ABSTRACT
As in other small countries, region states have not played a major role in the Finnish national economy. There are at least three reasons for this. First, the Finnish political system is characterized by a strong central state; all the important economic decisions are made in Helsinki. Secondly, the Finnish economic system is also highly homogenous. The dominant industrial cluster has developed around the forest industry; indeed, sometimes Finland is called a forest industrialized society (Virkkala 1994:76). It follows that both the social institutions of the country and government policy are heavily influenced by, and adapted according to the needs and interest of, this single industry (see Lilja et al. 1992). Thirdly, it is often argued that Finland is highly homogenous in cultural terms as well. Technological development and economic progress are seen as forming an integral part of this strong sense of nationalism, prompting Myllyntaus (1992) to speak of a Finnish “economic nationalism”. Both technological development and economic progress can be interpreted as the other side of nationalism, the great project of building up an independent and prosperous Finland (Vuori & Vuorinen 1994:19). National thinking is of course supported by the fact that Finland is a small and peripheral country, which has had to fight hard and long for its independence.
