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The President of the Republic of Finland: Speeches and Interviews

The President of the Republic of Finland
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Interviews, 10/17/2007

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

OUR WELFARE MUST BE GLOBAL By Tarja Halonen, President of Finland

By almost any measure, Finland is a globalisation success story. Our journey from deep recession in the 90s was made possible by structural reforms and by embracing globalisation - while at the same time fostering the welfare society.

Today Finland is one of the world's most competitive, innovative economies. Since the start of the new millennium, our annual growth has exceeded the EU average, growing 5% in 2006.

It is no coincidence that in the globalised world the most competitive nations are also nations that invest heavily in their people, particularly their education. Finland is placed regularly among the top three countries of the world competitiveness rankings. It also has the world's best education according to the OECD's ranking, and is near the top of many international rankings on research and development expenditure.

Knowledge is a key factor for economic growth and social development in every part of the world. A small nation cannot afford not to use all its human and knowledge resources.

Many challenges lie ahead. Our population is ageing, and global competition is intensifying. On the ecological front, the state of the environment, climate change and energy resources need special attention. These challenges are shared across Europe. When EU heads of state and government meet in Lisbon later this week there will be discussion about how to sharpen the response to globalisation - encapsulated in the revised Lisbon
Strategy
.

Competitiveness and social welfare systems are not mutually exclusive. The so-called Nordic welfare state model combines the dynamism of the market economy with strong sense of shared responsibility and social justice. People are willing to pay taxes to maintain them, if they feel they get in return quality services from the public sector, backed by a safety net that leaves no one behind. Social security makes it easier for citizens to adapt to the changes. An educated population, ready to embrace new technologies and prepared to take on new challenges, makes it easier to compete and specialise. A dynamic and flexible - but at the same time rules-based and predictable - labour market will enhance productivity.

A cornerstone of Finland's welfare system includes public day care, a family leave system and free school meals. This has made it possible for both women and men to work full time, and use their talent for the benefit of the whole society. Our approach enables people to take "softer solutions" in combining family lives and other social requirements with working lives.

Lifelong learning has special importance in Finland and is an effective tool to address the challenges of an ageing population. Without well-trained people, the economy cannot be competitive and the public sector cannot provide high-quality services efficiently. Our ability to put the resources of the working-age population to full use and to increase labour productivity are instrumental in ensuring the continued wellbeing of our people.

Increasing migration might offer one solution to labour shortage in the short term, but a more global approach is needed. We must seek a balance that ensures that migration benefits not only the receiving countries, but the countries of origin, and above all the migrants themselves.

There is no doubt that globalisation has benefited many countries enormously. Finland certainly is one of them. For us, it is essential that the process of globalisation continues. Yet, many studies show that the benefits of globalisation are not equally shared between and within countries and that, in fact, far too many have been left behind - one of the main findings of the World Commission on the Social Dimension of Globalisation. established by ILO in 2002 and which I had the honour to co-chair with the then President of Tanzania Benjamin Mkapa.

We need a shift to a fair globalisation that focuses more on people. Our collective aim must be to ensure productive employment and decent work for all - in line with the UN goal - while striving for a balance between jobs and growth, social cohesion and economic dynamism, as well as utilisation of natural resources and environmental sustainability. The global community must achieve a consensus on how to proceed after the commitment period of the Kyoto Protocol expires in 2012.

Globalisation means that information, new ideas and innovation are spreading faster than ever. With a fairer approach to globalisation, information and communication technologies can provide effective means for developing countries to accelerate their progress and enable their integration into the global economy. For developed countries, the knowledge-based economy - if socially just - allows further specialisation, social mobility and improvements in productivity.

A fair globalisation calls for a stronger emphasis on development policy and fairer rules for international trade. Our position is that the Doha round must be concluded soon, with a fair agreement that takes into account the huge variety of member states in the WTO. Multilateral co-operation is needed to ensure that no one is excluded from the benefits of the current wave of globalisation and that we can achieve development that is sustainable both for mankind and for nature.

Article on the Guardian website

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Updated 10/17/2007

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