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Finland in the global economy – Economic policies of the new age

New report enlights the new economy of Finland


Press release 2 May 2005 Sitra’s latest publication, Suomi mailman-taloudessa – uuden ajan talouspolitiikkaa (‘Finland in the Global Economy – Economic Policies of the New Age’), is released on 2 May 2005. Directed at a wide readership, the book gives an overall picture of the new operating environment for the Finnish economy. The writers include Research Professor Jaakko Kian-der (Government Institute for Economic Research), Jukka Pekkarinen, Director, (Labour Institute for Economic Research), Professor Pertti Vartia (The Research Institute of the Finnish Economy), and Pekka Ylä-Anttila, Managing Director, (Etlatieto Oy). The Finnish operating environment has changed dramatically over the part decade. Membership in the European Union and the Economic and Monetary Union (EMU) has changed the goals for the national economy and the tools at its disposal. Globalisation and advancing integration have created new opportunities for Finnish economy. At the same time, the future economic development in Finland is shadowed by the aging population and the pressures to reform the welfare state. “In terms of economic policies, this means that we should look much further into the future since the traditional counter-cyclical measures no longer suffice to secure competitiveness,” says Tuovi Allén, the editor of the book. Pertti Vartia discusses the challenges that globalisation, integration and changes in the international division of labour presents to economic policies. Central questions include, how the changes in the global production structure and the international division of labour reflect on the Finnish economy and how the internationalisation of companies and immigration is-sues progress. Jukka Pekkarinen outlines a new kind of national economic policy as an EMU member. Will, for example, the goal of the EMU policies to safeguard economic stability affect the operating freedom of the national economic policies. Jaakko Kiander analyses the structure and tasks of the welfare state and the growth of the public sector. He also discusses the greatest challenges of the welfare state – the aging population and tax competition. The future of the welfare state largely depends on whether answers to these questions can be found. Pekka Ylä-Anttila evaluates the potential of economic policies to increase the efficiency of the economy. How best to promote the operation of the markets? Which competition policies and technology and innovation policies would be of use in this effort? The aim of the book is to provide accessible information on how the national economy works and on economic policies without going into theoretical details. The book approaches economic policies in the context of present-day Finland. The book is edited by Tuovi Allén, Economist, (Sitra) and Martti Nyberg, Researcher, (The Research Institute of Finnish Economy). Publication details: Jaakko Kiander, Jukka Pekkarinen, Pentti Vartia, Pekka Ylä-Anttila. Suomi maailmantaloudessa – uuden ajan talouspolitiikkaa (Finland in the Global Economy – Economic Policies of the New Age) Sitra 269. ISBN 951-37-4190-7, ISSN 0785-8388. Edita Publishing Oy, Hel-sinki 2005. Price €29. Available at Edita customer service and bookshops. Further information Tuovi Allén, Economist, Sitra, tel. +358 50 555 0514,