The Making of the Welfare State in Finland

With good reason, the success stories of Europe’s northern periphery commonly point out the active role and strong legitimacy of the nation-state in the making of the so-called Nordic model. Coping with the tension between the international economy and the national society was the nexus of the politics shaping the nation-state as a welfare state. This also applies to the discourse on Finland’s path from poverty to welfare. However, Finland was, even in intra-Nordic comparison, a latecomer in urbanization and industrialization as well as in social policies and industrial relations. Structural changes began late but were very rapid. Finland appears to be a good case not only for comparative historical analysis but also for recognizing comparative and historical reflexivity as an integral dimension of national politics. This chapter underscores the importance of the Nordic framework of international comparison, communication, cooperation, and competition for the formation of the welfare state in Finland. Since the 1990s, welfare policies have been revised through reinforced emphases on competitiveness and security. However, in present-day Finland, political rhetoric reflects the strong support of the welfare state among ordinary people. “Rescuing the Nordic welfare state” is a popular argument for a wide range of policy objectives, including the cuttings of social policy spending.