Finland's response to the challenge of globalisation: Report by the Secretariat of the Economic Council – Part II

Abstract

The report examines the adjustment of the Finnish economy to globalisation, Finland’s economic strategy and the need to re-assess the strategy. The first six chapters analyse the way in which the Finnish economy has been developing in recent years and the challenges that will result from that development. The analysis focuses on key economic-adjustment phenomena, an assessment of the scale of offshoring of jobs, and the functioning of the labour market. It also discusses issues posing particular challenges for Finland, i.e. the situation of an energy-intensive economy at a time of rising energy prices, agriculture and the regional structure of a sparsely populated country. The analysis in Chapters 1-6 is based largely on contributions by Finnish economic research institutes, which the Secretariat of the Economic Council has turned into a consistent whole. The last two chapters of the report deal with Finland’s economic strategy, the pressures for change it faces as a result of globalisation, the way these pressures have been taken into account in recent years and, lastly, the key aspects of Finland’s competitiveness strategy and the need to develop it. The conclusions drawn reflect the views of the Secretariat of the Economic Council.