Safe, happy and free: What is Finland's secret for success?

Last year, Finland was ranked the most stable, the safest and the best-governed country. It was also the third wealthiest, the third least corrupt, the second most socially progressive and the third most socially just.
Last year, Finland was ranked the most stable, the safest and the best-governed country. It was also the third wealthiest, the third least corrupt, the second most socially progressive and the third most socially just.

The Nordic country of 5.5 million people tops nearly every global social ranking

Western Europe's last naturally caused famine ended 150 years ago this winter. In a poor and backward part of the Russian empire called Finland, more than a quarter of a million people - nearly 10 per cent of the population - starved to death.

Last year, on the centenary of its independence, Finland was ranked, by assorted international indices, the most stable, the safest and the best-governed country in the world.

It was also the third wealthiest, the third least corrupt, the second most socially progressive and the third most socially just.

Finland's judicial system is the most independent in the world, its police the most trusted, its banks the soundest, its companies the second most ethical, its elections the second freest, and its citizens enjoy the highest levels of personal freedom, choice and well-being.

The Nordic country's 5.5 million inhabitants are also the third most gender-equal in the world and have the fifth lowest income inequality. Their babies are the least underweight, their kids feel the most secure, and their teens perform the second best at reading (only third at science, though).

In a century and a half, they seem to have done rather well. "If you look at where we were then and where we are now, I think, absolutely, you can talk about a Finnish miracle," said Professor Bengt Holmstrom, a Helsinki-born Nobel prize-winning economist not much given to exaggeration. "How and why did it happen? Now that's a question."

DRIVEN BY GEOGRAPHY

We live in a cold, harsh and remote place. Every person has to work hard for themselves. But that is not always enough. You have to help your neighbours.

MS TARJA HALONEN, Finland's president from 2000 to 2012.

There are limits, of course, to the usefulness of this kind of exercise: No two countries - their circumstances, their histories, their people - can be the same. Learnings may not be transferable. The magic sauce that made Finland would not produce the same results in, say, France.

It is true, too, that shown the long list of social and economic measures by which their country can only be judged a success, many Finns snort: emerging slowly from a long recession, with unemployment at 8 per cent and a populist, nationalist party garnering up to 20 per cent of the vote, the country's not what it was, they say.

Often, the response - only semi-joking - is, "You mean other countries are worse?"

SISU AND TALKOO

But inquiring after the sauce's recipe of, among others, an economist, a philosopher, a sociologist and an ex-president, intriguing ingredients emerge.

To begin with, the geography - and its consequence, the climate. "We live," Ms Tarja Halonen, Finland's president from 2000 to 2012, says carefully, "in a cold, harsh and remote place. Every person has to work hard for themselves. But that is not always enough. You have to help your neighbours."

Mr Bruce Oreck, who served as US President Barack Obama's ambassador to Helsinki (he liked it so much he stayed), says this has been "a profound, long-term influence". He said: "It's made Finns self-reliant, private, but also dependent on a highly cooperative society where rules matter. It's cultural, but it's become part of the chemistry."

EQUAL STANDING

You can be walking down the street next to the richest guy in town, and you really wouldn't know.

MR BRUCE ORECK, who was US President Barack Obama's ambassador to Helsinki .

Of all the Finnish words that are hard to translate into English, the one Finns cite most is sisu: a kind of dogged, courageous persistence regardless of consequence. It is what, in 1939-40, allowed an army of 350,000 men to twice fight off Soviet forces three times their number, and inflict losses five times heavier than those they sustained.

But there is another that is, perhaps, more revealing, says Ms Sirpa Kahkonen, an award-winning historical novelist. Talkoo means "working together, collectively, for a specific good", she says. "Getting the harvest in, stocking wood, raising money. It's about cooperating. Everyone together, equally."

Cooperation, but also relative equality, are recurring themes. Ruled for almost 600 years by Sweden and a further century by Russia, Finland was "generally and democratically poor", says Ms Kahkonen. "There were no serfs, but no wildly wealthy aristocrats either. Society was not hierarchical."

Since long before independence in 1917, says Dr Riitta Jallinoja, a sociologist, "gaps between the social classes in Finland have been smaller than usual. Even the industrial revolution here was modest: no Rothschilds, no Fords, not even a dynasty like Sweden's Wallenbergs".

Even in today's clean, functional, visibly prosperous Helsinki, that still sort of holds. "You can be walking down the street next to the richest guy in town, and you really wouldn't know," says Mr Oreck. In Finland, insists Ms Halonen, "You don't look up at people, and you don't look down. You look level."

The country's most successful current firm, games studio Supercell, creator of Clash of Clans, paid over €800 million (S$1.3 billion) in tax, producing seven of Finland's top 10 income tax payers in 2016. Along with the rest of the country's highest 10,000 or so highest earners, the amount they pay is published in an annual list, on "national envy day".

BUILDING TRUST

People criticise the government constantly, and often for very good reason. But fundamentally, they do trust it.

SIRPA KAHKONEN, an award-winning historical novelist.

Finland is big on civic duty, but also on transparency.

The success of the country's free national education system, established before independence in 1866 and regularly ranked among the world's best, also has its roots in a more egalitarian society, says Dr Jallinoja: "Education was the key to advancement."

Not only that, says the philosopher and professor emeritus Ilkka Niiniluoto, but the whole country is actually "a social construction created by university professors."

The academics who led the country's nationalist movement "created Finland as a nation: its language, history, literature, music, symbols, folklore. The nationalist leader was a philosophy professor".

HIGH LITERACY

Since independence, nearly 30 per cent of Finland's heads of state and government have been university professors, including half its early prime ministers. "They shaped the country as we know it," says Dr Jallinoja. "But vitally, they also created confidence in social mobility, and real belief in education. That history comes with us."

If, however, Finland has been rated the world's most literate country, it may also have something to do with a 19th-century decree that a couple could not marry in the Lutheran church before both passed a reading test. "Quite an incentive," observes Ms Halonen, "to learn to read.

Gender equality, similarly, was baked in. In 1906, Finnish women became, if not quite the first to win the vote, the first to run for electoral office. Nearly 10 per cent of MPs in Finland's first Parliament were women (the figure is now 42 per cent); as early as 1930, up to 30 per cent of university students were women. "Women in Finland took their rights seriously, and men accepted it," says Ms Halonen.

Other ingredients have since added to the sauce. Finland benefited enormously from wise wartime and post-war leaders, insists Prof Holmstrom: "They thought about the good of the country; took big, sensible decisions. And the consensus backed them, because everyone knew we were fighting for our existence."

Responsible choices were made, invariably by continuity-conscious coalition governments, on big industrial and infrastructure investments, that have paid dividends many times over.

More recently, today's high-tech, start-up-friendly Finland was born of record investment in research and development in the 1990s, nearing 4 per cent of GDP.

POWER OF TRUST

Steady growth - through war, the collapse of the Soviet Union and a deep recession in the 1990s, Finland's economy has expanded over the past century at a rate equalled only by Japan's - has bolstered trust in the nation's institutions. "People criticise the government constantly, and often for very good reason," says Ms Kahkonen. "But fundamentally, they do trust it."

As they do, on the whole, their welfare state - on which Finland spends 31 per cent of its GDP, the second highest proportion in the OECD. ("If you're going to have a welfare state," says Ms Halonen, "the only real way to it is so well that there's no point having a private alternative.")

But Finns also trust each other more than most, says Mr Andre Chaker, a Canadian-born lawyer and public speaker who has lived in the country for 25 years. Corruption and organised crime are all but nonexistent. "That feeds into the business environment," he says. "Things get done here faster, more reliably."

And it is trust that breeds confidence, and a willingness to innovate: The World Economic Forum ranks Finland the most innovative country, per capita, in the world.

For years dominated by monolithic mining and forestry firms, then by the once-mighty Nokia, Finland today is close behind Silicon Valley in the number of start-ups per head.

The magic sauce, then, seems based mainly on basic virtues: self-confidence, cooperation, equality, respect for education, trust.

At bottom and in practice, says Ms Anu Partanen, a Finnish journalist who now lives in New York, it boils down to a different quality of relationship. She calls it - since it is shared to a greater or lesser extent by Sweden, Norway and Denmark - the Nordic theory of love.

"In the family, it's realising that relationships can only really flourish between individuals - parents, children, spouses - who are equal and independent," she says. "In a society, it means policy choices aimed at ensuring the greatest possible degree of independence, freedom and opportunity for everyone."

THE GUARDIAN

A version of this article appeared in the print edition of The Sunday Times on February 25, 2018, with the headline 'Safe, happy and free: What is Finland's secret for success?'. Print Edition | Subscribe