HISTORY

The History of Finland begins around 9,000 BC during the end of the last glacial period. Stone Age cultures were Kunda, Comb Ceramic, Corded Ware, Kiukainen, and Pöljä cultures. The Finnish Bronze Age started in approximately 1,500 BC and the Iron Age started in 500 BC and lasted until 1,300 AD. Finnish Iron Age cultures can be separated into Finnish proper, Tavastian, and Karelian cultures.The earliest written sources mentioning Finland start to appear from the 12th century onwards when the Catholic Church started to gain a foothold in Southwest Finland. Finland declared independence. A civil war between the Finnish Red Guards and the White Guard ensued a few months later, with the Whites gaining the upper hand during the springtime of 1918. After the internal affairs stabilized, the still mainly agrarian economy grew relatively quickly. Relations with the West, especially Sweden and Britain, were strong but tensions remained with the Soviet Union. During the Second World War, Finland fought twice against the Soviet Union, first defending its independence in the Winter War and then invading the Soviet Union in the Continuation War. In the peace settlement Finland ended up ceding a large part of Karelia and some other areas to the Soviet Union. However, Finland remained an independent democracy in Northern Europe.

CULTURE

The culture of Finland combines indigenous heritage, as represented for example by the country's national languages Finnish (a Uralic language) and Swedish (a Germanic language), the sauna, with common Nordic and European cultural aspects. Because of its history and geographic location, Finland has been influenced by the adjacent areas, various Finnic and Baltic peoples as well as the former dominant powers of Sweden and Russia. Finnish culture is built upon the relatively ascetic environmental realities, traditional livelihoods, and heritage of egalitarianism (e.g. Everyman's right, universal suffrage) and the traditionally widespread ideal of self-sufficiency (e.g. predominantly rural lifestyles and modern summer cottages).There are cultural differences among various regions of Finland, especially minor differences in dialect. Minorities, some of which have a status recognized by the state, such as the Sami, Swedish-speaking Finns, Romani, Jews, and Tatar, maintain their cultural identities within Finland. Many Finns are emotionally connected to the countryside and nature, as large-scale urbanization is a relatively recent phenomenon.

CLIMATE

Only on the south coast and the southwest is summer as long as winter. The southern coast is Dfb (humid continental mild summer, wet all year), and the rest of the country is Dfc (subarctic with cool summer, wet all year). The climate of Finland has characteristics of both maritime and continental climate.

ECONOMY

Finland’s economic freedom score is 75.7, making its economy the 20th freest in the 2020 Index. Its overall score has increased by 0.8 point, helped by a higher score for fiscal health. Finland is ranked 11th among 45 countries in the Europe region, and its overall score is well above the regional and world averages. The Finnish economy has benefited from gradually rising economic freedom over the life of the Index. GDP growth has been positive but modest. For Finland to move higher in the mostly free ranks, the government would have to make significant cuts in spending, reform the labor code to make it more market friendly, and reduce taxes. The new center-left government, however, has announced a program of higher spending on education, health care, and welfare services along with an increase in infrastructure development. The top personal income tax rate is 31.25 percent, and the top corporate tax rate is 20 percent. Other taxes include value-added and capital income taxes. The overall tax burden equals 43.3 percent of total domestic income. Government spending has amounted to 54.4 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 1.1 percent of GDP. Public debt is equivalent to 60.5 percent of GDP. The top personal income tax rate is 31.25 percent, and the top corporate tax rate is 20 percent. Other taxes include value-added and capital income taxes. The overall tax burden equals 43.3 percent of total domestic income. Government spending has amounted to 54.4 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 1.1 percent of GDP. Public debt is equivalent to 60.5 percent of GDP.