Finland's Prime Minister Sanna Marin arriving for a European Union summit in Brussels. Photo / AP, File
Finland's Prime Minister Sanna Marin arriving for a European Union summit in Brussels. Photo / AP, File
OPINION
The Finnish Prime Minister’s visit to Aotearoa New Zealand, accompanied by a business delegation, is a big deal. It is the first visit by a Finnish Prime Minister. It is also significant for other reasons.
New Zealand Prime Minister Jacinda Ardern observed that we are natural partners and sharesimilar approaches and views on many issues. While Ardern spoke about the rule of law, multilateralism, sustainability, and free and open trade, she recognised that Finland has a “lot more to offer”.
New Zealand and Finland share something unique. They are stable democracies employing a pragmatic blend of socialism and capitalism – an enlightened and caring progressive social and political model that seeks to cater for the overall the needs of the population, rather than a small ruling elite.
In 2019, when researching my book The Power of Wellbeing, I kept coming across a small Nordic country that seemed to over-achieve at just about everything, repeatedly winning titles for the happiest country in the world, the best education system (based on a small gap between lowest and highest performers and where 99 per cent of students at school complete their studies), a healthy democracy, very little corruption, impressive GDP figures etc.
A group of young friends at the site of a wood-burning sauna by the Baltic Sea in Finland. Photo / Saara Mansikkamaki, The New York Times, File
All this at the same time as managing to live alongside its belligerent neighbour, Russia.
How did this small, remote, country with a population largely the same as ours, and limited natural resources - apart from wood and water (two things we also have in abundance, but have largely failed to leverage), become so good at so many things?
To find out, I visited Finland in January 2020 and interviewed several thought leaders. This is what I learned.
Finland and New Zealand are different in some respects. At the same time, we are surprisingly similar.
Both countries are proudly egalitarian. Both are relatively large but sparsely populated; Finland has approximately 18 people per square kilometre, New Zealand 19. Both countries regularly top the Democratic Index (well-run democracies) and Corruption Perceptions Index (the least corrupt nations). Both have outlawed the ownership of automatic firearms by private individuals.
New Zealand is more multicultural and diverse than Finland’s largely homogeneous population.
There is one key difference. Finland’s economic success and development of a high-performance economy that is able to fund and support its extensive wellbeing policies. This is a critical prerequisite for achieving general wellbeing.
Clive Elliot, KC, is a barrister and past president of the NZ Bar Association. Photo / supplied
In terms of providing the “means” i.e. the economic wherewithal to pay for wellbeing policies, Finland has few natural resources. Even so, it has created a much-vaunted tech-based export sector.
Take Kone Corporation. Known for its innovation, dependability, and quality, it is a world leader in the elevator and escalator industry. Vaisala Corporation is a global leader in environmental (weather) and industrial measurement. Valmet Corporation is the leading global developer and supplier of technologies, automation and services for the pulp, paper, and energy industries. Rovio, Supercell, and Fingersoft are world-leading mobile gaming companies.
The Finnish maritime cluster, including shipbuilding – especially ice breakers and cruise ships (Finland has made some of the largest cruise ships in the world), diesel engines (by Wärtsilä), and cargo-handling systems (by Cargotec), – punches way above its weight in their specialist markets.
The common denominator – a firm emphasis on research and development (R&D) and innovation, and unwavering attention to detail and quality.
Sixten Korkman is a professor emeritus at Aalto University in Helsinki. I met him in Helsinki and asked him what makes Finland tick and why it stands out from its peers.
A DJ performing at a Helsinki music venue. Photo / Saara Mansikkamaki, The New York Times, File
In his view, it is Finland’s comprehensive and inclusive welfare state, based on universalist principles and long-term investment in human capital, including child-care, education and R&D.
One of the key features of Finnish society is its egalitarianism, notably in relation to women. Another is the high level of trust between citizens and in its institutions – which have clear accountability to the people.
In the 1980s, the economy grew rapidly but, at the beginning of the 1990s, it experienced a deep financial crisis, following financial liberalisation and the implosion of the Soviet Union. The banks collapsed and unemployment skyrocketed. A large, captive Soviet market had made manufacturers unproductive and complacent, recalling what happened when New Zealand lost its privileged access to British markets in 1973.
Over a period of 15 years, Finland turned its economic fortunes around. Today, it is recognised as one of the most advanced knowledge-based economies in the world.
Importantly, however, it remains the most equal country in the OECD. This is no small achievement.
Progressive, liberal democracies like Finland and New Zealand can show the rest of the world how to implement forward-looking but affordable social policies that benefit the entire population.
New Zealand has done reasonably well on the social front and, more recently, in recognising indigenous rights but less so on the economic side.
We need to learn from our Finnish friends, not just on this visit, but in years to come - about funding and rewarding R&D and innovation, improving productivity, and reversing our drift towards inequality.
Clive Elliot is a King’s Counsel and a past president of the New Zealand Bar Association.
