For the seventh year in succession, Finland has been ranked again as the world’s most stable country in the Fragile States Index compiled The Fund for Peace (FFP). The Fragile States Index employs 12 indicators to assess the cohesion and the social, political and economic stability of 178 countries around the world.
Finland consolidated its position as the world’s least fragile state by virtue of its improved economic performance, narrower social and political divisions, and successes in addressing demographic and environmental pressures. In fact, Finland slightly improved its total score from 18.8 in 2016 to 18.7 in 2017, leaving it firmly ensconced in last place globally in terms of pressures faced and vulnerability to collapse.
Finland also remains the lowest risk country
For the past four years, Finland has also retained its ranking as the lowest risk country for money-laundering and terrorist financing, according to the Basel Anti-Money Laundering (AML) Index, published by the Basel Institute on Governance since 2012.
The index risk ratings are based on the quality of a country’s framework for AML and countering terrorism financing (AML/CFT) and related factors. As a low risk country, Finland’s strengths include its strong public and financial transparency regime, financial sector standards and low levels of corruption.
Good news for foreign investors
Finland’s unique level of stability and low risk, combined with a highly educated workforce and a knowledge-based and innovative economy, makes it an attractive location for foreign companies to expand their business.
“As these recent studies show, Finland offers a very stable and predictable environment for foreign companies. Economic growth in Finland has been achieved through globalisation, openness and a functional society. International companies can tap into this growth by setting up business operations in Finland,” says Antti Aumo, Executive Vice President at Finpro.
“In Finland everything works. The infrastructure is excellent and the business environment is very international. Finnish startups are blooming with innovation.”
A study commissioned by the European Commission in 2016 ranked Finland as the most appealing country for corporate expansion. In recent years, major foreign investments in Finland have included game companies, data centres, global R&D hubs, shipbuilding and industrial production facilities.
Image: Helsinki Marketing / Jussi Hellsten