Finland’s strengths help it cope with shocks and uncertainty

7 Shocks and Finland research project by IIASA identifies economic diversity and agility as key characteristics in an uncertain world.

According to researcher Leena Ilmola, Finland’s major strength is a strong trust in each other among the population. Finland also has agility that boosts its international competitiveness. The project findings call for flexibility to be taken on board as a criteria in decision-making and ensuring diversity in the economy and in exports. If changes in the global system undermine one sector or product, they can also bring growth opportunities in some other export sectors. One of the shock scenarios considered by the project was Nokia’s departure from Finland.

“The uncertainties of the global economy are increasing but a small national economy like Finland has good prerequisites to survive. It’s not just a question of surviving shocks. A quick and agile country can also make use of the opportunities created by uncertainty,” says Professor John Casti, a member of the IIASA research team.

IIASA is an independent international research organisation located in Austria that conducts policy-oriented research into problems that are too large or too complex to be solved by a single country or academic discipline. IIASA’s 200 researchers investigate the critical issues of global environmental, economic, technological, and social change that we face in the twenty-first century.

Sources: Academy of Finland, IIASA, Yle