Explaining Finnish Economic and Social Success – And Happiness

Abstract

This article explores the reasons behind the high economic and social rankings for Finland. It also refl ects on why Finland is considered the “happiest” country in the world (according to a World Happiness Report). Using empirical data from two studies – an article comparing high-andlow-tax countries, and the aforementioned recent World Happiness Report – it compares Finland with its Nordic neighbours and other Western, especially Anglo-American, countries. The essay outlines a so-called “Finnish model’ and looks for the roots of this model. Comparing measures in several dimensions – effort, culture, institutions, and economic and social outcomes – the essay tries to find characteristics that are particular for Finland. Education, innovation, and economic security, as well as trust, gender equality, resilient conflict solutions, and geo-historical luck, are crucial to Finland’s success. Three notable Germans – Luther, Hegel, and Marx – have influenced Finnish culture and society in different ways. Is Finland the country that comes closest to the ideal – “From each according to his ability, to each according to his needs” (Marx, 1875).