The recent attention may be sudden, but it is certainly well deserved. Finland's economy has outperformed much of Europe and shows all the signs to indicate sustainable growth. The successful restructuring of the country's traditional industries and a drive to increase exports have helped many of Finland's companies achieve leading positions in the global market. By far the biggest and most recent source of attention for Finland is its first term as president nation of the European Union, a six-month term which it assumed in July.

However, even before Finland assumed the EU presidency, President Martti Ahtisaari was making headlines around the world for his skillful negotiation of the Kosovo peace agreement.

Finland's deftness in foreign relations may likely be the result of a lifetime of occupation. Prior to this century, most of Finland's history belonged to its neighbors. Finland was ruled by Sweden for nearly 600 years until it was ceded to Russia in 1809. Finland existed as an autonomous duchy of Russia for over a century before declaring its independence in 1917.

Following World War II, Finland maintained strong trade ties with its Soviet neighbor, but not at the expense of alienating Western democracies. This political balancing act was deridingly dubbed "finlandization" by Western critics who accused the nation of living on both sides of the Iron Curtain.

Since joining the European Union in 1995, however, Finland has affirmed its identity as a European democracy. As Finnish Prime Minister Paavo Lipponen stated, EU membership has had a positive impact on both the country's economy and its global position. "Finland has found its place in post-war Europe," Lipponen explained. "We are now part of the dynamic market democracies of western Europe and we now have greater access to EU markets. In addition, the development of the Finnish economy has been further enhanced by our membership in the Economics and Monetary Union."

Now, as current host of the EU presidency, the country has assumed the role with confidence and candor. A prime objective for Finland during its presidency is to promote the transparency of European Union activities. "This is a key issue in achieving people's trust in EU activities," said Lipponen.

An unsuspecting industrial leader

For a visitor arriving in Finland by plane, the country appears a picturesque landscape of lakes, forests and meadows. Yet despite the pristine environment, Finland is one of the world's most industrialized and technologically driven countries.

Even in the country's capital and economic center of Helsinki, the cobblestone streets and pastel facade betray the economic importance of high-technology and heavy industry. Inside the city's quaint buildings are the headquarters of some of the world's top performing industrial enterprises.

The rapid development of Finland's technology-based economy emerged from a basically agrarian system. During the last decade the country has undergone dynamic change, and it now asserts itself as an information society. Plagued by severe recession in the early 1990s, Finland emerged battered and bruised but all the more determined to carve out its niche in the international market. With limited natural resources, the Finns recognized early that in order to compete globally they would have to hone their technical skills and focus on niche areas.

Paavo Lipponen, prime minister of Finland

Even Finland's best-known brand name products are somehow detached from the identity of their home country. For example, the whole world uses Wilson and Atomic sporting goods, but few know that they are produced by Finland's Amer Group. Even Nokia, the world's leading producer of mobile phones is often mistaken for a Japanese company. However, the behind-the-scenes attitude of Finnish companies does little to slow the nation's growth.

Booming exports in the last few years have been primarily responsible for Finland's economic buoyancy. The GDP is anticipated to grow by 3.9 percent this year, with an increase of 4 percent predicted for 2000. While traditional sectors such as forestry and metals continue to grow, it is the electronics and electrical equipment sector that has truly boomed. The total production in this field has increased nine-fold since the beginning of the decade, currently accounting for about 26 percent of Finland's exports. Largely due to the electronics industry, the value of Finnish exports has doubled over the last seven years.

The Finnish government actively supports the country's progression toward a society rich in knowledge and innovation. As Lipponen explained, Finns understand that in order to enhance competitiveness in the market place, investment in research and development is essential. By the end of this year, the Finnish government will have injected 3 percent of the annual GDP into research and development. While statistics indicate that Finland is already at the forefront of technological innovation, Lipponen believes that there is room for improvement.

"Finland is a dynamic country but even more entrepreneurial sprint is required," explained Lipponen. "What I would like to see is a more creative society. There are not enough small to medium enterprises, which are what we really need. In addition, the services sector is underdeveloped compared with other western European countries."

But what about the cost?

In today's Europe, international investment for manufacturing is funneled mostly into the former Soviet republics. Labor costs in these nearby emerging economies are hard to beat.

However, Finland has a number of other selling points that make it a highly competitive destination for foreign investment. For instance, Finland's rates for industrial electric energy are now among the lowest in Europe. International calls from Finland cost only about two-thirds of the OECD countries' average. Domestic long-distance calls are the third cheapest in Europe.

A 1999 survey by the Lausanne-based International Institute for Management Development (IMD) ranks Finland as the third most competitive country in the world, a rise of two places since last year. The survey also pointed out that people of Finland are ranked number one in the world as a human resource. This reflects Finland's high educational standards and highly skilled work force.

The widespread acceptance and utilization of information technology also stands in Finland's favor. Per capita, Finland now has the world's highest penetration of cell phones and the second highest number of Internet connections. Accordingly, the IMD ranks Finland number two in the world in terms of infrastructure. Finnish management was ranked as the world's third most effective, two places up from last year.

According to Johannes Koroma, director general of the Confederation of Finnish Industry and Employers, investors fin Finland as excellent haven for foreign capital because they have extensive experience in foreign ownership. Described as an open society for both green-field and capital investors, Finland particularly welcomes investment in production activities. "We invite those with ideas on how to create effective production because we like to learn," stated Koroma. He added, "Knowledge-based investment in Finland is in good hands because we have very high educational standards and high skilled work force proficient in technical knowledge."

Helsinki's time in the sun

Finland's capital, Helsinki, is growing in popularity as a destination for both business and pleasure. Set in pristine natural surroundings, Helsinki has the pulse of a large presidency of the European Union, it is proving itself as a highly competent regional center for special events.

Any visitor to Helsinki will notice all the construction-related activity taking place throughout the city. From new cobblestones to renovations of buildings to new construction, the capital is preparing for upcoming celebrations.

The dawning of the new millennium will be a double celebration for this city of 500,000 people, Not only will Helsinki be commemorating its 450th anniversary, it will also be designated as one of nine European cultural capitals.

"The attention Helsinki has and will continue to receive is very big challenge for our city. We are trying to give Helsinki a facelift in preparation for next year," said Eva-Ritta Silitonen, mayor of Helsinki "We have established a cultural foundation that will be responsible for implementing various cultural programs next year." Slitonen continued, "We have tried to create a variety of programs in order to accommodate everyone, including children. We have focused not only on opera, theater and music, but on activities that relate closely to the daily lives of Helsinki citizens."

To commemorate the opening of Helsinki's City of Culture Year, door of different cultural institutions will be open to the public during the first weekend of the millennium. The morning after New Year's Eve celebrations, Helsinki will open its door to both locals and tourists and provide cultural events and activities for everyone. A large number of museums, libraries, galleries, and churches will be open during the day, offering a chance to view and experience Finnish culture. The neighboring cities of Espoo and Vantaa will also participate in the event.

The weekend will also offer outdoor events such as the Winter Garden at Sinebrycoff Park which will start the year for children. At dusk, bonfires will light up the city center.

Eva-Ritta Slitonen, lord mayor of Helsinki

One objective for the city of Helsinki is to carry on the cultural precedent that next year will set. As Slitonen noted, "Next year's events should carry the city into the future. We do not want just one year of cultural fireworks that finishes after 2000. Our emphasis on arts and culture will continue." There is no doubting Helsinki's potential to become both the cultural and business hub of northern Europe, and as the city will be designated a cultural capital nest year, there is no better time to announce it.

Bridging east and west

Helsinki is one of Europe's fastest-growing capitals and maintains its position as one of the best cities in terms of quality of life. Once considered a rural outpost of northern Europe. Helsinki's geographic and economic qualities are rapidly attracting foreign investors, who view the city as a bridge to both Russia and the Baltic markets. "Since the collapse of the Soviet Union, the world around us has changed." Slitonen explained. "The market area that now surrounds Helsinki is quite large. Approximately 80 million people live in close proximity to our city and they can be reached by car within 24 hours. It has definitely created new possibilities for this area. Helsinki is becoming an important regional center for the Baltic markets."

As the only EU member to share a border with Russia, foreign investors are drawing upon the wealth of experience the Finns have with their Russian neighbors. According to Slitonen, many international companies have established offices in the Helsinki region with the sole purpose conducting business in Russia. "International companies choose Helsinki because it is an easily accessible place to do business ," said Slitonen. "We are also familiar with Russian affairs, which are changing all the time."

Radisson SAS Hesperia: tranquility in the city

The Hesperia�s extensive facilities provide guests with a variety of leisure alternatives. Finnish legend has it that jumping into icy water from a sizzling sauna is supposed to rejuvenate a tired body, and for those guests brave enough to try it, a �cold water� pool is available. There is also a larger swimming pool with water at a more bearable temperature for those who are not so game. A fully equipped gymnasium, solarium and 18 hole golf simulator is also at the guests� disposal.

A spectacular feature at the Plaza is the 1930s stained-glass windows of artist Juho Rissanen (1873-1950). Guests can admire the artwork while enjoying a drink or cup of coffee in the Lasibaari Bar. The Plaza also offers a wide array of international cuisine served in the Brasserie, a restaurant with a continental atmosphere. Despite the differences existing between Radisson SAS hotels, a common thread links them together. Radisson SAS has developed a range of tailor made service concepts designs to make guests as comfortable as possible. These include 100 percent Guest Satisfaction Guarantee, the Super Breakfast, SAS flight check in, and Conference Guarantee. In addition, the company�s �Yes I can� philosophy extends to the very core of the company�s culture resulting in friendly, reliable and efficient service from all Radisson SAS employees.

Stay comfortably at the special business-class rooms of the Radisson SAS Plaza Hotel Helsinki.

HOME  About Us  Careers  Contact Us  Reports  Advertisers    About Japan Times

© 1999 World Eye Reports