Winning the war for independence, building a developed economy and a welfare state: positive experience of Finland for Ukraine

Abstract

This paper aims to identify the features of Finland’s postwar development, which ensured the successful reconstruction and creation of a welfare state and to formulate recommendations for Ukraine’s postwar recovery on this basis. In order to realize the goal, the author consistently revealed the relevance and importance of the selected research issues and emphasized the importance of reviewing the historical and economic development of the Nordic countries in order to identify the mechanisms and tools of postwar reconstruction. Analyzing the Finnish experience is particularly important given: (1) the fact that Finland, in a short period, managed to make a leap and catch up with the leading countries in terms of economic indicators, even though among the Nordic countries, it was the last on the list of catch-ups; (2) indicators of success and economic development of modern Finland, in particular, entering the top rankings of competitiveness and human capital index; (3) similar historical context of Finland and Ukraine. A brief overview of the Finland–Russia relations history gives a deeper understanding of the reasons for the constant consideration of the USSR’s interests during the postwar period. It explains the commitment to the consensus policy, thanks to which Finland saved its independence, despite significant economic and territorial losses. Based on Finland’s historical experience analysis, the author formulated recommendations that can be implemented in the war economy and postwar reconstruction conditions. Emphasis is placed on the need to preserve, return and increase the human capital of Ukraine. The author concludes that Finland took place as an independent state thanks to institutions’ transparency too. In Ukrainian realities, this aspect can be of decisive importance in the issue of implementing postwar reconstruction programs.