Social Policies
#5Key Findings
With a generally strong safety net, Finland falls into the top group internationally (rank 5) in the area of social policies. Its score in this area has declined by 0.3 points relative to 2014.
The education system is of high quality, though the country’s outstanding PISA scores are slipping due to gender and regional disparities in student performance. Education spending is very high in cross-OECD context. Overall, poverty levels are low, and levels of well-being high. However, pockets of relative poverty persist despite generally very efficient redistributive policies.
Primary healthcare is typically provided on an occupational basis, leaving unemployed people and the self-employed to the public system, which offers fewer services. Responsibility for financing healthcare is being transferred from the municipal to the regional level in 2023. Child-poverty rates are low, and women’s employment rates high, but women still disproportionately bear childcare duties.
The pension system generally prevents poverty, with recent forms successfully enhancing the system’s sustainability. Immigrants have difficulty integrating in the labor market, even in the second generation. Applying for a residence permit is still a complicated process. Development aid is viewed as a key aspect of security and foreign policy.
The education system is of high quality, though the country’s outstanding PISA scores are slipping due to gender and regional disparities in student performance. Education spending is very high in cross-OECD context. Overall, poverty levels are low, and levels of well-being high. However, pockets of relative poverty persist despite generally very efficient redistributive policies.
Primary healthcare is typically provided on an occupational basis, leaving unemployed people and the self-employed to the public system, which offers fewer services. Responsibility for financing healthcare is being transferred from the municipal to the regional level in 2023. Child-poverty rates are low, and women’s employment rates high, but women still disproportionately bear childcare duties.
The pension system generally prevents poverty, with recent forms successfully enhancing the system’s sustainability. Immigrants have difficulty integrating in the labor market, even in the second generation. Applying for a residence permit is still a complicated process. Development aid is viewed as a key aspect of security and foreign policy.
Graph View
Graph View
To what extent does education policy deliver high-quality, equitable and efficient education and training?
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9
9
Education policy fully achieves the criteria.
8
7
6
7
6
Education policy largely achieves the criteria.
5
4
3
4
3
Education policy partially achieves the criteria.
2
1
1
Education policy does not achieve the criteria at all.
Governance of the education system in Finland is shared between central and local authorities. The Finnish government defines and sets educational priorities. Meanwhile, municipalities (local authorities) maintain and support schools and daycare centers, and have significant responsibility for organizing education, defining educational curricula, funding and hiring personnel. A national Education and Research Development Plan outlines education policy priorities every four years, and guides the government when it is preparing and implementing education policies. Social and political agreement on the value of education has provided stability on the structure and key features of the education system. Decisions in schools are made by either the local government or the school, depending on how decision-making is organized in the municipality.
Centered on the principle of lifelong learning, education policy in Finland promotes and maintains high educational standards. Teachers are well-trained and teaching is still considered an attractive profession. In comparison with most other countries, teachers in Finland enjoy a high level of autonomy and are not formally evaluated, and there are very few national tests for students. All people by law must have equal access to high-quality education and training, basic education is free, and municipalities are responsible for providing educational services to all local children.
By and large, Finland’s education system has proved successful, and in recent years even ranked at the top of the OECD’s Program for International Student Assessment. However, while Finland remains among the top performers, the ranking of the country appears to be slipping as gender and regional disparities in student performance grow significantly. The Education and Research Development Plan, revised every four years by the government, directs the implementation of education- and research-policy goals as stated in the government program.
Finland’s expenditure on educational institutions as a percentage of GDP (for all education levels combined) is above the OECD average, with one of the highest shares of public funding among OECD countries (OECD 2015). The government’s education policy facilitates learning for everyone and allocates resources effectively across the different levels of education (e.g., preschool, primary, secondary and tertiary). In Finland, students complete nine years of basic education (comprehensive school), with the system focusing on equity and preventing low achievement. At upper-secondary level, students can choose between general education and vocational education and training options, both of which can lead on to tertiary education.
Recently, compulsory education has been extended to ages six to 18, from ages seven to 16 previously. Attainment rates in upper-secondary and tertiary education are higher than the OECD average, with one of the OECD’s highest enrollment rates in upper-secondary vocational education and training (VET) programs. School dropout rates are lower in Finland than in other EU member states, but are higher than the country’s average among people with an immigrant background. In Finland, the lack of tuition fees combined with universal access to study grants (covering both living costs and housing) and student loans guarantee equitable access to education. However, the children of parents who themselves attended higher education institutions, and who have above-average incomes, still have a higher likelihood of studying at university.
Adults (16- to 65-year-olds) in Finland were among the most skilled of any participating country in the Survey of Adult Skills, with younger adults (16- to 24-year-olds) scoring higher than all adults in Finland and young adults in other countries.
Citations:
Education and Research 2011-2016. A development plan. Reports of the Ministry of Education and Culture, Finland 2012:3;
“Education Policy Outlook Finland,” oecd.org/edu/highlightsFinland.htm;
“The new curricula in a nutshell,” http://www.oph.fi/english/curricula_and_qualifications/basic_education/curricula_2014;
oecd.org/edu/highlightsfinland.htm.
“Finnish Teachers and Principals in Figures,” https://www.oph.fi/download/189802_finnish_teachers_and_principals_in_figures.pdf
https://valtioneuvosto.fi/en/rinne/government-programme/finland-that-promotes-competence-education-culture-and-innovation
OECD, 2015. “Education Policy Outlook Finland: Finland.” Accessed 18.12.2020.
http://www.oecd.org/education/highlightsfinland.htm
Centered on the principle of lifelong learning, education policy in Finland promotes and maintains high educational standards. Teachers are well-trained and teaching is still considered an attractive profession. In comparison with most other countries, teachers in Finland enjoy a high level of autonomy and are not formally evaluated, and there are very few national tests for students. All people by law must have equal access to high-quality education and training, basic education is free, and municipalities are responsible for providing educational services to all local children.
By and large, Finland’s education system has proved successful, and in recent years even ranked at the top of the OECD’s Program for International Student Assessment. However, while Finland remains among the top performers, the ranking of the country appears to be slipping as gender and regional disparities in student performance grow significantly. The Education and Research Development Plan, revised every four years by the government, directs the implementation of education- and research-policy goals as stated in the government program.
Finland’s expenditure on educational institutions as a percentage of GDP (for all education levels combined) is above the OECD average, with one of the highest shares of public funding among OECD countries (OECD 2015). The government’s education policy facilitates learning for everyone and allocates resources effectively across the different levels of education (e.g., preschool, primary, secondary and tertiary). In Finland, students complete nine years of basic education (comprehensive school), with the system focusing on equity and preventing low achievement. At upper-secondary level, students can choose between general education and vocational education and training options, both of which can lead on to tertiary education.
Recently, compulsory education has been extended to ages six to 18, from ages seven to 16 previously. Attainment rates in upper-secondary and tertiary education are higher than the OECD average, with one of the OECD’s highest enrollment rates in upper-secondary vocational education and training (VET) programs. School dropout rates are lower in Finland than in other EU member states, but are higher than the country’s average among people with an immigrant background. In Finland, the lack of tuition fees combined with universal access to study grants (covering both living costs and housing) and student loans guarantee equitable access to education. However, the children of parents who themselves attended higher education institutions, and who have above-average incomes, still have a higher likelihood of studying at university.
Adults (16- to 65-year-olds) in Finland were among the most skilled of any participating country in the Survey of Adult Skills, with younger adults (16- to 24-year-olds) scoring higher than all adults in Finland and young adults in other countries.
Citations:
Education and Research 2011-2016. A development plan. Reports of the Ministry of Education and Culture, Finland 2012:3;
“Education Policy Outlook Finland,” oecd.org/edu/highlightsFinland.htm;
“The new curricula in a nutshell,” http://www.oph.fi/english/curricula_and_qualifications/basic_education/curricula_2014;
oecd.org/edu/highlightsfinland.htm.
“Finnish Teachers and Principals in Figures,” https://www.oph.fi/download/189802_finnish_teachers_and_principals_in_figures.pdf
https://valtioneuvosto.fi/en/rinne/government-programme/finland-that-promotes-competence-education-culture-and-innovation
OECD, 2015. “Education Policy Outlook Finland: Finland.” Accessed 18.12.2020.
http://www.oecd.org/education/highlightsfinland.htm
Graph View
To what extent does social policy prevent exclusion and decoupling from society?
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Policies very effectively enable societal inclusion and ensure equal opportunities.
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7
6
For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
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4
3
For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
2
1
1
Policies exacerbate unequal opportunities and exclusion from society.
Finland is among the group of countries that have adopted the Nordic welfare state model, which is known for its low levels of poverty and high levels of well-being. The Finnish welfare state is known for its universalistic and all‐encompassing approach to welfare. Finland has a long tradition of strongly egalitarian approaches. Residents of Finland are consistently among the happiest people in the world, on average.
Prime Minister Sanna Marin’s government programs are largely consonant with the principles and values of the Nordic welfare model. The cornerstones of the Nordic model include non-discrimination and equality; healthcare, well-being and education services financed by means of tax revenue; high levels of social mobility; and an active civil society (Prime Minister’s Office 2019).
However, income and wealth inequality have increased in recent years, thereby increasing social inequality. Social inequality affects people in many ways. It is manifested in poverty and prolonged need for social assistance. Inequality is also reflected in the differences in health outcomes and social inclusion between population groups, and in the percentage of young people who are not in education, employment or training. While the aim of the Finnish service system is to promote the health, well-being, functional capacity, work ability and social protection of the population, and to reduce inequalities in health outcomes and well-being, not all citizens can access all the services they need. Moreover, in some cases the services at their disposal do not meet their needs, as there are still significant inequalities in health outcomes and well-being. People not only experience deprivation during their lifetimes, but this is also passed down from generation to generation.
While social policy largely prevents poverty, and the income-redistribution system has proven to be one of the most efficient in the European Union, pockets of relative poverty and social exclusion still prevail. Furthermore, inequalities in well-being exist between regions and municipalities, depending on demographic composition and economic strength. In very general terms, the northeastern part of Finland is characterized by higher levels of unemployment and ill health than the southwestern part of the country.
Basic social assistance can be provided to individuals or families living or residing in Finland whose income and assets do not cover their essential daily needs, such as for food and medicine. Basic social assistance is a last-resort form of financial aid, with eligibility affected by all forms of income and assets available to applicants and their families, including any savings in a bank account. Other social security benefits are counted as income. Prior to applying for basic social assistance, claimants must determine whether they might be entitled to other social benefits, including unemployment benefits, housing benefits, benefits for parents or a sickness allowance (Social Insurance Institution of Finland (KELA) 2020).
In terms of life satisfaction and gender equality, the government has embarked on a number of programs to improve its performance. The Act on Equality between Women and Men was passed in 1986 and gender discrimination is prohibited under additional legislation. Despite this legislation, inequalities between men and women prevail, especially in the workplace. The government has placed a particular emphasis on programs for at-risk youth from 15 to 17 years old who experience social exclusion, as well as on programs to create equal opportunities for disabled individuals. Immigrants are another group that faces social exclusion, especially due to poor integration in the labor market. The strong increase in the number of incoming immigrants in 2016 and 2017 added to these difficulties. Furthermore, the growing number of people (especially older people) living alone, and widespread perceptions of loneliness among children and young people have gained attention. Improving the inclusion in society of vulnerable groups and the design of services to prevent loneliness have become core issues within the social inclusion agenda.
Citations:
“Socially Sustainable Finland 2020. Strategy for Social and Health Policy,” Ministry of Social Affairs and Health, Helsinki, 2010.
Prime Minister Sanna Marin’s government programs are largely consonant with the principles and values of the Nordic welfare model. The cornerstones of the Nordic model include non-discrimination and equality; healthcare, well-being and education services financed by means of tax revenue; high levels of social mobility; and an active civil society (Prime Minister’s Office 2019).
However, income and wealth inequality have increased in recent years, thereby increasing social inequality. Social inequality affects people in many ways. It is manifested in poverty and prolonged need for social assistance. Inequality is also reflected in the differences in health outcomes and social inclusion between population groups, and in the percentage of young people who are not in education, employment or training. While the aim of the Finnish service system is to promote the health, well-being, functional capacity, work ability and social protection of the population, and to reduce inequalities in health outcomes and well-being, not all citizens can access all the services they need. Moreover, in some cases the services at their disposal do not meet their needs, as there are still significant inequalities in health outcomes and well-being. People not only experience deprivation during their lifetimes, but this is also passed down from generation to generation.
While social policy largely prevents poverty, and the income-redistribution system has proven to be one of the most efficient in the European Union, pockets of relative poverty and social exclusion still prevail. Furthermore, inequalities in well-being exist between regions and municipalities, depending on demographic composition and economic strength. In very general terms, the northeastern part of Finland is characterized by higher levels of unemployment and ill health than the southwestern part of the country.
Basic social assistance can be provided to individuals or families living or residing in Finland whose income and assets do not cover their essential daily needs, such as for food and medicine. Basic social assistance is a last-resort form of financial aid, with eligibility affected by all forms of income and assets available to applicants and their families, including any savings in a bank account. Other social security benefits are counted as income. Prior to applying for basic social assistance, claimants must determine whether they might be entitled to other social benefits, including unemployment benefits, housing benefits, benefits for parents or a sickness allowance (Social Insurance Institution of Finland (KELA) 2020).
In terms of life satisfaction and gender equality, the government has embarked on a number of programs to improve its performance. The Act on Equality between Women and Men was passed in 1986 and gender discrimination is prohibited under additional legislation. Despite this legislation, inequalities between men and women prevail, especially in the workplace. The government has placed a particular emphasis on programs for at-risk youth from 15 to 17 years old who experience social exclusion, as well as on programs to create equal opportunities for disabled individuals. Immigrants are another group that faces social exclusion, especially due to poor integration in the labor market. The strong increase in the number of incoming immigrants in 2016 and 2017 added to these difficulties. Furthermore, the growing number of people (especially older people) living alone, and widespread perceptions of loneliness among children and young people have gained attention. Improving the inclusion in society of vulnerable groups and the design of services to prevent loneliness have become core issues within the social inclusion agenda.
Citations:
“Socially Sustainable Finland 2020. Strategy for Social and Health Policy,” Ministry of Social Affairs and Health, Helsinki, 2010.
Graph View
To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?
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9
9
Health care policy achieves the criteria fully.
8
7
6
7
6
Health care policy achieves the criteria largely.
5
4
3
4
3
Health care policy achieves the criteria partly.
2
1
1
Health care policy does not achieve the criteria at all.
Health policies in Finland have over time led to palpable improvements in public health such as a decrease in infant-mortality rates and the development of an effective health-insurance system. Finnish residents have access to extensive health services despite comparatively low per capita health costs. The Finnish healthcare system is based on public healthcare services to which everyone residing in the country is entitled. According to the constitution of Finland, the public authorities are to guarantee adequate social, health and medical services and health promotion to everyone. In other words, it is the constitutional duty of the public authorities to provide equal access to high-quality healthcare and disease protection (EU-Healthcare 2020).
In Finland, municipalities are responsible for organizing and financing healthcare, although this responsibility will be transferred to the regional level beginning in 2023. A municipality can organize services by providing them directly or in collaboration with other municipalities, or by purchasing services from private companies or non-profit organizations.
Healthcare services are divided into primary healthcare and specialized medical care. Primary healthcare services are provided at municipal healthcare centers. Specialized medical care is usually provided at hospitals. Municipalities form hospital districts that are responsible for providing specialized medical care in their area. In addition, joint municipal authorities belong to one of five catchment areas for highly specialized medical care.
The national hospital system delivers high-quality care for acute conditions, but there is a recognition that key challenges include improving primary care for the growing number of people with chronic conditions, and improving coordination between primary care and hospitals.
The Finnish healthcare system divides people into two main categories. Occupational primary healthcare is available for employed people. Those outside the labor force – such as the unemployed, temporary workers and self-employed people – rely on the public healthcare service, which has fewer resources and offers fewer services. As a result, socioeconomic inequalities in health outcomes persist.
Citations:
“Government Resolution on the Health 2015 Public Health Programme.” Helsinki: Publications of the Ministry of Social Affairs and Health, 2001;
Juha Teperi et al., “The Finnish Health Care System,” Sitra Reports 82, 2009;
“Socially Sustainable Finland 2020. Strategy for Social and Health Policy,” Ministry of Social Affairs and Health, 2014;
http://alueuudistus.fi/en/social-welfare-and-health-care-reform.
Tiirinki H, Tynkkynen LK, Sovala M, et al. 2020. COVID-19 pandemic in Finland – Preliminary analysis
on health system response and economic consequences. Health Policy Technol. 2020;9(4):649-662. doi:
10.1016/j.hlpt.2020.08.005, Accessed 28.12.2020.
In Finland, municipalities are responsible for organizing and financing healthcare, although this responsibility will be transferred to the regional level beginning in 2023. A municipality can organize services by providing them directly or in collaboration with other municipalities, or by purchasing services from private companies or non-profit organizations.
Healthcare services are divided into primary healthcare and specialized medical care. Primary healthcare services are provided at municipal healthcare centers. Specialized medical care is usually provided at hospitals. Municipalities form hospital districts that are responsible for providing specialized medical care in their area. In addition, joint municipal authorities belong to one of five catchment areas for highly specialized medical care.
The national hospital system delivers high-quality care for acute conditions, but there is a recognition that key challenges include improving primary care for the growing number of people with chronic conditions, and improving coordination between primary care and hospitals.
The Finnish healthcare system divides people into two main categories. Occupational primary healthcare is available for employed people. Those outside the labor force – such as the unemployed, temporary workers and self-employed people – rely on the public healthcare service, which has fewer resources and offers fewer services. As a result, socioeconomic inequalities in health outcomes persist.
Citations:
“Government Resolution on the Health 2015 Public Health Programme.” Helsinki: Publications of the Ministry of Social Affairs and Health, 2001;
Juha Teperi et al., “The Finnish Health Care System,” Sitra Reports 82, 2009;
“Socially Sustainable Finland 2020. Strategy for Social and Health Policy,” Ministry of Social Affairs and Health, 2014;
http://alueuudistus.fi/en/social-welfare-and-health-care-reform.
Tiirinki H, Tynkkynen LK, Sovala M, et al. 2020. COVID-19 pandemic in Finland – Preliminary analysis
on health system response and economic consequences. Health Policy Technol. 2020;9(4):649-662. doi:
10.1016/j.hlpt.2020.08.005, Accessed 28.12.2020.
Graph View
To what extent do family support policies enable women to combine parenting with participation in the labor market?
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9
9
Family support policies effectively enable women to combine parenting with employment.
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7
6
Family support policies provide some support for women who want to combine parenting and employment.
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Family support policies provide only few opportunities for women who want to combine parenting and employment.
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1
1
Family support policies force most women to opt for either parenting or employment.
Family policy in Finland adheres to the U.N. Convention on the Rights of the Child, as well as other international agreements. Finland’s family-policy programs aim to create a secure environment for children and support parents’ physical and mental resources. By and large, family policy has been successful. For example, child poverty has practically been eradicated. Support for families has three main elements: financial support for services and family leave, child benefits, and the provision of day care services. Access to public day care is guaranteed to all children under seven years of age, and allowances are paid for every child until they turn 17.
According to Prime Minister Sanna Marin’s government program, Finnish family policy faces new challenges. These relate to new kinds of needs and the growing complexity of family models (Prime Minister’s Office 2019). The traditional nuclear family pattern, with two parents of opposite sexes, is changing. Non-traditional families already account for around one-third of all families in Finland, and the number of blended families and rainbow families is increasing. Existing benefits schemes and service models do not always meet the real needs of families (Eydal et al. 2018). For example, the government program mentioned that access to services – such as couples or divorce counseling, which foster the well-being of families and support parents when they experience parenting or relationship problems – is not systematic or equal across the country.
The core aims of policies aimed at families with children in Finland are twofold: to improve equality between children by ensuring that all children can enjoy a good and safe childhood, regardless of family form and/or the social situation of their families; and to enhance gender equality by enabling both parents to work and provide care. Family policies in Finland ensure that parents are provided with support to care for their young children both by guaranteeing paid parental leave and offering subsidized childcare and family benefits. Family policy remains somewhat problematic with regard to gender equality. Although the employment rate among women, and in particular the full-time employment rate, is among the highest in the European Union, family policies have still not fully solved the challenge of combining parenting and employment. Although the number of fathers that take paternity leave has somewhat increased, childcare responsibilities still fall predominately on women. Also, the home-care allowance of up to three years encourages Finnish women to leave the labor market after having a child for a longer period than women in many other countries. Comparative examinations of Nordic family policies suggest that family policies in Finland have not developed to fully match the more flexible family-policy arrangements in, for example, Norway and Sweden. In general, evidence has shown that family-centered thinking is increasing among Finnish adults and within Finnish culture more generally.
Additionally, there are social, healthcare and school services, which aim to ensure children get the best possible service and outcomes, which are either fully financed by the public sector or require parents to pay small user fees. Parents are entitled to a paid leave of absence from their work after the birth of a child, and the law guarantees that parents can return to the same job after the period of leave. Under the Employment Contracts Act, an employee is entitled to a period of leave during which he or she can receive a maternity, special maternity, paternity or parental allowance (Finnish Institute for Health and Welfare 2020).
Finland has given children legal rights to early childhood education and care (ECEC) services. ECEC services are intended to facilitate female labor market participation, ensure the well-being of children, and – in more recent years – support the development of children’s social and cognitive skills. In other words, ECEC is an investment in children’s beings and becomings. ECEC services are subsidized by the public sector, with parents paying relatively modest user fees compared to other countries.
The most important family cash benefit is the child benefit, which is paid to parents without consideration of the parents’ income or means, and is the same for all children. Finland pays additional benefits to single parents and a supplement for additional children. In addition to child benefits, if a partnership is dissolved resulting in single parenthood, the parent that legally resides with the child often receives a child maintenance payment from the nonresident parent. The amount and the arrangement of the payment is decided during divorce proceedings or in connection with the birth of a child out of marriage, through mutual agreement or a decision from the court or local authorities. Public authorities guarantee maintenance payments for children. Poverty among families with children is most common in single-parent families and in families where children are under the age of three.
Citations:
Katja Repo, “The Contradiction of Finnish Childcare Policies,” www.ungdata.no/reassessassets/20608/20608.ppt;
Mia Hakovirta and Minna Rantalaiho, “Family Policy and Shared Parenting in Nordic Countries,” European Journal of Social Security, Vol. 13 No 2, pp. 247-266, 2011.
https://www.stat.fi/til/synt/2018/synt_2018_2019-04-26_tie_001_fi.html
Eydal, G. B., Rostgaard, T., & Hiilamo, H. T. (2018). Family policies in the Nordic countries: aiming at
equality. In G. B. Eydal, & T. Rostgaard (Eds), Handbook of Family Policy (Pp. 195-208). Cheltenham,
UK: Edward Elgar. https://doi.org/10.4337/9781784719340.00024
Finnish Institute for Health and Welfare. 2020. Gender Equality and Corona Crisis. Accessed, 28.12.
2020.https://thl.fi/fi/tutkimus-ja-kehittaminen/tutkimukset-ja-hankkeet/koronakriisin-vaikutuksetsukupuolten-
tasa-arvoon-suomessa
Prime Minister’s Office 2020. “Ecologically and socially sustainable economic growth, high employment
and sustainable public finances.” Government Programme. Accessed 18.12. 2020.
https://valtioneuvosto.fi/en/marin/government-programme/finland-as-a-sustainable-economy
According to Prime Minister Sanna Marin’s government program, Finnish family policy faces new challenges. These relate to new kinds of needs and the growing complexity of family models (Prime Minister’s Office 2019). The traditional nuclear family pattern, with two parents of opposite sexes, is changing. Non-traditional families already account for around one-third of all families in Finland, and the number of blended families and rainbow families is increasing. Existing benefits schemes and service models do not always meet the real needs of families (Eydal et al. 2018). For example, the government program mentioned that access to services – such as couples or divorce counseling, which foster the well-being of families and support parents when they experience parenting or relationship problems – is not systematic or equal across the country.
The core aims of policies aimed at families with children in Finland are twofold: to improve equality between children by ensuring that all children can enjoy a good and safe childhood, regardless of family form and/or the social situation of their families; and to enhance gender equality by enabling both parents to work and provide care. Family policies in Finland ensure that parents are provided with support to care for their young children both by guaranteeing paid parental leave and offering subsidized childcare and family benefits. Family policy remains somewhat problematic with regard to gender equality. Although the employment rate among women, and in particular the full-time employment rate, is among the highest in the European Union, family policies have still not fully solved the challenge of combining parenting and employment. Although the number of fathers that take paternity leave has somewhat increased, childcare responsibilities still fall predominately on women. Also, the home-care allowance of up to three years encourages Finnish women to leave the labor market after having a child for a longer period than women in many other countries. Comparative examinations of Nordic family policies suggest that family policies in Finland have not developed to fully match the more flexible family-policy arrangements in, for example, Norway and Sweden. In general, evidence has shown that family-centered thinking is increasing among Finnish adults and within Finnish culture more generally.
Additionally, there are social, healthcare and school services, which aim to ensure children get the best possible service and outcomes, which are either fully financed by the public sector or require parents to pay small user fees. Parents are entitled to a paid leave of absence from their work after the birth of a child, and the law guarantees that parents can return to the same job after the period of leave. Under the Employment Contracts Act, an employee is entitled to a period of leave during which he or she can receive a maternity, special maternity, paternity or parental allowance (Finnish Institute for Health and Welfare 2020).
Finland has given children legal rights to early childhood education and care (ECEC) services. ECEC services are intended to facilitate female labor market participation, ensure the well-being of children, and – in more recent years – support the development of children’s social and cognitive skills. In other words, ECEC is an investment in children’s beings and becomings. ECEC services are subsidized by the public sector, with parents paying relatively modest user fees compared to other countries.
The most important family cash benefit is the child benefit, which is paid to parents without consideration of the parents’ income or means, and is the same for all children. Finland pays additional benefits to single parents and a supplement for additional children. In addition to child benefits, if a partnership is dissolved resulting in single parenthood, the parent that legally resides with the child often receives a child maintenance payment from the nonresident parent. The amount and the arrangement of the payment is decided during divorce proceedings or in connection with the birth of a child out of marriage, through mutual agreement or a decision from the court or local authorities. Public authorities guarantee maintenance payments for children. Poverty among families with children is most common in single-parent families and in families where children are under the age of three.
Citations:
Katja Repo, “The Contradiction of Finnish Childcare Policies,” www.ungdata.no/reassessassets/20608/20608.ppt;
Mia Hakovirta and Minna Rantalaiho, “Family Policy and Shared Parenting in Nordic Countries,” European Journal of Social Security, Vol. 13 No 2, pp. 247-266, 2011.
https://www.stat.fi/til/synt/2018/synt_2018_2019-04-26_tie_001_fi.html
Eydal, G. B., Rostgaard, T., & Hiilamo, H. T. (2018). Family policies in the Nordic countries: aiming at
equality. In G. B. Eydal, & T. Rostgaard (Eds), Handbook of Family Policy (Pp. 195-208). Cheltenham,
UK: Edward Elgar. https://doi.org/10.4337/9781784719340.00024
Finnish Institute for Health and Welfare. 2020. Gender Equality and Corona Crisis. Accessed, 28.12.
2020.https://thl.fi/fi/tutkimus-ja-kehittaminen/tutkimukset-ja-hankkeet/koronakriisin-vaikutuksetsukupuolten-
tasa-arvoon-suomessa
Prime Minister’s Office 2020. “Ecologically and socially sustainable economic growth, high employment
and sustainable public finances.” Government Programme. Accessed 18.12. 2020.
https://valtioneuvosto.fi/en/marin/government-programme/finland-as-a-sustainable-economy
Graph View
To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?
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9
9
Pension policy achieves the objectives fully.
8
7
6
7
6
Pension policy achieves the objectives largely.
5
4
3
4
3
Pension policy achieves the objectives partly.
2
1
1
Pension policy does not achieve the objectives at all.
The Finnish public pension system has two individual programs: a basic residence-based pension consisting of the national pension and the guarantee pension, and a mandatory employment-based, earnings-related pension. Voluntary occupational schemes and private pension savings play a very minor role.
Fairly successfully managed by the social partners as well as the government, the overall pension policy has thus far been able to provide adequate pension provision, and Finland has by and large avoided the classic problem of poverty in old age. However, the oldest cohorts, women and retirees living alone tend to suffer from poverty more often than other retirees. The aging of Finland’s population and a rapid decrease in birth rates over recent years have together created problems in terms of labor-force maintenance and the fiscal sustainability of the pension system. Present strategies aim at encouraging later retirement in order to ensure that the state pension provides sufficient funding.
A major reform of the pension system in 2005 aimed at increasing pension-policy flexibility and sought to create more incentives for workers to stay in employment. In 2011, a national guarantee pension was introduced. While these reforms were successful, a further major reform came into effect in 2017, the main goal again being to lengthen careers and help close the sustainability gap in public finances. Major changes imply a gradual rise in the lowest retirement age, a harmonization of pension accrual, an increase in deferred retirement (to provide an incentive to stay in work life longer), flexible part-time retirement and amendments to the accumulation rate.
A recent evaluation by Torben Andersen (2021) found the Finnish model to be robust and well-functioning. The key challenges included the financial viability of the system, the regulatory framework for pension providers’ investment policies, and the widening gap between pensioners and those active in the labor market. The report also found a long-run tendency toward increasing inequality within the group of pensioners.
Citations:
Andersen, Torben (2021). Pension adequacy and sustainability – An evaluation of the Finnish pension system. https://urn.fi/URN:ISBN:978-951-691-336-3
Nicholas Barr (2013) The Pension System in Finland: Adequacy, Sustainability and Systems Design. Finnish Center for Pensions. https://urn.fi/URN:ISBN:978-951-691-175-8
Agreement on the 2017 Earnings-related Pension Reform, http://www.etk.fi/wp-content/uploads/agreement_on_2017_earnings_related_pension_reform_final.pdf;
“The Finnish Pension System,” http://www.infopankki.fi/en/living-in-Finland/work_and_enterprise/pension;
Susan Kuivalainen, Juha Rantala, Kati Ahonen, Kati Kuitto and Liisa-Maria Palomäki (eds.) (2017). Eläkkeet ja eläkeläisten toimeentulo 1995–2015 [Pensions and livelihood of retirees 1995-2015]. Helsinki: Finnish Center for Pensions. https://urn.fi/URN:ISBN:978-951-691-261-8
https://www.etk.fi/en/statistics-2/statistics/effective-retirement-age/
Melbourne Mercer Global Pension Index 2019, https://www.mercer.com.au/our-thinking/mmgpi.htm
Fairly successfully managed by the social partners as well as the government, the overall pension policy has thus far been able to provide adequate pension provision, and Finland has by and large avoided the classic problem of poverty in old age. However, the oldest cohorts, women and retirees living alone tend to suffer from poverty more often than other retirees. The aging of Finland’s population and a rapid decrease in birth rates over recent years have together created problems in terms of labor-force maintenance and the fiscal sustainability of the pension system. Present strategies aim at encouraging later retirement in order to ensure that the state pension provides sufficient funding.
A major reform of the pension system in 2005 aimed at increasing pension-policy flexibility and sought to create more incentives for workers to stay in employment. In 2011, a national guarantee pension was introduced. While these reforms were successful, a further major reform came into effect in 2017, the main goal again being to lengthen careers and help close the sustainability gap in public finances. Major changes imply a gradual rise in the lowest retirement age, a harmonization of pension accrual, an increase in deferred retirement (to provide an incentive to stay in work life longer), flexible part-time retirement and amendments to the accumulation rate.
A recent evaluation by Torben Andersen (2021) found the Finnish model to be robust and well-functioning. The key challenges included the financial viability of the system, the regulatory framework for pension providers’ investment policies, and the widening gap between pensioners and those active in the labor market. The report also found a long-run tendency toward increasing inequality within the group of pensioners.
Citations:
Andersen, Torben (2021). Pension adequacy and sustainability – An evaluation of the Finnish pension system. https://urn.fi/URN:ISBN:978-951-691-336-3
Nicholas Barr (2013) The Pension System in Finland: Adequacy, Sustainability and Systems Design. Finnish Center for Pensions. https://urn.fi/URN:ISBN:978-951-691-175-8
Agreement on the 2017 Earnings-related Pension Reform, http://www.etk.fi/wp-content/uploads/agreement_on_2017_earnings_related_pension_reform_final.pdf;
“The Finnish Pension System,” http://www.infopankki.fi/en/living-in-Finland/work_and_enterprise/pension;
Susan Kuivalainen, Juha Rantala, Kati Ahonen, Kati Kuitto and Liisa-Maria Palomäki (eds.) (2017). Eläkkeet ja eläkeläisten toimeentulo 1995–2015 [Pensions and livelihood of retirees 1995-2015]. Helsinki: Finnish Center for Pensions. https://urn.fi/URN:ISBN:978-951-691-261-8
https://www.etk.fi/en/statistics-2/statistics/effective-retirement-age/
Melbourne Mercer Global Pension Index 2019, https://www.mercer.com.au/our-thinking/mmgpi.htm
Graph View
How effectively do policies support the integration of migrants into society?
10
9
9
Cultural, education and social policies effectively support the integration of migrants into society.
8
7
6
7
6
Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
5
4
3
4
3
Cultural, education and social policies do not focus on integrating migrants into society.
2
1
1
Cultural, education and social policies segregate migrant communities from the majority society.
Since the beginning of the 1980s, Finland has witnessed more immigration than emigration. From 1990 to 2018, the share of the population with a foreign background grew from 0.8% to 7.3%. Several factors have challenged the management of this inflow of immigrants. Second-generation immigrants have had difficulties entering education or finding work. There are also differences in labor-market attachment relative to migrants’ countries of origin; Estonians, for example, finding their way into employment much more easily than migrants from sub-Saharan Africa.
Boosting the labor-market participation rate was a key target of the government’s Future of Migration 2020 Strategy and 2016 Action Plan. While Finland has received a fair share of asylum-seekers on a per capita basis, the country is not considered to be among the top destinations for immigrants. This is the result of various factors. Applying for a Finnish residence permit is still a complicated process, as is applying for Finnish citizenship. Finnish is a difficult language, and proficient language skills are required. While sympathetic to work-related immigration, authorities’ general attitude toward immigration is rather restrictive. Moreover, until the summer of 2017, the Finns Party (then called the True Finns) used its cabinet position as a platform to fan anti-immigrant sentiments. Several demonstrations by anti-immigrant protesters against refugee accommodations turned violent. According to a recent poll, 47% of the population is in favor if immigration, whereas 41% is negatively disposed toward it. At the same time, however, attitudes are highly dependent on the country of origin of the immigrants in question. In general, respondents were much more positive toward immigration from the EU, North America and Asia than immigration from Africa and the Middle East.
Citations:
http://pxnet2.stat.fi/PXWeb/pxweb/sv/StatFin/StatFin__vrm__vaerak/statfin_vaerak_pxt_11rt.px/table/tableViewLayout1/
Arno Tanner, “Finland’s Balancing Act,” http://www.migrationpolicy.org/article/finlands-balancing-act-labor-market-humanitarian-relief-and-immigrant-integration;
“Finland must develop its Immigration and Integration Policies,” http://www.helsinkitimes.fi/;
Eve Kyntäjä, “Integration Policy in Finland,” h24-files.s3.amazonnews.com/62061/837056/-audb.pdf;
Henna Busk, Signe Jauhiainen, Antti Kekäläinen, Satu Nivalainen and Tuuli Tähtinen 2016. “Maahanmuuttajat työmarkkinoilla: tutkimus eri vuosina Suomeen muuttaneiden työurista” [Immigrants on the labour market – A study of the working lives of immigrants arriving in Finland in different years]. Finnish Center for Pensions, Studies 06/2016. Helsinki: Finnish Center for Pensions;
Elli Heikkilä and Selena Peltonen, “Immigrants and Integration in Finland,” Institute of Migration, Turku.
Kunnallisalan kehittämissäätiö: https://kaks.fi/uutiset/kaksi-viidesta-suomalaisesta-on-kielteinen-maahanmuutolle-tyontekijat-ja-opiskelijat-toivotetaan-tervetulleiksi/
Boosting the labor-market participation rate was a key target of the government’s Future of Migration 2020 Strategy and 2016 Action Plan. While Finland has received a fair share of asylum-seekers on a per capita basis, the country is not considered to be among the top destinations for immigrants. This is the result of various factors. Applying for a Finnish residence permit is still a complicated process, as is applying for Finnish citizenship. Finnish is a difficult language, and proficient language skills are required. While sympathetic to work-related immigration, authorities’ general attitude toward immigration is rather restrictive. Moreover, until the summer of 2017, the Finns Party (then called the True Finns) used its cabinet position as a platform to fan anti-immigrant sentiments. Several demonstrations by anti-immigrant protesters against refugee accommodations turned violent. According to a recent poll, 47% of the population is in favor if immigration, whereas 41% is negatively disposed toward it. At the same time, however, attitudes are highly dependent on the country of origin of the immigrants in question. In general, respondents were much more positive toward immigration from the EU, North America and Asia than immigration from Africa and the Middle East.
Citations:
http://pxnet2.stat.fi/PXWeb/pxweb/sv/StatFin/StatFin__vrm__vaerak/statfin_vaerak_pxt_11rt.px/table/tableViewLayout1/
Arno Tanner, “Finland’s Balancing Act,” http://www.migrationpolicy.org/article/finlands-balancing-act-labor-market-humanitarian-relief-and-immigrant-integration;
“Finland must develop its Immigration and Integration Policies,” http://www.helsinkitimes.fi/;
Eve Kyntäjä, “Integration Policy in Finland,” h24-files.s3.amazonnews.com/62061/837056/-audb.pdf;
Henna Busk, Signe Jauhiainen, Antti Kekäläinen, Satu Nivalainen and Tuuli Tähtinen 2016. “Maahanmuuttajat työmarkkinoilla: tutkimus eri vuosina Suomeen muuttaneiden työurista” [Immigrants on the labour market – A study of the working lives of immigrants arriving in Finland in different years]. Finnish Center for Pensions, Studies 06/2016. Helsinki: Finnish Center for Pensions;
Elli Heikkilä and Selena Peltonen, “Immigrants and Integration in Finland,” Institute of Migration, Turku.
Kunnallisalan kehittämissäätiö: https://kaks.fi/uutiset/kaksi-viidesta-suomalaisesta-on-kielteinen-maahanmuutolle-tyontekijat-ja-opiskelijat-toivotetaan-tervetulleiksi/
Graph View
How effectively does internal security policy protect citizens against security risks?
10
9
9
Internal security policy protects citizens against security risks very effectively.
8
7
6
7
6
Internal security policy protects citizens against security risks more or less effectively.
5
4
3
4
3
Internal security policy does not effectively protect citizens against security risks.
2
1
1
Internal security policy exacerbates the security risks.
According to the 2019 Overseas Security Advisory Council (OSAC) report, Finland continues to be a safe and secure environment for business, tourism and living, having one of the world’s most effective police forces. Finland remains among the safest countries in the world, with a very low crime rate. Still, as evident from the 2019 OSAC report, there has been an increase in the incidence of sexual offenses, drunk driving, robberies and narcotics-related offenses. According to polls, Finnish citizens regard the police as one of the most reliable public institutions. Following the establishment of a First Program on Internal Security in 2004, the government in 2012 adopted the Third Internal Security Program, with the aim of reducing citizen’s daily security concerns. The program’s overall implementation has been monitored by the Ministry of the Interior. Additionally, the government has adopted or is considering national strategies addressing organized crime, the informal economy and terrorism. Involving a collaboration between municipalities, regions, organizations, businesses and the public administration, preparations for a new national strategy outline were initiated in August 2016 and completed in April 2017. An implementation program for Finland’s Cyber Security Strategy for 2017 – 2020 has been adopted and measures have been taken to increase national and international cooperation between intelligence and police authorities. In 2020, Finland experienced a far-reaching incident of data security crime when the complete patient list maintained by psychotherapy firm Vastaamo, comprising 33,000 clients, was stolen. The clients were subsequently subject to blackmail. They were required to pay any amount of money to have their private data removed from the data published over the Tor network. The criminal investigation is still ongoing.
Citations:
“Turvallisempi huominen. Sisäisen turvallisuuden ohjelma.” 26/2012. Ministry of Interior, Helsinki; http://www.intermin.fi/download/34893_262012_STO_III_fi.pdf;
http://www.intermin.fi/fi/kehittamishankkeet/sisaisen_turvallisuuden_strategia;
turvallisuuskomitea.fi/index.php/en/materials.
“Finland 2019 Crime & Safety Report,” https://www.osac.gov/Content/Report/a07de0db-58c6-4954-a485-15f4aeaf1baa
Citations:
“Turvallisempi huominen. Sisäisen turvallisuuden ohjelma.” 26/2012. Ministry of Interior, Helsinki; http://www.intermin.fi/download/34893_262012_STO_III_fi.pdf;
http://www.intermin.fi/fi/kehittamishankkeet/sisaisen_turvallisuuden_strategia;
turvallisuuskomitea.fi/index.php/en/materials.
“Finland 2019 Crime & Safety Report,” https://www.osac.gov/Content/Report/a07de0db-58c6-4954-a485-15f4aeaf1baa
Graph View
To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?
10
9
9
The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
8
7
6
7
6
The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
5
4
3
4
3
The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
2
1
1
The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Development policy constitutes an integral part of Finland’s security and foreign policy. It focuses on four priorities: protecting the rights of women and girls; reinforcing developing countries’ economies as a means of generating more jobs while also improving livelihoods and well-being; supporting democratic and well-functioning societies, which includes ensuring taxation capacity; and supporting food security, access to water and energy, and sustainability in the use of natural resources. Due to severe strains on the Finnish economy, the Sipilä government was compelled to reduce the amount of humanitarian aid provided by the country. Whereas Finland spent €961.4 million on development cooperation in 2017, it spent only €886 million on this area in 2018. Nonetheless, €989 million was appropriated in 2019 for development cooperation, an increase of €103 million compared to the 2018 budget. Appropriations budgeted for development cooperation in 2021 were estimated to total €1.257 billion, which corresponds to 0.5% of Finland’s gross national income (GNI).
Finland emphasizes the primary role of the United Nations in coordinating the provision of aid, and in general channels its funds for humanitarian aid through U.N. organizations. Finland is committed to the United Nation’s 2030 Agenda for Sustainable Development and Sustainable Development Goals.
In terms of development coordination, such as work to improve the economic and social position of developing countries, Finland’s contributions are implemented through various methods. The Ministry for Foreign Affairs, in conjunction with external consultants, monitor the attainment of goals and the use of funds, and in June 2014 the ministry introduced an online service enabling anybody to report suspected misuse of development-cooperation funds. On the whole, the country is not counted among the world’s top aid initiators or agenda-setters, and in terms of advancing global social inclusion, Finland is a committed partner rather than a leader.
As a result of the COVID-19 pandemic, development policy has declined in importance in the government’s overall policy activities.
Citations:
“Finland’s Development Policy,” https://um.fi/documents/35732/0/Finlands+development+policy+2016.pdf/
Ministry for Foreign Affairs of Finland, http://www.formin.fi/public/default.aspx?contentid=251855.
https://findikaattori.fi/en/69
https://um.fi/finland-s-development-cooperation-appropriations
Finland emphasizes the primary role of the United Nations in coordinating the provision of aid, and in general channels its funds for humanitarian aid through U.N. organizations. Finland is committed to the United Nation’s 2030 Agenda for Sustainable Development and Sustainable Development Goals.
In terms of development coordination, such as work to improve the economic and social position of developing countries, Finland’s contributions are implemented through various methods. The Ministry for Foreign Affairs, in conjunction with external consultants, monitor the attainment of goals and the use of funds, and in June 2014 the ministry introduced an online service enabling anybody to report suspected misuse of development-cooperation funds. On the whole, the country is not counted among the world’s top aid initiators or agenda-setters, and in terms of advancing global social inclusion, Finland is a committed partner rather than a leader.
As a result of the COVID-19 pandemic, development policy has declined in importance in the government’s overall policy activities.
Citations:
“Finland’s Development Policy,” https://um.fi/documents/35732/0/Finlands+development+policy+2016.pdf/
Ministry for Foreign Affairs of Finland, http://www.formin.fi/public/default.aspx?contentid=251855.
https://findikaattori.fi/en/69
https://um.fi/finland-s-development-cooperation-appropriations