President Halonen in London: Welfare state best response to globalization

According to President of the Republic of Finland Tarja Halonen, democracy, good governance, the welfare state and investment in education have made Finland one of the most competitive countries in the world. “Welfare and competitiveness are not mutually exclusive. I firmly believe in the so-called Nordic welfare state model. It combines the dynamism of the market economy with strong sense of responsibility and social well-being”, President Halonen said in a lecture at the London School of Economics and Political Science on 17 October, 2007. President Halonen remarked that Finland has benefited from globalization and the European Union membership. One of the crucial factors behind the Finnish "success story" is that education, science and research have been widely appreciated in our society. President Halonen underlined that education and training give people tools in different life situations and provide an "insurance policy" against unemployment. “Lifelong learning has been given special importance in Finland. Without well-trained people, the Finnish economy cannot be competitive.”

President Halonen speaking at the esteemed University of London School of Economics and Political Science. Photo: Embassy of Finland in London

The reconciliation of work and family life has made it possible for both women and men to play an active role in working life, according to President Halonen. “I firmly believe that the full participation of women in society is not only right in terms of equality but also improves competitiveness”, President Halonen noted.

The ageing population and workforce is a particular challenge not only for Finland, but also for many other countries. “In society and at the workplace, there should be greater appreciation for age and experience. I firmly believe that when people are given the chance of lifelong learning and better skills, they will be ready to take this opportunity.”

Towards fairer globalization

President Halonen regards the turn in the debate on globalization from confrontation to dialogue as positive. Fairer globalization has been recognised as the real issue. “All countries have the right to develop and to aim for growth and prosperity. At the same time we must all recognize our joint responsibility in responding to global challenges”, President Halonen said. She told that the aim of making globalization fairer requires three key steps: better policy coherence at both the national and international level, promotion of employment and decent work everywhere, and making cross border movement of people a truly positive force for countries of origin and destination.

According to President Halonen, the European Union’s potential for succeeding in international competition is very good. The Union’s large internal market enhances the Member States’ competitiveness. “It is important to note here that there is no single uniform social model in Europe, but it is important that we have the same view on basic principles.”

“Can the welfare state work in a globalizing world? My answer is yes. And even more, it is the best response to globalization. Our experience has shown that the basic elements of the welfare society also provide key elements to succeed in international competition. We want to promote an open and dynamic market economy. By securing free basic and higher education, public health care, social security and social services it will be easier for people to adapt to change”, President Halonen said.

Lecture by President of the Republic of Finland Tarja Halonen at the LSE

Article by President Halonen in the UK daily newspaper The Guardian, 17 October 2007