| Published on March 9, 2010 |
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Country Report
Finland
 Introduction
Background: Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999. In the 21st century, the key features of Finland's modern welfare state are a high standard of education, equality promotion, and national social security system; currently challenged by an aging population and the fluctuations of an export-driven economy.
Geography
Location: Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia
Geographic coordinates: 64 00 N, 26 00 E
Area:
total: 338,145 sq km
land: 303,815 sq km
water: 34,330 sq km
Area - comparative: slightly smaller than Montana
Land boundaries:
total: 2,654 km
border countries: Norway 727 km, Sweden 614 km, Russia 1,313 km
Coastline: 1,250 km
Maritime claims:
territorial sea: 12 nm (in the Gulf of Finland - 3 nm)
contiguous zone: 24 nm
exclusive fishing zone: 12 nm; extends to continental shelf boundary with Sweden
continental shelf: 200 m depth or to the depth of exploitation
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
Elevation extremes:
lowest point: Baltic Sea 0 m
highest point: Haltiatunturi 1,328 m
Natural resources: timber, iron ore, copper, lead, zinc, chromite, nickel, gold, silver, limestone
Land use:
arable land: 6.54%
permanent crops: 0.02%
other: 93.44% (2005)
Irrigated land: 640 sq km (2003)
Total renewable water resources: 110 cu km (2005)
Freshwater withdrawal (domestic/industrial/agricultural):
total: 2.33 cu km/yr (14%/84%/3%)
per capita: 444 cu m/yr (1999)
Natural hazards: NA
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
Environment - international agreements:
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, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
Geography - note: long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
People
Population: 5,250,275 (July 2009 est.)
Age structure:
0-14 years: 16.4% (male 438,425/female 422,777)
15-64 years: 66.8% (male 1,773,495/female 1,732,792)
65 years and over: 16.8% (male 357,811/female 524,975) (2009 est.)
Median age:
total: 42.1 years
male: 40.5 years
female: 43.7 years (2009 est.)
Population growth rate: 0.098% (2009 est.)
Birth rate: 10.38 births/1,000 population (2009 est.)
Death rate: 10.07 deaths/1,000 population (July 2009 est.)
Net migration rate: 0.68 migrant(s)/1,000 population (2009 est.)
Urbanization:
urban population: 63% of total population (2008)
rate of urbanization: 0.8% annual rate of change (2005-10 est.)
Sex ratio:
at birth: 1.04 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 1.02 male(s)/female
65 years and over: 0.68 male(s)/female
total population: 0.96 male(s)/female (2009 est.)
Infant mortality rate:
total: 3.47 deaths/1,000 live births
male: 3.78 deaths/1,000 live births
female: 3.15 deaths/1,000 live births (2009 est.)
Life expectancy at birth:
total population: 78.97 years
male: 75.48 years
female: 82.61 years (2009 est.)
Total fertility rate: 1.73 children born/woman (2009 est.)
HIV/AIDS - adult prevalence rate: less than 0.1% (2007 est.)
HIV/AIDS - people living with HIV/AIDS: 2,400 (2007 est.)
HIV/AIDS - deaths: fewer than 100 (2003 est.)
Nationality:
noun: Finn(s)
adjective: Finnish
Ethnic groups: Finn 93.4%, Swede 5.6%, Russian 0.5%, Estonian 0.3%, Roma (Gypsy) 0.1%, Sami 0.1% (2006)
Religions: Lutheran Church of Finland 82.5%, Orthodox Church 1.1%, other Christian 1.1%, other 0.1%, none 15.1% (2006)
Languages: Finnish 91.2% (official), Swedish 5.5% (official), other 3.3% (small Sami- and Russian-speaking minorities) (2007)
Literacy:
definition: age 15 and over can read and write
total population: 100%
male: 100%
female: 100% (2000 est.)
School life expectancy (primary to tertiary education):
total: 17 years
male: 17 years
female: 18 years (2006)
Education expenditures: 6.4% of GDP (2005)
Government
Country name:
conventional long form: Republic of Finland
conventional short form: Finland
local long form: Suomen tasavalta/Republiken Finland
local short form: Suomi/Finland
Government type: republic
Capital:
name: Helsinki
geographic coordinates: 60 10 N, 24 56 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions: 6 provinces (laanit, singular - laani [Finnish]; lan, singular - lan [Swedish]); Ahvenanmaan Laani [Finnish long form], Aland [Finnish short form] (Aland); Etela-Suomen Laani [Finnish long form], Etela-Suomi [Finnish short form], Sodra Finlands Lan [Swedish long form], Ostra Finland [Swedish short form] (Southern Finland); Ita-Suomen Laani [Finnish long form], Ita Suomi [Finnish short form], Ostra Finlands Lan [Swedish long form], Ostra Finland [Swedish short form] (Eastern Finland); Lansi-Suomen Laani [Finnish long form], Lansi-Suomi [Finnish short form], Vastra Finlands Lan [Swedish long form], Vastra Finland [Swedish short form] (Western Finland); Lappi Laani [Finnish long form], Lappi [Finnish short form], Lapplands Lan [Swedish long form], Lappland [Swedish short form] (Lapland), Oulun Laani [Finnish long form], Oulu [Finnish short form], Uleaborgs Lan [Swedish long form], Uleaborg [Swedish short form]
Independence: 6 December 1917 (from Russia)
National holiday: Independence Day, 6 December (1917)
Constitution: 1 March 2000
Legal system: civil law system based on Swedish law; the president may request the Supreme Court to review laws; accepts compulsory ICJ jurisdiction with reservations
Suffrage: 18 years of age; universal
Executive branch:
chief of state: President Tarja HALONEN (since 1 March 2000)
head of government: Prime Minister Matti VANHANEN (since 24 June 2003); Deputy Prime Minister Jyrki KATAINEN (since 19 April 2007)
cabinet: Council of State or Valtioneuvosto appointed by the president, responsible to parliament
elections: president elected by popular vote for a six-year term (eligible for a second term); election last held 15 January 2006 (next to be held in January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment; Prime Minister VANHANEN reelected 17 April 2007
election results: percent of vote - Tarja HALONEN (SDP) 46.3%, Sauli NIINISTO (Kok) 24.1%, Matti VANHANEN (Kesk) 18.6%, Heidi HAUTALA (VIHR) 3.5%; a runoff election between HALONEN and NIINISTO was held 29 January 2006 - HALONEN 51.8%, NIINISTO 48.2%; Matti VANHANEN reelected prime minister; election results 121-71
note: government coalition - Kesk, KOK, VIHR, and SFP
Legislative branch:
unicameral Parliament or Eduskunta (200 seats; members are elected by popular vote on a proportional basis to serve four-year terms)
elections: last held 18 March 2007 (next to be held March 2011)
election results: percent of vote by party - Kesk 23.1%, Kok 22.3%, SDP 21.4%, VAS 8.8%, VIHR 8.5%, KD 4.9%, SFP 4.5%, True Finns 4.1%, other 3.4%; seats by party - Kesk 51, Kok 50, SDP 45, VAS 17, VIHR 15, SFP 9, KD 7, True Finns 5, other 1 (the constituency of Aland)
Judicial branch: general courts - deal with criminal and civil cases (include district courts, Courts of Appeal, and the Supreme Court or Korkein Oikeus, whose judges are appointed by the president); administrative courts
Political parties and leaders: Center Party or Kesk [Matti VANHANEN]; Christian Democrats or KD [Paivi RASANEN]; Green Party or VIHR [Anni SINNEMAKI]; Left Alliance or VAS [Paavo ARHINMAKI] (composed of People's Democratic League and Democratic Alternative); National Coalition Party (conservative) or Kok [Jyrki KATAINEN]; Social Democratic Party or SDP [Jutta URPILAINEN]; Swedish People's Party or SFP [Stefan WALLIN]; True Finns [Timo SOINI]
International organization participation: ADB (nonregional member), AfDB (nonregional member), Arctic Council, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURCAT, NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMIL, UNMIS, UNMOGIP, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
Diplomatic representation in the US:
chief of mission: Ambassador Pekka LINTU
chancery: 3301 Massachusetts Avenue NW, Washington, DC 20008
telephone: [1] (202) 298-5800
FAX: [1] (202) 298-6030
consulate(s) general: Los Angeles, New York
Diplomatic representation from the US:
chief of mission: Ambassador Bruce J. ORECK
embassy: Itainen Puistotie 14B, 00140 Helsinki
mailing address: APO AE 09723
telephone: [358] (9) 616250
FAX: [358] (9) 6162 5800
Flag description: white with a blue cross extending 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); the blue represents the thousands of lakes scattered across the country, while the white is for the snow that covers the land in winter
Economy
Economy - overview: Finland has a highly industrialized, largely free-market economy with per capita output roughly that of Austria, Belgium, the Netherlands, and Sweden. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important with exports accounting for over one third of GDP in recent years. Finland excels in high-tech exports such as 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 self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Finland had been one of the best performing economies within the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in 2009, with Finland experiencing one of the deepest contractions in the euro zone, and will serve as a brake on economic growth in 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise further from the level it reached in 2009. Long-term challenges include the need to address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.
GDP (purchasing power parity):
$183.1 billion (2009 est.)
note: data are in 2009 US dollars
GDP (official exchange rate): $242.3 billion (2009 est.)
GDP - real growth rate: -6.7% (2009 est.)
GDP - per capita (PPP):
$34,900 (2009 est.)
note: data are in 2009 US dollars
GDP - composition by sector:
agriculture: 3.4%
industry: 30.9%
services: 65.8% (2009 est.)
Labor force: 2.69 million (2009 est.)
Labor force - by occupation: agriculture and forestry 4.5%, industry 18.3%, construction 7.3%, commerce 16%, finance, insurance, and business services 14.5%, transport and communications 7%, public services 32.4% (2008)
Unemployment rate: 8.6% (2009 est.)
Population below poverty line: NA%
Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 24.7% (2007)
Distribution of family income - Gini index: 29.5 (2007)
Investment (gross fixed): 20.6% of GDP (2009 est.)
Budget:
revenues: $115.7 billion
expenditures: $122.6 billion (2009 est.)
Public debt: 46.6% of GDP (2009 est.)
Inflation rate (consumer prices): 0% (2009 est.)
Central bank discount rate:
3% (31 December 2008)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate: 5.79% (31 December 2008)
Stock of money:
$NA (31December 2008)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
Stock of quasi money: $NA (31 December 2008)
Stock of domestic credit: $241.1 billion (31 December 2008)
Market value of publicly traded shares: $NA (31 December 2008)
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
Industrial production growth rate: -9% (2009 est.)
Electricity - production: 77.24 billion kWh (2007 est.)
Electricity - consumption: 86.9 billion kWh (2008)
Electricity - exports: 3.335 billion kWh (2008 est.)
Electricity - imports: 16.11 billion kWh (2008 est.)
Oil - production: 9,789 bbl/day (2008 est.)
Oil - consumption: 215,600 bbl/day (2008 est.)
Oil - exports: 133,000 bbl/day (2008 est.)
Oil - imports: 347,400 bbl/day (2008 est.)
Oil - proved reserves: 0 bbl
Natural gas - production: 0 cu m (2008 est.)
Natural gas - consumption: 4.735 billion cu m (2008 est.)
Natural gas - exports: 0 cu m (2008 est.)
Natural gas - imports: 4.739 billion cu m (2008 est.)
Natural gas - proved reserves: 0 cu m (1 January 2009 est.)
Current account balance: $970 million (2009 est.)
Exports: $57.88 billion (2009 est.)
Exports - commodities: electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber
Exports - partners: Russia 11.6%, Sweden 10%, Germany 10%, US 6.4%, UK 5.5%, Netherlands 5.1% (2008)
Imports: $54.1 billion (2009 est.)
Imports - commodities: foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, grains
Imports - partners: Russia 16.2%, Germany 15.6%, Sweden 13.5%, Netherlands 6.3%, China 5%, UK 4.2% (2008)
Reserves of foreign exchange and gold: $8.319 billion (31 December 2009 est.)
Debt - external: $364.9 billion (30 June 2009 est.)
Stock of direct foreign investment - at home: $85.34 billion (31 December 2009 est.)
Stock of direct foreign investment - abroad: $116.3 billion (31 December 2009 est.)
Exchange rates: euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)
Communications
Telephones - main lines in use: 1.65 million (2008)
Telephones - mobile cellular: 6.83 million (2008)
Telephone system:
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; submarine cables provide links to Estonia and Sweden; 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)
Radio broadcast stations: AM 2, FM 59, shortwave 2 (2008)
Television broadcast stations: 120 (plus 431 repeaters) (1999); note - on 1 September 2007, Finland began broadcasting all television signals digitally; analog broadcasts via cable networks were discontinued 29 February 2008
Internet country code: .fi; note - Aland Islands assigned .ax
Internet hosts: 4.205 million (2009)
Internet users: 4.383 million (2008)
Transportation
Airports: 148 (2009)
Airports - with paved runways:
total: 75
over 3,047 m: 3
2,438 to 3,047 m: 26
1,524 to 2,437 m: 10
914 to 1,523 m: 22
under 914 m: 14 (2009)
Airports - with unpaved runways:
total: 73
914 to 1,523 m: 3
under 914 m: 70 (2009)
Pipelines: gas 694 km (2009)
Railways:
total: 5,794 km
broad gauge: 5,794 km 1.524-m gauge (3,047 km electrified) (2008)
Roadways:
total: 78,141 km
paved: 50,914 km (includes 700 km of expressways)
unpaved: 27,227 km (2009)
Waterways:
7,842 km
note: includes Saimaa Canal system of 3,577 km; southern part leased from Russia (2008)
Merchant marine:
total: 98
by type: bulk carrier 3, cargo 28, carrier 1, chemical tanker 6, container 3, passenger 5, passenger/cargo 18, petroleum tanker 5, roll on/roll off 27, vehicle carrier 2
foreign-owned: 8 (Estonia 2, Germany 1, Norway 3, Sweden 2)
registered in other countries: 47 (Bahamas 9, Germany 4, Gibraltar 3, Netherlands 14, Norway 1, Panama 2, Saint Kitts and Nevis 1, Sweden 12, UK 1) (2008)
Ports and terminals: Hamina, Helsinki, Kokkola, Kotka, Naantali, Pori, Raahe, Rauma, Turku
Military
Military branches: Finnish Defense Forces (FDF): Army, Navy (includes Coastal Defense Forces), Air Force (Suomen Ilmavoimat) (2007)
Military service age and obligation: 18 years of age for male voluntary and compulsory - and female voluntary - national military and nonmilitary service; service obligation 6-12 months; mandatory retirement at age 60 (2008)
Manpower available for military service:
males age 16-49: 1,169,910
females age 16-49: 1,121,187 (2008 est.)
Manpower fit for military service:
males age 16-49: 962,479
females age 16-49: 920,297 (2009 est.)
Manpower reaching militarily significant age annually:
male: 33,784
female: 32,621 (2009 est.)
Military expenditures: 2% of GDP (2005 est.)
Transnational Issues
Disputes - international: various groups in Finland advocate restoration of Karelia and other areas ceded to the Soviet Union, but the Finnish Government asserts no territorial demands
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