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.