Finland had a very chancy time over the last hundred years. John Kay is visiting now, and reflects on how Finland survived to today:
The Finnish border is an anomaly. In 1918 the Finns won independence for a state that extended to the gates of St Petersburg. Russia captured territory in the 1939-40 Winter War. Finland then fought on the losing side in the second world war and did not remain neutral in the cold war. So the once thriving Finnish industrial city of Viipuri is today the depressed Russian outpost of Vyborg.
A cynical commentator on 20th-century history might observe that the political ineptitude of Kaiser Wilhelm and subsequently of Adolf Hitler brought America in on the opposite side of Germany’s quarrel with Russia in 1917 and 1941. Only when the democratic politicians of modern Germany made the rational alliance did Finland achieve the favourable political and economic outcomes it now enjoys. To pass the watchtowers and barbed-wire fences on the Finnish-Russian border is to be reminded of how fragile, and how recent, are the stability and security we take for granted today.
[. . .]
That observation is evident on the Finnish-Russian border. The razor wire kept Russian citizens in when the living standards of planned societies and market economies diverged. But now the border is easy to cross and the gap in per capita income has narrowed, though not by much. The very different income distributions of egalitarian Finland and inegalitarian Russia can be seen in the car parks and designer shops of Lappeenranta.
In the Soviet era, Finland produced Marimekko; Russia made no clothes any fashion-conscious woman would want to buy. Post-Communist but still autocratic Russia made surveillance equipment; democratic Finland led the world in mobile phones. Today Russia’s geeks hack into your bank account, while those of Finland develop Angry Birds.
The pristine countryside of Finland contrasts with the degraded physical state of much of Russia: a demonstration of the unexpected finding that regulated democratic capitalism preserves the environment more successfully than any other system of government.
