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 Cold War aaa

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kosovohp
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PostSubject: Cold War aaa   Mon Oct 25, 2010 7:07 am

In 1950 half of the Finnish workers were occupied in agriculture and a third lived in urban areas.[27] The new jobs in manufacturing, services and trade quickly attracted people to the towns. The average number of births per woman declined from a baby boom peak of 3.5 in 1947 to 1.5 in 1973.[27] When baby-boomers entered the workforce, the economy did not generate jobs fast enough, and hundreds of thousands emigrated to the more industrialized Sweden, with emigration peaking in 1969 and 1970.[27] The 1952 Summer Olympics brought international visitors. Finland took part in trade liberalization in the World Bank, the International Monetary Fund and the General Agreement on Tariffs and Trade.
Urho Kekkonen, 8th President of Finland

Officially claiming to be neutral, Finland lay in the grey zone between the Western countries and the Soviet Union. The YYA Treaty (Finno-Soviet Pact of Friendship, Cooperation and Mutual Assistance) gave the Soviet Union some leverage in Finnish domestic politics. This was extensively exploited by President Urho Kekkonen against his opponents. He maintained an effective monopoly on Soviet relations from 1956 on, which was crucial for his continued popularity. In politics, there was a tendency of avoiding any policies and statements that could be interpreted as anti-Soviet. This phenomenon was given the name "Finlandisation" by the German press.

Despite close relations with the Soviet Union, Finland remained a Western European market economy. Various industries benefited from trade privileges with the Soviets, which explains the widespread support that pro-Soviet policies enjoyed among business interests in Finland. Economic growth was rapid in the postwar era, and by 1975 Finland's GDP per capita was the 15th highest in the world.[citation needed] In the 1970s and 1980s, Finland built one of the most extensive welfare states in the world. Finland also negotiated with the EEC (a predecessor of the European Union) a treaty that mostly abolished customs duties towards the EEC starting from 1977, although Finland did not fully join. In 1981, President Urho Kekkonen's failing health forced him to retire after holding office for 25 years.[citation needed]

Miscalculated macroeconomic decisions, a banking crisis, the collapse of its primary trading partner (the Soviet Union) and a global economic downturn caused a deep recession in Finland in the early 1990s. The depression bottomed out in 1993, and Finland saw steady economic growth for more than ten years

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