Background: Ruled by Sweden from the 12th to the 19th centuries and by Russia from 1809 Finland finally won its independence in 1917. During World War II it was able to successfully defend its freedom and fend off invasions by the Soviet Union and Germany. In the subsequent half century the Finns have made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now on par with Western Europe. As a member of the European Union Finland was the only Nordic state to join the euro system at its initiation in January 1999.
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
Terrain: mostly low flat to rolling plains interspersed with lakes and low hills
Geography Note: long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
Environment Current issues: air pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes agricultural chemicals; habitat loss threatens wildlife populations
Legal system: civil law system based on Swedish law; Supreme Court may request legislation interpreting or modifying laws; accepts compulsory ICJ jurisdiction with reservations
Legislative branch: unicameral Parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms)
Judicial branch: Supreme Court or Korkein Oikeus judges appointed by the president
Political parties and leaders: Center Party or Kesk [Esko AHO]; Ecological Party or EPV [Eugen PARKATTI]; Finnish Christian Union or SKL [C. P. Bjarne KALLIS]; Green Union [Satu HASSI]; Leftist Alliance (Communist) composed of People's Democratic League and Democratic Alternative [Claes ANDERSSON]; Liberal People's Party or LKP [Pekka RYTILA]; National Coalition (conservative) Party or Kok [Sauli NIINISTO]; Rural Party or SMP [Raimo VISTBACKA]; Social Democratic Party or SDP [Paavo LIPPONEN]; Swedish People's Party or SFP [(Johan) Ole NORRBACK]; Young Finns [Risto PENTTILA]
International organization participation: AfDB AsDB Australia Group BIS CBSS CCC CE CERN EAPC EBRD ECE EIB EMU ESA EU FAO G- 9 IADB IAEA IBRD ICAO ICC ICFTU ICRM IDA IEA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU NAM (guest) NC NEA NIB NSG OAS (observer) OECD OPCW OSCE PCA PFP UN UNCTAD UNESCO UNFICYP UNHCR UNIDO UNIFIL UNIKOM UNMIBH UNMIK UNMOGIP UNMOP UNTSO UPU WEU (observer) WFTU WHO WIPO WMO WToO WTrO ZC
Flag description: white with a blue cross that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)
Economy overview: 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 - principally the wood metals engineering telecommunications and electronics industries. Trade is important with exports equaling more than one-third of GDP. 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 self-sufficiency in basic products. Forestry an important export earner provides a secondary occupation for the rural population. The economy has come back from the recession of 1990-92 which had been caused by economic overheating depressed foreign markets and the dismantling of the barter system between Finland and the former Soviet Union. Rapidly increasing integration with Western Europe - Finland was one of the 11 countries joining the euro monetary system (EMU) on 1 January 1999 - will dominate the economic picture over the next several years. Growth in 2000 will probably be at the same level as in 1999 enough to continue the decline in unemployment from its current high level.
Exports: $43 billion (f.o.b. 1998) Commodities: machinery and equipment chemicals metals; timber paper and pulp Partners: EU 56% (Germany 12% UK 9% Sweden 9% France 5%) US 7% Russia 6% Japan (1998)
Imports: $30.7 billion (f.o.b. 1998) Commodities: foodstuffs petroleum and petroleum products chemicals transport equipment iron and steel machinery textile yarn and fabrics fodder grains Partners: EU 60% (Germany 15% Sweden 12% UK 7%) US 8% Russia 7% Japan 6% (1998)