SGI 2017 | Finland | Key Challenges

Key Challenges

Recent Governments Experts

SGI experts on Finland

Heikki Hiilamo

Heikki Hiilamo currently works at the Department of Social Policy, University of Helsinki. Heikki does research in Social Policy and tobacco control.

Kati Kuitto

Kati Kuitto is Senior Researcher at the Finnish Centre for Pensions, Helsinki. Her research interests include comparative welfare state research, pension policies, the political performance of Central and Eastern European post-communist states, policy diffusion, the political system of Finland as well as methods of comparative political science. Kati studied political science at the Freie Universität Berlin and holds a PhD from the University of Greifswald (2012). She is the author of Post-Communist Welfare States in European Context: Patterns of Welfare Policies in Central and Eastern Europe (Edward Elgar 2016) as well as articles among others in the Journal of European Social Policy, the European Political Science Review and the Journal of Public Health. Together with Prof. Lyle Scruggs and Prof. Detlef Jahn, Kati is Principal Investigator of the Comparative Welfare Entitlement Dataset CWED2 project.

Mi Ah Schøyen (Coordinator)

Mi Ah Schoyen is Senior Researcher at NOVA Norwegian Social Research. She holds a PhD in political and social sciences from the European University Institute and works mainly in the field of comparative welfare state research. Her interests include the welfare mix, the politics and social consequences of welfare state reforms, intergenerational solidarity and the interplay between climate and social policy. She has published on topics such as the Nordic welfare state model, the eco-social agenda in Europe and cross-national comparisons of consequences of early job insecurity. She has experience from several large collaborative international research projects.

The key challenges relate to the fact that Finland recently underwent a significant shift in sustainable governance as Sanna Marin’s center-left government was replaced by Petteri Orpo’s right-wing administration in June 2023.

The shift in governance priorities represents a notable departure from the ecological and social sustainability emphasized by Marin’s government. Orpo’s administration primarily focuses on fostering a sustainable economy, raising questions about balancing economic growth with environmental and social responsibility. Striking a balance between fostering a sustainable economy for prosperity and ensuring that economic growth aligns with environmental and social responsibility has become a central challenge for the Orpo government. Additionally, the ongoing crisis with Russia has diverted attention and resources from sustainable governance topics, highlighting the challenge of maintaining focus on environmental and social sustainability amid immediate security concerns.

The means proposed by the Orpo government to address climate-related goals have raised concerns regarding their ambition, particularly when compared to the initiatives undertaken by the previous administration led by Sanna Marin. Climate-friendly policies are integral to combating biodiversity loss, a critical environmental issue that threatens ecosystems and the delicate balance of the planet’s biodiversity. The reduced ambition in the Orpo government’s climate approach raises questions about the adequacy of measures to protect and preserve diverse ecosystems, which are essential for the health of the environment and the countless species dependent on them. The Orpo government’s approach – with climate goals perceived as being less ambitious – raises concerns about Finland’s ability to fully realize the potential benefits associated with a proactive stance on climate-friendly policies.

A less welcoming approach to migrants under the new government – reflecting the political agenda of the True Finns party in particular – introduces challenges in managing immigration and raises questions about potential impacts on societal diversity and the economic progress of the country. With a declining birth rate and an aging population, work-based migration is of paramount importance for the sustainability of pension schemes, for example. The influence of the True Finns party is also visible in the development aid policy, pointing to potential challenges in maintaining a commitment to global solidarity amid shifting political landscapes.

The government’s social security cuts are poised to have widespread implications, potentially affecting various sectors of the population. Notably, these cuts are anticipated to disproportionately impact service sector workers, particularly those engaged in part-time employment. The reduction in social security benefits is expected to result in a substantial decrease in the monthly income of low-income people, raising concerns about the rise of poverty and social exclusion.

The government’s justification for these cuts – aimed at increasing the number of full-time jobs – has been met with skepticism. Critics argue such measures may inadvertently undermine incentives to work and the flexibility of working life across various professions. Amid these challenges, there are calls for a more nuanced and comprehensive approach to social security that addresses the diverse needs of the workforce while ensuring economic stability.

The government faces the challenge of maintaining a high level of citizen contentment, underscoring the delicate balance between fiscal responsibility and social welfare measures. Reversing the negative trends in educational outcomes and mental well-being of the youth is essential for the social and financial sustainability of Finnish society.

Finland’s recent governance transition brings a host of challenges, from policy ambiguities to shifts in priorities and potential impacts on societal well-being. Navigating these challenges will be crucial for Finland as it seeks to redefine its approach to sustainable governance and balance economic growth with environmental and social responsibility.

Citations:

Orpo, Petteri. 2023. Government Program: A Strong and Committed Finland.
Publications of the Finnish Government. 2023. https://valtioneuvosto.fi/en/governments/government-programme#/