ABSTRACT
This chapter deals with the development of the Finnish welfare state and the role of the state (political parties, civil servants), pressure groups, and civil society associations in this development. The authors outline how the structure and size of the public sector have changed over time and discuss whether the welfare state is a consequence of or a precondition for economic development. They also analyze what role the welfare state project has played in creating ‘modern’ Finland and in overcoming fragmentation and reaching social cohesion. Together with the other Nordic countries, Finland has been able to combine a favourable long-term economic performance with a large welfare state. Moreover, the country developed quite active policies to overcome fragmentation and tensions in society. The authors also argue that the state has played an important role, both as an enabler of economic growth and development and as a mediator between various interest groups. This, in turn, has been important for social cohesion. The main focus is on the post–World War II period, but the chapter also takes a longer time perspective. The authors carry out some comparisons to the other Nordic countries.
