The Finnish Economy
Finland was a tiny
industrialized country back in the early 2000s. Among the other
counties in the world, Finland was ranked in the top 20 based on the
standards of living. It was a country without much value at the
beginning of the twentieth century.
Many years ago, Finland and Sweden were shared until 1809, and from
1809 to 1917, Finland was a part of the Grand Duchy of Russia. In
1918, Finland was an independent republic. During the first World
War, the country was not involved directly. During the year of their
independent, the Finland had a Civil War. In the second World War,
Finland battled the Soviet Union.
Large forest areas with many trees are common in Finland. The forest
has been the country’s largest natural resource for many years.
Other natural resources are limited and do not help improve the
economy. Coal and oil is not found anywhere in Finland, and there
are only a few minerals. During the 80s, the biggest copper mine
during that time stopped production. The general water is also
limited in the country. The reason why is because the lakes have
various heights. Although the country is big, the population is not.
There are around 44 people per square mile, and the grand total of
people in the entire country is about 5.3 million. The population
consists of many types of people. Foreigners make up around two
percent of the population. There are also two speaking language
groups for historical reasons. Finnish is the majority language, and
Swedish is the minority. Over the years, the Finland population has
grown by zero point three percent.
Back in the 1800s, Finland was an agrarian country. This was
challenging because climatic weather conditions affected grain
growth. Agriculture and forestry was effective for the economy.
Seventy percent of the population had jobs in these industries. In
the 1990s, field cultivation stopped because slash and burn
cultivation was used.
In the seventeenth century, iron works are used in the southwestern
areas of the country. The iron ore was used to process Swedish iron.
Cash was brought into the country due to tar burning, fur trading,
and sawmilling. The cash was used to buy import items, such as salt
and other luxuries. The shipping of these items helped small towns.
The first industry plants were built using the funds from shipments
of tar and lumber.
After the second World War, Finland lost territory. Production units
suffered and raw material was not good. During this time, timber
exports were good in the west. Slowly, the production increased, and
the industry got better. Land was given to evacuees and soldiers.
This affected the farms because their sizes decreased.
Finland joined World Bank, and the country joined the Bretton Woods
agreement in 1948. Two year later, Finland needed the help of
Finefta. Because of the world political situation, the government
did not want Marshal Aid.
After World War II, the investment rate gained new levels because
the government policy favored investments. The investment rate
remained great until the end of the 1980s.
2013, All Rights Reserved