Finland and India Improve Economic Relationship with a New Trade Agreement

Minister of Commerce and Industry Anand Sharma of India and Minister for Foreign Trade and Development Paavo Väyrynen of Finland signed a new agreement to promote economic cooperation between the two countries this past March. This agreement of cooperation will involve the exchange of information on statutes influencing the economy and improve the trade relationship between both countries. Both countries will appoint representatives to a joint commission that will meet at least every second year to discuss trade opportunities and ways to internationalize both Indian and Finish businesses. Trade between Finland and India has increased vigorously during the 2000s. Last year the value of exports was 450 million euros and that of imports was 230 million euros into the Finnish economy from India alone. One specific example of trade motioned during this convention was the introduction of Nokia cell phones into India during the mobile communications boom which has since increased its presence in both production and research. According to Indian statistics for January, the number of mobile phone subscriptions increases in the country at the rate of 15 million each month. The figure Finnish conglomerate Nokia gave was 19.5 million subscriptions per month. Minister Sharma of India stated that his country has the world’s second fastest economic growth rate and ensures that those who invest into India, like Finland, can expect profitable gains for their country.

http://formin.finland.fi/Public/Print.aspx?contentid=188954&nodeid=15145&culture=en-US&contentlan=2

[Picture of Anand Sharma and Paavo Väyrynen after finalizing trade agreements between Finland and India]

Making Monetary Policy

As you know, a monetary policy is used to regulate the supply and availability of money within an economy to provide predictable and stable inflation and interest rate fluctuations. In the United States, the economic sector of the government will evaluate the current state of the economy’s money supply and adjust it accordingly for the best results. Finland; however, does not single handedly create monetary and economic policy for its economy because it is part of the Euro zone which shares currency with other European nations. The Euro system is composed of the national central banks (NCBs) in the euro area and the European Central Bank (ECB) in Frankfurt Germany. Because Finland participates in the Euro system the Bank of Finland will monitor its economy regarding money supply and have a representative sit among a council with other representatives of the Euro nations. During the council the Bank of Finland will participate with other Euro nations in the preparation of a single monetary policy and the related decision making and implementation for the entire euro area. I feel that this group effort towards policy making is necessary for nations sharing a single currency and a good way to provide consistency to Europeans in the Euro zone. If one country made all the decision making for the Euro zone accommodations for other countries would obviously be unconsidered. If every country within the Euro zone made their own monetary policy it would render the Euro system useless and assign different money values to different countries for the same universal currency. For these reasons, the European Central Bank (ECB) and National Central Bank (NCB) are vital for the existence and prosperity of the Euro in Finland and elsewhere.

http://www.bof.fi/en/rahapolitiikka/index.htm
http://www.bof.fi/en/rahapolitiikka/rp_julkaisuja/index.htm

[Picture of European Central Bank]

Finland Rocks Economy

This post is about the cultural influences Finnish people have shared with the United States and vice versa. More specifically, rock and roll and heavy metal are two musical art forms which both cultures have demonstrated a brilliant knack for recording and performing. The most famous Finnish performers to break into the American main stream is a group of metal rockers that formed the band “HIM” in 1991 out of Helsinki Finland. The economic significance to this band comes from their five platinum records sold in Finland and a single record which went gold in the United States. For those unfamiliar with music RIAA awards a gold record is approximately one million sales of a publicized album. Although the profits from these albums go directly to the band and the record company this is still representative of Finland’s exporting economy which according to Finnish music reviews states that about forty percent of its music is exported and listened to by other nations. I thought this was an interesting fact about Finland and an awesome way for a country to contribute to its Economy. If you’re unfamiliar with the band HIM I’m sure you might have seen their clothing in the mall or on a skateboard which is just a few items these business rockers have merchandised to the US and elsewhere.

[ Picture of HIM logo and band members with marketing partner Bam Margera]

http://www.heartagram.com/content/band-bio

http://www.fmq.fi/index.php?option=com_content&view=article&id=72&Itemid=86

Finland: Why Public Transportation?

For some reason I can still remember when gas was only $0.99 a gallon. It’s obvious that this is an old memory and such prices for this commodity we may never see again. On the bright side, the premium that Americans pay for gasoline per gallon is quite lower than what Europeans pay. Finland pays €5.41 for every gallon of gasoline which translates to approximately $8.66 per gallon of gas in US currency. With gasoline prices as high as this the utilization of other means of transpiration have been implemented in Finland and also throughout many other nations in Europe. For instance, the Helsinki area in Finland has a pretty good public transport system that includes buses, trams, ferries, local trains and a subway/metro. Trains are generally the best way to travel between cities in Finland. They're clean, safe, reliable and deliver their travelers to a variety of destinations. There are different types of trains: local commuter trains, intercity trains and the super fast Pendolino trains. It is also common to take a train from Helsinki to Moscow and St. Petersburg Russia on a daily basis for those who work or have affairs abroad. Trains and trolleys in Finland have also adapted and improved over the span of their usage. Restaurants, bars and a place to park your car to travel with you have all been incorporated on the modern trains in Finland. I think that as fossil fuel supplies continue to get lower and prices continues to rise public transportations such as the kind we see in Europe will become more prevalent in the United States as well as the amount of people who choose to utilize public transportation system.

http://carscoop.blogspot.com/2008/04/european-gas-prices-and-you-thought-350.html

http://finland-travel.suite101.com/article.cfm/public_transportation_in_finland

[pictures of public transportation in Finland]

How's The Weather ?

As you may know Finland is a Nordic country located in the far northeast region of Europe. Due to the northern location of Finland which borders the Baltic Sea and the Gulf of Finland this country can experience some extreme temperatures and weather variations. Finland’s seasons are very similar to what we experience in the United States given that the coldest days are in February and the warmest moth is July. However, the adaptations for cold climates that people in the far northern regions of the United States have acquired are a nationally recognized way of life for the people in Finland. Items such as snow shoes, heavy cold and water proof clothing, electric blankets, snowmobiles, and stemming hot shower rooms called saunas are all typical elements throughout the country which offer resilience and functionality to the Finnish people during extremely cold conditions. Often during winter a shovel must be kept inside the house so the inhabitants can dig a path though the snow so work and school are possible. I feel these types of conditions which affect the whole country also affect the taste of items for which the Finnish people demand. For instance, snow shoes and electric blankets are items that people in Tarpon Springs Florida have little use for; a basic and obvious example but still an important underlining theme to the Finnish philosophy of supply and demand. Anyways, the point is good luck selling board shorts and flip flops in Helsinki.

http://goscandinavia.about.com/od/weatherinscandinavia/ss/weatherfinland.htm
http://www.fmi.fi/en/

[Picture of Finnish Winter]

New and Old Prison Philosophies: Finland

For Finland’s prison system heavy bars, armed guards, and strict living regimens are a thing of the past for those incarcerated. Approximately thirty years ago Finland adopted a very lenient prison philosophy called an “open prison system” and did away with their traditional soviet style prison facilities. An open prison system uses high tech digital cameras for monitoring prisoner activity and uses almost half the number of guards used in traditional prisons. The general concept of an open prison system is to develop criminals into socially acceptable members of society by providing more opportunity for prisoners to receive education, job training and counseling. This type of justice system addresses the fact that prisoners often become more aggressive criminals and outcastes of society if placed in a traditional prison system and become more of a criminal threat to society when they are released. Providing prisoners with rehabilitation rather than punishment is one of the main constituents in this judicial movement and has proven to be very effective. Finland's incarceration rate is just 52 per 100,000 people, less than half Canada's rate of 119 per 100,000 people and a tiny fraction of the American rate of 702.

I feel the economic significance behind these prison systems is that Finland is able to save money by housing and feeding fewer prisoners with tax dollars. Rehabilitating prisoners so that they may return to the workforce instead of implementing harsh punishments that may cause prisoners to becoming more harden criminals is also beneficial to Finland’s GDP. In the United States, According to Department of Correction Statistics, more than 5,000 inmates last year were serving sentences for non-trafficking drug charges with an average cost of nearly $27,000 to keep an inmate in prison for one year. The savings that could be made from not incarcerating such inmates would be very significant and provide good reason to rethink the existing prison system.

http://newpol.org/node/52
http://www.gastongazette.com/articles/way-44383-judicious-prison.html
http://www.pfi.org/cjr/human-rights-documents/gentle-justice-analysis-of-open-prison-systems-in-finland.-a-way-to-the-future

[Picture of dorm style jail cells in a Finish open prison facility]

Politcal Parties of Finland

How a country manages their economic issues often can depend on their political views and party in office. For example, In America various Republicans wish to drill for oil off the coast of our own shores while some Liberal participants urge that we find new alternative fuel altogether. Anyhow, the point is that either of the two American political parties would change the economic structure to some degree; however, Finland’s parliamentary political system consists of six main political parties each with a different philosophy on economic and political policy.
For this blog I will briefly describe and give the top six political parties that are currently active within the Finish political system. First the National Coalition Party (Kokoomus), this is the Finish Conservative party which aims at traditional Finish values. The Centre Party (Keskusta), this party consists of people mostly living in the rural areas of Finland in the Northern regions and leans in favor of the agricultural participants within the economy. The Social Democrats Party (SDP), this is a socialist party within Finland; Lenin, Guevara, and Marx were some of the famous members from this school of thought. True Finns Party (Perussuomalaiset), this is a popular party that consists of patriotic Finns which aims at traditional values without being overly conservative. The Christian Democrats (KD), this is a political party which wishes to keep religion associated with politics and education; the national religion of Finland is Christian Lutheran. The Green Party (Vihreat), characteristics of this party are also turning up in the American Democratic Party which aims at preserving mother Earth and “going green”. These are the top six parties within Finland’s political makeup with each party containing a slightly different philosophy on how to run the country effectively and efficiently. The current Finish President Tarja Halonen is the first female president of Finland and is currently a member of the Social Democrats Party.

http://www.finlandforthought.net/
http://www.answers.com/topic/tarja-halonen

[ Picture of Finnish Parliament Building ]

Finland pays lowest interest rates in Europe

For the first time in history Finland has issued a bond with an interest rate below the German level. The interest rate that Finland is to pay on a reference loan of EUR 5 billion that launched last week will have a return interest rate lower than any other European country which traditionally was Germany’s claim to fame. The rate for a five year loan between Finland and Germany has been a small difference but a favorable one for Germany in the past; however, good Finish state finances have been the key in their low interest rate success. Finland’s state debt is among the lowest in Europe which accounts for 45% of the nation’s GDP. The relative surplus of state finances is 2.3% of GDP which is the highest in the Euro zone. Although Finish bonds have excellent liquidity, investors from outside Europe wanting to invest in the euro zone still find it easier to invest in the bonds of a larger country like Germany, France, or Italy, which account for 70% of the total. More than 80% of the state’s EUR 60 million in debt is now in the hands of foreign investors making it difficult for Finland to attacked investments. I think that Finland should try to obtain more tourist attractions which will give the country more popularity and possibly attracted more foreign investors for their Euro zone. ( http://www.hs.fi/english/article/Finland+pays+lowest+interest+rates+in+Europe-+public+finances+in+good+shape/1101979644900)

[Picture of Finish euro]

Finland's Top 5

For this blog I will give examples of Finish resources and list the top five businesses responsible for this savvy and potent economy. Finland’s economy is primarily built around forestry which produces massive amounts of construction materials, wood product and paper products. Large timber forests in the Northern regions of Finland provide the natural resources for the development of this good. Two out of Finland’s top five businesses in the nation are timber wood manufactures: UPM-Kymmen (#4), and Stora Enso (#2). Other than forestry, Finland has a very high powered industrial economy and given the excellent water access trading is also a discipline of one of Finland’s top five Businesses. A business called Kesko ranks fifth as Finland’s largest and most successful business. Kesko (#5) is responsible for a large portion of the trading and manufacturing of goods throughout Europe which generates revenue as Finish income. Another natural resource found in Finland is oil which leads to Finland’s third wealthiest business. Neste Oil (#3) is a company in Finland that does a variety of services with fossil fuels and provides for customers such as: Natural gas pipeline operators, petrochemicals companies, and oil refineries. The most successful and possibly the most well known business hailing from Finland is Nokia (#1) which specializes in electronics. Nokia now specializes in cell phones but has been a household name in Finland since 1865 which initially produced such things as rubber, basic cables, radios, and later on phones of all kinds. http://www.uranus.fi/en/jobseekers/jobs/open.php?id=19982
[Picture of Helsinki Finish capital city & Nokia cell phone]

Struggles & Triumphs

My economic discoveries about Finland have been surprising thus far and have demonstrated an elaborate developing modern economy. However, Finland wasn’t always such an industrialized powerhouse and struggled for many centuries before establishing itself as an independent nation. Finland was a province under Sweden from the 12th to the 19th centuries and then an autonomous grand territory of Russia after 1809. After centuries of being other nations’ property and relying on them for economic support and structure Finland became a completely independent nation 1917. During WWII, Finland successfully defended its territory from the invasion of the Soviet Union with only a minor loss of terrain. The Fins, since their original independence in 1917 have created a strong and resilient nation that has transcended hardships and attacks in the past such as during WWII (http://www.nationmaster.com/country/fi-finland/mil-military). Since then, Finland has made significant gains in their per capita income which is now among the highest in Western Europe. Finland has also been a member of the European Union since 1995 and the only Nordic state to join the euro system at its initiation in January 1999. After acquiring some of this new information about Finland’s history I have a new found appreciation for the struggles and triumphs endured by this nation and admire how it has overcome its various adversities.
[ Picture of Finish Soldiers WWII]

Import$ and Export$

Finland is not shy when it comes to importing and exporting goods from other countries. In fact, Finland is the 36th biggest exporter of goods in the world and shipped out a recorded 96.6 billion dollars worth in 2008. In that same year, Finland imported approximately 87.5 billion worth of foreign goods into the country Finland's Top Imports & Exports 2008: Petroleum and Paper Products are Leading Finnish Exports to US http://import-export.suite101.com/article.cfm/finlands_top_imports_exports_2008#ixzz0eEEOxPGH. Imports into Finland are often food products and produce due to the fact that Finland experiences a long harsh winter with only a small window of time to grow native cultivations. Other than food, Finish people actually have a market for American automobiles and import cars such as Ford, Dodge, and Chevrolet from America. American automobile imports into Finland have risen since 2007 and account for a 1.4 billion dollar total for this year, plus a 130.5 million dollars worth of American civilian aircrafts imported into Finland for commercial use. Finland’s number one natural resource and export comes from its large and dense tree forests in the North. In paper alone, Finland exported 737.4 million dollars worth of paper products to the United States while importing no amount of goods of this category into Finland http://importexport.suite101.com/article.cfm/finlands_top_imports_exports_2008.

Finland is considered the 33rd richest country in 2008 by the CIA World Fact Book. I find it impressive that Finland can capitalize so much from their natural resources and spend zero dollars importing goods they already produce such as in the paper example. I feel that importing from other nations is useful; however, over using this tactic can result in over spending and a loss in job opportunities. Perhaps the United States has relied too heavily on outsourcing jobs and products to other countries when we could have satisfied the need within our own borders. Demonstrating how Finland imported zero dollars worth of paper products but exported 737.4 million to the United States is an ideal example of utilizing resources. I wonder what products in the United States could be/are completely independent from foreign import.

Annual Salary/Education Comparison

I would like to provide some statistical approximations which I’ve gathered from the internet in order to present a rough comparison between Finland’s average salaries with that of the United States. The people of Finland on average gross about 37,000 dollars a year in comparison to the United States which on average its citizens gross approximately 47,000 dollars a year. The United States is a much richer country than Finland; however, because Finland has a smaller population the average does not account for as many people as the United States. These statistics are pertaining to GDP per capita which is an average based on population size http://www.worldsrichestcountries.com/. From this data I have concluded that the standard of living in Finland is probably analogous to that of the United States.
Finland values education, like the United States, and secures equal opportunities for every resident in the country. Legislation provides for compulsory education and the right to free pre-primary and basic education. Most other qualifying education is also free of charges for the students, including postgraduate education at universities http://www.edu.fi/english/SubPage.asp?path=500,4699. Being that technology is one of Finland’s most prominent resources, second to forestry, I presume that the positive trend and promotion of education throughout the country plays a role in ensuring the successful future of this resource.
Although Finland isn’t a particularly large country in comparison to the World’s larger nations I feel because they value education and supply free rights to education to their citizens they instill value into their people which may correspond to the decent average salary exhibited by Finland. I believe that possibly some of the countries that don’t have a very high average salary income may consequently not have much emphasis on education as well.

Overview of Finland's Economy

Finland is the country that I will be posting blogs about this semester regarding its macroeconomic characteristics. Finland is a Nordic country which is vast with tundra and timber forests which are located in the Northern regions of the country. The Southern region of Finland is where most of the population is clumped containing approximately 5.4 million residents. Finland is a large country and ranks eighth overall in total area amongst the Eastern European countries.
Since the 1900s, a very important attribute about Finland has been its large wooded forests in the Northern regions. Finland’s major economic focus is agricultural with forestry and timber being its main focus for economic trade and export. Due to this natural resource, Finland is a free market economy which is heavily dependant on trade from other countries in order to satisfy its economic needs. The second most popular resource in Finland is technology and large industrial timber facilities which further process wood from the forests into building materials and other goods such as paper.

cite:
http://www.nationsencyclopedia.com/economies/Europe/Finland-OVERVIEW-OF-ECONOMY.html