging respect. A word of thanks should also be given to Vicki Sanditen, Grant Panchacharam, Alisha Ansel-Davis, and Wayne Matthews in the Marketing and Sales Department at CountryWatch. They are in close contact with CountryWatch customers and are positioned to offer necessary insights, which ultimately improve our content. Finally, without the extraordinary assistance of our Information Technology department, the CountryWatch Country Reviews could not be published. Cesar Rosa, Saachi Roye and John Torres work responsively with the Editorial Department to ensure the annual production of the CountryWatch Country Reviews. As such, I am truly indebted to them for their efforts. Finally, my utmost gratitude is extended to my mentors in the disciplines of Anthropology, International Development and Political Science, who taught me about the tensions between states and nations in the contemporary world, the value of ethnographic research as the best lens to understanding the complexity of the human condition, and that policy is meaningless unless it positively impacts the quotidian lives of people across the planet.
Denise Youngblood Coleman, Executive Vice President and Editor in Chief
Contributors Robert C. Kelly Founder and Chairman Denise Youngblood-Coleman Executive Vice President and Editor-in-Chief Mary Ann Azevedo Managing Editor Jennifer Colley Assistant Managing Editor Julie Zhu Economics Editor Ryan Jennings Economics Analysts Nichole Boutte-Heiniluoma Content Development Editor Ryan Holliway Researcher and Writer Jasper Moon Research Associate Anisha Srinivasan Economics Forecast Analyst Anne Marie Surnson News Wire Manager Michelle Hughes News Wire Editor Cesar Rosa Chief Information Officer Saachi Roye Web Developer John Torres Technical Network Manager
CountryWatch
COUNTRYWATCH REVIEW 2007 EDITION
Denise Youngblood Coleman Editor in Chief
Mary Ann Azevedo Managing Editor
CountryWatch, Inc. Houston, Texas
Table of Contents
Country Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Key Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Political Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Political Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Political Stability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Freedom Rankings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Voice and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Government Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Government Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Government Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Principal Government Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Leader Biography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Foreign Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 National Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Defense Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Balance of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Government Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Government Sector - Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Gross Domestic Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Review
Growth Rates: Real GDP, Population, Real GDP Per Capita - Graph . . . . . . 68 Major Trading Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Money Supply, Interest Rates, Foreign Exchange Reserves . . . . . . . . . . . . . 70 Price and Exchanges Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Real GDP Per Capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Trade Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Unemployment Rate - Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Agricultural Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Electric Power Sector Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Fossil Fuel Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Mining/Metals Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Production and Consumption of Energy (QUADS) . . . . . . . . . . . . . . . . . . . . 78 Production and Consumption of Energy (Standard Units) . . . . . . . . . . . . . . . 79 Production from Key Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Production of Meat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Production of Primary Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 World Agricultural Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 World Energy Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 World Price Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Foreign Investment Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
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Stock Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Partner Links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Social Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Human Development Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Status of Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Culture and Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Etiquette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Travel Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Diseases/Health. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Environmental Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Environmental Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Environmental Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Energy Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Global Environmental Snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Global Environmental Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 International Environmental Agreements and Associations. . . . . . . . . . . . . 156 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
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4
Review
Chapter 1 Country Overview
Key Data
Country Overview
Country Overview Key Data Region:
Europe
Population: Total Area:
5,260,970 as of 2006 338,145 Sq. Km.
Total Land:
304,473 Sq. Km.
Coastline:
1,250 km
Climate:
Cold temperate; potentially subarctic, but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes. Average Daily Temperature:
Capital: January: July: Annual Rainfall:
Helsinki -6.1C / 21 16.8C / 62.2 635.4mm / 25.0
Languages: Finnish (official) Swedish (official) small Lapp- and Russian-speaking minorities Currency:
1 Euro = 100 cents
National Holiday:
Independence Day is 6 December (1917), Flag Day is 4 June
Capital City:
Helsinki
Boundaries:
Russia: 1,313 km Norway: 729 km Sweden: 586 km Largest Cities:
City: Population:
1
Helsinki 558,341
Finland Review 2007
Country Overview
Key Data
Year:
2006
City: Population: Year:
Espoo 232,293 2006
City: Population: Year:
Tampere 203,606 2006
Ethnic Groups:
93%.......Finn 6%.......Swede .75%.......other .12%.......Roma .11%.......Sami .02%.......Tatar Religions:
89%.......Evangelical Lutheran 9%.......None 1%.......Greek Orthodox
Finland Review 2007
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Key Data
Country Overview
Flag:
3
Finland Review 2007
Country Overview
Key Data
Finland Country Map 18°
30°
FINLAND
Inarijoki Te noj oki
24°
N o r w ay
National Capital Region Capital
Barents Sea
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© MAGELLAN Geographix
Finland Review 2007
Turku
Hyvinkää
Lahti
11 Porvoo
Kouvola Vaalimaa Kotka
60°
Helsinki
Mariehamn
SM
Ladozhskoye Ozero
Forssa
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Baltic Sea
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Saimaa
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Åland Islands
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Jämsä Mikkeli
Tampere Province (lääni) Name 1. Lappi 2. Oulu 3. Vaasa 4. Keski Suomi 5. Kuopio 6. Pohjois-Karjala 7. Turku Ja Pori 8. Häme 9. Mikkeli 10. Kymi 11. Uusimaa 12. Ahvenanmaa
Varkaus Savonlinna
Hangö
Gulf of Finland
Estonia
Santa Barbara, Ca (800) 929-4627
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Key Data
Country Overview
Europe Regional Map Greenland (Denmark)
70°
20°
10°W
10°E
0°
20°
Jan Mayen (Norway)
Greenland Sea Arc tic Cir cle
40°
Hammerfest
Europe
Iceland
30°
Narvik White Sea
National Capital
Reykjavik
Arkhangel'sk
Secondary City
Sweden
Trondheim
thn ia
Helsinki Gävle
Bergen
Gu
lf o
Oslo
Orkney Islands
Hebrides
Russia Tampere
Norway
Shetland Islands
Atlantic
Finland
Bo
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Faroe Islands (Denmark)
G ul
60°N
Norwegian Sea
Oulu
f Fi
nla
nd
St. Petersburg
Tallinn
Estonia
Stockholm
Moscow Skegerrak
Ocean
Edinburgh Glasgow Belfast
Ireland
Copenhagen
Sea
Newcastle
Neth.
Cardiff
e
English Channel
Belgium
Le Havre
Lux.
Paris in Se
Bonn Frankfurt Luxembourg
Lo
ire
Bilbao Marseille
Spain
40°
Portugal
Czech Krakow Rep. Slovakia
Monaco
Austria
Hungary Zagreb
r ia
Sarajevo
tic
Se a
Sardinia
Sofia
Mace. Alb.
Istanbul
Thessaloniki
Pátrai
Aegean Sea
Turkey
Athens
Sicily Rhodes
Algiers
Crete
Tunis
Algeria Morocco Tunisia Malta © MAGELLAN GeographixSMSanta Barbara, CA (800) 929-4627
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Varna
Skopje
Ionian Sea
Mediterranean Sea
Bulgaria
Greece
Balearic Islands
Gibraltar (U.K.)
Serbia
Tyrrehenian Sea
Valencia
Sea
Belgrade
Tiranë
Naples
Black Constanta
Bucharest
Mont.
Rome
Barcelona
Málaga
Romania
ube
Podgorica
Madrid
Strait of Gibraltar
an
Croatia Bos.& Herz.
Ad
Italy Corsica
Lisbon
Kishinev
Budapest
Slovenia
San Marino
Moldova Odessa
Bratislava
Ljubljana Venice Milan
Po
(Kiev)
Ukraine
L'vov
D
France
Kiyev
Od ra
be
Vienna
Liech.
Warsaw
Poland
El
Prague
Bern Bordeaux
ula
Munich
Switz.
Minsk
Belarus
Visit
Poznan
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Strasbourg
e
Nantes
Germany
Lithuania Russia Vilnius
Gdansk
Berlin Rhin
Brussels
Porto
Bornholm
Hamburg
Amsterdam
London
Bay of Biscay
Malmö
Baltic Sea
Rostock
Liverpool
U.K.
50°
Latvia Öland
Denmark
Riga
r ep Dn
Irish Sea
Dublin
Gotland
Göteborg
North
Aberdeen
Valletta
600 km
0 0
nautical miles
400
Finland Review 2007
Country Overview
Key Data
Chapter 2 Political Overview
Finland Review 2007
6
History
Political Overview
Political Overview History
The origins of the Finnish people are still a matter of conjecture, although many scholars argue 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. Finnish and Lappish, the language of Finland's small Lapp minority, are both Finno-Ugric languages and are in the Uralic rather than the Indo-European family.
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. Following Finland's incorporation into Sweden in the 12th century, Swedish became the dominant language, although Finnish recovered its predominance after a 19th-century resurgence of Finnish nationalism.
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 Dec. 6, 1917, shortly after the Bolshevik Revolution in Russia, Finland declared its independence. In 1918, the country 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. The Lapland War of 1944-45, when Finland fought against the Germans as they withdrew their forces from northern Finland, followed.
Treaties signed in 1947 and 1948 with the Soviet Union included obligations and restraints on Finland vis-à-vis the U.S.S.R. as well as territorial concessions by Finland. Finland abrogated both after the 1991 dissolution of the Soviet Union.
Since independence in 1917, coalition governments and the development of a dialogue between political parties have marked the political landscape in Finland. The Social Democratic Party (SDP) and the Center Party (KESK) in the past have been the dominant players in the government.
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Finland Review 2007
Political Overview
Political Conditions
Political Conditions Since independence in 1917, coalition governments, cooperation, and dialogue between political parties, have characterized the political landscape in Finland. The Social Democratic Party (SDP) and the Center Party (KESK) have typically been the dominant players in the government.
In the 1987 general elections, the non-socialist parties gained a majority in the "Eduskunta" (Finnish parliament) for the first time since the election of 1945. In 1991, following the general elections, a coalition government comprising the Center Party (KESK), National Rally or the Conservative Party (KOK) , the Swedish People's Party in Finland (SFP), and the Finnish Christian Union (SKL) was formed. This was the country's first wholly non-Socialist government in 25 years. Then, the Social Democrats (SDP) won 28 percent (and 63 seats) in the 1995 parliamentary election, drawing the majority of its support from the urban working class but also receiving support from small farmers, white-collar workers, and professionals. The Leftist Alliance (LA), the SDP's rival on the left, gained 11 percent of the vote and 22 seats in 1995 and joined the SDP-led government. The LA had been formed in May 1990, replacing the People's Democratic League, the group which had represented the Finnish Communist Party in the "Eduskunta." With 39 seats, the Conservatives (KOK) were the second-largest party in the SDP-led coalition, which was rounded out by the liberal-leaning Swedish People's Party in Finland (SFP) with 11 seats, and the Green Party with nine seats. This broad-based, five-party government was called the "Rainbow Coalition." The Center Party (KESK) -- with 44 seats -- led the opposition. The Center Party (KESK), has traditionally represented rural interests, and the National Rally, or Conservative Party (KOK), has usually drawn its major support from the business community and urban professionals. In 1995, the Center won nearly 20 percent and the Conservatives received 18 percent of the vote. In the March 21, 1999, parliamentary elections, the gap between the leading party in the "Rainbow Coalition," the Social Democratic Party, and the opposition Center Party narrowed. The SDP lost 12 seats, ending up with 51, only three seats more than the Center Party with 48. Voters may have held the SDP rsponsible for a 1997 cronyism scandal and lingering unemployment, which at the time was approximately 11 percent. Despite these troubles, however, the five-party "Rainbow Coalition" polled a combined 67.2 percent of the vote, winning 139 out of 200 seats. President Ahtisaari nominated Prime Minister Paavo Lipponen to form the government. The "Rainbow Coalition" was sworn in for the second time on April 15, 1999. The government's program of business tax reductions strongly reflected the preferences of its second largest member, the National Rally (Conservative Party). President Ahtisaari did not stand in the January/February 2000 presidential elections. None of the seven candidates received a majority of votes in the first-round election on January 16, necessitating a second round. In the February 6 run-off, Foreign Minister Tarja Halonen of the Social Democrats (SDP) defeated former Prime Minister Esko Aho of the Center Party (KESK), with a margin of 51.6 to 48.4 percent. Tarja Halonen thus became Finland's first female president.
Finland Review 2007
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Political Conditions
Political Overview
In January 2002, the Euro replaced the Finnish mark as the country's official currency. Also in 2002, the issue of energy was at the forefront of the political scene. Finland has very limited natural renewable energy resources, and it does not have oil, coal and natural gas resources. As its population and industrial sector grows, the development of reliable, efficient and cheap energy becomes increasingly important. As it stands now, Finland can only domestically produce around 30 percent of its country's energy needs. While most of the EU member countries have been moving away from nuclear-powered energy, the Finnish government is keen on developing another nuclear reactor for the country, bringing the total number of nuclear reactors in Finland to five. The proposal of the fifth reactor caused division in the parliament. Those in favor of building the new reactor argued that the fifth reactor would reduce fossil fuel emissions as required by the Kyoto Protocol reduce Finland's dependency on foreign nations for energy; and that the construction of the reactor would create new jobs. Those opposing, led by the Green Party, were concerned that the construction of the new reactor would increase energy taxation. Also, since Finland is considered a world leader in environmental issues, the construction of a new nuclear reactor in the country might compromise its position on the environment and consequently other countries might follow Finland's lead and build more reactors. Opponents also expressed concern that nuclear waste would become a future environmental problem; as well, they communicated misgivings over the potentially devastating impacts, in the event of an accident at the reactor.
On May 24, 2002, parliament voted yes to the new nuclear reactor with 107 votes for and 92 against. As a result of the parliament's approval to build the reactor, the Green party walked out of the "Rainbow Coalition" and became part of the opposition. The Minister of the Environment, Satu Hassi, a member of the Green Party, resigned on May 27, 2002. Another issue in Finland was the economy. A combination of smart fiscal reforms, good labor relations, a flexible and open market, absence of corruption, sound social programs and the booming technology industry -- as illustrated by the success of the Nokia mobile phone company -- has transformed Finland. Once a lagging economy, Finland has become one of the world's top competitors, as assessed by the World Economic Forum in October 2001. In 2002, the World Competitiveness Yearbook ranked Finland as the second most competitive economy, behind the United States.
Nevertheless, a global economic slowdown did not leave Finland completely unaffected. In March 2002, after a decline in growth over two consecutive quarters, Finland found itself in a recession and was facing an unemployment rate at over nine percent.
In the near future Finland will see an influx of pensioners as "baby boomers" begin to retire. According to Finland's Ministry of Labor at the time, it was observed that "Between the years 2000 and 2015 about a million persons will leave the working life. It is almost a half of the employed persons in Finland in the year 2000." This will put a strain on the states' finances as public spending on pensions will increase beyond its current means, therefore making it necessary to increase taxation. Furthermore, the country will need to cultivate a skilled workforce to replace the baby boomers once they retire. The government has carefully monitored the current labor and economic situation. In April 2002, the Ministry of Labor's National Action Plan 2002 and the Ministry of Finance's May 2002 report, "Fin-
9
Finland Review 2007
Political Overview
Political Conditions
land's Competitiveness and the Way Forward," each addressed Finland's need to, among other things, develop employment, labor market training and extended educational opportunities for a more viable workforce; lower labor taxes; and promote entrepreneurship. In terms of party politics, in 2003, the opposition Center Party (KESK) won victory in the country's general elections narrowly beating the incumbent Social Democrats (SDP). The Center Party won 55 seats while the Social Democrats won 53 seats. The Conservatives (KOK) won 40 seats while the leftwing Socialists won 19 seats and the Greens won 14 seats. Other seats won included the Swedish People's Party of Finland with eight (8) seats, the Finnish Christian Democrats with 7 seats and the Agrarians with three (3) seats. Because no party won an absolute majority, a coalition government was formed between the Center Party and the Social Democrats, as well as the Swedish People's Party of Finland (SFP). Prime Minister Paavo Lipponen of the Social Democrats was to be replaced by Anneli Jaatteenmaki, the Center Party's leader. Notable was the fact that Jaatteenmaki became the country's first female prime minister, while, as noted above, the country was already being led by a female president, Tarja Halonen. Finland, therefore, became the first country of the European Union to have women as heads of both government and state. In addition, as many as nine cabinet ministers were women. This sociological phenomenon notwithstanding, few changes were expected in either economic or foreign policy. In the spring of 2003, following the elections and establishment of a new coalition government, Finland was faced with a slow-moving economy and a high unemployment rate. Nevertheless, the new government vowed to create 10,000 jobs. In June 2003, a fiasco about possible leaked documents on the war in Iraq emerged. The new leader of the Finnish government, Prime Minister Jaatteenmaki, was accused of using confidential information from discussions between the former prime minister and United States President George Bush to formulate election attacks against the now-defeated Lipponen. During the run-up to the election, Jaatteenmaki had, indeed, accused Lipponen of undermining Finnish neutrality by offering support for the Iraq war. Jaateenmaki resigned as accusations regarding the leaked documents by an aide to Lipponen were levied. Jaateenmaki was asked by President Halonen to remain in her position and to lead a care-taker government. The Center Party also entered discussions with the Social Democrats to determine the next course of action. As well, speculation arose about who would replace Jaateenmaki. One key figure being discussed was the Defense Minister -- Matti Vanhanen. Indeed, Vanhanen went on to become prime minister. In March 2004, Anneli Jaatteenmaki was charged with inciting a former presidential aide to disclose dossiers and information, which were then illegally used to leverage an election victory. For her part, when the allegations about the leaked documents first emerged, Jaatteenmaki said the documents had been faxed to her by a presidential aide but they had arrived without her requesting them. The presidential aide, however, contradicted her by stating that she had asked for the documents and his telephone records would reflect that. She was tried in court and faced a maximum of two years in prison if she was, in fact, convicted. At the close of the trial, she was acquitted of the charges. While the court found in its verdict that there was no evidence to suggest that Jaatteenmaki "incited" the presidential aide to hand over compelling classified information, it also found the presidential aide guilty of breaching the official secrets act. The aide was fined 80 days' salary.
Finland Review 2007
10
Political Conditions
Political Overview
The year 2005 began with the reduction of more than 100 Finnish research and development jobs in Nokia's Multimedia Business Group. Although the actual numbers of jobs cut was less than the amount originally expected, it was still not the best of circumstances for public morale. In March 2005, the sphere of international relations took center stage when a Suomen Gallup poll showed that up to 57 percent of Finns remained strongly against joining NATO. The poll also showed that only 23 percent favored joining the security alliance. The poll's findings also revealed that while some of the strongest opponents of joining NATO tended to be aligned politically with the Left Alliance party, opponents also included a vast array of people ranging from residents of rural areas, to the unemployed and youth (under the age of 25 years of age). Most opponents shared the view that joining NATO would mean that Finnish soldiers would be sent into military combat on missions that had nothing to do with the national security of Finland. Supporters, on the other had, believed that joining NATO should occur due to anxieties over a possible national security crisis. Also in March 2005, the official Finnish position on certain matters related to international relations were made clear when Foreign Minister Erkki Tuomioja urged the United Nations to fully endorse and implement a policy of human rights in the war against terrorism. Perhaps responding partly to some of the stories that have pervaded the global media in the course of the last year, Tuomioja said, "We have all been deeply shocked by the unprecedented attacks against innocent civilians that have taken place in different places." He went on to note that in the fight against terrorism, Finland strenuously emphasizes human rights, that it would not compromise on the rule of law, and that absolutely opposes torture. Tuomioja's remarks were made at the 61st annual session of the Commission on Human Rights, the principal human rights institution of the United Nations. In April 2005, attention was turned to the domestic agenda where Finland was facing a possible labor shortage. A report suggested that immigrants were expected to account for half of Finland's growth over the course of the next decade; however, even with such a large portion of immigrant workers, the country would still face a shortfall of workers. In the 1990s, the country benefited from an influx of Somalian refugees and ethnic Finns who relocated from the former Soviet Union. Recently, however, demographic trends have presented a challenge as more people are retiring from the labor market than entering into the country as workers. The problem is expected to get worse by 2008 through 2010 as the retirement rate is expected to increase at that time. Consequently, the government began formulating a plan to encourage skilled workers to relocate to Finland to fill the labor gap. Between mid-2005 and 2006 when the next presidential elections are anticipated, the main issue facing Finland was the matter of ratifying the European Union constitution. Prime Minister Vanhanen said there was no need for a referendum on the issue. Nevertheless, some politicians have expressed the view that a public vote was necessary. Within the Finnish population, feelings about the new European Union constitution are mixed -- not quite half the population favors it; about a quarter of the population are not in favor of it; while the rest are not sure.
In mid-January 2006, Finnish President Tarja Halonen won the first round of the presidential election, paving the way for her re-election in the second round. Halonen, a left-leaning Social Democrat captured 46.3 percent of the votes cast and clearly dominated her opponents; however, she failed to win an outright majority with 50 percent. The second-place finisher was the conservative candidate, Sauli Niinisto, who garnered 24.1 percent of the votes cast. The centrist head of government, Prime Minister Matty Vanhanen, came in third with 18.6 percent of the votes cast. A run-off election was scheduled for two weeks later on Jan. 29, 2006, when Halonen would face Niinisto.
11
Finland Review 2007
Political Overview
Political Stability
In response to her failure to get an outright majority in the first round, Halonen said, "It's a pity... but it's no use to complain." Halonen had a career as an attorney and also served as Foreign Minister before becoming Finland's first female president in 2000. Niinisto, a former Finance Minister and banker, looked eagerly at the run-off election saying, "It's not bad to start from second position."
In late January 2006, Tarja Halonen won a second six-year term in Finland's presidential run-off election. Once the votes were counted in the second round, Halonen beat Niinisto with 51.8 percent of the votes cast and was set to serve a second term in office as Finland's first female president. Niinisto conceded defeat by kissing Halonen's hand and declaring, "the man has lost."
While left-leaning Halonen had campaigned on a platform of preserving the welfare state and advocating equality, her conservative opponent, Sauli Niinisto, campaigned on a platform of social reform, job security and economic prosperity. Still, the Finnish head of state is not particularly responsible for day to day governance but moreso crafts foreign policy. As such, the election campaign was dominated by this central focus. Special arenas of interest included Finland's relationship with NATO, its position within the European Union, and its ties with Russia.
-- January, 2006
Political Stability Political Stability
Editor's Note: Political Stability is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It measures the likelihood of credible threats to, or changes in, the government in power. Credible threats include coups, domestic violence, terrorism, etc. This index denotes the idea that the quality of a nation's government can be compromised by threats against it. Such threats impede the ability to govern, and they also undermine peaceful changes of government. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating better governance and lower scores indicated poor governance in the countries observed.
Finland Review 2007
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Political Stability
13
Political Overview
2004
2002
2000
Country
EST.
EST.
EST.
Afghanistan
-2.03
-2.25
-2.48
Albania
-0.97
-0.50
-0.61
Algeria
-1.42
-1.62
-1.75
Andorra
1.35
1.32
Angola
-0.95
-1.54
Antigua and Barbuda
1.30
0.82
Argentina
-0.24
-0.64
0.48
Armenia
-0.51
-0.57
-0.60
Australia
1.03
1.16
1.34
Austria
1.25
1.32
1.61
Azerbaijan
-1.52
-1.13
-0.63
Bahamas
0.94
0.99
0.71
Bahrain
0.06
0.42
0.02
Bangladesh
-1.24
-0.65
-0.55
Barbados
1.52
0.82
Belarus
-0.24
0.18
-0.07
Belgium
0.94
1.07
0.97
Belize
0.65
0.57
0.99
Benin
-0.37
0.65
0.24
Bhutan
0.84
0.81
0.74
Bolivia
-0.65
-0.06
-0.41
Bosnia-Herzegovina
-0.85
-0.75
-0.34
Botswana
0.70
0.79
0.90
Brazil
-0.13
0.11
0.20
Brunei
1.06
1.05
1.32
Bulgaria
0.13
0.56
0.30
Burkina Faso
-0.32
-0.13
-0.17
Burma
-1.12
-1.26
-1.47
-2.32
Finland Review 2007
Political Overview
Political Stability
Burundi
-2.04
-2.13
-1.87
Cambodia
-0.60
-0.25
-0.73
Cameroon
-0.90
-0.46
-0.55
Canada
1.13
1.10
1.34
Cape Verde
0.67
0.82
Central African Republic
-1.43
-1.74
0.00
Chad
-1.20
-1.54
-0.87
Chile
0.89
1.03
0.85
China
-0.07
0.06
0.13
Colombia
-1.69
-1.95
-1.73
Comoros
-0.13
-0.19
Congo (Brazzaville)
-1.41
-1.63
-1.74
Congo (Kinshasa)
-2.27
-2.35
-2.83
Costa Rica
0.98
1.10
1.24
Cote d'Ivoire
-2.28
-2.00
-0.90
Croatia
0.35
0.48
0.49
Cuba
0.18
0.30
-0.10
Cyprus (G)
0.34
0.38
0.62
Czech Republic
0.84
1.07
0.84
Denmark
1.21
1.26
1.45
Djibouti
-0.44
-0.69
Dominica
1.19
0.56
Dominican Republic
-0.01
0.24
East Timor
-0.62
-0.94
Ecuador
-0.83
-0.68
-1.01
Egypt
-0.72
-0.49
0.00
El Salvador
-0.23
0.32
0.47
Equatorial Guinea
-0.30
0.24
Eritrea
-0.14
-0.26
-0.09
Estonia
0.92
1.02
0.84
Ethiopia
-0.98
-1.20
-0.83
Fiji
0.10
0.23
-0.02
Finland Review 2007
0.18
14
Political Stability
15
Political Overview
Finland
1.65
1.69
1.72
France
0.53
0.71
1.14
Gabon
-0.01
0.25
-0.34
Gambia, The
0.38
0.56
0.34
Georgia
-1.26
-1.71
-0.79
Germany
0.92
1.02
1.31
Ghana
-0.10
0.03
-0.04
Greece
0.53
0.76
0.87
Grenada
0.95
0.56
Guatemala
-0.85
-0.43
-0.89
Guinea
-0.91
-1.41
-1.16
Guinea-Bissau
-0.53
-0.41
-0.74
Guyana
-0.53
-0.39
-0.42
Haiti
-1.87
-1.29
-0.77
Honduras
-0.69
-0.08
0.26
Hungary
0.85
1.11
0.78
Iceland
1.77
1.59
1.71
India
-0.81
-0.93
-0.40
Indonesia
-1.38
-1.45
-1.85
Iran
-0.91
-0.67
-0.20
Iraq
-2.87
-1.76
-1.96
Ireland
1.22
1.32
1.39
Israel
-1.01
-1.46
-0.58
Italy
0.31
0.85
0.82
Jamaica
-0.28
-0.17
0.28
Japan
0.99
1.23
1.25
Jordan
-0.12
-0.32
0.21
Kazakhstan
-0.11
0.38
0.26
Kenya
-0.96
-0.98
-0.96
Kiribati
0.77
Kuwait
0.29
0.25
0.76
Kyrgyzstan
-0.91
-1.10
-0.09
Finland Review 2007
Political Overview
Political Stability
Laos
-0.76
-0.16
0.09
Latvia
0.95
0.95
0.69
Lebanon
-0.83
-0.63
-0.52
Lesotho
0.27
-0.03
1.01
Liberia
-2.20
-2.28
-1.35
Libya
-0.02
-0.34
-0.54
Liechtenstein
1.39
1.32
Lithuania
0.85
1.03
0.53
Luxembourg
1.66
1.68
1.64
Macedonia
-1.04
-0.94
-0.82
Madagascar
-0.02
0.22
0.05
Malawi
-0.33
0.16
0.11
Malaysia
0.38
0.36
0.35
Maldives
0.82
1.32
Mali
0.07
-0.10
0.52
Malta
1.46
1.49
1.10
Marshall Islands
0.66
Mauritania
0.26
0.30
-0.38
Mauritius
0.91
1.11
1.16
Mexico
-0.13
0.25
-0.11
Micronesia
0.83
Moldova
-0.62
-0.06
-0.09
Monaco
1.13
Mongolia
0.48
0.95
0.99
Morocco
-0.23
-0.18
0.11
Mozambique
-0.15
0.59
-0.28
Namibia
0.46
0.43
-0.57
Nauru
0.66
Nepal
-1.74
-1.64
-1.13
Netherlands
1.15
1.30
1.59
New Zealand
1.51
1.37
1.32
Nicaragua
-0.15
0.11
0.22
Finland Review 2007
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Political Stability
17
Political Overview
Niger
-0.56
-0.24
-0.06
Nigeria
-1.78
-1.56
-1.47
North Korea
-0.67
0.70
-0.66
Norway
1.53
1.51
1.44
Oman
0.76
1.05
1.06
Pakistan
-1.59
-1.40
-0.60
Palau
0.66
Panama
0.29
0.39
0.60
Papua New Guinea
-0.94
-0.71
-0.46
Paraguay
-0.71
-1.10
-0.84
Peru
-0.68
-0.69
-0.46
Philippines
-1.01
-0.61
-0.39
Poland
0.35
0.73
0.84
Portugal
1.06
1.42
1.47
Qatar
0.92
0.82
1.45
Romania
0.22
0.34
0.01
Russia
-0.85
-0.52
-0.60
Rwanda
-0.92
-1.43
-1.56
Saint Kitts and Nevis
1.41
Saint Lucia
1.41
Saint Vincent and Grenadines
1.31
Samoa
0.89
San Marino
1.22
Sao Tome and Principe
0.08
0.56
Saudi Arabia
-0.60
-0.12
0.41
Senegal
-0.21
-0.26
-0.72
Serbia and Montenegro
-0.97
-0.86
-1.06
Seychelles
0.84
1.07
Sierra Leone
-0.61
-1.37
-1.53
Singapore
1.48
1.28
1.52
Slovakia
0.65
0.99
0.73
Slovenia
0.99
1.34
1.00
0.82
Finland Review 2007
Political Overview
Political Stability
Solomon Islands
-0.70
Somalia
-2.39
-1.97
-1.32
South Africa
-0.24
-0.23
-0.13
South Korea
0.45
0.50
0.49
Spain
0.54
0.63
1.08
Sri Lanka
-1.06
-0.97
-1.83
Finland Review 2007
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Political Stability
19
Political Overview
Sudan
-2.08
-1.99
-2.42
Suriname
0.36
0.46
0.11
Swaziland
0.23
0.25
0.54
Sweden
1.38
1.41
1.49
Switzerland
1.44
1.56
1.73
Syria
-0.66
-0.20
-0.42
Taiwan
0.52
0.82
0.77
Tajikistan
-1.19
-1.17
-1.43
Tanzania
-0.38
-0.25
-0.33
Thailand
-0.15
0.45
0.24
Togo
-0.55
0.08
-0.47
Tonga
0.72
Trinidad and Tobago
0.04
0.01
0.42
Tunisia
0.16
0.30
0.73
Turkey
-0.60
-0.66
-1.01
Turkmenistan
-0.92
-0.19
0.10
Tuvalu
0.86
Uganda
-1.27
-1.47
-1.35
Ukraine
-0.27
0.12
-0.48
United Arab Emirates
0.91
0.93
1.17
United Kingdom
0.77
0.69
1.17
United States
0.47
0.21
1.30
Uruguay
0.49
0.86
1.04
Uzbekistan
-1.37
-1.02
-1.04
Vanuatu
0.53
Venezuela
-1.10
-1.17
-0.44
Vietnam
0.16
0.48
0.40
Yemen
-1.48
-1.40
-1.11
Zambia
-0.16
-0.02
-0.44
Zimbabwe
-1.86
-1.62
-1.21
Finland Review 2007
Political Overview
Freedom Rankings
*Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.
Freedom Rankings Freedom House: Freedom in the World 2005
Editor's Note: This ranking by Freedom House quantifies political freedom and civil liberties into a single combined index on each sovereign country's level of freedom and liberty. The initials "PR" and "CL" stand for Political Rights and Civil Liberties, respectively. The number 1 represents the most free countries and the number 7 represents the least free. Several countries fall in the continuum in between. The freedom ratings reflect an overall judgment based on survey results.
Finland Review 2007
20
Freedom Rankings
21
Political Overview
Country
PR
CL
Freedom Rating
Afghanistan
5
6
Not Free
Albania
3
3
Partly Free
Algeria
6
5
Not Free
Andorra
1
1
Free
Angola
6
5
Not Free
Antigua and Barbuda
2
2
Free
Argentina
2
2
Free
Armenia
5
4
Partly Free
Australia
1
1
Free
Austria
1
1
Free
Azerbaijan
6
5
Not Free
Bahamas
1
1
Free
Bahrain
5
5
Partly Free
Bangladesh
4
4
Partly Free
Barbados
1
1
Free
Belarus
7
6
Not Free
Belgium
1
1
Free
Belize
1
2
Free
Benin
2
2
Free
Bhutan
6
5
Not Free
Bolivia
3
3
Partly Free
Bosnia-Herzegovina
4
3
Partly Free
Botswana
2
2
Free
Brazil
2
3
Free
Brunei
6
5
Not Free
Bulgaria
1
2
Free
Burkina Faso
5
4
Partly Free
Burma
7
7
Not Free
Burundi
5
5
Partly Free
Cambodia
6
5
Not Free
Finland Review 2007
Political Overview
Freedom Rankings
Cameroon
6
6
Not Free
Canada
1
1
Free
Cape Verde
1
1
Free
Central African Republic
6
5
Not Free
Chad
6
5
Not Free
Chile
1
1
Free
China
7
6
Not Free
Colombia
4
4
Partly Free
Comoros
4
4
Partly Free
Congo (Brazzaville)
5
4
Partly Free
Congo (Kinshasa)
6
6
Not Free
Costa Rica
1
1
Free
Cote dIvoire
6
6
Not Free
Croatia
2
2
Free
Cuba
7
7
Not Free
Cyprus (G)
1
1
Free
Czech Republic
1
1
Free
Denmark
1
1
Free
Djibouti
5
5
Partly Free
Dominica
1
1
Free
Dominican Republic
2
2
Free
East Timor
3
3
Partly Free
Ecuador
3
3
Partly Free
Egypt
6
5
Not Free
El Salvador
2
3
Free
Equatorial Guinea
7
6
Not Free
Eritrea
7
6
Not Free
Estonia
1
1
Free
Ethiopia
5
5
Partly Free
Fiji
4
3
Partly Free
Finland
1
1
Free
France
1
1
Free
Finland Review 2007
22
Freedom Rankings
23
Political Overview
Gabon
5
4
Partly Free
The Gambia
4
4
Partly Free
Georgia
3
4
Partly Free
Germany
1
1
Free
Ghana
2
2
Free
Greece
1
2
Free
Grenada
1
2
Free
Guatemala
4
4
Partly Free
Guinea
6
5
Not Free
Guinea-Bissau
4
4
Partly Free
Guyana
2
2
Free
Haiti
7
6
Not Free
Honduras
3
3
Partly Free
Hungary
1
1
Free
Iceland
1
1
Free
India
2
3
Free
Indonesia
3
4
Partly Free
Iran
6
6
Not Free
Iraq
7
5
Not Free
Ireland
1
1
Free
Israel
1
3
Free
Italy
1
1
Free
Jamaica
2
3
Free
Japan
1
2
Free
Jordan
5
4
Partly Free
Kazakhstan
6
5
Not Free
Kenya
3
3
Partly Free
Kiribati
1
1
Free
Kuwait
4
5
Partly Free
Kyrgyzstan
6
5
Not Free
Laos
7
6
Not Free
Latvia
1
2
Free
Finland Review 2007
Political Overview
Freedom Rankings
Lebanon
6
5
Not Free
Lesotho
2
3
Free
Liberia
5
4
Partly Free
Libya
7
7
Not Free
Liechtenstein
1
1
Free
Lithuania
2
2
Free
Luxembourg
1
1
Free
Macedonia
3
3
Partly Free
Madagascar
3
3
Partly Free
Malawi
4
4
Partly Free
Malaysia
4
4
Partly Free
Maldives
6
5
Not Free
Mali
2
2
Free
Malta
1
1
Free
Marshall Islands
1
1
Free
Mauritania
6
5
Not Free
Mauritius
1
1
Free
Mexico
2
2
Free
Micronesia
1
1
Free
Moldova
3
4
Partly Free
Monaco
2
1
Free
Mongolia
2
2
Free
Morocco
5
4
Partly Free
Mozambique
3
4
Partly Free
Namibia
2
3
Free
Nauru
1
1
Free
Nepal
5
5
Partly Free
Netherlands
1
1
Free
New Zealand
1
1
Free
Nicaragua
3
3
Partly Free
Niger
3
3
Partly Free
Nigeria
4
4
Partly Free
Finland Review 2007
24
Freedom Rankings
25
Political Overview
North Korea
7
7
Not Free
Norway
1
1
Free
Oman
6
5
Not Free
Pakistan
6
5
Not Free
Palau
1
1
Free
Panama
1
2
Free
Papua New Guinea
3
3
Partly Free
Paraguay
3
3
Partly Free
Peru
2
3
Free
Philippines
2
3
Free
Poland
1
1
Free
Portugal
1
1
Free
Qatar
6
5
Not Free
Romania
3
2
Free
Russia
6
5
Not Free
Rwanda
6
5
Not Free
Saint Kitts and Nevis
1
2
Free
Saint Lucia
1
2
Free
Saint Vincent and Grenadines
2
1
Free
Samoa
2
2
Free
San Marino
1
1
Free
Sao Tome and Principe
2
2
Free
Saudi Ara bia
7
7
Not Free
Senegal
2
3
Free
Serbia and Montenegro
3
2
Free
Seychelles
3
3
Partly Free
Sierra Leon
4
3
Partly Free
Singapore
5
4
Partly Free
Slovakia
1
1
Free
Slovenia
1
1
Free
Solomon Islands
3
3
Partly Free
Somalia
6
7
Not Free
Finland Review 2007
Political Overview
Freedom Rankings
South Africa
1
2
Free
South Korea
1
2
Free
Spain
1
1
Free
Sri Lanka
3
3
Partly Free
Finland Review 2007
26
Freedom Rankings
27
Political Overview
Sudan
7
7
Not Free
Suriname
1
2
Free
Swaziland
7
5
Not Free
Sweden
1
1
Free
Switzerland
1
1
Free
Syria
7
7
Not Free
Taiwan
2
1
Free
Tajikistan
6
5
Not Free
Tanzania
4
3
Partly Free
Thailand
2
3
Free
Togo
6
5
Not Free
Tonga
5
3
Partly Free
Trinidad and Tobago
3
3
Partly Free
Tunisia
6
5
Not Free
Turkey
3
3
Partly Free
Turkmenistan
7
7
Not Free
Tuvalu
1
1
Free
Uganda
5
4
Partly Free
Ukraine
4
3
Partly Free
United Arab Emirates
6
6
Not Free
United Kingdom
1
1
Free
United States
1
1
Free
Uruguay
1
1
Free
Uzbekistan
7
6
Not Free
Vanuatu
2
2
Free
Venezuela
3
4
Partly Free
Vietnam
7
6
Not Free
Yemen
5
5
Partly Free
Zambia
4
4
Partly Free
Zimbabwe
7
6
Not Free
Finland Review 2007
Political Overview
Human Rights
Human Rights Human Rights in Finland
Overview Finland is a constitutional republic. The government works to respect the civil and human rights of its citizens with a few notable exceptions. Finland has come under scrutiny for the length of civilian service its conscientious objectors must serve. Compulsory military service is only 180 days. The length of the alternative civilian service is 295 days. While Finland has said that it would work to lower this requirement so that it is more in line with internationally recognized standards and recommendations, at the time of this writing, there have not been any government proposals to do so. The Council of Europe's Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) reports that Finland has no coherent set of regulations on the use of force and means of restraint authorized during deportation of illegal immigrants. After the 2002 case in which a Ukrainian family was held in an alien unit and might have been administered sedatives before being deported back to the Ukraine, the CPT called on Finland to change its policies. Violence against the Semitic community, trafficking in persons and discrimination against immigrants and Roma (Gypsies), are the other main offences reported recently.
Human Development Index (HDI) Rank: 13th out of 177 Human Poverty Index Rank: 4th out of 18 Note-Finland is ranked on the HPI-2 scale with is only for the OECD countries, Eastern Europe and the CIS Gini Index: 25.6 Life Expectancy at Birth (years): 78.5 years Unemployment Rate: 7.9% Population living on $1 a day (%): N/A Population living on $2 a day (%): N/A Population living beneath the Poverty Line (%):
Finland Review 2007
28
Human Rights
Political Overview
N/A Internally Displaced People: 11,000 Total Crime Rate (%): 19.1% Health Expenditure (% of GDP): Public: 5.5% % of GDP Spent on Education: 6.4% Human Rights Conventions Party to: • International Convention on the Prevention and Punishment and Punishment of the Crime of Genocide • International Convention on the Elimination of All Forms of Racial Discrimination • International Covenant on Civil and Political Rights • International Covenant on Economic, Social and Cultural Rights • Convention on the Elimination of All Forms of Discrimination against Women • Conventions on the Rights of the Child • Convention relating to the Status of Refugees • Rome Statute of the International Criminal Court *Human Development Index (HDI) is a composite index that measures the level of well-being in 177 nations in the world. It uses factors such as poverty, literacy, life-expectancy, education, gross domestic product, and purchasing power parity to assess the average achievements in each nation. It has been used in the United Nation's Human Development Report since 1993. *Human Poverty Index Ranking is based on certain indicators used to calculate the Human Poverty Index. Probability at birth of not surviving to age 40, adult literacy rate, population without sustainable access to an improved water source, and population below income poverty line are the indicators assessed in this measure. *The Gini Index measures inequality based on the distribution of family income or consumption. A value of 0 represents perfect equality (income being distributed equally), and a value of 100 perfect inequality (income all going to one individual). *The calculation of the total crime rate is the % of the total population which has been effected by property crime, robbery, sexual assault, assault, or bribery (corruption) related occurrences.
29
Finland Review 2007
Political Overview
Voice and Accountability
Voice and Accountability Voice and Accountability
Editor's Note: Voice and Accountability is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It is a measure of the level of political, civil, and human rights in each nation. These indicators serve to gauge the extent citizens have the ability to participate in the political, social and economic processes in their respective lands. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating to better governance in the countries observed.
Finland Review 2007
30
Voice and Accountability
31
Political Overview
2004
2002
2000
Country
EST.
EST.
EST.
Afghanistan
-1.35
-1.31
-1.76
Albania
-0.03
-0.10
-0.05
Algeria
-0.91
-0.96
-1.31
Andorra
1.23
1.31
1.49
Angola
-1.02
-1.40
-1.37
Antigua and Barbuda
0.48
0.17
-0.02
Argentina
0.49
0.23
0.44
Armenia
-0.66
-0.44
-0.30
Australia
1.40
1.50
1.61
Austria
1.25
1.32
1.61
Azerbaijan
-0.97
-0.87
-0.81
Bahamas
1.14
1.18
1.10
Bahrain
-0.73
-0.74
-1.17
Bangladesh
-0.69
-0.57
-0.34
Barbados
1.17
1.39
1.21
Belarus
-1.54
-1.40
-1.21
Belgium
1.35
1.44
1.19
Belize
0.91
0.83
0.86
Benin
0.30
0.03
0.44
Bhutan
-1.18
-1.17
-1.63
Bolivia
-0.01
0.01
0.23
Bosnia-Herzegovina
-0.14
-0.29
-0.37
Botswana
0.73
0.73
0.78
Brazil
0.34
0.35
0.53
Brunei
-1.11
-0.82
-1.07
Bulgaria
0.58
0.56
0.51
Burkina Faso
-0.38
-0.27
-0.31
Burma
-2.19
-2.05
-2.12
Finland Review 2007
Political Overview
Voice and Accountability
Burundi
-1.13
-1.16
-1.66
Cambodia
-0.89
-0.56
-0.35
Cameroon
-1.18
-1.10
-0.90
Canada
1.38
1.50
1.27
Cape Verde
0.80
0.41
0.86
Central African Republic
-1.20
-0.80
-0.52
Chad
-1.09
-0.95
-0.89
Chile
1.09
1.07
0.56
China
-1.54
-1.38
-1.37
Colombia
-0.47
-0.55
-0.53
Comoros
-0.14
-0.51
-0.47
Congo (Brazzaville)
-1.64
-1.89
-1.91
Congo (Kinshasa)
-0.79
-1.10
-1.56
Costa Rica
1.11
1.16
1.31
Cote d'Ivoire
-1.46
-1.25
-1.31
Croatia
0.46
0.49
0.38
Cuba
-1.88
-1.77
-1.72
Cyprus (G)
1.00
0.94
1.22
Czech Republic
1.03
0.90
0.99
Denmark
1.59
1.72
1.51
Djibouti
-0.85
-0.69
-0.56
Dominica
1.13
1.05
1.21
Dominican Republic
0.27
0.19
0.43
East Timor
0.25
0.19
Ecuador
-0.19
-0.06
-0.14
Egypt
-1.04
-0.88
-0.81
El Salvador
0.26
0.06
0.24
Equatorial Guinea
-1.71
-1.44
-1.46
Eritrea
-1.96
-2.05
-1.42
Estonia
1.13
1.05
0.89
Ethiopia
-1.11
-1.14
-1.00
Fiji
0.15
-0.06
0.11
Finland Review 2007
32
Voice and Accountability
33
Political Overview
Finland
1.50
1.70
1.60
France
1.24
1.29
1.07
Gabon
-0.71
-0.42
-0.46
Gambia, The
-0.59
-1.03
-0.98
Georgia
-0.34
-0.29
-0.21
Germany
1.38
1.51
1.35
Ghana
0.39
0.01
0.00
Greece
0.91
1.05
1.01
Grenada
0.85
0.68
0.99
Guatemala
-0.39
-0.48
-0.26
Guinea
-1.12
-1.19
-1.12
Guinea-Bissau
-0.62
-0.74
-0.85
Guyana
0.62
0.65
0.91
Haiti
-1.50
-1.11
-0.79
Honduras
-0.02
-0.15
0.01
Hungary
1.16
1.17
1.14
Iceland
1.41
1.52
1.44
India
0.27
0.38
0.45
Indonesia
-0.44
-0.49
-0.52
Iran
-1.36
-1.04
-0.69
Iraq
-1.71
-2.12
-2.12
Ireland
1.30
1.40
1.42
Israel
0.46
0.61
0.94
Italy
1.06
1.11
1.06
Jamaica
0.54
0.51
0.71
Japan
0.98
0.99
0.99
Jordan
-0.68
-0.41
-0.19
Kazakhstan
-1.21
-1.14
-0.91
Kenya
-0.34
-0.58
-0.84
Kiribati
0.87
1.09
1.15
Kuwait
-0.48
-0.29
-0.22
Kyrgyzstan
-1.06
-0.90
-0.68
Finland Review 2007
Political Overview
Voice and Accountability
Laos
-1.55
-1.73
-1.43
Latvia
0.96
0.91
0.76
Lebanon
-0.81
-0.54
-0.37
Lesotho
0.28
-0.16
-0.03
Liberia
-1.24
-1.54
-1.16
Libya
-1.79
-1.70
-1.60
Liechtenstein
1.27
1.32
1.39
Lithuania
0.97
0.89
0.95
Luxembourg
1.40
1.41
1.33
Macedonia
-0.02
-0.30
-0.03
Madagascar
0.07
-0.05
0.25
Malawi
-0.50
-0.56
-0.28
Malaysia
-0.36
-0.28
-0.27
Maldives
-1.07
-0.74
-0.94
Mali
0.35
0.18
0.28
Malta
1.26
1.29
1.39
Marshall Islands
1.14
1.23
1.30
Mauritania
-1.16
-0.67
-0.67
Mauritius
0.94
0.80
1.21
Mexico
0.36
0.36
0.09
Micronesia
1.01
0.93
0.97
Moldova
-0.47
-0.32
-0.01
Monaco
0.91
0.92
1.11
Mongolia
0.45
0.44
0.73
Morocco
-0.55
-0.30
-0.44
Mozambique
-0.13
-0.26
-0.28
Namibia
0.47
0.33
0.28
Nauru
1.08
0.85
0.88
Nepal
-1.00
-0.52
-0.12
Netherlands
1.49
1.63
1.53
New Zealand
1.47
1.60
1.51
Nicaragua
0.06
0.09
-0.08
Finland Review 2007
34
Voice and Accountability
Political Overview
Niger
-0.12
-0.18
-0.07
Nigeria
-0.65
-0.70
-0.68
North Korea
-2.05
-2.32
-2.02
Norway
1.53
1.64
1.50
Oman
-0.90
-0.55
-0.68
Pakistan
-1.31
-1.10
-1.53
Panama
0.54
0.50
0.69
Papua New Guinea
-0.03
-0.15
-0.03
Paraguay
-0.23
-0.53
-0.59
Peru
-0.04
0.11
-0.01
Philippines
0.02
0.17
0.40
Poland
1.13
1.11
1.12
Portugal
1.31
1.31
1.35
Qatar
-0.79
-0.52
-0.66
Romania
0.36
0.41
0.43
Russia
-0.81
-0.44
-0.44
Rwanda
-1.09
-1.41
-1.46
Saint Kitts and Nevis
0.75
0.96
1.01
Saint Lucia
0.97
1.04
1.06
Saint Vincent and Grenadines
0.96
0.98
1.03
Samoa
0.69
0.67
0.62
San Marino
1.18
1.17
1.39
Sao Tome and Principe
0.55
0.48
0.93
Saudi Arabia
-1.63
-1.40
-1.27
Senegal
0.19
0.15
-0.11
Serbia and Montenegro
0.12
-0.23
-0.32
Seychelles
-0.04
-0.19
0.11
Sierra Leone
-0.49
-0.57
-1.36
Singapore
-0.13
0.51
-0.05
Slovakia
1.10
0.92
0.30
Slovenia
1.12
1.10
0.98
Palau
35
Finland Review 2007
Political Overview
Voice and Accountability
Solomon Islands
0.10
0.37
0.06
Somalia
-1.58
-1.51
-1.37
South Africa
0.86
0.73
1.05
South Korea
0.73
0.63
0.76
Spain
1.17
1.24
1.10
Sri Lanka
-0.16
-0.06
-0.37
Finland Review 2007
36
Voice and Accountability
37
Political Overview
Sudan
-1.81
-1.71
-1.75
Suriname
0.60
0.29
0.55
Swaziland
-1.45
-1.18
-1.22
Sweden
1.52
1.65
1.56
Switzerland
1.49
1.63
1.64
Syria
-1.72
-1.56
-1.64
Taiwan
0.95
0.89
0.81
Tajikistan
-1.12
-1.07
-0.93
Tanzania
-0.35
-0.41
-0.15
Thailand
0.24
0.20
0.25
Togo
-1.22
-1.20
-1.09
Tonga
-0.35
-0.12
-0.09
Trinidad and Tobago
0.49
0.56
0.61
Tunisia
-1.11
-0.83
-0.71
Turkey
-0.15
-0.47
-0.65
Turkmenistan
-1.90
-1.85
-1.59
Tuvalu
0.94
1.17
1.39
Uganda
-0.64
-0.77
-0.94
Ukraine
-0.62
-0.64
-0.39
United Arab Emirates
-1.01
-0.47
-0.62
United Kingdom
1.37
1.48
1.39
United States
1.21
1.32
1.18
Uruguay
1.00
0.95
1.04
Uzbekistan
-1.75
-1.58
-1.39
Vanuatu
0.68
0.89
0.62
Venezuela
-0.46
-0.41
-0.33
Vietnam
-1.54
-1.36
-1.53
Yemen
-0.99
-0.88
-0.72
Zambia
-0.36
-0.40
-0.24
Zimbabwe
-1.48
-1.51
-0.97
Finland Review 2007
Political Overview
Government Effectiveness
*Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.
Government Effectiveness Government Effectiveness
Editor's Note: Government Effectiveness is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It is a measure of the competency of the bureaucracy and the quality of public service delivery. This index focuses on the inputs required for those in power to be able to produce and implement effective policies, and to deliver public goods and services. It gauges the government's real commitment to its policies. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating to better governance and lower scores indicating poor governance in the countries observed.
Finland Review 2007
38
Government Effectiveness
39
Political Overview
2004
2002
2000
Country
EST.
EST.
EST.
Afghanistan
-1.24
-1.43
-1.30
Albania
-0.36
-0.46
-0.75
Algeria
-0.46
-0.60
-0.75
Andorra
1.40
1.32
Angola
-1.14
-1.20
Antigua and Barbuda
0.31
0.50
Argentina
-0.33
-0.47
0.28
Armenia
-0.34
-0.39
-0.88
Australia
1.95
1.93
1.80
Austria
1.76
1.85
1.72
Azerbaijan
-0.81
-0.90
-0.96
Bahamas
1.27
1.38
1.20
Bahrain
0.76
0.81
0.74
Bangladesh
-0.72
-0.55
-0.47
Barbados
1.18
1.30
Belarus
-0.93
-1.04
-0.92
Belgium
1.71
1.94
1.48
Belize
0.16
-0.04
-0.28
Benin
-0.39
-0.48
0.05
Bhutan
-0.14
0.43
1.48
Bolivia
-0.63
-0.53
-0.40
Bosnia-Herzegovina
-0.54
-0.85
-0.54
Botswana
0.83
0.91
0.98
Brazil
0.02
-0.20
-0.18
Brunei
0.73
0.90
1.03
Bulgaria
-0.08
-0.02
-0.16
Burkina Faso
-0.52
-0.59
-0.14
Burma
-1.57
-1.33
-1.31
-1.70
Finland Review 2007
Political Overview
Government Effectiveness
Burundi
-1.24
-1.48
-1.25
Cambodia
-0.87
-0.51
-0.44
Cameroon
-0.64
-0.59
-0.44
Canada
1.96
2.02
1.94
Cape Verde
-0.19
-0.10
0.33
Central African Republic
-1.65
-1.51
-1.61
Chad
-1.29
-0.68
-0.36
Chile
1.27
1.26
1.34
China
0.11
0.20
0.22
Colombia
-0.18
-0.40
-0.31
Comoros
-1.45
-0.98
-1.29
Congo (Brazzaville)
-1.17
-1.33
-1.66
Congo (Kinshasa)
-1.41
-1.59
-1.79
Costa Rica
0.49
0.45
0.76
Cote d'Ivoire
-1.30
-0.89
-0.75
Croatia
0.32
0.23
0.15
Cuba
-0.47
-0.27
-0.18
Cyprus (G)
1.02
1.02
1.06
Czech Republic
0.63
0.72
0.70
Denmark
2.15
2.05
1.84
Djibouti
-0.76
-0.87
-1.07
Dominica
0.31
0.11
-0.67
Dominican Republic
-0.46
-0.42
-0.11
East Timor
-1.21
-0.93
Ecuador
-0.85
-0.94
-1.05
Egypt
-0.20
-0.29
0.30
El Salvador
-0.22
-0.50
-0.11
Equatorial Guinea
-1.40
-1.42
-2.22
Eritrea
-1.05
-0.52
-0.28
Estonia
0.99
0.85
1.00
Ethiopia
-0.96
-0.78
-0.60
Fiji
-0.57
0.13
-0.34
Finland Review 2007
40
Government Effectiveness
41
Political Overview
Finland
2.06
2.13
1.89
France
1.42
1.69
1.42
Gabon
-0.53
-0.42
-0.59
Gambia, The
-0.49
-0.82
0.17
Georgia
-0.80
-0.77
-0.72
Germany
1.38
1.83
1.90
Ghana
-0.17
0.00
0.09
Greece
0.74
0.80
0.77
Grenada
0.10
0.36
0.03
Guatemala
-0.87
-0.58
-0.50
Guinea
-0.93
-0.76
-0.07
Guinea-Bissau
-1.25
-1.39
-1.43
Guyana
-0.20
-0.30
-0.16
Haiti
-1.90
-1.56
-1.47
Honduras
-0.68
-0.73
-0.45
Hungary
0.68
0.79
0.78
Iceland
2.18
2.05
2.18
India
-0.04
-0.11
-0.07
Indonesia
-0.36
-0.55
-0.40
Iran
-0.66
-0.46
-0.17
Iraq
-1.51
-1.69
-1.49
Ireland
1.48
1.67
2.03
Israel
0.98
1.08
1.02
Italy
0.58
0.96
0.80
Jamaica
-0.13
-0.04
-0.19
Japan
1.21
1.11
1.08
Jordan
0.23
0.39
0.40
Kazakhstan
-0.63
-0.82
-0.54
Kenya
-0.81
-0.81
-0.68
Kiribati
-0.61
-0.25
0.05
Kuwait
0.55
0.15
0.21
Kyrgyzstan
-0.83
-0.72
-0.63
Finland Review 2007
Political Overview
Government Effectiveness
Laos
-1.02
-0.50
-0.76
Latvia
0.60
0.70
0.36
Lebanon
-0.33
-0.40
-0.22
Lesotho
-0.33
-0.23
-0.05
Liberia
-1.86
-1.58
-1.41
Libya
-0.73
-0.90
-1.17
Liechtenstein
1.48
1.67
Lithuania
0.70
0.65
0.36
Luxembourg
2.08
2.30
2.10
Macedonia
-0.17
-0.37
-0.52
Madagascar
-0.43
-0.42
-0.32
Malawi
-0.81
-0.63
-0.65
Malaysia
0.99
0.96
0.69
Maldives
0.47
0.52
0.45
Mali
-0.29
-0.62
-0.81
Malta
1.03
1.20
0.86
Marshall Islands
-0.46
-0.22
-0.79
Mauritania
0.22
-0.01
-0.30
Mauritius
0.60
0.51
0.79
Mexico
-0.02
0.21
0.35
Micronesia
-0.33
-0.29
-0.55
Moldova
-0.73
-0.60
-1.04
Monaco
1.42
-0.61
Mongolia
-0.46
-0.19
0.15
Morocco
-0.03
-0.06
0.02
Mozambique
-0.39
0.35
-0.31
Namibia
0.29
0.10
0.48
Nauru
-1.36
-1.17
Nepal
-0.90
-0.45
-0.62
Netherlands
2.00
2.20
2.08
New Zealand
1.51
2.01
1.45
Nicaragua
-0.71
-0.85
-0.71
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Political Overview
Niger
-0.87
-0.84
-1.04
Nigeria
-1.02
-1.11
-1.04
North Korea
-1.68
-1.79
-1.10
Norway
1.97
1.90
1.55
Oman
0.91
0.67
0.99
Pakistan
-0.57
-0.53
-0.54
Palau
0.39
-0.33
Panama
0.01
-0.11
-0.03
Papua New Guinea
-1.01
-0.77
-0.68
Paraguay
-1.07
-1.25
-1.27
Peru
-0.58
-0.46
-0.27
Philippines
-0.23
-0.07
0.08
Poland
0.47
0.64
0.38
Portugal
0.92
1.05
1.06
Qatar
0.87
0.75
0.96
Romania
-0.15
-0.30
-0.59
Russia
-0.21
-0.40
-0.62
Rwanda
-0.56
-0.72
-0.11
Saint Kitts and Nevis
-0.16
-0.26
0.11
Saint Lucia
0.19
0.01
0.16
Saint Vincent and Grenadines
0.23
-0.19
-0.01
Samoa
0.09
0.08
0.58
San Marino
-0.23
-0.33
Sao Tome and Principe
-0.89
-0.68
-0.70
Saudi Arabia
-0.06
-0.08
0.06
Senegal
-0.13
-0.11
0.23
Serbia and Montenegro
-0.21
-0.69
-1.00
Seychelles
-0.31
-0.22
-0.94
Sierra Leone
-1.32
-1.48
-1.39
Singapore
2.25
2.39
2.44
Slovakia
0.67
0.43
0.28
Slovenia
1.02
0.89
0.82
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Political Overview
Government Effectiveness
Solomon Islands
-1.76
-0.92
-1.04
Somalia
-2.32
-1.98
-2.59
South Africa
0.74
0.59
0.43
South Korea
0.95
0.91
0.63
Spain
1.29
1.58
1.78
Sri Lanka
-0.27
0.01
-0.32
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Political Overview
Sudan
-1.28
-1.09
-1.46
Suriname
-0.23
-0.22
0.17
Swaziland
-0.60
-0.40
-0.55
Sweden
1.92
1.91
1.72
Switzerland
2.25
2.34
2.18
Syria
-0.72
-0.58
-0.83
Taiwan
1.15
1.12
1.06
Tajikistan
-1.05
-1.13
-1.39
Tanzania
-0.37
-0.50
-0.28
Thailand
0.38
0.29
0.20
Togo
-1.31
-1.16
-1.40
Tonga
-0.73
-0.46
-0.47
Trinidad and Tobago
0.47
0.50
0.64
Tunisia
0.57
0.67
1.24
Turkey
0.01
-0.16
-0.07
Turkmenistan
-1.37
-1.50
-1.38
Tuvalu
-0.79
-0.26
1.29
Uganda
-0.43
-0.38
-0.16
Ukraine
-0.67
0.76
-0.78
United Arab Emirates
1.20
0.83
0.72
United Kingdom
1.85
2.08
2.01
United States
1.80
1.73
1.80
Uruguay
0.52
0.52
0.71
Uzbekistan
-1.04
-1.04
-0.96
Vanuatu
-0.60
-0.28
-0.47
Venezuela
-0.96
-1.13
-0.83
Vietnam
-0.31
-0.29
-0.30
Yemen
-0.84
-0.84
-0.68
Zambia
-0.84
-0.77
-0.72
Zimbabwe
-1.20
-0.82
-1.13
Finland Review 2007
Political Overview
Government Functions
*Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.
Government Functions
Finland adopted a new constitution on June 11, 1999, that became effective on March 1, 2000. Under the previous constitution, Finland had a mixed presidential and parliamentary system of government with a powerful president. Under the new constitution, Finland retains a mixed presidential-parliamentary system but with a less powerful president. The new constitution, however, grants the parliament a greater role, and the president a lesser role, in the government formation process, as well as in the legislative process.
The president of Finland is the head of state, and as such, represents Finland in its international relations and serves as the commander-in-chief of the armed forces. The president is directly elected for a six-year term and is limited to two consecutive terms. If a candidate for president receives more than half of the votes in an election, a second ballot is held between the two candidates that received the most votes. The candidate that receives the most votes in the second round of elections is declared the winner. The president formally appoints the prime minister, and upon the advice of the prime minister the other ministers. The prime minister is, however, elected by the parliament after negotiations between the political parties on the membership of the government. The president can, upon the proposal of the prime minister, dissolve parliament and call for early elections. The president can send legislation back to parliament for reconsideration, but second passage of the bill overrides the president's veto.
Executive power is vested in a government (Council of State or cabinet) composed of the prime minister and other ministers. The government is responsible for developing and implementing the domestic policies of Finland, and shares responsibility with the president on matters of foreign policy. The prime minister is formally appointed by the president, but elected by the parliament. The president nominates a candidate to be prime minister after negotiations between the political parties on the membership of the proposed government. The candidate prime minister must then win a majority vote (investiture vote) in the parliament before taking office. The president appoints the other ministers upon the advice of the prime minister. The new government must then present its policy program to the parliament. The prime minister, individual ministers, and the government as a whole are responsible to the parliament and can be removed by no-confidence votes. The government shares the authority to initiate legislation with the members of parliament.
Legislative power is vested in the unicameral "Eduskunta / Riksdag" (parliament) composed of about 200 members elected for maximum four-year terms according to a proportional representation formula. The Aland Islands form their own constituency and elect one member to the parliament. The parliament elects the prime minister by majority vote. The parliament can pass motions of no-confidence against individual ministers or the government as a whole forcing their resignation. Members of the parliament share the authority to initiate legislation with the government. The parliament can be dissolved and early elections called by the president, acting on behalf of the government. One of the
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Government Structure
Political Overview
more notable features of Finnish politics is the very high proportion of women in parliament and government.
Judicial authority is vested in District Courts, Courts of Appeal, Administrative Courts, the Supreme Administrative Court, and the Supreme Court. The president appoints judges. Each court can rule a law unconstitutional if it finds the law to be in conflict with the constitution.
Government Structure Names:
conventional long form:
Republic of Finland
conventional short form:
Finland
Type:
Constitutional republic; mixed presidential-parliamentary system
Executive Branch:
Head of state:
President Tarja HALONEN (since Feb. 6, 2000; elected most recently in 2006 for a six-year term by popular vote)
Elections:
Last January 2006
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Political Overview
Government Structure
Election results:
First round --
Halonen, a left-leaning Social Democrat captured 46.3 percent of the votes Conservative candidate, Sauli Niinisto, garnered 24.1 percent of the votes Centrist head of government, Prime Minister Matty Vanhanen, came in third with 18.6 percent
Run-off election --
Halonen beat Niinisto with 51.8 percent of the votes cast and was set to serve a second term in office as Finland's first female president.
Head of government:
Prime Minister Matti VANHANEN (since 2003) replaced Annali Jaatteenmaki when she was accused of using illegally obtained documents during the run-up to the 2003 elections. She went on to face trial and was eventually acquitted.
Cabinet:
"Valtioneuvosto" (Council of State)
Note: The president formally appoints both the prime minister and other cabinet ministers, subject to the approval of the "Eduskunta" (Parliament). The "government" (prime minister and cabinet ministers) is responsible to the parliament and may be removed by the parliament. The prime minister is usually the leader of the party that gained the most seats in parliamentary elections and thus leads the government.
Legislative Branch:
Unicameral "Eduskunta / Riksdag" (Parliament):
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Government Structure
Political Overview
200 members; elected for a four-year term by proportional representation from multi-seat constituencies
Elections:
Last held March 2003
Election results:
Seats by party (200) total -
Center Party (KESK) 55 Social Democratic Party (SDP) 53 National Coalition / Conservative Party (KOK/SAML) 40 Leftist Alliance Socialists (VAS/VÄNST) 19 Green League (VIHR/GRÖNA) 14 Swedish People's Party of Finland (SFP/RKP) 8 Finnish Christian League (SKL/FKF) 7 True Finns (PS/SAF) 03 Aland Province 01
Judicial Branch:
"Korkein Oikeus" (Supreme Court) Supreme Administrative Court Administrative Courts Regional appellate courts (Courts of Appeal) District courts
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Political Overview
Government Structure
Special courts with responsibility for litigation between the public and the administrative organs of the state
Note: the president appoints judges. Each court can rule a law unconstitutional if it finds the law to be in conflict with the constitution.
Constitution:
March 1, 2000
Legal System:
Civil law system based on Swedish law; Supreme Court may request legislation interpreting or modifying laws; accepts compulsory ICJ jurisdiction, with reservations
Administrative Divisions:
6 provinces (laanit, singular - laani): Aland, Etela-Suomen Laani, Ita-Suomen Lanni, Lansi-Suomen Laani, Lappi, Oulun Laani
Political Parties:
Center Party or Kesk [Matti VANHANEN]; Christian Democrats or KD [Paivi RASANEN]; Green League or VIHR [Tarja CRONBERG]; Left Alliance or VAS composed of People's Democratic League and Democratic Alternative [Suvi-Anne SIIMES]; National Coalition (conservative) Party or Kok [Jyrki KATAINEN]; Social Democratic Party or SDP [Eero HEINALUOMA]; Swedish People's Party or SFP [Jan-Erik ENESTAM]
Suffrage:
18 years of age; universal
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Principal Government Officials
Political Overview
Principal Government Officials Cabinet and Leadership of Finland
President Tarja HALONEN Prime Minister Matti Taneli VANHANEN Dep. Prime Min. Eero HEINALUOMA Min. of Agriculture & Forestry Juha KORKEAOJA Min. of Culture Tanja KARPELA Min. of Defense Seppo KAARIAINEN Min. of Education Antti KALLIOMAKI Min. of the Environment & Nordic Cooperation Jan-Erik ENESTAM Min. of Finance Eero HEINALUOMA Min. Responsible for Certain Issues in the Ministry of Finance Ulla-Maj WIDEROOS Min. of Foreign Affairs Erkki TUOMIOJA Min. of Foreign Trade & Development Paula LEHTOMAKI Min. of Health & Social Services Liisa HYSSALA Min. of Interior Kari RAJAMAKI Min. of Justice Leena LUHTANEN Min. of Labor Tarja FILATOV Min. of Regional & Municipal Affairs Hannes MANNINEN Min. of Social Affairs & Health Tuula HAATAINEN Min. of Trade & Industry Mauri PEKKARINEN Min. of Transport & Communications Susanna HUOVINEN Governor, Bank of Finland Erkki LIIKANEN Ambassador to the US Pekka LINTU
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Leader Biography
Permanent Representative to the UN, New York Kirsti Eeva Helena LINTONEN
-- as of 2006
Leader Biography PRIME MINISTER OF FINLAND Name Paavo Tapio Lipponen Date of Birth April 23, 1941 Place of Birth Turtola, Finland Civil Status Married Children
Education Previous Positions 1991 Member, Finnish Parliament 1993 Chairman, Social Democratic Party (SDP) 1995 Prime Minister of the Republic of Finland Present Positions 1963 - 1965 Editor of the student newspaper Ylioppilaslehti 1965-1967 Freelance reporter for the Finnish Broadcasting Company LE 1967 - 1979 Research and international affairs secretary and planning chief of the political section, Social Democratic party (SDP) 1979 - 1982 Special Adviser to the Prime Minister (Political Affairs) 1983 - 1987 Member, Finnish Parliament 1985 - 1992 Chairman, Helsinki district, Social Democratic Party (SDP) 1985 - 1995 Member, Helsinki City Council 1987 - 1990 Member, SDP Party Committee 1988 - 1995
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Political Overview
Managing director, "Viestintä Teema Oy" 1989 - 1991 Head, Finnish Institute of International Affairs 1989 - 1991 Chairman of the Supervisory Board, "Outokumpu Oy" 1990 - 1993 Member, SDP Party Council
Foreign Relations General Relations Finland's basic foreign policy goal from the end of the Continuation War with the Soviet Union (U.S.S.R.) in 1944 until 1991 was to avoid great-power conflicts. An associated goal was to build mutual confidence with the Soviet Union. Although the country was culturally, socially, and politically Western, Finns realized they must live in peace with the U.S.S.R. and take no action that might be interpreted as a security threat. The dissolution of the Soviet Union in 1991 opened up dramatic new possibilities for Finland and resulted in the Finns actively seeking greater participation in Western political and economic structures. Today, Finnish foreign policy emphasizes its participation in multilateral organizations. Finland is a member of numerous international organizations including the United Nations and many of its specialized and regional agencies, the International Bank for Reconstruction and Development (World Bank), the International Monetary Fund (IMF), the World Trade Organization (WTO), and the Organization for Economic Cooperation and Development (OECD). Finland is also a member of the European Union (EU), the European Bank for Reconstruction and Development (EBRD), the Organization for Security and Cooperation in Europe (OSCE), and the Council of Europe. In addition, Finland has observer status with the Western European Union (WEU).
Regional Relations The Nordic States Cooperation with the other countries in the region is important to Finland, and it 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. Today, the Nordic Council and the Nordic Council of Ministers are intergovernmental institutions that facilitate cooperation on matters of mutual concern among Denmark, Finland, Iceland, Norway, and Sweden. Although the EU has largely subsumed the Nordic Council and Nordic Council of Ministers, Finland and the other members do occasionally develop distinct positions on certain issues. Currently, Finland and the other members are the primary advocates for admitting the three Baltic states of Estonia, Latvia, and Lithuania into the EU.
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Foreign Relations
Russia The Finns responded cautiously in 1990-91 to the decline of Soviet power and the U.S.S.R.'s subsequent dissolution. They unilaterally abrogated restrictions imposed by the 1947 and 1948 treaties, joined in voicing Nordic concern over the coup against Soviet leader Mikhail Gorbachev, and gave increasing unofficial encouragement to Baltic independence. At the same time, by replacing the Soviet-Finnish mutual assistance pact with treaties on general cooperation and trade, Finns put themselves on an equal footing while retaining a friendly bilateral relationship. Finland now is boosting cross-border commercial ties and touting its potential as a commercial gateway to Russia. It has reassured Russia that it will not raise claims for Finnish territory seized by the U.S.S.R., and continues to reaffirm the importance of good bilateral relations. Despite the historically tense relationship between Russia and Finland, over the past year the two countries have been working closely together to strengthen economic and diplomatic ties. In 2002, several high level meetings were held between the respective heads of state and government on expanding bilateral economic cooperation in the areas of timber and energy. Currently Finland imports most of its energy from Russia and is assisting Russia on environmental issues. Finland has been a strong advocate for Russia's entrance into the World Trade Organization (WTO). The European Union (EU) Finland became a full member of the European Union (EU) in January 1995, at the same time acquiring observer status in the EU's defense arm, the Western European Union (WEU). In July 1999, Finland took over the European Union's six-month rotating presidency. At the Helsinki summit in December 1999, the EU agreed to start accession negotiations with Bulgaria, Latvia, Lithuania, Malta, Romania, Slovakia, and Turkey. In May 1998, the European Council defined the list of countries participating in the Economic and Monetary Union (EMU): Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Greece became a participating member in 2001. The euro was launched on Jan. 1, 1999; conversion rates of all EMU member states' currencies to the euro were irrevocably fixed. As of Jan. 1, 2002, euro banknotes and coins became the legal tender in Finland; the Finnish markkaa ceased to function as the legal tender on Feb. 28, 2002. Finland is also a signatory to the Schengen Agreement concerning the free movement of people across the borders of EU member states. From 1990 to May 1999, Schengen was an intergovernmental agreement among signatories and was not European Union law. When the Treaty of Amsterdam entered into force on May 1, 1999, the agreement was supposed to become part of EU law; however, various implementation problems are currently being addressed. Not all EU members are signatories to the Schengen agreement. The United Kingdom and Ireland are not participants in any part of the accord. Greece, Sweden, Denmark, and Finland have signed but are not full members. Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, and Spain are full members. This is supposed to mean the complete removal of internal air, land, and sea border controls between the members and cooperation among their respective police forces in criminal matters. The Treaty of Amsterdam was signed on Oct. 2, 1997; it entered into force on May 1, 1999. The treaty makes significant changes to the way in which the "three pillars" of the European Union will be dealt with in the future. These "three pillars" are first, the single common market; second, common foreign and security policy; and third, justice and home affairs.
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Political Overview
The treaty extends the co-decision procedure (in which the European Parliament wields significant amendment and veto powers) to 38 policy areas, that is, most of the policy areas concerning the promotion of the European common market, and therefore, most areas of European Union legislation. It also grants the European Parliament the power to approve or disapprove the choice (made by member governments) of Commission president. (The new president, Romano Prodi, was approved under this procedure). For the Council of Ministers, the treaty extends the areas in which qualified majority voting (QMV) applies. This makes it less likely for single countries to veto policy proposals. The treaty also moves certain policy areas of the 'third pillar' of justice and home affairs, which previously have been decided by intergovernmental bargaining without influence from the Commission or the European Parliament, to the 'first pillar' of single market issues. This change should increase the policymaking influence of the Commission and the Parliament. The Schengen accord falls into this category. Finally, the treaty calls for the creation of a "High Representative" for common foreign and security policy. Javier Solana, former secretary-general of NATO, has been appointed as the first high representative. To date, this 'second pillar' has been a matter of intergovernmental bargaining, though with QMV. The belief is that the EU will have greater international influence if it is able to speak with one voice on matters of foreign policy. With regard to a "European Security and Defense Identity" (ESDI), in December 1998, British Prime Minister Tony Blair and French President Jacques Chirac issued what became known as the "St. Malo Declaration," stating that the European Union should have the capability to act autonomously in security matters. This has long been a stated objective by various European leaders and has given rise to various failed attempts at security/defense cooperation. Examples include the European Defense Community (done away with at the draft stage) and the less ambitious Western European Union (which includes some NATO and non-NATO members and some EU and non-EU members). The problems have been the lack of a common foreign policy (without which a common security policy is not possible); the so-called "special relationship" between the US and the UK; and the lack of consolidation in the European defense industry. That Prime Minister Blair advocated a common security arrangement within the EU was seen as a major breakthrough. Other NATO members subsequently supported this at the April 1999 50th anniversary summit (including, most importantly, the US and hesitantly, Turkey). At the June 1999 EU Summit in Cologne, Germany, EU leaders agreed on a common defense/security program. In brief, the WEU was incorporated into the EU by the end of 2000. It has been suggested that the new institution will be able to use NATO equipment without necessarily having other NATO members involved. Other NATO members would be consulted, however. Problems could arise because of non-overlapping memberships (see listing below). For example, while Finland is a member of the EU and a WEU "observer," it is not a member of NATO. Joint Members in the EU, WEU, and NATO: Belgium, France, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Spain, UK EU and NATO Member and WEU Observer: Denmark EU Members and WEU Observers: Austria, Finland, Ireland, Sweden NATO Members and WEU Associate Members:
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Foreign Relations
Czech Republic, Hungary, Iceland, Norway, Poland, Turkey WEU Associate Partners: Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, Slovenia In late 2000, the EU agreed to create a "rapid reaction force" consisting of approximately 60,000 troops to be deployed on humanitarian and peacekeeping missions, and in crisis situations, more generally. Serious concerns remain on the part of EU member states and non-EU members of NATO (particularly, the United States and Turkey) about the nature and command of this force - and its compatibility with NATO. At the December 2001 Laeken Summit, the EU governments declared the proposed rapid reaction force, which eventually will number 60,000 troops, to be operational. Throughout 2000, the member states of the EU were engaged in an intergovernmental conference (IGC) tasked with designing a new treaty that prepares the EU for eventual enlargement that will nearly double the number of member countries in the EU. Enlargement will initially include Cyprus, the Czech Republic, Estonia, Hungary, Poland, and Slovenia. Six more countries are expected to follow; they are: Bulgaria, Latvia, Lithuania, Malta, Romania, and Slovakia. Turkey has also been asked to begin negotiations for future accession to the EU. The larger membership necessarily requires changes in the EU institutions, which were designed for a far smaller number of member states. In particular, the IGC was focused on three primary institutional decisions. The first issue was how to limit the size of the European Commission, the EU's executive branch, and how to distribute the commission's positions among the member states. Currently, France, Germany, Italy, Spain, and the United Kingdom obtain two commission positions each while the other 10 countries each receive one commission position. The second institutional issue concerned reformulating the voting procedure in the Council of Ministers, the EU legislature responsible for representing the member states' governments, to better reflect the population size of the member states. Currently, the smaller states are favored in the Council of Ministers' system of weighted votes. The third issue was altering the treaties to allow for more majority voting, based on weighted votes, in the Council of Ministers. Enlargement will make it more difficult to pass legislation in those issue areas that currently require unanimity in the Council of Ministers by granting even more countries the ability to single-handedly stop changes in EU policy. Treaty changes, which would allow for majority voting in some of these areas, would significantly facilitate the EU's legislative process. The IGC concluded at a summit in Nice, France with France holding the six-month rotating presidency of the Council of the European Union. While French president Chirac claimed success, many analysts noted that the IGC was the longest and one of the most contentious summits in the EU's history with much of the controversy surrounding the re-weighting of votes in the Council of Ministers. The socalled Franco-German axis was threatened by the French refusal to give up voting power parity with Germany, even though Germany has a substantially larger population and economy. Additionally, large states were pitted against small states as the larger states sought to have the weight of votes more accurately reflect the population size of the member-states. In the end, an even more complicated weighting of votes was devised which increased the voting power of the larger states relative to that of the smaller states. In addition to re-weighting, the new rules for calculating a qual ified majority, which will go into effect after enlargement, contain two new elements: a qualified majority in the Council of Ministers, according to vote weights, must also represent at least one-half of the member-states and 62 percent of the EU total population. The other two institutional questions addressed at the Nice summit concerned the size of the European Commission and increasing the number of policy areas where qualified majority voting in the Council
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Political Overview
is applied. On the first question, the large states, which currently have two members in the Commission, agreed to give up their second member by 2005. Also, agreement was reached to limit the total size of the Commission to 27 members after enlargement. On the second question, qualified majority was extended to 39 new policy areas, which means that the vast majority of policy made at the European level is now covered by the qualified majority rule in the Council of Ministers, though countries retain vetoes over certain sensitive issue areas. In addition to agreeing to some institutional reforms, the participants at Nice signed a Charter of Fundamental Rights, which codifies a number of civil, political, and social rights for EU citizens. However, the leaders of the 15 member-states did not include the Charter in the Nice Treaty, thereby weakening the Charter's legal force. Another pivotal summit was held in Laeken, Belgium in December 2001 during the Belgian EU presidency. The principal outcome of the "Laeken declaration" was an agreement to establish a 105-member convention with the responsibility to assess problems with the EU's political structure and to propose possible changes. Many have likened the proposed convention to a constitutional convention with a responsibility to consolidate the existing treaties that form the basis of the EU into a single document with constitutional force. In May 2004, the EU formalized its plans for enlargement by welcoming several new member states. As of 2006, following the presidential elections, the main issue facing Finland was the matter of ratifying the European Union constitution. Prime MinisterVanhanen had said that there was no need for a referendum on the issue. Nevertheless, some politicians have expressed the view that a public vote was necessary. Within the Finnish population, feelings about the new European Union constitution are mixed -- not quite half the population favors it; about a quarter of the population are not in favor of it; while the rest are not sure.
Other Significant Relations United States of America Relations between the United States and Finland are warm. Some 200,000 U.S. citizens visit Finland annually, and about 3,000 U.S. citizens are resident there. The U.S. has an educational exchange program in Finland which is comparatively large for a Western European country of Finland's size. It is financed in part from a trust fund established in 1976 from Finland's final repayment of a U.S. loan made in the aftermath of World War I. Economic and trade relations between Finland and the United States are active and were bolstered by the F-18 purchase. U.S.-Finland trade totals almost $5 billion annually. The U.S. receives about 7 percent of Finland's exports -- mainly pulp and paper, ships, and machinery -- and provides about 7 percent of its imports -- principally computers, semiconductors, aircraft, and machinery. Finland, as part of the EU, expressed support for the global fight against terror in the aftermath of the terrorist attacks in the United States on Sept. 11, 2001. Finland also expelled Iraqi diplomats as requested by the United States prior to the war in Iraq. Finland did not, however, join the coalition efforts in the war in Iraq in 2003. (See "Political Conditions" for the domestic scandal that emerged surrounding Finland's possible support for the war.)
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Political Overview
National Security
Editor's Note on Other Multilateral Institutions NATO In 2005, the sphere of international relations took center stage when a Suomen Gallup poll showed that up to 57 percent of Finns remained strongly against joining NATO. The poll also showed that only 23 percent favored joining the security alliance. The poll's findings also revealed that while some of the strongest opponents of joining NATO tended to be aligned politically with the Left Alliance party, opponents also included a vast array of people ranging from residents of rural areas, to the unemployed and youth (under the age of 25 years of age). Most opponents shared the view that joining NATO would mean that Finnish soldiers would be sent into military combat on missions that had nothing to do with the national security of Finland. Supporters, on the other had, believed that joining NATO should occur due to anxieties over a possible national security crisis. United Nations In 2005, the official Finnish position on certain matters related to international relations were made clear when Foreign Minister Erkki Tuomioja urged the United Nations to fully endorse and implement a policy of human rights in the war against terrorism. Perhaps responding partly to some of the stories that have pervaded the global media in the course of the last year, Tuomioja said, "We have all been deeply shocked by the unprecedented attacks against innocent civilians that have taken place in different places." He went on to note that in the fight against terrorism, Finland strenuously emphasizes human rights, that it would not compromise on the rule of law, and that absolutely opposes torture. Tuomioja's remarks were made at the 61st annual session of the Commission on Human Rights, the principal human rights institution of the United Nations.
National Security External Threats Finland does not face any threats stemming from foreign powers. During the Cold War, it adhered to a policy of neutrality, largely to maintain equitable relations with its powerful neighbor, the Soviet Union, without severing its ties to the nations of Western Europe and the United States. After the 1991dissolution of the Soviet Union, Finland took steps to strengthen its ties to the West, including the purchase of 64 F-18 fighter planes from the United States between 1994 and 2000, participation in the NATO Partnership for Peace since 1994, and ascension to the European Union in 1995. Finland has also maintained good relations with the Soviet Union's successor state, Russia. Crime The U.S. Department of State reports a low rate of crime in Finland. However, violent and non- violent crime are on the rise in recent years. Criminal organizations of Russian and Eastern European origin maintain a relatively benign, low-key presence there. Insurgencies There are no insurgent movements operating inside or outside of Finland that threaten its national security.
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Defense Forces
Political Overview
Terrorism Although terrorism does not pose a direct threat to Finland, its government has actively cooperated with global initiatives to combat it. Finland is party to all 12 international conventions and protocols pertaining to terrorism. It has been an ardent supporter of international efforts to rebuild Afghanistan, the largest recipient of Finish foreign aid in 2003 (10 million euros). Approximately 50 Finnish troops are presently deployed there. Finland has implemented domestic legislation to facilitate the freezing of assets that belong to global terrorist organizations, should any be uncovered there. It has also amended its criminal code to include specific guidelines on the sentencing of individuals found guilty of perpetrating acts of terrorism in Finland. In January 2004, the Finish Security Police created a new, counterterrorism unit.
Defense Forces Military Data Population: 5,231,372 (2006 estimate)
Military Branches: Finnish Defense Forces: Army, Navy (includes Coastal Defense Forces), Air Force Eligible age to enter service: 18 for voluntary and compulsory Mandatory Service Terms: N/A Manpower in general population-fit for military service: males age 18-49: 913,617 females age 18-49: 875,689 (2006 estimate) Manpower reaching eligible age annually: males age 18-49: 32,040 females age 18-49: 30,519 (2006 estimate) Current Capabilities: Active: 28,300
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Defense Forces
Reserve: 237,000 Military Expenditures (in US $): $1.8 billion Percent of GDP: 2%
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Defense Forces
61
Political Overview
Finland Review 2007
Political Overview
Defense Forces
Chapter 3 Economic Overview
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Economic Overview
Economic Overview
Economic Overview Economic Overview Overview Finland has a highly industrialized economy based on abundant forest resources and technology. The traditional industrial sectors include timber, metals, and engineering. In the past decade, the emergence of the high-technology sector, led by Nokia (one of the world's leading mobile-phone makers and Finland' s largest company) has played a key role in altering the structure of the Finnish economy. The country's industrial structure and its profile of exports, traditionally dominated by forestry products Finland is the world's leading exporter of paper - have become oriented towards the telecommunications industry. Exports of goods and services play an important role in the Finnish economy, contributing over 30 percent to GDP. Finland's economic performance has been favorable in recent years, with growth outpacing that of the euro area. Inflation has remained below the euro area average, and the external current account in surplus. However, high unemployment continues to be a persistent problem, because of a relatively inflexible labor market and high employer-paid social security taxes which hamper growth in employment. Moreover, the imminent rise in old-age dependency, which is more rapid in Finland than elsewhere in Europe, is clouding the country's long-term outlook for growth and fiscal sustainability. In this regard, Finland's most pressing task is to strengthen its fiscal position and continue to implement reforms that cope with the challenges of an aging population. Economic Performance Finland's economic performance has been impressive in the past decade, with a sustained growth rate that ranks among the highest in the industrial world. That strong growth has been underpinned by productivity gains led by the high-technology electronics sector and a stable macroeconomic policy framework with low inflation. Sizeable fiscal surpluses have helped support investor confidence. The economy weathered the recent global slowdown relatively well. Strong domestic demand stimulated by an expansionary fiscal policy helped sustain GDP growth at 2.4 percent in 2003. Continued strong domestic demand, especially private consumption and residential investment (which reflected strong disposable income growth and low interest rates), led to significant GDP growth of 3.6 percent in 2004. Following robust growth in 2004, a lengthy shutdown in the paper industry dealt a major but temporary setback to economic growth in 2005, with GDP growth declining to 1.9 percent. The paper sector is still a very important part of the Finnish economy, accounting for about 20 percent of merchandise exports; the seven-week disruption in that industry in the second quarter of 2005 cut annual GDP growth by almost one percentage point. Meanwhile, inflation remained very low in 2004 and 2005, at 0.1 percent and 0.9 percent respectively, supported by strong productivity growth and wage moderation. Increased competition in some domestic sectors and low non-fuel import prices also contributed to keeping inflation in check. Employment growth picked up in 2005 after three years of stagnation, driven by public and private services, including health, construction, and retail trade. As a result, the unemployment rate fell to 8.3 percent in 2005, compared with 8.8 percent in 2004 and nine percent in 2003. Fiscal consolidation that was initiated in 1995 succeeded in reversing double-digit budget deficits during the first half of the last decade into a surplus that peaked in 2000 at the equivalent of over seven percent of GDP. The fiscal position weakened in recent years, with declining surpluses as a result of a shift towards expansionary policy. In 2004, the government recorded a fiscal surplus of 1.9 percent of GDP; the surplus for 2005 is estimated at 1.8 percent of GDP, down from a surplus of 2.3 percent of GDP in 2003, largely due to cuts in corporate and capital taxes, as well as reductions in personal income taxes in an effort to boost employment. Balance of Payments
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Economic Overview
Goods and services export is one of the greatest contributors to Finland's economic growth, accounting for over 30 percent of GDP. Major export products include machinery and electronics, paper and paper products, and chemicals; Finland is the world's leading exporter of paper. Since the mid-1990s, Finland has run substantial current account surpluses in the 5 to 8 percent range, led by large trade surpluses. In recent years, however, the current account surpluses have narrowed due to the appreciation of the euro. As a result, in 2003 and 2004, Finland recorded a current account surplus of four percent of GDP, down from 6.7 percent of GDP in 2002. Because of a sharp decline in the paper exports, the current account surplus for 2005 is estimated at only 2.8 percent of GDP. Regional Situation The dissolution of the Soviet Union in 1991 opened up new possibilities for Finland and allowed the country to step out of the Cold War shadow. As part of its efforts to rapidly increase integration with Western Europe, Finland joined the EU in 1995 and now sees its interests best represented within the EU. Finland is also the only Nordic EU member to adopt the euro as the national currency. However, a sharp appreciation of the euro could pose risks to Finland's growth, and weaker growth in the euro area would also be a drag on its exports. In this regard, in recent years, Finland is developing its trade relationships with Russia and China, a move that is expected to cushion adverse impact on its export growth. Updated in 2006
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Balance of Payments
Economic Overview
Balance of Payments Finland Macroeconomic Activity Balance of Payments (Billions of $US) 2001
2002
2003
2004
2005
8.700
10.100
7.100
9.700
9.600
10.400
11.400
10.800
10.500
12.100
-1.000 E
-0.600 E
-2.700
0.200
-1.800
Net Current Transfers
-0.700
-0.600
-1.000
-1.000
-0.800
Capital and Financial Account
11.000
8.700
12.800
11.200
12.000
Net Errors and Omissions
2.600
-1.700
4.400
2.200
0.000
Overall Balance
22.300
17.100
24.300
23.100
21.600
Official Reserves Stock
8.000
9.300
10.500
12.300
10.600
Current Account (Percent of GDP)
0.1%
0.1%
0.0%
0.0%
Current Account Balance Goods and Services Net Investment Income
*See appendix for sources and additional information.
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Economic Overview
Government Sector
Government Sector Finland Macroeconomic Activity Government Sector euros-billions 2001
2002
2003
2004
2005
Expenditures
37.60
34.90
37.00
36.70
36.50
Revenues
37.30
37.30
37.00
38.40
39.80
Deficit(-) or Surplus
-0.300
2.40
0.000
1.60
3.30
*See appendix for sources and additional information.
Government Sector - Graph
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Gross Domestic Product
Economic Overview
Gross Domestic Product Finland Macroeconomic Activity Gross Domestic Product euros-billions 2001
2002
2003
2004
2005
Private Consumption
67.9
71.1
74.9
77.7
81.4
Gross Fixed Capital Formation
27.7
26.6
25.9
27.9
29.0
Increase/Decrease(-) in Stocks
0.100
0.400
0.400
1.200
1.600
Government Consumption
28.4
30.3
31.7
32.9
35.0
Exports of Goods&Services
54.1
54.1
53.1
55.6
60.2
Imports of Goods&Services
42.8
42.4
43.0
47.2
54.6
Gross Domestic Product
135.5
139.8
143.4
149.7
155.3
GDP Growth Rate (%)
4.1%
3.2%
2.6%
4.4%
3.7%
*See appendix for sources and additional information.
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Economic Overview
Growth Rates: Real GDP, Population, Real GDP Per
Growth Rates: Real GDP, Population, Real GDP Per Capita - Graph
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Major Trading Partners
Economic Overview
Major Trading Partners Macroeconomic Activity Major Trading Partners ($US Millions) 2001
2002
2003
2004
2005
4,614
n.a.
3,210
n.a.
3,073
n.a.
1,398
n.a.
2,029
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Imports
Exports
*See appendix for sources and additional information.
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Economic Overview
Money Supply, Interest Rates, Foreign Exchange Re-
Money Supply, Interest Rates, Foreign Exchange Reserves Finland Macroeconomic Activity Money Supply, Interest Rates and Foreign ExchangeReserves 2001
2002
2003
2004
2005
Money Supply M1 (euros-billions)
39
41
45
46
49
Money Supply - M2 (euros-billions)
64
68
71
74
79
Growth Rate - M1 %
5.1%
5.0%
8.6%
3.8%
7.0%
Growth Rate - M2 %
5.1%
6.6%
3.7%
4.7%
6.5%
euro interbank rate (overnight)
4.40%
3.30%
2.30%
2.30%
2.00%
euro lending rate
5.80%
4.80%
4.20%
3.70%
3.50%
8
9
11
12
11
Interest Rates
Foreign Exchange Reserves ($US Millions)
*See appendix for sources and additional information.
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Price and Exchanges Rates
Economic Overview
Price and Exchanges Rates Finland Macroeconomic Activity Prices and Exchange Rates 2001
2002
2003
2004
2005
Consumer Prices Period Average 1995=100
102.6
104.2
105.1
105.3
106.2
Annual % Growth
2.6%
1.6%
0.9%
0.2%
0.9%
1.1000
1.1000
0.9000
0.8000
0.8000
0.00
0.00
0.00
0.00
2001
2002
2003
2004
2005
Real GDP (Millions of 1995$US)
118
120
123
128
130
Total Population (Millions-Mid Year Average)
5.18
5.18
5.2
5.21
5.22
Real GDP Per Capita (1995$US Per Capita)
22,749
23,215
23,677
24,482
24,953
Exchange Rate Period Average euros / $US Annual % Growth
*See appendix for sources and additional information.
Real GDP Per Capita Finland Macroeconomic Activity Real GDP Per Capita (Purchasing Power Parity Method)
*See appendix for sources and additional information.
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Trade Balance
Trade Balance Finland Macroeconomic Activity Trade Balance (Goods&Services), National Income Products Account ($US Millions) 2001
2002
2003
2004
2005
Exports
54
54
53
56
60
Imports
43
42
43
47
55
Trade Balance
11
12
10
8
6
*See appendix for sources and additional information.
Unemployment Rate - Graph
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Agricultural Exports
Economic Overview
Agricultural Exports Finland Key Sectors Agriculture/Food: Agricultural Exports ($1,000) 1997
1998
1999
2000
2001
Meats and Meat Prep
90,064
65,263
59,164
61,114
67,803
Cereals&Preps
209,480
150,921
104,423
105,140
157,520
Dairy Products and Eggs
260,330
248,127
213,409
259,521
250,366
Fruits and Vegetables
63,355
53,372
25,852
27,730
29,609
Beverages and Tobacco
130,974
124,861
97,925
76,590
77,632
Other Agricultural Exports
105,471
83,386
52,835
51,035
36,280
1,471,428
1,292,536
969,136
1,027,335
1,077,221
Total Exports
*See appendix for sources and additional information.
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Economic Overview
Agricultural Imports
Agricultural Imports Finland Key Sectors Agriculture/Food: Agricultural Imports ($1,000) 1997
1998
1999
2000
2001
Meats and Meat Prep
92,252
99,541
101,741
83,489
75,624
Cereals&Preps
199,742
225,071
224,021
201,588
177,892
Dairy Products and Eggs
99,557
101,415
96,779
86,671
87,212
Fruits and Vegetables
485,936
476,154
469,643
399,901
412,779
Beverages and Tobacco
211,030
235,618
252,032
238,154
255,532
Other Agricultural Imports
171,844
182,633
172,180
166,850
159,271
2,207,111
2,195,572
2,060,029
1,843,099
1,830,749
Total Imports
*See appendix for sources and additional information.
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Electric Power Sector Data
Economic Overview
Electric Power Sector Data Finland Key Sectors Energy: Electric Power Sector Data (Billions of KWH) 1997
1998
1999
2000
2001
Thermal
26.171
22.097
23.438
22.460
27.930
Hydro
12.120
14.900
12.652
14.510
13.070
Nuclear
19.038
20.760
21.841
21.360
21.630
Renewables
7.788
9.270
8.308
8.510
8.320
Total
65.117
67.027
66.239
66.826
71.200
Electricity Consumption
68.214
71.641
72.726
74.040
75.950
Electricity Imports
8.105
9.582
11.356
12.206
11.769
Electricity Exports
0.450
0.276
0.232
0.326
1.810
14,570.000
15,697.000
16,143.000
66.840
70.960
Electricity Production
Installed Capacity (MW)
*See appendix for sources and additional information.
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Finland Review 2007
Economic Overview
Fossil Fuel Reserves
Fossil Fuel Reserves Finland Key Sectors Energy: Fossil Fuel Reserves Fuel Coal*
Units
Value
mm st
0.000
tcf
0.000
billion bbl
0.000
Natural Gas** Oil**
* As of April 23, 2002 ** As of January 1, 2001 *See appendix for sources and additional information.
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Mining/Metals Production
Economic Overview
Mining/Metals Production Finland Manufacturing Mining/Metals: Production Commodity
Units
1997
1998
1999
2000
2001
Bauxite
0
0
0
0
0
Copper
8,500
9,000
10,500
10,500
14,354
0
0
0
0
0
3,900
5,000
5,900
4,951
5,552
0
0
0
0
0
0
0
0
0
0
3,252
1,967
70
3,347
2,200
Phosphates
690
716
724
750
750
Platinum
60
60
50
441
510
Silver
32
30
30
25
24
Tin
0
0
0
0
0
Zinc
30,800
30,700
20,000
30,493
36,253
Diamonds Gold Iron Ore Lead Nickle
MT 1000s
*See appendix for sources and additional information.
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Economic Overview
Production and Consumption of Energy (QUADS)
Production and Consumption of Energy (QUADS) Finland Key Sectors Energy: Production and Consumption of Primary Energy (Quads)
Coal
Hydro
Natural Gas
Nuclear
Petroleum
Renewables
Total
1997
1998
1999
2000
2001
Production
0.000
0.000
0.000
0.000
0.000
Consumption
0.197
0.145
0.145
0.146
0.169
Net Exports
-0.197
-0.145
-0.145
-0.146
-0.169
Production
0.126
0.155
0.132
0.148
0.135
Consumption
0.126
0.155
0.132
0.148
0.135
Net Exports
0.000
0.000
0.000
0.000
0.000
Production
0.000
0.000
0.000
0.000
0.000
Consumption
0.129
0.147
0.147
0.000
0.000
Net Exports
-0.129
-0.147
-0.147
0.000
0.000
Production
0.194
0.212
0.223
0.218
0.221
Consumption
0.194
0.212
0.223
0.218
0.221
Net Exports
0.000
0.000
0.000
0.000
0.000
Production
0.000
0.000
0.000
0.000
0.000
Consumption
0.457
0.435
0.447
0.430
0.430
Net Exports
-0.457
-0.435
-0.447
-0.430
-0.432
Production
0.081
0.096
0.086
0.089
0.088
Consumption
0.081
0.096
0.086
0.089
0.088
Net Exports
0.000
0.000
0.000
0.000
0.000
Production
0.401
0.463
0.441
0.457
0.447
Consumption
1.184
1.191
1.180
1.175
1.222
Net Exports
-0.783
-0.727
-0.739
-0.717
-0.775
*See appendix for sources and additional information.
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Production and Consumption of Energy (Standard Units)
Economic Overview
Production and Consumption of Energy (Standard Units) Finland Key Sectors Energy: Production and Consumption of Primary Energy (Standard Units)
Coal (mm st)
Hydro
Natural Gas
Nuclear
Petroleum
Renewables
1997
1998
1999
2000
2001
Production
0.000
0.000
0.000
0.000
0.000
Consumption
8.203
6.219
6.225
6.240
7.260
Net Exports
-8.203
-6.219
-6.225
-6.240
-7.260
Production
12.120
14.900
12.652
14.510
13.070
Consumption
12.120
14.900
12.652
14.510
13.070
Net Exports
0.000
0.000
0.000
0.000
0.000
Production
0.000
0.000
0.000
0.000
0.000
Consumption
126.710
144.933
144.933
148.000
161.000
Net Exports
-126.710
-144.933
-144.933
-148.290
-160.720
Production
19.038
20.760
21.841
21.360
21.630
Consumption
19.038
20.760
21.841
21.360
21.630
Net Exports
0.000
0.000
0.000
0.000
0.000
Production
0.000
0.000
0.000
8.280
7.800
Consumption
219.032
209.469
214.661
205.250
206.960
Net Exports
-219.032
-209.469
-214.661
-196.972
-199.164
Production
7.788
9.270
8.308
8.510
8.320
Consumption
7.788
9.270
8.308
8.510
8.320
Net Exports
0.000
0.000
0.000
0.000
0.000
*See appendix for sources and additional information.
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Economic Overview
Production from Key Industries
Production from Key Industries Finland Manufacturing Production From Key Industries 1997
1998
1999
2000
2001
455,200
445,800
434,700
91,340
89,770
n.a.
n.a.
n.a.
0
0
Veg. Oil and Fat
175,450
133,400
180,200
166,000
162,000
Wine
93,365
96,359
103,804
95,992
95,992
TOTAL
724,015
675,559
718,704
696,692
692,692
1995
1996
1997
1998
1999
907
975
905
903
900
0
0
0
0
0
Pig Iron
2,242
2,457
2,786
2,912
2,954
Raw Steel
3,180
3,301
3,687
3,947
3,956
5,422
5,758
6,473
6,859
6,910
Food
(MT)
Beer Raw Sugar
Cement
(MT 1000s)
Metals
(MT 1000s)
Aluminum
TOTAL
*See appendix for sources and additional information.
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Production of Meat
Economic Overview
Production of Meat Finland Key Sectors Agriculture/Food: Production of Meat (Metric Tons) Product
1998
1999
2000
2001
2002
Beef and Veal
93,760
90,480
1,984,800
1,786,000
1,738,700
Buffalo Meat
0
0
0
0
0
Camel Meat
0
0
0
0
0
Chicken Meat
61,050
66,100
64,380
75,650
82,573
Donkey Meat
0
0
0
0
0
Duck Meat
0
0
0
0
0
Game Meat
0
0
0
0
0
Goose Meat
0
0
0
0
0
Goat Meat
0
0
0
0
0
Horse Meat
480
410
390
364
340
Meat Nes
2,200
2,100
2,000
2,000
2,000
Mule Meat
0
0
0
0
0
1,180
910
750
670
640
184,520
181,860
172,790
175,760
184,240
Rabbit Meat
0
0
0
0
0
Turkey Meat
0
0
0
0
0
343,190
341,860
331,740
342,554
361,120
-0%
-3%
3%
5%
Mutton and Lamb Pig Meat
Total Production
Growth Rates (%)
-
*See appendix for sources and additional information.
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Economic Overview
Production of Primary Crops
Production of Primary Crops Finland Key Sectors Agriculture/Food: Production of Primary Crops (Metric Tons) Product
1998
1999
2000
2001
2002
0
0
0
0
0
1,316,200
1,567,700
0
0
0
COCOA BEANS
0
0
0
0
0
COCONUTS
0
0
0
0
0
COFFEE, GREEN
0
0
0
0
0
MAIZE
0
0
0
0
0
590,000
791,100
785,200
732,800
780,100
RICE, PADDY
0
0
0
0
0
SOYBEANS
0
0
0
0
0
SUGAR BEETS
897,200
1,172,100
1,046,000
1,070,200
1,066,300
SUGAR CANE
0
0
0
0
0
397,000
254,100
538,300
488,900
568,600
3,200,400
3,785,000
4,354,300
4,077,900
4,153,700
-
18%
15%
-6%
2%
BANANAS BARLEY
POTATOES
WHEAT
Total Production
Growth Rates (%)
*See appendix for sources and additional information.
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Telecommunications
Economic Overview
Telecommunications Finland Key Sectors Services: Telecommunications 1998
1999
2000
2001
2002
Main Lines (1000s)
2,842
2,850
2,849
2,806
2,726
Main Lines per 100 persons
55.1
55.2
55.121362
54.166652
52.493347
Mobile Cellular Subscribers
2,946,948
3,363,600
3,728,625
4,175,587
4,516,772
57
65
72
81
87
1996
1997
1998
1999
2000
Tourist Arrivals (1000s)
1,724
1,831
2,644
2,454
2,714
Tourist Expenditures Abroad ($US Millions)
2,393
2,270
2,063
2,021
1,406
International Tourist Receipts in this Country ($US Millions)
1,637
1,644
1,631
1,517
2,035
Mobile Cellular Subscribers per 100 persons
*See appendix for sources and additional information.
Tourism Finland Key Sectors Services: Tourism
*See appendix for sources and additional information.
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Transportation
Transportation Finland Key Sectors Services: Transportation 1995
1996
1997
1998
1999
8,562
8,731
9,575
10,714
n.a.
990
1,031
1,170
1,250
n.a.
Passenger-KM
3,184
3,254
3,376
3,377
3,415
Ton-KM
9,293
8,806
9,856
9,885
9,753
Clearances-Tons
132,879
135,650
148,366
150,969
154,700
Entrances-Tons
127,711
131,338
144,923
148,690
153,149
Registered-Tons
1,519
1,511
1,559
1,629
1,658
Air Traffic Passenger-KM Ton-KM
Rail Traffic
Ship Traffic
*See appendix for sources and additional information.
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World Agricultural Prices
Economic Overview
World Agricultural Prices World Key Sectors Agriculture/Food: World Agriculture Prices Product
1998
1999
2000
2001
2002
Banannas
$/mt
490.00
374.00
424.00
583.00
529.00
Barley
$/mt
106.36
109.55
109.09
109.55
133.00
Beef
$/mt
1,730.00
1,840.00
1,932.00
2,129.00
2,127.00
Chicken
$/mt
3,703.77
2,513.27
1,997.39
2,358.06
2,462.87
Cocoa
$/mt
1,680.00
1,140.00
n.a.
n.a.
n.a.
Coconut Oil
$/mt
658.00
737.00
450.30
318.10
421.00
Coffee
$/mt
2,980.00
2,290.00
n.a.
n.a.
n.a.
Fish Meal
$/mt
662.00
393.00
413.00
486.70
605.90
Lamb
$/mt
2,750.00
2,610.00
2,619.00
2,912.00
3,303.00
Maize
$/mt
102.00
90.00
88.50
89.50
99.30
Pork
$/mt
862.56
907.04
864.53
826.73
848.60
Potatoes
$/mt
114.76
114.76
110.82
112.99
110.24
Rice
$/mt
304.00
248.00
202.40
172.80
191.90
Soybeans
$/mt
243.00
202.00
211.80
195.80
212.70
Sugar
$/mt
490.00
470.00
n.a.
n.a.
n.a.
Wheat
$/mt
126.00
112.00
114.10
126.80
148.10
Wood(logs)
$/mt
117.44
135.56
n.a.
n.a.
n.a.
*See appendix for sources and additional information.
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World Energy Prices
World Energy Prices World Key Sectors Energy: World Energy Prices Commodity
Unit
1998
1999
2000
2001
2002
$/mmbtu
1.220
1.080
0.992
1.221
1.023
US Export FOB
$/mmbtu
1.430
1.380
1.250
1.700
1.510
US Utilities CIF
$/mmbtu
1.250
1.220
1.200
1.230
1.220
Brent
$/bbl
12.720
17.810
28.270
24.420
24.970
Dubai
$/bbl
12.120
17.160
26.080
22.710
23.720
US-RAC
$/bbl
12.220
17.510
28.230
24.350
24.930
US-WTI
$/bbl
14.350
19.240
30.330
25.920
26.090
$/kwh
0.045
0.044
0.046
0.051
0.049
$/mmbtu
2.420
2.130
3.860
4.060
3.050
$/mcf
2.910
3.080
4.230
4.340
2.990
$/mmbtu
2.090
2.270
4.310
3.960
3.350
$/mcf
1.960
2.190
3.690
4.120
2.800
Coal Australian Export FOB
Crude Oil
Electricity US Industrial
Natural Gas Europe Border LNG Japan US Henry Hub US Wellhead
*See appendix for sources and additional information.
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World Price Trends
Economic Overview
World Price Trends World Manufacturing World Price Trends Commodity
Units
1997
1998
1999
2000
2001
$/ton
73.49
76.46
78.27
78.56
76.50
Beer
2000=100
99.4
104.4
104.3
100.0
109.3
Raw Sugar
2000=100
69.9
74.9
95.3
100.0
91.9
Veg. Oil and Fat
2000=100
71.0
80.3
96.9
100.0
105.3
Wine
2000=100
102.6
100.2
94.2
100.0
107.5
$/lb
0.771
0.655
0.657
0.746
0.688
2000=100
107.4
105.0
97.1
100.0
93.5
Cement
Food
Metals Aluminum Steel Mill Products
*See appendix for sources and additional information.
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Chapter 4 Investment Overview
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Foreign Investment Climate
Investment Overview
Investment Overview Foreign Investment Climate Background Finland has a highly industrialized, largely free-market economy, with per capita output roughly that of the UK, France, Germany, and Italy. Its key economic sector is manufacturing (wood, metals, engineering, telecommunications, and electronics) industries. Trade is important, with exports equaling two-fifths of GDP. Finland excels in high-tech exports, e.g., mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining selfsufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Rapidly increasing integration with Western Europe (Finland was one of the 12 countries joining the European Economic and Monetary Union) will dominate the economic picture over the next several years. However, high unemployment remains a persistent problem. Foreign Investment Assessment Openness to Foreign Investment The Finnish government maintains a favorable attitude toward direct foreign investment. In 1993, laws restricting foreign ownership were abolished to confirm the already commonly accepted liberal treatment of foreign investments in Finland. Because of this liberalization, Finland's EU entry, the opening of former Soviet markets - creating opportunities for Finland to act as a gateway - and the economic recovery, foreign investments in Finland have accelerated in recent years.
There are some requirements that do not restrict foreign ownership but are necessary on legal grounds. In certain areas involving specific safety or health hazards or financial risks, specific conditions are laid down for carrying on trade. These regulated forms of trade are governed by Section III of the Trade Act as well as by specific legislation. A non-European Economic Area resident (person or company) operating in Finland must refer to the authorities to obtain a license or a notification when starting a business in the "regulated" forms of trade, including:
• banking and insurance, • nuclear energy related activities, • mining, • manufacturing and sale of medicinal substances, • dangerous chemicals and explosives, • private security services, • travel agencies, • restaurant and catering services.
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Supply of mandatory labor pension insurance and workers' compensation is possible only through a company established in Finland. This provision is designed to ensure compliance with social security legislation.
The Aaland Islands are an exception to common Finnish practice. Based on international agreements dating from 1921, property ownership and the right to conduct business are limited to only those individuals with particular right of domicile in the Aaland Islands. Transparency of Regulatory System The Trade Act, as well as specific legislation referred to in it, provides more detailed information on trade practices in Finland. Section V of the Trade Act names "regulated forms of trade" in which a non-EEA resident needs permission from the Ministry of Trade and Industry. Also, according to the Trade Act, everyone launching a business in Finland is obliged to submit a notice to the Trade Register, which is maintained by the National Board of Patents and Registration.
The Securities Market Act contains regulations on corporate disclosure procedures and requirements, responsibility for flagging share ownership, insider regulations and offenses, the issuing and marketing of securities, and trading. The law defines and takes into account new instruments, which have become common on financial markets, such as securities lending and repurchase agreements. Finnish legislation recognizes the same internationally common financial market contractual arrangements as legislation elsewhere in EU. Regulations concerning clearing of securities trades have been incorporated in the law since 1998. Clearing has become subject to licensing, and is supervised by the Financial Supervision Authority, which oversees the financial markets. The law defines the requirements of clearing parties and their mutual responsibilities. Clearing institutions are now subject to a minimum capital requirement of FIM30 ($5.7 million). The capital of a clearing member must be at least FIM10 ($1.9 million).
Finnish tax, labor, health and safety, and related laws and policies are largely neutral towards the efficient mobilization and allocation of investment. Finnish legislation does not normally influence regional distribution of investments except when specifically designed to do so, such as through regional incentive programs. Labor Force Total: 2.66 million estimated By occupation: agriculture and forestry 8%, industry 22%, construction 6%, commerce 14%, finance, insurance, and business services 10%, transport and communications 8%, public services 32% Agriculture and Industry Agriculture products: barley, wheat, sugar beets, potatoes, dairy cattle, fish Industries: metals and metal products, electronics, machinery and scientific instruments, shipbuilding, pulp and paper, foodstuffs, chemicals, textiles, clothing Import Commodities and Partners Commodities: foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains Partners: Germany 16.3%, Sweden 14.2%, Russia 11.6%, Netherlands 6.3%, Denmark 5.8%, UK 5.3%, France 4.4% Export Commodities and Partners Commodities: machinery and equipment, chemicals, metals; timber, paper, pulp Partners: Germany 11.8%, Sweden 9.9%, US 8.2%, UK 8%, Russia 7.5%, Netherlands 4.8% Telephone System
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Taxation
Investment Overview
Telephones- main lines in use: 2.45 million Telephones- mobile cellular: 4.7 million General Assessment: modern system with excellent service Domestic: digital fiber-optic fixed-line network and an extensive cellular network provide domestic needs International: country code - 358; 1 submarine cable (Finland Estonia Connection); satellite earth stations - access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean regions); note - Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden) Internet Internet Hosts: 1,219,173 Internet users: 2.65 million Roads, Airports, Ports and Harbors Railways: 5,851 km Highways: 78,197 km Ports and harbors: Hamina, Helsinki, Kokkola, Kotka, Loviisa, Oulu, Pori, Rauma, Turku, Uusikaupunki, Varkaus Airports: 148; w/paved runways: 75 Legal System and Considerations Finland has a civil law system based on Swedish law. The Finnish president may request the Supreme Court to review laws. The country also accepts compulsory ICJ jurisdiction albeit with reservations. Dispute Settlement In 1969, Finland became a member of the International Center for the Settlement of Investment Disputes (ICSID). There is no record of any significant investment dispute in the last three decades. Corruption Perception Ranking As reported by Transparency International, from the least to most corrupt countries (1-145) Finland ranks number 1, making it the least corrupt nation in the world (according to this index). Cultural Considerations In Finland, punctuality is the norm so be sure to be consistently punctual for both business meetings and social occasions. It is also important to note that dress is generally casual and should conform to the temperate climate. Business wear is more conservative; suits are the norm for both men and women. Women generally to be more restrained in regard to makeup and jewelry, opting for a more natural look than other parts of Europe. For More information see: United States' State Department Commercial Guide
Taxation The corporate income, capital gains, and branch tax rates are 28 percent. Dividends are subject to a 28 percent withholding tax, except, in some cases, when the dividends are paid to an EU-resident parent company. A 28 percent withholding tax on interest applies only to residents and is applied to bonds, debentures and bank deposits.
Finland replaced its turnover tax with a value-added tax in June 1994. While the change has had little effect on overall revenues, several areas not previously taxed or taxed at a lower rate, including many
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Stock Market
corporate and consumer services and construction, are now subject to the new VAT in conformity with EU practices. The government has kept the basic VAT rate at the same level as the old turnover tax, which is 22 percent. Foodstuffs are taxed at 17 percent. Sport facilities usage, medicines, books, cinemas, passenger transport services, hotel and other accommodation, entertainment performances, sporting events, zoos, museums, and other such events or institutions are taxed at eight percent. Other services, including health care, education, insurance, newspaper and periodical subscriptions and rentals are not subject to VAT. Agricultural and forestry products continue to be subject to different forms of taxation outside the VAT. A uniform tax rate of 28 percent on capital gains took effect in 1996, which includes dividends, rental income, insurance, savings, forestry income, and corporate profits. The sole exception was bank interest, where the tax rate was increased from 20 to 25 percent at the beginning of 1994.
In March 1997, EU commitments required the establishment of a tax border between the autonomously governed, but territorially Finnish, Aland Islands and the rest of Finland. As a result, the trade of goods and services between the rest of Finland and Aland Islands is now treated as if it were trade with a non-EU area. Even though, the Aland Islands are part of the EU, just as Finland is, Aland does not belong to the Unions tax area. This exception was drafted in order to protect the important shipping traffic and the tax-free sales when EU countries abandoned duty-free sales. The trade effect of this treatment is minimal since the Aland Islands are part of EFTA tariff area.
Stock Market By the end of the 1990s, the Helsinki Exchanges had 147 listed companies. Restrictions on foreign investment and ownership have been essentially abolished in the last few years, resulting in a huge increase of foreign capital.
There are no taxes on capital gains or interest income, but there is a withholding tax on dividends of 25 percent, unless specified under a bilateral tax treaty between the investor's country and Finland.
For more information on the Helsinki Exchanges, see URL: http://www.hex.fi/eng/marketinfo/index.html.
Partner Links CountryWatch Selected International Links
International Partner Links - to international business and country sites Regional Partners - by major world geographic regions
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Partner Links
Investment Overview
Country Partners - providing information on individual countries International Trade and Investment - for statistics, policies, regulations Business Magazines - to search archives and companies International News - from leading international business media Company and Country Reference - for background and historical development
International Partner Links
InternationalAffairs.com - Oxford Analytical InternationalAffairs.com
International BizTech network - Brint.com International Business & Technology: World Level: @Brint.com
Internet Resources for International Business - Columbia University Watson Library Business and Economics Internet Resources
International Business and Economics on the Web - Longwood College International Business Business and Economics Information
Foreign Economic Statistics on Web - University of Michigan Statistical Resources on the Web/Foreign Economics
International Business Sources on the WWW - Michigan State University
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Investment Overview
Partner Links
International Business Resources on the WWW
Virtual International and Business Sources - University of North Carolina New Vibes
International Trade and Business Links - University of British Columbia Center for International Business Studies
WebEc International Economic Data - University of Helsinki WebEc - Economic Data
Regional Partners
Asia-Pacific Far Eastern Economic Review Issues and Archives Far Eastern Economic Review
AsiaWeek Issues and archives - Time and CNN.com AsiaWeek.com | Archives | 2000
Asia Source Business & Economics - Asia Society AsiaSource: Business & Economics - A Resource of the Asia Society
Economics and Statistics - Asia Development Bank Economics and Statistics - ADB.org
Individual Economy Reports - APEC APEC - Member Economies
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Partner Links
Investment Overview
Asian Country Information
Asia/Pacific UN Statistics
Europe Economy and Finance - Eurostat Eurostat: Economy and Finance
Financial and Economic Statistics - European Central Bank ECB - European Central Bank
European Business Directory - EuroPages Europages: The European Business Directory
Central and Eastern Europe Business and Economic Resources - Gonzaga University CEESource
Business, Markets, Stocks, Currencies - Central and Eastern Europe Online Central Europe Online Investor Insight - Central Europe - Investor Insight
Latin America Latin America Network Information Center LANIC
Business News Americas Daily Business News from Latin America
Latin America Newsletters Political and Economic Information
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Investment Overview
Partner Links
Latin Focus - On Line Source to Economy LatinFocus
Political Database of the Americas A Political Database Covering the Americas
Economic Commission for Latin America (ECLAC) Statistics Statistics
Inter-American Development Bank (IADB) Research and Statistics Inter-American Development Bank: Research and Statistics
Latin World Country Information Latin America on the Net: Regions
Zona Latina Media and Marketing Zona Latina: The Latina America Media Site
Organization of America States (OAS) Information, News, Reports Organization of American States
Africa African Business and Economy African Business Information Services
All Africa On Line Business allAfrican.com: Business
African Business Network - International Finance Corporation The African Business Network
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Partner Links
Investment Overview
Lex Africa Business Guides Lex Africa: A Network of Laws Firms in Africa
Africa Business Website - MBendi Africa's Leading Business Website
News Africa On Line Business, News, and Culture
Africa Economic Analysis Headlines and Articles
Africa South of Sahara Business & Economy Africa South of the Sahara - Business & Economy
Middle East Arabia On Line and Business Directory Arabia.com
Arab Net Country Information ArabNet
Arab World On Line Country and Business Information Country Information
Middle East Economic Survey of Oil, Banking, Finance, Politics The Middle East Economic Survey
Euro Mediterranean Investment Guides
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Partner Links
Euromed Internet Forum on the Euro-Mediterranean Partnership
Doing Business in Arab Mid East Countries - Ali Middle Eastern Laws
Country Partners
Infonation - UN data comparisons by Country WebEC - Economics Data
Regions and Countries - World Bank The World Bank Group Countries and Regions
Business and Technology - BizTech - Brint.com International Business & Technology: Country Level: @Brint.com
Area and Ethnic Studies Country Information - Galileo Internet Resources Country Information
Destination Guides - Expedia.com Travel Information for the World Guide
PricewaterhouseCoopers Doing Business Guides Publications: PricewaterhouseCoopers: Global
Quick Tax Guides to 82 Countries - Deloitte Touche Deloitte Touche Tax
Doing Business in 141 Countries - Tax, Investment, Corporate Structure, Accounting - Ernst & Young
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Partner Links
Investment Overview
Ernst & Young's Doing Business In
Political, Economic, Business Reports - Economist Intelligence Unit EIU
Business Information on the Net - University of Strathclyde Business Information Sources on the Internet: Country Information
International Data Base - US Census Bureau International Data Base (IDB)
International Trade and Investment
Trade Statistics - US Office of Trade and Economic Analysis The Office of Trade and Economic Analysis
Web Resources for International Trade - Federation International Trade Associations FITA | International Trade Web Resources
International Trade Statistics - International Trade Center Infobases, Products, and Services
Global Statistics - United Nations, Agencies, Autonomous Organizations United Nations and International Statistics Programmes
OECD Statistics Industry Sectors, Economic, and Other
International Corporate Information
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Partner Links
Business Magazines
Business Week Issues and Archives The New York Times: BusinessWeek.com
Forbes Issues and Archives Forbes Magazine Archives
Fortune Issues and Archives FORTUNE.com
The Economist Issues and Archives The Economist
International News
Financial Times - FT.com Home
New York Times International The New York Times: International
Wall Street Journal Wall Street Journal Interactive Edition
Business News from Reuters Reuters | Breaking News from Around the Globe
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Partner Links
Investment Overview
BBC OnLine World News BBC Online WorldNews
World Business Review - BBC BBC World Service
CNN.com World News CNN.com - World News
Company and Country Reference
Companies and Industries - Hoovers On Line Hoover's Online - Companies & Industries
Companies - Annual Reports Library The Annual Report Library
Countries - Brittanica.com Brittanica.com
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Partner Links
Chapter 5 Social Overview
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People
Social Overview
Social Overview People
Cultural Demography Today, there are approximately 5.2 million Finns, with an estimated population density of 17 inhabitants per square kilometer. About 65 percent of Finns live in towns or urban areas; 35 percent reside in rural areas. The main cities are the capital, Helsinki, Espoo, Tampere, Vantaa, Turku and Oulu. While the vast majority of the populace -- 93 percent -- are ethnic Finns, ethnic Swedes, Sami or Lapps, Roma, and Tatars are also resident. A small number of Somalian refugees have also made Finland their home. Ethnic Swedes comprise approximately six (6) percent of the total population and are the most significant minority. The Finnish government estimates the Sami population at 6,500. Both Finnish and Swedish are official languages. Just over 93 percent of the populace speaks Finnish; close to six (6) percent speaks Swedish. About 1,700 people speak Sami, which is also sometimes called Lappish. A small number of Finns speak Russian. In terms of religious affiliation, approximately 89 percent of the population is Evangelical Lutheran; one percent is Greek Orthodox. The rest of the population offer no particular religious orientation.
Human Development According to year recent estimates, Finns have an average life expectancy at birth of 77.75 years of age (74 years of age for males, 81.5 years of age for females). The infant mortality rate is 3.76 deaths per 1,000 live births. It is estimated that nearly 100 percent of the population, age 15 and older, can read and write. One notable measure used to determine a country's quality of life is the Human Development Index (HDI), which has been compiled annually since 1990 by the United Nations Development Programme (UNDP). The HDI is a composite of several indicators, which measure a country's achievements in three main arenas of human development: longevity, knowledge and education, as well as economic standard of living. In recent rankings of 177 countries, the HDI placed Finland in the high human development category at 13th place. Editor's Note: Although the concept of human development is complicated and cannot be properly captured by values and indices, the HDI, which is calculated and updated annually, offers a wide-ranging assessment of human development in certain countries, not based solely upon traditional economic and financial indicators.
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Human Development Index
Human Development Index Human Development Index (Ranked Numerically) from Human Development Report 2003
The Human Development Index (HDI) is used to measure quality of life in countries across the world. The HDI has been compiled since 1990 by the United Nations Development Programme (UNDP) on a regular basis. The HDI is a composite of several indicators, which measure a country's achievements in three main arenas of human development: longevity, education, and economic standard of living. Although the concept of human development is complicated and cannot be properly captured by values and indices, the HDI offers a wide-ranging assessment of human development in certain countries, not based solely upon traditional economic and financial indicators. For more information about the methodology used to calculate the HDI, please see the "Source Materials" in the appendices of this review.
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Human Development Index
Country
Social Overview
Rank
High Human Development Norway
1
Iceland
2
Australia
3
Luxembourg
4
Canada
5
Sweden
6
Switzerland
7
Ireland
8
Belgium
9
United States
10
Japan
11
Netherlands
12
Finland
13
Denmark
14
United Kingdom
15
France
16
Austria
17
Italy
18
New Zealand
19
Germany
20
Spain
21
Hong Kong
22
Israel
23
Greece
24
Singapore
25
Slovenia
26
Portugal
27
Korea, South
28
Cyprus
29
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Barbados
30
Czech Republic
31
Malta
32
Brunei
33
Argentina
34
Hungary
35
Poland
36
Chile
37
Estonia
38
Lithuania
39
Qatar
40
United Arab Emirates
41
Slovakia
42
Bahrain
43
Kuwait
44
Croatia
45
Uruguay
46
Costa Rica
47
Latvia
48
Saint Kitts & Nevis
49
Bahamas
50
Seychelles
51
Cuba
52
Mexico
53
Tonga
54
Bulgaria
55
Panama
56
Trinidad & Tobago
57
Medium Human Development Libya
58
Macedonia
59
Antigua
60
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Human Development Index
Social Overview
Malaysia
61
Russia
62
Brazil
63
Romania
64
Mauritius
65
Grenada
66
Belarus
67
Bosnia-Herzegovina
68
Colombia
69
Dominica
70
Oman
71
Albania
72
Thailand
73
Samoa
74
Venezuela
75
Saint Lucia
76
Saudi Arabia
77
Ukraine
78
Peru
79
Kazakhstan
80
Lebanon
81
Ecuador
82
Armenia
83
Philippines
84
China
85
Suriname
86
Saint Vincent & Grenadines
87
Paraguay
88
Tunisia
89
Jordan
90
Belize
91
Fiji
92
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Human Development Index
Sri Lanka
93
Turkey
94
Dominican Republic
95
Maldives
96
Turkmenistan
97
Jamaica
98
Iran
99
Georgia
100
Azerbaijan
101
West Bank and Gaza Strip
102
Algeria
103
El Salvador
104
Cape Verde
105
Syria
106
Guyana
107
Vietnam
108
Kyrgyzstan
109
Indonesia
110
Uzbekistan
111
Nicaragua
112
Bolivia
113
Mongolia
114
Moldova
115
Honduras
116
Guatemala
117
Vanuatu
118
Egypt
119
South Africa
120
Equatorial Guinea
121
Tajikistan
122
Gabon
123
Morocco
124
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Human Development Index
Social Overview
Namibia
125
Sao Tome & Principe
126
India
127
Solomon Islands
128
Myanmar
129
Cambodia
130
Botswana
131
Comoros
132
Laos
133
Bhutan
134
Pakistan
135
Nepal
136
Papua New Guinea
137
Ghana
138
Bangladesh
139
Sudan
141
Congo (RC)
142
Togo
143
Uganda
144
Zimbabwe
145 Low Human Development
Madagascar Swaziland
109
147
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Human Development Index
Cameroon
148
Lesotho
149
Djibouti
150
Yemen
151
Mauritania
152
Haiti
153
Kenya
154
Gambia
155
Guinea
156
Senegal
157
Nigeria
158
Rwanda
159
Angola
160
Eritrea
161
Benin
162
Cote d `Ivoire
163
Tanzania
164
Malawi
165
Zambia
166
Congo (DRC)
167
Mozambique
168
Burundi
169
Ethiopia
170
Central African Republic
171
Guinea-Bissau
172
Chad
173
Mali
174
Burkina Faso
175
Sierra Leone
176
Niger
177
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Status of Women
Social Overview
Status of Women
Coming soon..
Culture and Arts
Coming soon..
Etiquette 1. The handshake is the standard greeting for men and women. Friends, family and those who share some familiarity, however, do not use the handshake. Hugs and kisses are reserved for close relatives as Finns are generally not comfortable with gratuitous physical contact. Friendliness is better transmitted through the expression of a warm smile.
2. One should use the formal form of address such as Mr. or Mrs. followed by a surname, unless invited to move to a first name basis. Younger people are more apt to move to less formal forms of address quickly. Among men, it is common for last names alone to be used in forms of address. Outside the personal sphere, however, it is advisable that professional and governmental titles be used. In business, titles are used more rarely in verbal communication although they are customarily used in written communications.
3. If men wear hats or headwear, it should be removed when speaking to someone, especially a woman.
4. Direct eye contact is the norm during conversation, while speaking with one's hands in pockets in to be avoided. One should also avoid folding one's arms as this gesture is regarded as arrogant. Other common gestures include a toss of the head denoting "come here," but generally, the Finns do not use many gestures. As such, one should try to be restrained as well, avoiding gesticulation or excessive body language. (Naturally, this is simply a guide and should not dictate personal choices and behavior.)
5. Punctuality is the norm in this culture, so be sure to be consistently punctual for both business meetings and social occasions.
6. Finns tend to have fairly quiet dispositions. As such, one should avoid speaking loudly or indulging in any overt and flamboyant behavior. One should maintain a well-modulated tone when speaking. (Naturally, this is a generalization and should be regarded as such.)
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7. In conversation, sports, sightseeing, travel, politics and culture are considered to be good topics of conversation. While many political and social topics are open for discussion, one should avoid criticism of other peoples or systems. Inappropriate topics of conversation include personal topics. One should also note that Finns are not generally talkative and long periods of silence may be regarded as perfectly normal. (Again, as above, please regard this as a generalization with exceptions to be expected.)
8. If you are invited to a Finnish home, stand quietly outside the doorway to the entrance of the abode and wait to be asked in; once you are inside the home, check to see if the host has removed his/her shoes and do likewise, and wait again until you are asked to sit down. When you are sitting at the table, wait for the host's invitation to begin eating.
9. Dining is typically continental-style with the fork steadfastly held in the left hand and the knife in the right hand.
10. Initiate your own departure (usually around 10 p.m. during winter and 11 pm in the summer months), as your hosts will rarely do so.
11. In general, if one is invited for dinner, taking a gift is regarded as an appropriate gesture. Generally, most gifts should be wrapped. Suggested gifts include flowers (excluding lilies, carnations, white flowers or wreaths, all of which are associated with funerals), liqueurs, wine, liquor, or fine chocolates. Send a thank you note following the dinner to thank the host for the invitation and meal.
12. Dress is generally casual and should conform to the temperate climate. Business wear is more conservative; suits are the norm for both men and women. Women generally to be more restrained in regard to makeup and jewelry, opting for a more natural look than other parts of Europe. Useful links for students of culture: Foreign Language Phrases for Travelers http://www.travlang.com/languages/ National Anthems http://www.thenationalanthems.net/ Holidays Around the World http://www.earthcalendar.net/ International Recipes http://members.tripod.com/~GabyandAndy/Internation_Recipes.html http://www.world-recipes.info/
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Travel Information
International Travel Guide
Checklist for Travelers
1. Take out travel insurance to cover hospital treatment or medical evacuation. Overseas medical costs are expensive to most international travelers, where one's domestic, nationalized or even private health insurance plans will not provide coverage outside one's home country. Learn about "reciprocal insurance plans" that some international health care companies might offer. 2. Make sure that one's travel insurance is appropriate. If one intends to indulge in adventurous activities, such as parasailing, one should be sure that one is fully insured in such cases. Many traditional insurance policies do not provide coverage in cases of extreme circumstances. 3. Take time to learn about one's destination country and culture. Read and learn about the place one is traveling. Also check political, economic and socio-cultural developments at the destination by reading country-specific travel reports and fact sheets noted below. 4. Get the necessary visas for the country (or countries) one intends to visit - but be aware that a visa does not guarantee entry. A number of useful sites regarding visa and other entry requirements are noted below. 5. Keep in regular contact with friends and relatives back at home by phone or email, and be sure to leave a travel itinerary. 6. Protect one's personal information by making copies of one's passport details, insurance policy, travelers checks and credit card numbers. Taking copies of such documents with you, while leaving another collection copies with someone at home is also good practice for travelers. Taking copies of one's passport photograph is also recommended. 7. Stay healthy by taking all possible precautions against illness. Also, be sure to take extra supplies of prescription drugs along for the trip, while also taking time to pack general pharmaceutical supplies, such as aspirin and other such painkillers, bandages, stomach ailment medication, anti-inflammatory medication and anti-bacterial medication. 8. Do not carry illicit drugs. Understand that the punishment for possession or use of illegal drugs in some countries may be capital punishment. Make sure your prescription drugs are legal in the countries you plan to visit. 9. Know the laws of one's destination country and culture; be sure to understand the repercussions of breaking those laws and regulations. Often the transparency and freedoms of the juridical system at home is not consistent with that of one's destination country. Become aware of these complexities and subtleties before you travel.
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10. For longer stays in a country, or where the security situation is volatile, one should register one's self and traveling companions at the local embassy or consulate of one's country of citizenship. 11. Women should take care to be prepared both culturally and practically for traveling in a different country and culture. One should be sure to take sufficient supplies of personal feminine products and prescription drugs. One should also learn about local cultural standards for women, including norms of dressing. Be aware that it is simply inappropriate and unsafe for women to travel alone in some countries, and take the necessary precautions to avoid risk-filled situations. 12. If one is traveling with small children, one should pack extra supplies, make arrangements with the travel carrier for proper seating that would adequately accommodate children, infants or toddlers. Note also that whether one is male of female, traveling with children means that one's hands are thus not free to carry luggage and bags. Be especially aware that this makes one vulnerable to pickpockets, thieves and other sorts of crime. 13. Make proper arrangements for accommodations, well in advance of one's arrival at a destination. Some countries have limited accommodation, while others may have culturally distinctive facilities. Learning about these practicalities before one travels will greatly aid the enjoyment of one's trip. 14. Travel with different forms of currency and money (cash, traveler's checks and credit cards) in anticipation that venues may not accept one or another form of money. Also, ensuring that one's financial resources are not contained in one location, or by one person (if one is traveling with others) can be a useful measure, in the event that one loses a wallet or purse. 15. Find out about transportation in the destination country. In some places, it might be advisable to hire a local driver or taxi guide for safety reasons, while in other countries, enjoying one's travel experience may well be enhanced by renting a vehicle and seeing the local sights and culture independently. Costs may also be prohibitive for either of these choices, so again, prior planning is suggested.
Tips for Travelers
A passport is required. A visa is not required for tourist or business stays of up to 90 days.
In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.
Dual nationals may also be subject to other laws that impose special obligations on Finnish citizens.
Although the crime rate in Finland is low compared to the U.S. and most European countries, it has increased approximately 15 percent since 1998. However, Finland remains a relatively safe environment. Those visiting Finland are seldom victims of crime, but visitors should not be complacent regarding personal safety or the protection of valuables. The same precautions employed in your coun-
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try should be followed in Finland. Finnish police services are excellent. English. The telephone number for police and other emergency services throughout Finland is 112. All forms of public transportation are considered safe. Street crimes, such as muggings and pick-pocketing, remain relatively uncommon, but do occur. The loss or theft of a passport should be reported immediately to the local police and the appropriate embassy.
Medical facilities are widely available for emergency services. The public hospital system and many private hospitals honor foreign credit cards.
Consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. Many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations. When making a decision regarding health insurance, you should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation back to your country may be very expensive. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.
While in a foreign country, you may encounter road conditions that differ significantly from those in your country. The information below concerning Finland is provided for general reference only, and may not be totally accurate in a particular location or circumstance.
Safety of Public Transportation: Excellent Urban Road Condition/Maintenance: Excellent Rural Road Condition/Maintenance: Excellent Availability of Roadside Assistance: Excellent
Finland has an extensive network of highways throughout the country, as well as excellent public transportation services. Travelers should be aware that drunk driving laws are strict, and acceptable blood alcohol levels low. Police strictly enforce all traffic laws and institute random roadside Breathalyzer tests: those drivers who register a .05 or above alcohol content are subject to immediate arrest. Visitors should be familiar with both prior to operating a vehicle in Finland. Driving in Finland during the winter months can be hazardous. Icy road conditions are common. If driving in Finland, the vehicle must be winterized with studded snow tires and engine heaters are strongly recommended. When driving at night, drivers must be alert to moose wandering onto major roadways. There have been incidents of moose being struck by vehicles, causing severe damage to the vehicle and even death to the occupants.
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While in a foreign country, you are subject to that country's laws and regulations. Persons violating Finland's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Finland are strict and convicted offenders can expect jail sentences and heavy fines.
Note: This information is directly quoted from the United States Department of State Consular Information Sheet.
Sources: United States Department of State Consular Information Sheet
Business Culture: Information for Business Travelers
Finland is a modern, commercially mature country that enjoys close relations with its Nordic neighbors. Social and business protocol is similar to that of North America and Europe and requires no special mentions of taboos. It is worth noting that relationships are important within the social and business world as Finns prefer to deal with people they know and trust.
Sources: United States Department of State Commercial Guides
For more information on etiquette in Finland, please see our Cultural Etiquette page. Online Resources Regarding Entry Requirements and Visas
Foreign Entry Requirements for Americans from the United States Department of State http://travel.state.gov/foreignentryreqs.html
Visa Services for Non-Americans from the United States Department of State http://www.unitedstatesvisas.gov/ http://travel.state.gov/visa/visa_1750.html Visa Bulletins from the United States Department of State http://travel.state.gov/visa_bulletin.html Visa Waivers from the United States Department of State http://travel.state.gov/jvw.html Passport and Visa Information from the Government of the United Kingdom http://www.fco.gov.uk/travel/dynpage.asp?Page=402
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Visa Information from the Government of Australia http://www.dfat.gov.au/visas/index.html
Entry Requirements and Other Services for Travelers from the Government of Canada http://travel.state.gov/travel/cis_pa_tw/cis/cis_1082.html Online Visa Processing by Immigration Experts by VisaPro http://www.visapro.com
Sources: United States Department of State, United Kingdom Foreign and Commonwealth Office, Government of Australia: Department of Foreign Affairs and Trade, Government of Canada: Canada International
Useful Online Resources for Travelers
Your trip abroad http://travel.state.gov/travel/tips/brochures/brochures_1225.html A safe trip abroad http://travel.state.gov/travel/tips/safety/safety_1747.html Tips for expatriates abroad http://travel.state.gov/travel/living/residing/residing_1235.html Tips for students http://travel.state.gov/travel/living/studying/studying_1238.html http://travel.state.gov/travel/tips/brochures/brochures_1219.html Medical information for travelers http://travel.state.gov/travel/tips/health/health_1185.html US Customs Travel information http://www.customs.gov/xp/cgov/travel/ UK Travelers' Checklist
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http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1098377239217 Canadian Government's resources on traveling, living or working abroad http://www.voyage.gc.ca/Consular-e/living_menu-e.htm Plan a trip to an exotic location http://www.geopassage.com
Sources: United States Department of State; United States Customs Department, United Kingdom Foreign and Commonwealth Office, Government of Canada: Department of Foreign Affairs and International Trade
Other Practical Online Resources for Travelers
World Weather Forecasts http://www.intellicast.com/
Worldwide Time Zones and World Clock http://www.timeanddate.com/
International Currency Exchange Rates http://www.xe.com/ucc/
Banking and Financial Institutions Across the World http://www.123world.com/banks/index.html
International Credit Card or Automated Teller Machine (ATM) Locator http://international.visa.com/ps/services/atmnetwork.jsp http://www.mastercard.com/cardholderservices/atm/
Foreign Language Phrases for Travelers
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http://www.travlang.com/languages/
International Dialing Codes http://www.kropla.com/dialcode.htm
International Airport Codes http://www.ar-group.com/icaoiata.htm
International Internet Café Search Engine http://cybercaptive.com/
World Electric Power Information http://www.kropla.com/electric.htm
World Electric Power Guide http://www.kropla.com/electric2.htm
World Television Standards and Codes http://www.kropla.com/tv.htm
International Chambers of Commerce http://www.123world.com/chambers/index.html
Diplomatic and Consular Information
United States Diplomatic Posts Abroad http://usembassy.state.gov/ Resources for Finding Embassies and other Diplomatic Posts Across the World http://www.escapeartist.com/embassy1/embassy1.htm Travel and Tourism Information
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World Tourism Websites http://123world.com/tourism/
Safety and Security
United States Department of State Travel Warnings and Consular Information Sheets http://travel.state.gov/travel_warnings.html
United States Department of State Current Warnings http://travel.state.gov/warnings_list.html
United Kingdom Current Warnings and Travel Advice By Country http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029390590 United Kingdom Travel Fact Sheets By Country http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029394365#T1 Government of Canada Travel Reports By Country http://www.voyage.gc.ca/dest/ctry/new-en.asp#ctr Government of Canada Travel Warnings http://www.voyage.gc.ca/dest/sos/warnings-en.asp Government of Australia Travel Advice Reports By Country http://www.dfat.gov.au/consular/advice/index.html
Sources: United Kingdom Foreign and Commonwealth Office, the United States Department of State, the Government of Canada: Department of Foreign Affairs and International Trade, Government of Australia: Department of Foreign Affairs and Trade
Other Safety and Security Online Resources for Travelers
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Information on Terrorism from Government of Canada http://canada.gc.ca/wire/2001/09/110901-US_e.html
Information on Human Rights http://www.state.gov/g/drl/hr/
Government of the United Kingdom Resource on the Risk of Terrorism http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1044011304926 FAA Resource on Aviation Safety http://www.faa.gov/safety/ In-Flight Safety Information for Air Travel (by British Airways crew trainer, Anna Warman) http://www.warman.demon.co.uk/anna/inflight.html Hot Spots: Travel Safety and Risk Information http://www.airsecurity.com/hotspots/HotSpots.asp
Current Issues and Warnings by Government of United States http://travel.state.gov/travel/cis_pa_tw/pa/pa_1766.html http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html Sources: The United States Department of State, the United States Customs Department, the Federal Aviation Authority, Anna Warman's In-flight Website, Hot Spots Travel and Risk Information, the United Kingdom Foreign and Commonwealth Office, the Government
Diseases/Health
Health Information for Travelers to Finland The preventive measures you need to take while traveling in Western Europe depend on the areas you visit and the length of time you stay. For most areas of this region, you should observe health precautions similar to those that would apply while traveling in the United States.
Travelers' diarrhea, the number one illness in travelers, can be caused by viruses, bacteria, or parasites, which can contaminate food or water. Infections may cause diarrhea and vomiting (E. coli, Salmonella, cholera, and parasites), fever (typhoid fever and toxoplasmosis), or liver damage (hepatitis). Make sure your food and drinking water are safe. (See below.)
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A certificate of yellow fever vaccination may be required for entry into certain of these countries if you are coming from countries in tropical South America or sub-Saharan Africa. (There is no risk for yellow fever in Western Europe.) For detailed information, see Comprehensive Yellow Fever Vaccination Requirements ( http://www.cdc.gov/travel/yelfever.htm).
Tickborne encephalitis, a viral infection of the central nervous system, occurs chiefly in Central and Western Europe. Travelers are at risk who visit or work in forested areas during the summer months and who consume unpasteurized dairy products. The vaccine for this disease is not available in the United States at this time. To prevent tickborne encephalitis, as well as Lyme disease, travelers should take precautions to prevent tick bites (see below).
CDC Recommends the Following Vaccines (as Appropriate for Age):
See your doctor at least 4-6 weeks before your trip to allow time for shots to take effect.
• Hepatitis A or immune globulin (IG). You are not at increased risk in Northern, Western, and Southern Europe, including the Mediterranean regions of Italy and Greece. • Hepatitis B, if you might be exposed to blood (for example, health-care workers), have sexual contact with the local population, stay longer than 6 months in Southern Europe, or be exposed through medical treatment. • As needed, booster doses for tetanus-diphtheria. Hepatitis B vaccine is now recommended for all infants and for children ages 11-12 years who did not complete the series as infants.
All travelers should take the following precautions, no matter the destination:
• Wash hands often with soap and water. • Because motor vehicle crashes are a leading cause of injury among travelers, walk and drive defensively. Avoid travel at night if possible and always use seat belts. • Always use latex condoms to reduce the risk of HIV and other sexually transmitted diseases. • Don't eat or drink dairy products unless you know they have been pasteurized. • Don't share needles with anyone. • Never eat undercooked ground beef and poultry, raw eggs, and unpasteurized dairy products. Raw shellfish is particularly dangerous to persons who have liver disease or compromised immune systems.
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(Travelers to Western Europe should also see the information on Bovine Spongiform Encephalopathy ["Mad Cow Disease"] and New Variant Creutzfeldt-Jakob Disease [nvCJD] at URL http://www.cdc.gov/travel/madcow.htm.)
Travelers to rural or undeveloped areas should take the following precautions:
To Stay Healthy, Do:
• Drink only bottled or boiled water, or carbonated (bubbly) drinks in cans or bottles. Avoid tap water, fountain drinks, and ice cubes. If this is not possible, make water safer by BOTH filtering through an "absolute 1-micron or less" filter AND adding iodine tablets to the filtered water. "Absolute 1-micron filters" are found in camping/outdoor supply stores. • Eat only thoroughly cooked food or fruits and vegetables you have peeled yourself. Remember: boil it, cook it, peel it, or forget it. • Protect yourself from insects by remaining in well-screened areas, using repellents (applied sparingly at 4-hour intervals), and wearing long-sleeved shirts and long pants tucked into boots or socks as a deterrent to ticks. • To prevent fungal and parasitic infections, keep feet clean and dry, and do not go barefoot.
To Avoid Getting Sick:
• Don't eat food purchased from street vendors. Do not drink beverages with ice. • Don't handle animals (especially monkeys, dogs, and cats), to avoid bites and serious diseases (including rabies and plague).
What You Need To Bring with You:
• Insect repellent containing DEET (diethylmethyltoluamide), in 30%-35% strength for adults and 6%10% for children. The insecticide permethrin applied to clothing is an effective deterrent to ticks. • Over-the-counter antidiarrheal medicine to take if you have diarrhea. • Iodine tablets and water filters to purify water if bottled water is not available. See Food and Water Precautions and Travelers' Diarrhea Prevention ( http://www.cdc.gov/travel/foodwatr.htm ) and Risks from Food and Drink ( http://www.cdc.gov/travel/food-drink-risks.htm ) for more detailed information about water filters.
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• Sunblock, sunglasses, hat. • Prescription medications: make sure you have enough to last during your trip, as well as a copy of the prescription(s).
After You Return Home:
If you become ill after your trip-even as long as a year after you return-tell your doctor where you have traveled.
For More Information:
Ask your doctor or check the CDC web sites for more information about how to protect yourself against diseases that occur in Western Europe, such as:
For information about diseases-
Carried by Insects Lyme disease
Carried in Food or Water Bovine spongiform encephalopathy ("mad cow disease"),Escherichia coli, diarrhea, Hepatitis A, Typhoid Fever
Person-to-Person Contact Hepatitis B, HIV/AIDS
For more information about these and other diseases, please check the Diseases ( http://www.cdc.gov/travel/diseases.htm) section and the Health Topics A-Z ( http://www.cdc.gov/health/diseases.htm).
Note:
Finland is located in the Western Europe health region.
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Sources:
The Center for Disease Control Destinations Website: http://www.cdc.gov/travel/destinat.htm
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Chapter 6 Environmental Overview
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Environmental Overview Environmental Issues
General Overview: Finland possesses one of the highest proportions of forestland in Europe, and has been a world leader in land protection and conservation. Current Issues: -air pollution from manufacturing and industrial emissions -acid rain from power plant emissions -water pollution from industrial wastes and agricultural chemicals -habitat loss and the consequent threat to wildlife populations Total Greenhouse Gas Emissions (Mtc):
18.8 Country Rank (GHG output):
58th Natural Hazards:
N/A
Environmental Policy Regulation and Jurisdiction: The regulation and protection of the environment in Finland is under the jurisdiction of the following: Ministry of the Environment Ministry of Agriculture and Forestry Forest and Park Service National Board of Waters and the Environment Finnish Environment Agency
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Environmental Policy
Major Non-Governmental Organizations: Helsinki Zoo Maailman Luonnon Säätiö Suomen Rahasto (Worldwide Fund for Nature - Finland ) International Environmental Accords: Party to: Air Pollution Air Pollution-Nitrogen Oxides Air Pollution-Persistent Organic Pollutants Air Pollution-Sulfur 85 Air Pollution-Sulfur 94 Air Pollution-Volatile Organic Compounds Antarctic-Environmental Protocol Antarctic-Marine Living Resources Antarctic Treaty Biodiversity Climate Change Climate Change-Kyoto Protocol Desertification Endangered Species Environmental Modification Hazardous Wastes Law of the Sea Marine Dumping Marine Life Conservation Nuclear Test Ban Ozone Layer Protection Ship Pollution Tropical Timber 83 Tropical Timber 94 Wetlands Whaling Signed but not ratified: None Kyoto Protocol Status (year ratified): 2002
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Energy Profile Oil Production: 0 bbl/day Oil Consumption: 211,400 bbl/day Oil Imports: 318,300 bbl/day Net Oil Exports: 101,000 bbl/day Oil Reserves: N/A Natural Gas Production: 0 cu m Natural Gas Consumption: 4.557 billion cu m Natural Gas Imports: 4.567 billion cu m Net Natural Gas Exports: 0 cu m Natural Gas Reserves: N/A Electricity Production: 71.59 billion kWh Electricity Consumption: 78.58 billion kWh Electricity Consumption per Capita (kWh): 15,687 Electricity Imports: 13.5 billion kWh Electricity Exports:
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Global Environmental Snapshot
1.5 billion kWh
Global Environmental Snapshot Introduction
The countries of the world face many environmental challenges in common. Nevertheless, the nature and intensity of problem vary from region to region, as do various countries' respective capacities, in terms of affluence and infrastructure, to remediate threats to environmental quality.
Consciousness of perils affecting the global environment came to the fore in the last third or so of the 20th century has continued to intensify well into the new millennium. According to the United Nations Environment Programme, considerable environmental progress has been made at the level of institutional developments, international cooperation accords, and public participation. Approximately twodozen international environmental protection accords with global implications have been promulgated since the late 1970s under auspices of the United Nations and other international organizations, together with many additional regional agreements. Attempts to address and rectify environmental problems take the form of legal frameworks, economic instruments, environmentally sound technologies and cleaner production processes as well as conservation efforts. Environmental impact assessments have increasingly been applied across the globe.
Environmental degradation affects the quality, or aesthetics, of human life, but it also displays potential to undermine conditions necessary for the sustainability of human life. Attitudes toward the importance of environmental protection measures reflect ambivalence derived from this bifurcation. On one hand, steps such as cleaning up pollution, dedicating parkland, and suchlike, are seen as embellishments undertaken by wealthy societies already assured they can successfully perform those functions deemed, ostensibly, more essential-for instance, public health and education, employment and economic development. On the other hand, in poorer countries, activities causing environmental damagefor instance the land degradation effects of unregulated logging, slash-and-burn agriculture, overgrazing, and mining-can seem justified insofar as such activities provide incomes and livelihoods.
Rapid rates of resource depletion are associated with poverty and high population growth, themselves correlated, whereas consumption per capita is much higher in the most developed countries, despite these nations' recent progress in energy efficiency and conservation. It is impossible to sequester the global environmental challenge from related economic, social and political challenges.
First-tier industrialized countries have recently achieved measurable decreases in environmental pollution and the rate of resource depletion, a success not matched in middle income and developing countries. It is believed that the discrepancy is due to the fact that industrialized countries have more developed infrastructures to accommodate changes in environmental policy, to apply environmental technologies, and to invest in public education. The advanced industrialized countries incur relatively
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lower costs in alleviating environmental problems, in comparison to developing countries, since in the former even extensive environmental programs represent a rather minuscule percentage of total expenditures. Conversely, budget constraints, lagged provision of basic services to the population, and other factors such as debt service and militarization may preclude institution of minimal environmental protection measures in the poorest countries.
A synopsis for the current situation facing each region of the world follows:
Regional Synopsis: Africa
The African continent, the world's second-largest landmass, encompasses many of the world's least developed countries. By global standards, urbanization is comparatively low but rising at a rapid rate. More heavily industrialized areas at the northern and southern ends of the continent experience the major share of industrial pollution. In other regions the most serious environmental problems typically stem from inefficient subsistence farming methods and other forms of land degradation, which have affected an increasingly extensive area under pressure of a widely impoverished, fast-growing population. Africa's distribution of natural resources is very uneven. It is the continent at greatest risk of desertification, especially in the Sahel region at the edge of the Sahara but also in other dry-range areas. Yet at the same time, Africa also harbors some of the earth's richest and most diverse biological zones.
Key Points:
Up to half a billion hectares of African land are moderately to severely degraded, an occurrence reflecting short-fallow shifting cultivation and overgrazing as well as a climatic pattern of recurrent droughts.
Soil degradation is severe along the expanse directly south of the Sahara, from the west to the east coasts. Parts of southern Africa, central-eastern Africa, and the neighboring island of Madagascar suffer from serious soil degradation as well.
Africa contains about 17 percent of the world's forest cover, concentrated in the tropical belt of the continent. Many of the forests, however, are severely depleted, with an estimated 70 percent showing some degree of degradation.
Population growth has resulted in continuing loss of arable land, as inefficient subsistence farming techniques affect increasingly extensive areas. Efforts to implement settled, sustainable agriculture have met with some recent success, but much further progress in this direction is needed. Especially in previously uninhabited forestlands, concern over deforestation is intensifying.
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By contrast, the African savanna remains the richest grassland in the world, supporting a substantial concentration of animal and plant life. Wildlife parks are sub-Saharan Africa's greatest tourist attraction, and with proper management-giving local people a stake in conservation and controlling the pace of development-could greatly enhance African economies.
Significant numbers of mammal species in parts of northern, southern and eastern Africa are currently threatened, while the biological diversity in Mauritania and Madagascar is even further compromised with over 20 percent of the mammal species in these two countries currently under threat.
With marine catch trends increasing from 500,000 metric tons in the 1950s to over 3,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.
Water resource vulnerability is a major concern in northeastern Africa, and a moderate concern across the rest of the continent. An exception is central Africa, which has plentiful water supplies.
Many Africans lack adequate access to resources, not just (if at all) because the resources are unevenly distributed geographically, but also through institutional failures such as faulty land tenure systems or political upheaval. The quality of Africa's natural resources, despite their spotty distribution, is in fact extraordinarily rich. The infrastructure needed to protect and benefit from this natural legacy, however, is largely lacking.
Regional Synopsis: Asia and the Pacific
Asia-earth's largest landmass-and the many large and nearly innumerable small islands lying off its Pacific shore display extraordinarily contrasting landscapes, levels of development, and degrees of environmental stress. In the classification used here, the world's smallest continent, Australia, is also included in the Asia-Pacific region.
The Asia-Pacific region is home to 9 of the world's 14 largest urban areas, and as energy use for utilities, industry and transport increases in developing economies, urban centers are subject to worsening air quality. Intense population density in places such as Bangladesh or Hong Kong is the quintessential image many people have of Asia, yet vast desert areas such as the Gobi and the world's highest mountain range, the Himalayas, span the continent as well. Forested areas in Southeast Asia and the islands of Indonesia and the Philippines were historically prized for their tropical hardwood, but in many places this resource is now severely depleted. Low-lying small island states are extremely vulnerable to the effects of global warming, both rising sea levels and an anticipated increase in cyclones.
Key Points:
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Asian timber reserves are forecast to be depleted in the next 40 years. Loss of natural forest is irreversible in some areas, but plantation programs to restore tree cover may ameliorate a portion of the resulting land degradation.
Increased usage of fossil fuels in China and other parts of southern Asia is projected to result in a marked increase in emissions, especially in regard to carbon dioxide. The increased usage of energy has led to a marked upsurge in air pollution across the region.
Acidification is an emerging problem regionally, with sulfur dioxide emissions expected to triple by 2010 if the current growth rate is sustained. China, Thailand, India, and Korea seem to be suffering from particularly high rates of acid deposition. By contrast, Asia's most highly developed economy, Japan, has effected substantial improvements in its environmental indicators.
Water pollution in the Pacific is an urgent concern since up to 70 percent of the water discharged into the region's waters receives no treatment. Additionally, the disposal of solid wastes, in like manner, poses a major threat in a region with many areas of high population density.
The Asia-Pacific region is the largest expanse of the world's land that is adversely affected by soil degradation.
The region around Australia reportedly suffers the largest degree of ozone depletion.
The microstates of the Pacific suffer land loss due to global warming, and the consequent rise in the levels of ocean waters. A high-emissions scenario and anthropogenic climate impact at the upper end of the currently predicted range would probably force complete evacuation of the lowest-elevation islands sometime in this century.
The species-rich reefs surrounding Southeast Asia are highly vulnerable to the deleterious effects of coastal development, land-based pollution, over-fishing and exploitative fishing methods, as well as marine pollution from oil spills and other activities.
With marine catch trends increasing from 5,000,000 metric tons in the 1950s to over 20,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.
Significant numbers of mammal species in parts of China and south-east Asia are currently threatened, while the biological diversity in India, Japan, Australia, the Philippines, Indonesia and parts of Malaysia is even further compromised with over 20 percent of the mammal species in these countries currently under threat.
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Water resource vulnerability is a serious concern in areas surrounding the Indian subcontinent.
Regional Synopsis: Central Asia
The Central Asian republics, formerly in the Soviet Union, experience a range of environmental problems as the result of poorly executed agricultural, industrial, and nuclear programs during the Soviet era. Relatively low population densities are the norm, especially since upon the breakup of the U.S.S.R. many ethnic Russians migrated back to European Russia. In this largely semi-arid region, drought, water shortages, and soil salinization pose major challenges.
Key Points:
The use of agricultural pesticides, such as DDT and other chemicals, has contributed to the contamination of soil and groundwater throughout the region.
Land and soil degradation, and in particular, increased salinization, is mostly attributable to faulty irrigation practices.
Significant desertification is also a problem in the region.
Air pollution is prevalent, mostly due to use of low octane automobile fuel.
Industrial pollution of the Caspian Sea and the Aral Sea, as a result of industrial effluents as well as mining and metal production, presents a challenge to the countries bordering these bodies of water.
One of the most severe environmental problems in the region is attributable to the several billion tons of hazardous materials stored in landfills across Central Asia.
Uzbekistan's particular problem involves the contraction of the Aral Sea, which has decreased in size by a third, as a consequence of river diversions and poor irrigation practices. The effect has been the near-total biological destruction of that body of water.
Kazakhstan, as a consequence of being the heartland of the former Soviet Union's nuclear program, has incurred a high of cancerous malignancies, biogenetic abnormalities and radioactive contamination.
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While part of the Soviet Union, the republics in the region experienced very high levels of greenhouse gas emissions, as a consequence of rapid industrialization using cheap but dirty energy sources, especially coal.
By contrast, however, there have recently been substantial reductions in the level of greenhouse gas emissions, especially those attributable to coal burning, with further decreases anticipated over the next decade. These changes are partially due to the use of cleaner energy technologies, such as natural gas, augmented by governmental commitment to improving environmental standards.
Regional Synopsis: Europe
Western Europe underwent dramatic transformation of its landscape, virtually eliminating large-scale natural areas, during an era of rapid industrialization, which intensified upon its recovery from World War II. In Eastern Europe and European Russia, intensive land development has been less prevalent, so that some native forests and other natural areas remain. Air and water pollution from use of dirty fuels and industrial effluents, however, are more serious environmental problems in Eastern than in Western Europe, though recent trends show improvement in many indicators. Acid rain has inflicted heavy environmental damage across much of Europe, particularly on forests. Europe and North America are the only regions in which water usage for industry exceeds that for agriculture, although in Mediterranean nations agriculture is the largest water consumer.
Key Points:
Europe contributes 36 percent of the world's chlorofluorocarbon emissions, 30 percent of carbon dioxide emissions, and 25 percent of sulfur dioxide emissions.
Sulfur and nitrogen oxide emissions are the cause of 30 to 50 percent of Central and Eastern Europe's deforestation.
Acid rain has been an environmental concern for decades and continues to be a challenge in parts of Western Europe.
Overexploitation of up to 60 percent of Europe's groundwater presents a problem in industrial and urban areas.
With marine catch trends increasing from 5,000,000 metric tons in the 1950s to over 20,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.
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Significant numbers of mammal species in parts of western Europe, Eastern Europe and Russia are currently threatened, while the biological diversity on the Iberian Peninsula is even further compromised with over 40 percent of the mammal species in this region currently under threat. As a result, there has been a 10 percent increase in protected areas of Europe.
A major environmental issue for Europe involves the depletion of various already endangered or threatened species, and most significantly, the decline of fish stocks. Some estimates suggest that up to 50 percent of the continent's fish species may be considered endangered species. Coastal fisheries have been over-harvested, resulting in catch limits or moratoriums on many commercially important fish species.
Fortunately, in the last few years, these policies have started to yield measurable results with decreasing trends in marine fish catch.
Recently, most European countries have adopted cleaner production technologies, and alternative methods of waste disposal, including recycling.
The countries of Eastern Europe have made air quality a major environmental priority. This is exemplified by the Russian Federation's addition to the 1995 "Berlin Mandate" (transnational legislation based on resolutions of the Rio Earth Summit) compelling nations to promote "carbon sinks" to absorb greenhouse gases.
On a relative basis, when compared with the degree of industrial emissions emitted by many Eastern European countries until the late 1980s, there has been some marked increase in air quality in the region, as obsolete plants are closed and a transition to cleaner fuels and more efficient energy use takes place.
Regional Synopsis: The Middle and Near East Quite possibly, the Middle East will exemplify the adage that, as the 20th century was a century fixated on oil, the 21st century will be devoted to critical decisions about water. Many (though far from all) nations in the Middle East rank among those countries with the largest oil and gas reserves, but water resources are relatively scarce throughout this predominantly dry region. Effects of global warming may cause moderately high elevation areas that now typically receive winter "snowpack" to experience mainly rain instead, which would further constrain dry-season water availability. The antiquities and religious shrines of the region render it a great magnet for tourism, which entails considerable economic growth potential but also intensifies stresses on the environment.
Key Points:
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Water resource vulnerability is a serious concern across the entire region. The increased usage of, and further demand for water, has exacerbated long-standing water scarcity in the region. For instance, river diversions and industrial salt works have caused the Dead Sea to shrink by one-third from its original surface area, with further declines expected.
The oil industry in the region contributes to water pollution in the Persian Gulf, as a result of oil spills, which have averaged 1.2 million barrels of oil spilt per year (some sources suggest that this figure is understated). The consequences are severe because even after oil spills have been cleaned up, environmental damage to the food webs and ecosystems of marine life will persist for a prolonged period.
The region's coastal zone is considered one of the most fragile and endangered ecosystems of the world. Land reclamation, shoreline construction, discharge of industrial effluents, and tourism (such as diving in the Red Sea) contribute to widespread coastal damage.
Significant numbers of mammal species in parts of the Middle East are currently threatened.
Since the 1980s, 11 percent of the region's natural forest has been depleted.
Regional Synopsis: Latin America and the Caribbean
The Latin American and Caribbean region is characterized by exceedingly diverse landforms that have generally seen high rates of population growth and economic development in recent decades. The percentage of inhabitants residing in urban areas is quite high at 73.4 percent; the region includes the megacities of Mexico City, Sao Paulo, and Rio de Janeiro. The region also includes the world's secondhighest mountain range, the Andes; significant expanses of desert and grassland; the coral reefs of the Caribbean Sea; and the world's largest contiguous tropical forest in the Amazon basin. Threats to the latter from subsistence and commercial farming, mineral exploitation and timbering are well publicized. Nevertheless, of eight countries worldwide that still retain at least 70 percent of their original forest cover, six are in Latin America. The region accounts for nearly half (48.3 percent) of the world's greenhouse gas emissions derived from land clearing, but as yet a comparatively minuscule share (4.3 percent) of such gases from industrial sources.
Key Points:
Although Latin America is one of the most biologically diverse regions of the world, this biodiversity is highly threatened, as exemplified by the projected extinction of up to 100,000 species in the next few decades. Much of this loss will be concentrated in the Amazon area, although the western coastline of South America will also suffer significant depletion of biological diversity. The inventory of rainforest species with potentially useful commercial or medical applications is incomplete, but presumed to include significant numbers of such species that may become extinct before they are discovered and identified.
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Up to 50 percent of the region's grazing land has lost its soil fertility as a result of soil erosion, salinization, alkalinization and overgrazing.
The Caribbean Sea, the Atlantic Ocean, and the Pacific Ocean have all been contaminated by agricultural wastes, which are discharged into streams that flow into these major waters. Water pollution derived from phosphorous, nitrates and pesticides adversely affects fish stocks, contributes to oxygen depletion and fosters overgrowth of aquatic vegetation. Marine life will continue to be severely compromised as a result of these conditions.
Due to industrial development in the region, many beaches of eastern Latin America and the Caribbean suffer from tar deposits.
Most cities in the region lack adequate sewage treatment facilities, and rapid migration of the rural poor into the cities is widening the gap between current infrastructure capacity and the much greater level needed to provide satisfactory basic services.
The rainforest region of the Amazon Basin suffers from dangerously high levels of deforestation, which may be a significant contributory factor to global warming or "the greenhouse effect." In the late 1990s and into the new millennium, the rate of deforestation was around 20 million acres of rainforest being destroyed annually.
Deforestation on the steep rainforest slopes of Caribbean islands contributes to soil erosion and landslides, both of which then result in heavy sedimentation of nearby river systems. When these sedimented rivers drain into the sea and coral reefs, they poison the coral tissues, which are vital to the maintenance of the reef ecosystem. The result is marine degradation and nutrient depletion. Jamaica's coral reefs have never quite recovered from the effects of marine degradation.
The Southern Cone of Latin America (Argentina, Brazil, Chile, Paraguay, and Uruguay) suffers the effects of greatly increased ultraviolet-B radiation, as a consequence of more intense ozone depletion in the southern hemisphere.
Water resource vulnerability is an increasingly major concern in the northwestern portion of South America.
Regional Synopsis: North America
North American nations, in particular the United States and Canada, rank among the world's most highly developed industrial economies-a fact which has generated significant pollution problems, but
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also financial resources and skills that have enabled many problems to be corrected. Although efforts to promote energy efficiency, recycling, and suchlike have helped ease strains on the environment in a part of the world where per capita consumption levels are high, sprawling land development patterns and recent preferences many households have demonstrated for larger vehicles have offset these advances.
Meanwhile, a large portion of North America's original forest cover has been lost, though in many cases replaced by productive second-growth woodland. In recent years, attitudes toward best use of the region's remaining natural or scenic areas seem to be shifting toward recreation and preservation and away from resource extraction. With increasing attention on the energy scarcity in the United States, however, there is speculation that this shift may be short-lived. Indeed, the energy shortage on the west coast of the United States and associated calls for energy exploration, indicate a possible retrenchment toward resource extraction. At the same time, however, it has also served to highlight the need for energy conservation as well as alternative energy sources.
Despite generally successful anti-pollution efforts, various parts of the region continue to suffer significant air, water and land degradation from industrial, vehicular, and agricultural emissions and runoff. Mexico, as a middle-income country, displays environmental problems characteristic of a developing economy, including forest depletion, pollution from inefficient industrial processes and dirty fuels, and lack of sufficient waste-treatment infrastructure.
Key Points:
Because of significantly greater motor vehicle usage in the United States (U.S.) than in the rest of the world, the U.S. contribution of urban air pollution and greenhouse gas emissions, especially carbon dioxide, is disproportionately high in relation to its population.
Acid rain is an enduring issue of contention in the northeastern part of the United States, on the border with Canada.
Mexico's urban areas suffer extreme air pollution from carbon monoxide, nitrogen oxides, sulfur dioxide, and other toxic air pollutants. Emissions controls on vehicles are in their infancy, compared to analogous regulations in the U.S.
The cities of Mexico, including those on the U.S. border, also discharge large quantities of untreated or poorly treated sewage, though officials are currently planning infrastructure upgrades.
Deforestation is noteworthy in various regions of the U.S., especially along the northwest coastline. Old growth forests have been largely removed, but in the northeastern and upper midwestern sections of the United States, evidence suggests that the current extent of tree cover probably surpasses the figure for the beginning of the 20th century.
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Extreme weather conditions in the last few years have resulted in a high level of soil erosion along the north coast of California; in addition, the coastline itself has shifted substantially due to soil erosion and concomitant landslides.
Agricultural pollution-including nitrate contamination of well water, nutrient runoff to waterways, and pesticide exposure-is significant in various areas. Noteworthy among affected places are California's Central Valley, extensive stretches of the Midwest, and land in the Chesapeake Bay watershed.
Inland waterways, especially around the Great Lakes, have substantially improved their water quality, due to concentrated efforts at reducing water pollution by governmental, commercial and community representatives. Strict curbs on industrial effluents and near-universal implementation of sewage treatment are the chief factors responsible for this improvement.
A major environmental issue for Canada and the United States involves the depletion of various already endangered or threatened species, and most significantly, the decline of fish stocks. Coastal fisheries have been over-harvested, resulting in catch limits or moratoriums on many commercially important fish species. In the last few years, these policies have started to yield measurable results with decreasing trends in marine fish catch.
Due to the decay of neighboring ecosystems in Central America and the Caribbean, the sea surrounding Florida has become increasingly sedimented, contributing to marine degradation, nutrient depletion of the ecosystem, depletion of fish stocks, and diseases to coral species in particular.
Polar Regions
Key Points:
The significant rise in sea level, amounting 10 to 25 centimeters in the last 100 years, is due to the melting of the Arctic ice sheets, and is attributed to global warming.
The Antarctic suffers from a significant ozone hole, first detected in 1976. By 1985, a British scientific team reported a 40 percent decrease in usual regeneration rates of the ozone. Because a sustained increase in the amount of ultraviolet-B radiation would have adverse consequences upon all planetary life, recent environmental measures have been put into effect, aimed at reversing ozone depletion. These measures are projected to garner significant results by 2050.
Due to air and ocean currents, the Arctic is a sink for toxic releases originally discharged thousands of miles away. Arctic wildlife and Canada's Inuit population have higher bodily levels of contaminants such as PCB and dioxin than those found in people and animals in much of the rest of the world.
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Global Environmental Concepts 1. Global Warming and Greenhouse Gases
The Greenhouse Effect: In the early 19th century, the French physicist, Jean Fourier, contended that the earth's atmosphere functions in much the same way as the glass of a greenhouse, thus describing what is now understood as the "greenhouse effect." Put simply, the "greenhouse effect" confines some of the sun's energy to the earth, preserving some of the planet's warmth, rather than allowing it to flow back into space. In so doing, all kinds of life forms can flourish on earth. Thus, the "greenhouse effect" is necessary to sustain and preserve life forms and ecosystems on earth. In the late 19th century, a Swedish chemist, Svante Arrhenius, noticed that human activities, such as the burning of coal and other fossil fuels for heat, and the removal of forested lands for urban development, led to higher concentrations of greenhouse gases, like carbon dioxide and methane, in the atmosphere. This increase in the levels of greenhouse gases was believed to advance the "greenhouse effect" exponentially, and might be related to the trend in global warming.
In the wake of the Industrial Revolution, after industrial development took place on a large scale and the total human population burgeoned simultaneously with industrialization, the resulting increase in greenhouse gas emissions could, many scientists believe, be significant enough to have some bearing on climate. Indeed, many studies in recent years support the idea that there is a linkage between human activities and global warming, although there is less consensus on the extent to which this linkage may be relevant to environmental concerns.
That said, some scientists have argued that temperature fluctuations have existed throughout the evolution of the planet. Indeed, Dr. S. Fred Singer, the president of the Science and Environment Policy Project has noted that 3,000-year-old geological records of ocean sediment reveal changes in the surface temperature of the ocean. Hence, it is possible that climate variability is merely a normal fact of the planet's evolution. Yet even skeptics as to anthropogenic factors concur that any substantial changes in global temperatures would likely have an effect upon the earth's ecosystems, as well as the life forms that inhabit them.
The Relationship Between Global Warming and Greenhouse Gases:
A large number of climatologists believe that the increase in atmospheric concentrations of "greenhouse gas emissions," mostly a consequence of human activities such as the burning of fossil fuels, are
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contributing to global warming. The cause notwithstanding, the planet has reportedly warmed 0.3°C to 0.6°C over the last century. Indeed, each year during the 1990s was one of the very warmest in the 20th century, with the mean surface temperature for 1999 being the fifth warmest on record since 1880.
In early 2000, a panel of atmospheric scientists for the National Research Council concluded in a report that global warming was, indeed, a reality. While the panel, headed by Chairman John Wallace, a professor of atmospheric sciences at the University of Washington, stated that it remained unclear whether human activities have contributed to the earth's increasing temperatures, it was apparent that global warming exists.
In 2001, following a request for further study by the incoming Bush administration in the United States, the National Academy of Sciences again confirmed that global warming had been in existence for the last 20 years. The study also projected an increase in temperature between 2.5 degrees and 10.4 degrees Fahrenheit by the year 2100. Furthermore, the study found the leading cause of global warming to be emissions of carbon dioxide from the burning of fossil fuels, and it noted that greenhouse gas accumulations in the earth's atmosphere was a result of human activities.
Within the scientific community, the controversy regarding has centered on the difference between surface air and upper air temperatures. Information collected since 1979 suggests that while the earth's surface temperature has increased by about a degree in the past century, the atmospheric temperature five miles above the earth's surface has indicated very little increase. Nevertheless, the panel stated that this discrepancy in temperature between surface and upper air does not invalidate the conclusion that global warming is taking place. Further, the panel noted that natural events, such as volcanic eruptions, can decrease the temperature in the upper atmosphere.
The major consequences of global warming potentially include the melting of the polar ice caps, which, in turn, contribute to the rise in sea levels. Many islands across the globe have already experienced a measurable loss of land as a result. Because global warming may increase the rate of evaporation, increased precipitation, in the form of stronger and more frequent storm systems, is another potential outcome. Other consequences of global warming may include the introduction and proliferation of new infectious diseases, loss of arable land (referred to as "desertification"), destructive changes to existing ecosystems, loss of biodiversity and the isolation of species, and concomitant adverse changes in the quality of human life.
International Policy Development in Regard to Global Warming:
Regardless of what the precise nature of the relationship between greenhouse gas emissions and global warming may be, it seems that there is some degree of a connection between the phenomena. Any substantial reductions in greenhouse gas emissions and global warming trends will likely involve systematic changes in industrial operations, the use of advanced energy sources and technologies, as well as global cooperation in implementing and regulating these transformations.
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In this regard, the United Nations Framework Convention on Climate Change (UNFCCC) stipulated the following objectives:
1. To stabilize "greenhouse gas" concentrations within the atmosphere, in such a manner that would preclude hazardous anthropogenic intervention into the existing biosphere and ecosystems of the world. This stabilization process would facilitate the natural adaptation of ecosystems to changes in climate.
2. To ensure and enable sustainable development and food production on a global scale.
The UNFCCC was adopted at the Rio Earth Summit in 1992, and entered into force in 1994. Over 175 parties were official participants.
Meanwhile, however, many of the larger, more industrialized nations failed to reach the emissions' reduction targets, and many UNFCCC members agreed that the voluntary approach to reducing emissions had not been successful. As such, UNFCCC members reached a consensus that legally binding limits were necessitated, and agreed to discuss such a legal paradigm at a meeting in Kyoto, Japan in 1997. At that meeting, the UNFCCC forged the Kyoto Protocol. This concord is the first legally binding international agreement that places limits on emissions from industrialized countries. The major greenhouse gas emissions addressed in the Kyoto Protocol include carbon dioxide, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and methane.
The provisions of the Kyoto Protocol stipulate that economically advanced nations must reduce their combined emissions of greenhouse gases, by approximately five percent from their 1990 levels, before the 2008-2010 deadline. Countries with the highest carbon dioxide emissions, such as the United States (U.S.), many of the European Union (EU) countries, and Japan, are to reduce emissions by a scale of 6 to 8 percent. All economically advanced nations must show "demonstrable progress" by 2005. In contrast, no binding limits or timetable have been set on developing countries. Presumably, this distinction is due to the fact that most developing countries -- with the obvious exceptions of India and China -- simply do not emit as many greenhouse gases as do more industrially advanced countries. Meanwhile, these countries are entrenched in the process of economic development.
Regardless of the aforementioned reasoning, there has been strong opposition against the asymmetrical treatment assigned to emissions limits among developed and developing countries. Although this distinction might be regarded as unfair in principle, associations such as the Alliance of Small Island States have been vocal in expressing how global warming -- a result of greenhouse gas emissions - has contributed to the rise in sea level, and thus deleteriously affected their very existence as island nation states. For this reason, some parties have suggested that economically advanced nations, upon returning to their 1990 levels, should be required to further reduce their greenhouse gas emissions by a deadline of 2005. In response, interested parties have observed that even if such reductions were undertaken by economically advanced nations, they would not be enough to completely control global warming. Indeed, a reduction in the rate of fossil fuel usage by developing nations would also be necessary to have substantial ameliorative effect on global warming. Indeed, a reduction in the rate of fos-
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sil fuel usage by developing nations would also be necessary to have substantial ameliorative effect on global warming.
As such, the Protocol established a "Clean Development Mechanism" which permits developed countries to invest in projects aimed at reducing emissions within developing countries in return for credit for the reductions. Ostensibly, the objective of this mechanism is to curtail emissions in developing countries without unduly penalizing them for their economic development. Under this model, the countries with more potential emissions credits could sell them to other signatories of the Kyoto Protocol, whose emissions are forecast to significantly rise in the next few years. Should this trading of emissions credits take place, it is estimated that the Kyoto Protocol's emissions targets could still be met.
In 1999, the International Energy Outlook projected that Eastern Europe, the former Soviet Union and Newly Independent States, as well as parts of Asia, are all expected to show a marked decrease in their level of energy-related carbon emissions in 2010. Nations with the highest emissions, specifically, the U.S., the EU and Japan, are anticipated to reduce their emissions by up to 8 percent by 2012. By 2000, however, the emissions targets were not on schedule for achievement. Indeed, the U.S. Department of Energy estimates forecast that by 2010, there will be a 34 percent increase in carbon emissions from the 1990 levels, in the absence of major shifts in policy, economic growth, energy prices, and consumer trends. Despite this assessment in the U.S., international support for the Kyoto Protocol remained strong, especially among European countries and island states, who view the pact as one step in the direction away from reliance on fossil fuels and other sources of greenhouse gases.
In 2001, U.S. President, George W. Bush, rejected his country's participation in the Kyoto Protocol, saying that the costs imposed on the global economic system, and especially, on the US, overshadowed the benefits of the Protocol. He also cited the unfair burden on developed nations to reduce emissions, as another primary reasons for withdrawal from the international pact, as well as insufficient evidence regarding the science of global warming. Faced with impassioned international disapproval for his position, the U.S. president stated that his administration remained interested in dealing with the matter of global warming, but would endorse alternative measures to combat the problem, such as voluntary initiatives limiting emissions. Critics of Bush's position, however, have noted that it was the failure of voluntary initiatives to reduce emissions following the Rio Summit that led to the establishment of the Kyoto Protocol in the first place.
In the wake of the Bush administration's decision, many participant countries resigned themselves to the reality that the goals of the Kyoto Protocol might not be achieved without U.S. involvement. Nevertheless, in Bonn, Germany, in July 2001, the remaining participant countries struck a political compromise on some of the key issues and sticking points, and planned to move forward with the Protocol, irrespective of the absence of the U.S. The key compromise points included the provision for countries to offset their targets with carbon sinks (these are areas of forest and farmland which can absorb carbon through the process of photosynthesis). Another compromise point within the broader Bonn Agreement was the reduction of emissions cuts of six gases from over 5 percent to a more achievable 2 percent. A third key change was the provision of funding for less wealthy countries to adopt more progressive technologies.
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In late October and early November 2001, the UNFCC's 7th Conference of the Parties met in Marrakesh, Morocco, to finalize the measures needed to make the Kyoto Protocol operational. Although the UNFCC projected that ratification of the Protocol would make it legally binding within a year, many critics noted that the process had fallen short of implementing significant changes in policy that would be necessary to actually stop or even slow climate change. They also maintained that the absence of U.S. participation effectively rendered the Protocol into being a political exercise without any substance, either in terms of transnational policy or in terms of environmental concerns.
The adoption of the compromises ensconced within the Bonn Agreement had been intended to make the provisions of the Kyoto Protocol more palatable to the U.S. In this regard, it failed to achieve its objective as the Bush administration continued to eschew participation in the international accord. Still, however, the Bonn Agreement did manage to render a number of other positive outcomes. Specifically, in 2002, key countries, such as Russia, Japan and Canada agreed to ratify the protocol, bringing the number of signatories to 178. The decision by key countries to ratify the protocol was regarded as "the kiss of life" by observers.
By 2005, on the eve of a climate change conference in London, British Prime Minister Tony Blair was hoping to deal with the problems of climate change beyond the provisions set forth in the Kyoto Protocol. Acknowledging that the Kyoto Protocol could not work in its current form, Blair wanted to open the discussion for a new climate change plan. Blair said that although most of the world had signed on to Kyoto, the protocol could not meet any of its practical goals of cutting greenhouse gas emissions without the participation of the United States, the world's largest polluter. He also noted that any new agreement would have to include India and China -- significant producers of greenhouse gas emissions, but exempt from Kyoto because they have been classified as developing countries. Still, he said that progress on dealing with climate change had been stymied by "a reluctance to face up to reality and the practical action needed to tackle problem." Blair also touted the "huge opportunities" in technology and pointed toward the possibilities offered by wind, solar and nuclear power, along with fuel cell technology, eco-friendly biofuels, and carbon capture and storage which could generate low carbon power. Blair also asserted that his government was committed to achieving its domestic goal of reducing carbon dioxide emissions by 20 percent by 2010. In the United States, President George W. Bush has said that global warming remained a debatable issue and despite conclusions reached by his own Environmental Protection Agency, he has not agreed with the conclusion that global warming and climate change are linked with human activities. Bush has also refused to ratify Kyoto on the basis of its economic costs. Australia , an ally of the United States, has taken a similarly dim view of the Kyoto Protocol. Ahead of the November 2005 climate change meeting in Canada in which new goals for the protocol were to be discussed, Australia 's Environment Minister, Ian Campbell, said that negotiating new greenhouse gas emission levels for the Kyoto Protocol would be a waste of time. Campbell said, "There is a consensus that the caps, targets and timetables approach is flawed. If we spend the next five years arguing about that, we'll be fiddling and negotiating while Rome burns." Campbell, like the Bush administration, has also advocated a system of voluntary action in which industry takes up new technologies rather than as a result of compelling the reduction of emissions. But the Australian Conservation Foundation (ACF) has called on its government to ratify the Kyoto Protocol, to establish a system of emissions trading, and to set binding limits on emissions. Interestingly, although it did not sign on to Kyoto,
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Australia was expected to meet its emissions target by 2012 (an 8 percent increase in 1990 levels in keeping with the country's reliance on coal). But this success has nothing to do with new technologies and is due to state-based regulations on land clearing. Note: The Kyoto Protocol calls for developed nations to cut greenhouse emissions by 5.2 percent of 1990 levels by 2012. 2. Air Pollution
Long before global warming reared its head as a significant issue, those concerned about the environment and public health noted the deleterious effects of human-initiated combustion upon the atmosphere. Killer smogs from coal burning triggered acute health emergencies in London and other places. At a lower level of intensity motor vehicle, power plant, and industrial emissions impaired long-range visibility and probably had some chronic adverse consequences on the respiratory systems of persons breathing such air.
In time, scientists began associating the sulfur dioxide and nitrogen oxides released from coal burning with significant acid deposition in the atmosphere, eventually falling as "acid rain." This phenomenon has severely degraded forestlands, especially in Europe and a few parts of the United States. It has also impaired some aquatic ecosystems and eaten away the surface of some human artifacts, such as marble monuments. Scrubber technology and conversion to cleaner fuels have enabled the level of industrial production to remain at least constant while significantly reducing acid deposition. Technologies aimed at cleaning the air and curtailing acid rain, soot, and smog may, nonetheless, boomerang as the perils of global warming become increasingly serious. In brief, these particulates act as sort of a sun shade -- comparable to the effect of volcanic eruptions on the upper atmosphere whereby periods of active volcanism correlate with temporarily cooler weather conditions. Thus, while the carbon dioxide releases that are an inevitable byproduct of combustion continue, by scrubbing the atmosphere of pollutants, an industrial society opens itself to greater insolation (penetration of the sun's rays and consequent heating), and consequently, it is likely to experience a correspondingly greater rise in ambient temperatures.
The health benefits of removing the sources of acid rain and smog are indisputable, and no one would recommend a return to previous conditions. Nevertheless, the problematic climatic effects of continually increasing emissions of carbon dioxide and other greenhouse gases pose a major global environmental challenge, not as yet addressed adequately.
3. Ozone Depletion
The stratospheric ozone layer functions to prevent ultraviolet radiation from reaching the earth. Normally, stratospheric ozone is systematically disintegrated and regenerated through natural photochemical processes. The stratospheric ozone layer, however, has been depleted unnaturally as a result of anthropogenic (man-made) chemicals, most especially chlorine and bromide compounds such as chloroflorocarbons (CFCs), halons, and various industrial chemicals in the form of solvents, refrigerants, foaming agents, aerosol propellants, fire retardants, and fumigants. Ozone depletion is of concern because it permits a greater degree of ultraviolet-B radiation to reach the earth, which then increases the incidences of cancerous malignancies, cataracts, and human immune deficiencies. In addition,
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even in small doses, ozone depletion affects the ecosystem by disturbing food chains, agriculture, fisheries and other forms of biological diversity.
Transnational policies enacted to respond to the dangers of ozone depletion include the 1985 Vienna Convention on the Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. The Montreal Protocol was subsequently amended in London in 1990, Copenhagen in 1992 and Vienna in 1995. By 1996, 155 countries had ratified the Montreal Protocol, which sets out a time schedule for the reduction (and eventual elimination) of ozone depleting substances (OPS), and bans exports and imports of ODS from and to non-participant countries.
In general, the Protocol stipulates that developed countries must eliminate halon consumption by 1994 and CFC consumption by 1996, while developing countries must eliminate these substances by 2010. Consumption of methyl bromide, which is used as a fumigant, was to be frozen at the 1995 in developed countries, and fully eliminated in 2010, while developing countries are to freeze consumption by 2002, based on average 1995-1998 consumption levels. Methyl chloroform is to be phased out by 2005. Under the Montreal Protocol, most ODS will be completely eliminated from use by 2010.
4. Land Degradation
In recent decades, land degradation in more arid regions of the world has become a serious concern. The problem, manifest as both "desertification" and "devegetation," is caused primarily by climate variability and human activities, such as "deforestation," excessive cultivation, overgrazing, and other forms of land resource exploitation. It is also exacerbated by inadequate irrigation practices. Although the effects of droughts on drylands have been temporary in the past, today, the productivity and sustainability of these lands have been severely compromised for the long term. Indeed, in every region of the world, land degradation has become an acute issue.
Desertification and Devegetation:
"Desertification" is a process of land degradation causing the soil to deteriorate, thus losing its nutrients and fertility, and eventually resulting in the loss of vegetation, known as "devegetation." As aforementioned, "desertification" and "devegetation" are caused by human activities, yet human beings are also the greatest casualties. Because these forms of land degradation affect the ability of the soil to produce crops, they concomitantly contribute to poverty. As population increases and demographic concentrations shift, the extent of land subject to stresses by those seeking to wrest subsistence from it has inexorably risen.
In response, the United Nations has formed the Convention to Combat Desertification-aimed at implementing programs to address the underlying causes of desertification, as well as measures to prevent and minimize its effects. Of particular significance is the formulation of policies on transboundary resources, such as areas around lakes and rivers. At a broader level, the Convention has established a
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Conference of Parties (COP), which includes all ratifying governments, for directing and advancing international action.
To ensure more efficacious use of funding, the Convention intends to reconfigure international aid to utilize a consultative and coordinated approach in the disbursement and expenditure of donor funds. In this way, local communities that are affected by desertification will be active participants in the solution-generation process. In-depth community education projects are envisioned as part of this new international aid program, and private donor financing is encouraged. Meanwhile, as new technologies are developed to deal with the problem of desertification, they need to be distributed for application across the world. Hence, the Convention calls for international cooperation in scientific research in this regard.
Desertification is a problem of sustainable development. It is directly connected to human challenges such as poverty, social and economic well-being and environmental protection as well. Broader environmental issues, such as climate change, biological diversity, and freshwater supplies, are indirectly related, so any effort to resolve this environmental challenge must entail coordinated research efforts and joint action.
Deforestation:
Deforestation is not a recent phenomenon. For centuries, human beings have cut down trees to clear space for land cultivation, or in order to use the wood for fuel. Over the last 200 years, and most especially after World War II, deforestation increased because the logging industry became a globally profitable endeavor, and so the clearing of forested areas was accelerated for the purposes of industrial development. In the long term, this intensified level of deforestation is considered problematic because the forest is unable to regenerate itself quickly. The deforestation that has occurred in tropical rainforests is seen as an especially serious concern, due to the perceived adverse effects of this process upon the entire global ecosystem.
The most immediate consequence of deforestation is soil degradation. Soil, which is necessary for the growth of vegetation, can be a fragile and vital property. Organically, an extensive evolution process must take place before soil can produce vegetation, yet at the same time, the effects of natural elements, such as wind and rain, can easily and quickly degrade this resource. This phenomenon is known as soil erosion. In addition, natural elements like wind and rain reduce the amount of fertile soil on the ground, making soil scarcity a genuine problem. When fertile topsoil that already exists is removed from the landscape in the process of deforestation, soil scarcity is further exacerbated. Equally significant is the fact that once land has been cleared so that the topsoil can be cultivated for crop production, not only are the nutrient reserves in the soil depleted, thus producing crops of inferior quality, but the soil structure itself becomes stressed and deteriorates further.
Another direct result of deforestation is flooding. When forests are cleared, removing the cover of vegetation, and rainfall occurs, the flow of water increases across the surface of land. When extensive water runoff takes place, the frequency and intensity of flooding increases. Other adverse effects of
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deforestation include the loss of wildlife and biodiversity within the ecosystem that supports such life forms.
At a broader level, tropical rainforests play a vital role in maintaining the global environmental system. Specifically, destruction of tropical rainforests affects the carbon dioxide cycle. When forests are destroyed by burning (or rotting), carbon dioxide is released into the air, thus contributing to an intensified "greenhouse effect." The increase in greenhouse gas emissions like carbon dioxide is a major contributor to global warming, according to many environmental scientists. Indeed, trees themselves absorb carbon dioxide in the process of photosynthesis, so their loss also reduces the absorption of greenhouse gases.
Tropical rainforest destruction also adversely affects the nitrogen cycle. Nitrogen is a key nutrient for both plants and animals. Plants derive nitrogen from soil, while animals obtain it via nitrogen-enriched vegetation. This element is essential for the formation of amino acids, and thereby for proteins and biochemicals that all living things need for metabolism and growth. In the nitrogen cycle, vegetation acquires these essential proteins and biochemicals, and then cyclically returns them to the atmosphere and global ecosystem. Accordingly, when tropical rainforest ecosystems are compromised, not only is vegetation removed; the atmosphere is also affected and climates are altered. At a more immediate level, the biodiversity within tropical rainforests, including wildlife and insect species and a wealth of plant varieties, is depleted. Loss of rare plants is of particular concern because certain species as yet unknown and unused could likely yield many practical benefits, for instance as medicines.
As a result of the many challenges associated with deforestation, many environmental groups and agencies have argued for government policies on the sustainable development of forests by governments across the globe. While many countries have instituted national policies and programs aimed at reducing deforestation, and substantial research has been advanced in regard to sustainable and regenerative forestry development, there has been very little progress on an international level. Generally speaking, most tropical rainforests are located in developing and less developed countries, where economic growth is often dependent upon the exploitation of tropical rainforests. Timber resources as well as wildlife hunting tend to be particularly lucrative arenas.
In places such as the Amazon, where deforestation takes place for the construction of energy plants aimed at industrialization and economic development, there is an exacerbated effect on the environment. After forests are cleared in order to construct such projects, massive flooding usually ensues. The remaining trees then rot and decay in the wake of the flooding. As the trees deteriorate, their biochemical makeup becomes more acidic, producing poisonous substances such as hydrogen sulphide and methane gases. Acidified water subsequently corrodes the mechanical equipment and operations of the plants, which are already clogged by rotting wood after the floodwaters rise.
Deforestation generally arises from an economically plausible short-term motivation, but nonetheless poses a serious global concern because the effects go beyond national boundaries. The United Nations has established the World Commission on Forest and Sustainable Development. This body's task is to determine the optimal means of dealing with the issue of deforestation, without unduly affecting normal economic development, while emphasizing the global significance of protecting tropical forest ecosystems.
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5. Water Resources
For all terrestrial fauna, including humans, water is the most immediate necessity to sustain life. As the population has increased and altered an ever-greater portion of the landscape from its natural condition, demand on water resources has intensified, especially with the development of industrialization and large-scale irrigation. The supply of freshwater is inherently limited, and moreover distributed unevenly across the earth's landmasses. Moreover, not just demand for freshwater but activities certain to degrade it are becoming more pervasive. By contrast, the oceans form a sort of "last wilderness," still little explored and in large part not seriously affected by human activity. However, coastal environments - the biologically richest part of the marine ecosystem-are experiencing major depletion due to human encroachment and over-exploitation.
Freshwater:
In various regions, for instance the Colorado River in the western United States, current withdrawals of river water for irrigation, domestic, and industrial use consume the entire streamflow so that almost no water flows into the sea at the river's mouth. Yet development is ongoing in many such places, implying continually rising demand for water. In some areas reliant on groundwater, aquifers are being depleted at a markedly faster rate than they are being replenished. An example is the San Joaquin Valley in California, where decades of high water withdrawals for agriculture have caused land subsidence of ten meters or more in some spots. Naturally, the uncertainty of future water supplies is particularly acute in arid and semi-arid regions. Speculation that the phenomenon of global warming will alter geographic and seasonal rainfall patterns adds further uncertainty.
Water conservation measures have great potential to alleviate supply shortages. Some city water systems are so old and beset with leaking pipes that they lose as much water as they meter. Broad-scale irrigation could be replaced by drip-type irrigation, actually enhancing the sustainability of agriculture. In many areas where heavy irrigation has been used for decades, the result is deposition of salts and other chemicals in the soil such that the land becomes unproductive for farming and must be abandoned.
Farming is a major source of water pollution. Whereas restrictions on industrial effluents and other "point sources" are relatively easy to implement, comparable measures to reform hydraulic practices at farms and other "nonpoint sources" pose a significantly knottier challenge. Farm-caused water pollution takes the following main forms:
- Nitrate pollution found in wells in intensive farming areas as a consequence of heavy fertilizer use is a threat to human health. The most serious danger is to infants, who by ingesting high-nitrate water can contract methemoglobinemia, sometimes called "blue baby syndrome," a potentially fatal condition.
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- Fertilizer runoff into rivers and lakes imparts unwanted nutrients that cause algae growth and eventual loss of oxygen in the body of water, degrading its ability to support fish and other desirable aquatic life.
- Toxic agricultural chemicals - insecticides, herbicides, and fungicides - are detectable in some aquifers and waterways.
In general, it is much easier to get a pollutant into water than to retrieve it out. Gasoline additives, dry cleaning chemicals, other industrial toxins, and in a few areas radionucleides have all been found in water sources intended for human use. The complexity and long time scale of subterranean hydrological movements essentially assures that pollutants already deposited in aquifers will continue to turn up for decades to come. Sophisticated water treatment processes are available, albeit expensive, to reclaim degraded water and render it fit for human consumption. Yet source protection is unquestionably a more desirable alternative.
In much of the developing world, and even some low-income rural enclaves of the developed world, the population lacks ready access to safe water. Surface water and shallow groundwater supplies are susceptible to contamination from untreated wastewater and failing septic tanks, as well as chemical hazards. The occurrence of waterborne disease is almost certainly greatly underreported.
Marine Resources:
Coastal areas have always been desirable places for human habitation, and population pressure on them continues to increase. Many types of water degradation that affect lakes and rivers also affect coastal zones: industrial effluents, untreated or partially treated sewage, nutrient load from agriculture figure prominently in both cases. Prospects for more extreme storms as a result of global warming, as well as the pervasiveness of poorly planned development in many coastal areas, forebode that catastrophic hurricanes and landslides may increase in frequency in the future. Ongoing rise in sea levels will force remedial measures and in some cases abandonment of currently valuable coastal property.
Fisheries over much of the globe have been overharvested, and immediate conservation measures are required to preserve stocks of many species. Many governments subsidized factory-scale fishing fleets in the 1970s and 1980s, and the resultant catch increase evidently surpassed a sustainable level. It is uncertain how much of the current decline in fish stocks stems from overharvesting and how much from environmental pollution. The deep ocean remains relatively unaffected by human activity, but continental shelves near coastlines are frequently seriously polluted, and these close-to-shore areas are the major biological nurseries for food fish and the smaller organisms they feed on.
6. Environmental Toxins
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Toxic chemical pollution exploded on the public consciousness with disclosure of spectacularly polluted industrial areas such as Love Canal near Buffalo, New York. There is no question that pollutants such as organophosphates or radionucleides can be highly deleterious to health, but evidence to date suggests that seriously affected areas are a localized rather than universal problem.
While some explore the possibilities for a lifestyle that fully eschews use of modern industrial chemicals, the most prevalent remediative approach is to focus on more judicious use. The most efficient chemical plants are now able to contain nearly all toxic byproducts of their production processes within the premises, minimizing the release of such substances into the environment. Techniques such as Integrated Pest Management (IPM) dictate limited rather than broadcast use of pesticides: application only when needed using the safest available chemical, supplemented as much as possible with nontoxic controls.
While heightened public awareness and growing technical sophistication suggest a hopeful outlook on limiting the damage from manmade environmental toxins, one must grant that previous incidents of their misuse and mishandling have already caused environmental damage that will have to be dealt with for many years to come. In the case of the most hazardous radioactive substances, the time scale for successful remediation actually extends beyond that of the recorded history of civilization. Moreover, in this era of high population density and rapid economic growth, quotidian activities such as the transport of chemicals will occasionally, seemingly inevitably result in accidents with adverse environmental consequences.
7. "Islandization" and Biodiversity
With increased awareness regarding the adverse effects of unregulated hunting and habitat depletion upon wildlife species and other aspects of biodiversity, large-scale efforts across the globe have been initiated to reduce and even reverse this trend.
In every region of the world, many species of wildlife and areas of biodiversity have been saved from extinction. Nationally, many countries have adopted policies aimed at preservation and conservation of species, and one of the most tangible measures has been the proliferation of protected habitats. Such habitats exist in the form of wildlife reserves, marine life reserves, and other such areas where biodiversity can be protected from external encroachment and exploitation.
Despite these advances in wildlife and biodiversity protection, further and perhaps more intractable challenges linger. Designated reserves, while intended to prevent further species decline, exist as closed territories, fragmented from other such enclaves and disconnected from the larger ecosystem. This environmental scenario is referred to as "islandization." Habitat reserves often serve as oversized zoos or game farms, with landscapes and wildlife that have effectively been "tamed" to suit. Meanwhile, the larger surrounding ecosystem continues to be seriously degraded and transformed, while within the islandized habitat, species that are the focus of conservation efforts may not have sufficient range and may not be able to maintain healthy genetic variability.
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As a consequence, many conservationists and preservationists have demanded that substantially larger portions of land be withheld as habitat reserves, and a network of biological corridors to connect continental reserves be established. While such efforts to combat islandization have considerable support in the United States, how precisely such a program would be instituted, especially across national boundaries, remains a matter of debate. International conservationists and preservationists say without a network of reserves a massive loss of biodiversity will result.
The concept of islandization illustrates why conservation and preservation of wildlife and biodiversity must consider and adopt new, broader strategies. In the past, conservation and preservation efforts have been aimed at specific species, such as the spotted owl and grizzly bear in North America, the Bengal tiger in Southeast Asia, the panda in China, elephants in Africa. Instead, the new approach is to simultaneously protect many and varied species that inhabit the same ecosystem. This method, referred to as "bio-regional conservation," may more efficaciously generate longer-term and more farreaching results precisely because it is aimed at preserving entire ecosystems, and all the living things within.
More About Biodiversity Issues:
This section is directly taken from the United Nations Environmental Program: "Biodiversity Assessment"
The Global Biodiversity Assessment, completed by 1500 scientists under the auspices of United Nations Environmental Program in 1995, updated what is known (or unknown) about global biological diversity at the ecosystem, species and genetic levels. The assessment was uncertain of the total number of species on Earth within an order of magnitude. Of its working figure of 13 million species, only 13 percent are scientifically described. Ecological community diversity is also poorly known, as is its relationship to biological diversity, and genetic diversity has been studied for only a small number of species. The effects of human activities on biodiversity have increased so greatly that the rate of species extinctions is rising to hundreds or thousands of times the background level. These losses are driven by increasing demands on species and their habitats, and by the failure of current market systems to value biodiversity adequately. The Assessment calls for urgent action to reverse these trends.
There has been a new recognition of the importance of protecting marine and aquatic biodiversity. The first quantitative estimates of species losses due to growing coral reef destruction predict that almost 200,000 species, or one in five presently contributing to coral reef biodiversity, could die out in the next 40 years if human pressures on reefs continue to increase.
Since Rio, many countries have improved their understanding of the status and importance of their biodiversity, particularly through biodiversity country studies such as those prepared under the auspices of UNEP/GEF. The United Kingdom identified 1250 species needing monitoring, of which 400 require action plans to ensure their survival. Protective measures for biodiversity, such as legislation to protect species, can prove effective. In the USA, almost 40 percent of the plants and animals protected under the Endangered Species Act are now stable or improving as a direct result of recovery efforts.
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Some African countries have joined efforts to protect threatened species through the 1994 Lusaka Agreement, and more highly migratory species are being protected by specialized cooperative agreements among range states under the Bonn Agreement.
There is an emerging realization that a major part of conservation of biological diversity must take place outside of protected areas and involve local communities. The extensive agricultural areas occupied by small farmers contain much biodiversity that is important for sustainable food production. Indigenous agricultural practices have been and continue to be important elements in the maintenance of biodiversity, but these are being displaced and lost. There is a new focus on the interrelationship between agrodiversity conservation and sustainable use and development practices in smallholder agriculture, with emphasis on use of farmers' knowledge and skills as a source of information for sustainable farming.
Perhaps even more important than the loss of biodiversity is the transformation of global biogeochemical cycles, the reduction in the total world biomass, and the decrease in the biological productivity of the planet. While quantitative measurements are not available, the eventual economic and social consequences may be so significant that the issue requires further attention.
Sources for this section:
Bendall, Roger. 1996. "Biodiversity: the follow up to Rio". The Globe 30:4-5, April 1996.
Global Environmental Change: Human and Policy Implications. 1995. Special issue on "People, Land Management and Environmental Change", Vol. 3, No. 4, September 1995.
Golubev, Genady N. (Moscow University) In litt. 29 June 1996.
Heywood, V.H. (ed.). 1995. Global Biodiversity Assessment. United Nations Environment Programme. Cambridge University Press, Cambridge.
Heywood, V.H. 1996. "The Global Biodiversity Assessment". The Globe, 30:2-4, April 1996.
Reaka-Kudla, Marjorie. 1996. Paper presented at American Association for Advancement of Science, February 1996. Quoted in Pain, Stephanie. "Treasures lost in reef madness". New Scientist, 17 February 1996.
Uitto, Juha I., and Akiko Ono (eds). 1996. Population, Land Management and Environmental Change. The United Nations University, Tokyo.
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USFWS. 1994. U.S. Fish and Wildlife Service report to Congress, cited in news release 21 July 1994.
Information Resources
For more information about environmental concepts, CountryWatch recommends the following resources:
The United Nations Environmental Program Network (with country profiles) < http://www.unep.net/>
The United Nations Environment Program on Climate Change < http://climatechange.unep.net/>
The United Nations Environmental Program on Waters and Oceans < http://www.unep.ch/earthw/Pdepwat.htm>
The United Nations Environmental Program on Forestry: "Forests in Flux" < http://www.unep-wcmc.org/forest/flux/homepage.htm>
FAO "State of the World's Forests" < http://www.fao.org/forestry/FO/SOFO/SOFO99/sofo99-e.stm>
World Resources Institute < http://www.wri.org/>
Harvard University Center for Health and the Global Environment
The University of Wisconsin Center for Sustainability and the Global Environment. < http://sage.aos.wisc.edu/>
International Environmental Agreements and Associations 1. Major International Environmental Accords:
General Environmental Concerns
Convention on Environmental Impact Assessment in a Transboundary Context, Espoo, 1991.
Accords Regarding Atmosphere
Annex 16, vol. II (Environmental Protection: Aircraft Engine Emissions) to the 1044 Chicago Convention on International Civil Aviation, Montreal, 1981
Convention on Long-Range Transboundary Air Pollution (LRTAP), Geneva, 1079
United Nations Framework Convention on Climate Change (UNFCCC), New York, 1002
Vienna Convention for the Protection of the Ozone Layer, Vienna, 1985 including the Montreal Protocol on Substances that Depleted the Ozone Layer, Montreal, 1987
Accords Regarding Hazardous Substances
Convention on the Ban of the Import into Africa and the Control of Transboundary Movements and Management of Hazardous Wastes within Africa, Bamako, 1991
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Convention on Civil Liability for Damage Caused during Carriage of Dangerous Goods by Road, Rail and Inland Navigation Vessels (CRTD), Geneva, 1989
Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (Basel Convention), Basel, 1989
Convention on the Transboundary Effects of Industrial Accidents, Helsinki, 1992
Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region (Waigani Convention), Waigani, 1995
European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR), Geneva 1957
FAO International Code of Conduct on the Distribution and Use of Pesticides, Rome, 1985
2. Major International Marine Accords:
Global Conventions
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (London Convention 1972), London, 1972
International Convention for the Prevention of Pollution from Ships, 1973, as modified by Protocol of 1978 relation thereto (MARPOL 73/78), London, 1973 and 1978
International Convention on Civil Liability for Oil Pollution Damage 1969 (1969 CLC), Brussels, 1969, 1976, and 1984
International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 (1971 Fund Convention), Brussels, 1971
Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), London 1996
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International Convention on Oil Pollution Preparedness, Response, and Co-operation (OPRC), London, 1990
International Convention Relation to Intervention on the High Seas in Cases of Oil Pollution Casualties (Intervention Convention), Brussels, 1969
United Nations Convention on the Law of the Sea (UNCLOS), Montego Bay, 1982
Regional Conventions
Convention for the Prevention of Marine Pollution by Dumping from Ships and Aircraft (Oslo Convention), Oslo, 1972
Convention for the Prevention of Marine Pollution from Land-based Sources (Paris Convention), Paris, 1974
Convention for the Protection of the Marine Environment of the North East Atlantic (OSPAR Convention), Paris, 1992
Convention for the Protection of the Marine Environment of the Baltic Sea Area (1974 Helsinki Convention), Helsinki 1974
Convention for the Protection of the Marine Environment of the Baltic Sea Area (1992 Helsinki Convention), Helsinki 1992
Conventions within the UNEP Regional Seas Programme
Convention on the Protection of the Black Sea against Pollution, Bucharest, 1992
Convention for the Protection and Development of the Marine Environment of the Wider Caribbean Region, Cartagena de Indias, 1983
Convention for the Protection, Management, and Development of the Marine and Coastal Environment of the Eastern African Region, Nairobi, 1985
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Kuwait Regional Convention for Co-operation on the Protection of the Marine Environment from Pollution, Kuwait, 1978
Convention for the Protection and Development of the Marine Environment and Coastal Region of the Mediterranean Sea (Barcelona Convention), Barcelona, 1976
Regional Convention for the Conservation of the Red Sea and Gulf of Aden Environment, Jeddah, 1982
Convention for the Protection of the Natural Resources and Environment of the South Pacific Region, Noumea, 1986
Convention for the Protection of the Marine Environment and Coastal Area of the South-East Pacific, Lima, 1981
Convention for Co-operation in the Protection and Development of the Marine and Coastal Environment of the West and Central African Region, Abidjan, 1981
3. Major Conventions Regarding Living Resources:
Marine Living Resources
Convention on the Conservation of Antarctic Marine Living Resources (CCAMLR), Canberra, 1980
International Convention for the Conservation of Atlantic Tunas (ICCAT), Rio de Janeiro, 1966
International Convention for the Regulation of Whaling (ICRW), Washington, 1946
Nature Conservation and Terrestrial Living Resources
Antarctic Treaty, Washington, D.C., 1959
Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention), Paris, 1972
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Convention on Biological Diversity (CBD), Nairobi, 1992
Convention on the Conservation of Migratory Species of Wild Animals (CMS), Bonn, 1979
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), Washington, D.C., 1973
Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar Convention), Ramsar, 1971
Convention to Combat Desertification (CCD), Paris 1994
FAO International Undertaking on Plant Genetic Resources, Rome, 1983
International Tropical Timber Agreement, 1994 (ITTA, 1994), Geneva, 1994
Freshwater Resources
Convention on the Protection and Use of Transboundary Watercourses and International Lakes, Helsinki, 1992
4. Major Conventions Regarding Nuclear Safety:
Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency (Assistance Convention), Vienna, 1986
Convention on Early Notification of a Nuclear Accident (Notification Convention), Vienna, 1986
Convention on Nuclear Safety, Vienna, 1994
Vienna Convention on Civil Liability for Nuclear Damage, Vienna, 1963
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5. Major Intergovernmental Organizations
Commission on Sustainable Development (CSD)
European Union (EU): Environment
Food and Agriculture Organization (FAO)
Global Environment Facility (GEF)
International Atomic Energy Agency (IAEA)
International Council for the Exploration of the Sea (ICES)
International Fund for Agricultural Development (IFAD)
International Labour Organization (ILO)
International Maritime Organization (IMO)
International Monetary Fund (IMF)
International Oil Pollution Compensation Funds (IOPC Funds)
Organization for Economic Co-operation and Development (OECD), Environment Policy Committee (EPOC)
United Nations Children's Fund (UNICEF)
United Nations Development Programme (UNDP)
United Nations Educational, Scientific, and Cultural Organization (UNESCO)
United Nations Environment Programme (UNEP)
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United Nations Industrial Development Organization (UNIDO)
United Nations Population Fund (UNFPA)
World Bank
World Food Programme (WFP)
World Health Organization (WHO)
World Meteorological Organization (WMO)
World Trade Organization (WTO)
6. Major Non-Governmental Organizations
Atmosphere Action Network East Asia (AANEA)
Climate Action Network (CAN)
Consumers International (CI)
Earth Council
Earthwatch Institute
Environmental Liaison Centre International (ELCI)
European Environmental Bureau (EEB)
Forest Stewardship Council (FSC)
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Friends of the Earth International (FoEI)
Greenpeace International
International Chamber of Commerce (ICC)
International Confederation of Free Trade Unions (ICFTU)
International Planned Parenthood Federation (IPPF)
International Solar Energy Society (ISES)
IUCN-The World Conservation Union
Pesticide Action Network (PAN)
Sierra Club
Society for International Development (SID)
Third World Network (TWN)
Water Environment Federation (WEF)
Women's Environment and Development Organization (WEDO)
World Business Council for Sustainable Development (WBCSD)
World Federalist Movement (WFM)
World Resources Institute (WRI)
World Wide Fund For Nature (WWF)
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7. Other Networking Instruments
Arab Network for Environment and Development (RAED)
Global Legislators for a Balanced Environment (GLOBE)
Regional Environmental Center for Central and Eastern Europe (REC)
United Nations Non-Governmental Liaison Service (UN-NGLS)
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Appendices
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Bibliography
Appendices
Appendices Bibliography Sources: Key Data
Altapedia. URL: http://www.atlapedia.com/online/country_index.htm
Ethnologue. URL: http://www.ethnologue.com
Infoplease: URL: http://www.infoplease.com
The Statesman's Year-Book 2006. Barry Turner, ed. London: St. Martin's Press.
United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.htm
United States Central Intelligence Agency, World Factbook. Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html
World Climate Data Online. URL: http://www.worldclimate.com
World Gazateer Population Statistics. URL: http://www.gazetteer.de/home.htm
Sources: Political Overview
BBC International News. URL: http://news.bbc.co.uk/1/hi/world/ (Various editions and dates as cited in particular reviews)
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Bibliography
Britannica Book of the Year. 1998-present. David Calhoun, ed. Chicago: Encyclopedia Britannica, Inc.
Britannica Online URL : http://www.eb.com
Britannica Year in Review. URL: http://www.britannica.com/browse/year
Chiefs of State and Cabinet Members of Foreign Governments. URL: http://www.cia.gov/cia/publications/chiefs/index.html
Christian Science Monitor. URL: http://www.csmonitor.com/ (Various editions and dates as cited in particular reviews)
CNN International News. URL: http://www.cnn.com/WORLD/ (Various editions and dates as cited in particular reviews)
Current Leaders of Nations. 1997. Jennifer Mossman, ed. Detroit: Gale Research
The Economist Magazine. (Various editions and dates as cited in particular reviews)
The Economist Country Briefings. URL: http://www.economist.com/countries/
Eldis Country Profiles. URL: http://www.eldis.org/country/index.htm
Elections Around the World. URL: http://www.electionworld.org/
Election Resources. URL: http://electionresources.org/
Europa World Yearbook 1999. Vols. I & II. 1999. London: Europa Publications Ltd.
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Bibliography
Appendices
Europe World Online. URL: http://www.europaworld.com/pub/
Foreign Government Resources. URL: http://www.lib.umich.edu/govdocs/foreign.html
International Who's Who 1997-1998, 61st Edition. 1997. London: Europa Publications Ltd.
Leadership Views, Chiefs of State Online. URL : http://www.cia.gov/cia/publications/chiefs/index.html
Library of Congress Country Studies. URL: http://lcweb2.loc.gov/frd/cs/cshome.html
New Encyclopedia Britannica. 1998. Chicago: Encyclopedia Britannica Inc.
New York Times Online. URL: http://www.nytimes.com (Various editions and dates as cited in particular reviews)
Patterns of Global Terrorism. n.d. United States Department of State. Washington D.C.: United States Department of State Publications.
Political Handbook of the World. n.d. Arthur S. Banks, Thomas C. Muller, ed. Binghamton, New York: CSA Publications.
Political Reference Almanac Online. URL: http://www.polisci.com/almanac/nations.htm
Rulers. URL: http://rulers.org/
The Guardian Online. URL: http://www.guardian.co.uk/ (Various editions and dates as cited in particular reviews)
The Statesman's Year-Book 2006. Barry Turner, ed. London: St. Martin's Press.
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Bibliography
United States Central Intelligence Agency, World Factbook.Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html
United States Department of State, World Military Expenditures and Arms Transfers (WMEAT) URL : http://www.state.gov/www/global/arms/bureau_ac/reports_ac.html
United States Department of State, Country Reports on Human Rights Practices. URL: http://www.state.gov/g/drl/rls/hrrpt/2002/18245.htm
United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.html
Virtual Library: International Relations Resources. URL: http://www.etown.edu/vl/countgen.html
Note on Edition Dates:
The earlier edition dates are noted above because they were used to formulate the original country reviews and serve as the baseline for some of the information covered. Later editions have been used and are cited as such as well.
Sources: Economic Overview
BP Statistica Review of World Energy. URL: http://www.bp.com/genericsection.do?categoryId=92&contentId=7005893
BP Statistical Review of World Energy, June 1998. 1998. Page 1.C. London: The British Petroleum Company.
International Monetary Fund, Direction of Trade Statistics Yearbook. Washington, D.C.: International Monetary Fund Publication Services.
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International Monetary Fund, International Financial Statistics. 1998 to present. Washington, D.C.: International Monetary Fund Publication Services.
International Monetary Fund, International Financial Statistics Yearbook. 1999 to present. Washington, D.C.: International Monetary Fund Publication Services.
International Monetary Fund, World Economic Outlook, May 1999. 1999. Washington, D.C.: International Monetary Fund Publication Services.
International Labour Office, World Employment Report, 1998-99. 1998. Geneva: International Labour Office.
United Nations Statistical Division Online. URL: http://unstats.un.org/unsd/default.htm
United Nations Statistics Division, Monthly Bulletin of Statistics (MBS On Line), November 1999 Edition. 1999. New York: United Nations.
United Nations, Statistical Yearbook, 43rd Issue. 1999. New York: United Nations.
United Nations, Food & Agricultural Organization, FAOSTAT Database. URL : http://apps.fao.org/
United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html
United States Department of Labor, Bureau of Labor Statistics Database
United States Geological Service, Mineral Information
United States Department of State, Country Commercial Guides. Washington, D.C. United States of America. URL: http://www.state.gov/www/about_state/business/com_guides/index.html
The World Bank, Global Development Finance, Country Tables. 1999 to present. Washington, D.C.: The World Bank.
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Bibliography
The World Bank Group, World Development Indicators. 1999 to present. Washington, D.C.: The World Bank.
Yearbook of Tourism Statistics, World Tourism Organization. 1998 to present. Madrid: The World Tourism Organization.
Note on Edition Dates:
The earlier edition dates are noted above because they were used to formulate the original country reviews and serve as the baseline for some of the information covered. Later editions have been used and are cited as such as well.
Methodology Notes for Economic Data:
Estimates by CountryWatch.com of real GDP in most countries are made by converting estimates by the US Central Intelligence Agency (CIA) of the purchasing power parity value of GDP for a reference year for each country to a 1990 base through the use of the US GDP deflator. CIA reference year estimates of real GDP for most countries are given in the CIA World Factbook for a recent range of years. The time series estimates for this range is generated for non-reference year values by utilizing the real GDP growth rates given by the International Monetary Fund (IMF) in the World Economic Outlook.
Exceptions to this method were used for: Bosnia-Herzegovina Nauru Cuba Palau Holy See San Marino Korea, North Serbia & Montenegro Liberia Somalia Liechtenstein Tonga Monaco Tuvalu In these cases, other data and/or estimates by CountryWatch.com were utilized.
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Investment Overview
Corruption and Transparency Index. URL: http://www.transparency.org/documents/cpi/2001/cpi2001.html#cpi < http://www.transparency.org/documents/cpi/2001/cpi2001.html
United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html
United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.html
United States Department of State, Country Commercial Guides. 1996-2006. Washington, D.C. United States of America. URL: http://www.state.gov/www/about_state/business/com_guides/index.html
Social Overview
Borden, G.A., Conaway, W.A., Morrison, T. 1994. Kiss, Bow, or Shake Hands: How to do Business in Sixty Countries.Holbrook, Massachusetts, 1994.
Center for Disease Control. URL: http://www.cdc.gov
Eldis Country Profiles. URL: http://www.eldis.org/country/index.htm
Ethnologue. URL: http://www.ethnologue.com/
Government of Australia Department of Foreign Affiars and Trade. URL: http://www.dfat.gov.au/geo
Government of Canada Foreign Affairs and International Trade. URL: http://www.voyage.gc.ca/consular_home-e.htm
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Bibliography
Library of Congress Country Studies. URL: http://lcweb2.loc.gov/frd/cs/cshome.html
Steve Kropla's Online Help For World Travelers. URL: http://www.kropla.com/
United Kingdom Ministry of Foreign and Commonwealth Office. URL: http://www.fco.gov.uk/
United Nations Human Development Report. URL: http://www.undp.org/hdro
UNICEF Statistical Database Online. URL: http://www.unicef.org/statis/atoz.html
United States Central Intelligence Agency, World Factbook. 2001. Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html
United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.html
United States Department of State, Commercial and Business Affairs: Travel Tips. URL: http://www.state.gov/www/about_state/business/cba_travel.html
United States Department of State, Bureau of Consular Affairs. URL: http://travel.state.gov/
World Health Organization. URL: http://www.who.int/home-page/
Methodology Notes for the HDI:
Since 1990, the United Nations Development Programme, in concert with organizations across the globe, has produced the Human Development Index (or HDI). According to the UNDP, the index measures average achievement in basic human development in one simple composite index, and produces from this index a ranking of countries. The HDI is a composite of three basic components of human development: longevity, knowledge and standard of living. Longevity is measured by life expectancy.
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Knowledge is measured by combination of adult literacy and mean years of schooling. Standard of living is measured by purchasing power, based on real GDP per capita (in constant US$) adjusted for differences in international living costs (or, purchasing power parity, PPP). While the index uses these social indicators to measure national performance with regard to human welfare and development, not all countries provide the same level of information for each component needed to compute the index; therefore, as in any composite indicator, the final index is predicated on projections, predictions and weighting schemes. The index is a static measure, and thus, an incomplete measure of human welfare. In fact, the UNDP says itself the concept of human development focuses on the ends rather than the means of development and progress, examining in this manner, the average condition of all people in a given country.
Specifically, the index is calculated by determining the maximum and minimum for each of the three components (as listed above) and then measuring where each country stands in relation to these scalesexpressed as a value between 0 and 1. For example, the minimum adult literary rate is zero percent, the maximum is 100 percent, and the reading skills component of knowledge in the HDI for a country where the literacy rate is 75 percent would be 0.75. The scores of all indicators are then averaged into the overall index.
For a more extensive examination of human development, as well as the ranking tables for each participating country, please visit: http://www.undp.org
Environmental Overview
Environmental Profiles: A Global Guide to Projects and People. 1993. Linda Sobel Katz, Sarah Orrick, and Robert Honig. New York: Garland Publishing.
The Environment Encyclopedia and Directory, 2nd Edition. 1998. London: Europa.
Environmental Protection Agency Global Warming Site. http://www.epa.gov/globalwarming
Global Warming Information Page. http://globalwarming.org
An Introduction to Global Environmental Issues, 2nd Edition. 1997. Kevin Pickering and Lewis Owen. London: Routledge.
United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html
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Bibliography
World Directory of Country Environmental Studies. 1996. The World Resource Institute.
The World Factbook. US Central Intelligence Agency. Washington, D.C.: Printing and Photography Group.
1998-1999 World Resources Guide to the Global Environment by the World Resources Institute. May, 1998.
The 1998/1999 Yearbook of International Cooperation on Environment and Development. 1998. London: Earthscan Publications.
Other Sources:
General information has also been used in the compilation of this review, with the courtesy of governmental agencies from this country.
News Services:
Business in Asia. Asia Pulse Pte Ltd., Sydney, Australia.
CANA Daily Bulletin. Caribbean Media Agency Ltd., St. Michael, Barbados.
Central and Eastern Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for Central and Eastern Africa.
Daily News, Panafrican News Agency. Dakar, Senegal.
Electronic News in English, EFE News Services (U.S.), Inc. Washington, D.C.
The Financial Times. URL: http://www.financialtimes.com
Interfax Daily Financial Report, Interfax-America, Inc. Denver, Colorado, USA.
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Bibliography
Appendices
Interfax Daily Business Report, Interfax-America, Inc. Denver, Colorado, USA.
Interfax Daily News Bulletin, Interfax-America, Inc. Denver, Colorado, USA.
Internet News Service, Xinhua News Agency (U.S.) Inc. Woodside, New York.
The New York Times (daily print version).
PACNEWS, Pacific Islands Broadcasting Association. Suva, Fiji.
Southern Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for Southern Africa.
U.S. and World News, United Press International. Washington, D.C. 1998-1999
West Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for West Africa. 1998-1999
World News Connection, National Technical Information Service. Springfield, Virginia, USA. 19981999
Note: Some or all these news services have been used to research various sections of this Country Review.
USING COUNTRYWATCH.COM AS AN ELECTRONIC SOURCE:
MLA STYLE OF CITATION
Commentary
For items in a "Works Cited" list, CountryWatch.com suggests that users follow recommended patterns forindentation given in theMLA Handbook, 4th edition.
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Bibliography
Individual Works
Basic form, using an Internet protocol:
Author/editor. Title of Print Version of Work. Edition statement (if given). Publication information (Place of publication: publisher, date), if given. Title of Electronic Work. Medium. Available Protocol (if applicable):Site/Path/File. Access date.
Examples:
Youngblood-Coleman, Denise, editor. Country Review: France. 2003. Houston, Texas: CountryWatch Publications, 2003. Country Review:France. Online. Available URL: http://www.countrywatch.com/cw_country.asp?vCOUNTRY=61 October, 12, 2003. Note: This is the citation format used when the print version is not used in the reference.
Parts of Works
Basic form, using an Internet protocol:
Author/editor. "Part title." Title of Print Version of Work. Edition statement (if given). Publication information (Place of publication: publisher, date), if given. Title of Electronic Work. Medium. AvailableProtocol (if applicable): Site/Path/File. Access date.
Examples:
Youngblood-Coleman, Denise, editor. "People." CountryWatch.com: France. 2003. Houston, Texas: CountryWatch Publications, 2003.CountryWatch.com: France. Online. Available URL : http://www.countrywatch.com/cw_topic.asp?vCOUNTRY=61&SECTION=SOCIAL&TOPIC=CLPEO&TYPE=TEXT. October 12, 2003. Note:
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Bibliography
Appendices
This is the citation format used when the print version is not used in the reference.
For further source citation information, please email:
[email protected] or
[email protected].
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