Thoughts of the Professor: May 2023

29 May 2023

History of Finland VI: Age of freedom and utility

This is the sixth part of a blog series where I go through the significant stages of Finland's history. In the fifth post, I described how the country transitioned from the rule of the highest nobility to a pre-capitalist society governed by the clerical nobility, where the living conditions of ordinary people also began to gradually improve.

Professor Heikki Ylikangas considers the above-mentioned turning point as the most significant in Finnish history. Equally important, following closely after that, is the subject of this post - the mid-18th century.

At that time - amidst the political strife between the "Caps" and "Hats" factions vying for leadership positions - a number of extremely significant decrees were issued that allowed the division of farms into several parts. Prior to this, it was not possible because the state apparatus feared that the farms would become unable to pay taxes as a result.

Similarly, the establishment of tenant farms or rental farms was permitted for peasants: this right had previously only applied to noble and cavalry estates. And as the icing on the cake, the redistribution of land was decided, meaning that each farm's land was located in larger blocks rather than the narrow strips previously required for communal planting and harvesting. This enabled peasants to develop their own land independently of others.

However, initially the peasants were not at all eager to seize the opportunity. The reason was the common forests, which they did not want to divide among the founders of the new farms but rather keep as a resource for profitable tar production. The situation changed only when the crown announced that the state would no longer interfere in the division of land, even forests, and that it would be left to the responsibility of independent landowners after the land reform.

The fourth reform was population registration, which was needed for drafting soldiers into the army, as many families had previously cheated the authorities, for example by giving multiple sons the same name to avoid being drafted. Especially in the 1600s, this had practically meant a death sentence, not so much because of battles but due to diseases that heavily taxed military units.

However, dividing farms was only allowed if the applicant intended to get married. In other words, the ultimate motive behind the reforms was that the Swedish state wanted to increase its population because there was a chronic shortage of labor in the country - in ironworks, manufactories, and manors. Perhaps increasing the economic opportunities of peasants would help to increase the labor force?

As a result of this expanded private ownership, people became more interested in economic entrepreneurship and profit-seeking. In other words, in the mid-1700s, Sweden and thus Finland entered the age of utility.

Also the university system participated in promoting economic prosperity, as in 1747 the position of professor of poetry at the University of Turku was changed to a professorship in economics - the same fate befell the legal department at Uppsala. One of the inventors of economic liberalism, Antti Chydenius, graduated from the Turku Academy, presenting his theories a decade before Adam Smith wrote similar ideas that would be recorded in the world's economic history.

At the same time, the judicial system began to change and the pressure to lighten punishments increased. Municipal power began to be transferred back to parish meetings from the crown bureaucracy. Even the church began to view different revival movements more favorably.

Thus, the societal trend that began in the 1500s towards growing aristocratic power and an extremely unequal society had irreversibly turned towards raising the standard of living for the entire population and democracy. And through this, the economic foundation was gradually laid that would eventually allow for the creation of the modern Nordic welfare state, although this development was not direct or straightforward.

The original blog post in Finnish: Hyödyn aika

27 May 2023

Daniel Freund demanded a ban to Viktor Orbán

A totalitarian society can be recognized by the fact that those in power disregard agreed-upon rules when the resulting decisions would be unpleasant. This came to my mind when reading about the debate in the European Parliament, where an attempt was made to prevent Hungary from assuming the rotating presidency of the EU.

I understand that Hungary does not represent the mainstream of the EU but rather one of its extreme ends. However, this does not justify the violation of rules; it may justify, at most, a political process to change the system.

In this case, such a goal could be to place member states in different positions, where the presidency would only apply to a subset of countries. And if such a decision were to be made, it would undoubtedly lead to the disintegration of the EU.

Therefore, the attack by Germany's Green Party member Daniel Freund against Hungarian Prime Minister Viktor Orbán should be seen primarily as an expression of totalitarian thinking - or even an echo from Germany 80 years ago.

Freund demanded a ban on Orbán entering the European Parliament if Hungary were to become the presiding country. Such an initiative is exactly the kind of fanatic ranting that we do not need in the European Parliament.

Instead, it is necessary to adhere to collectively agreed democratic rules, even when the outcome is not pleasing. Only by acting in this way can the EU remain a democratic community, where all nations and citizens have equal rights.

Previous thoughts on the same topic:
The European Commission appears unreliable as a decision-maker to the Finns
Fair policy will build a strong Union
Share of EU recovery funds will turn attitudes more negative

23 May 2023

History of Finland V: The pursuit of economic profit saved the country

This blog post is the fifth installment of a series that delves into the significant phases of Finnish history. In the previous post, I discussed how the ascendancy of the highest aristocracy led to the deterioration of living conditions for the common people.

However, this trend eventually came to a halt through a transformative process that culminated in the triumph of the official aristocracy over the highest aristocracy. The catalyst behind this shift was the economic collapse of the great power.

The recruitment of military personnel faced hindrances due to the landed estates owned by the upper nobility. These estates posed obstacles to enlisting individuals from their own ranks into military service. Moreover, the state lacked sufficient funds to pay its officials, as a significant portion of the income generated from land ownership predominantly benefited the upper nobility. To illustrate the magnitude of this disparity, consider the fact that Count Magnus de la Gardie's annual income in 1679 amounted to approximately five percent of Sweden's entire revenue and expenditure budget.

The conflicts of the late 1600s, which relied on France's assistance to maintain Sweden's great power status, played a crucial role in driving forward societal development. The noble-dominated council of state was held responsible for the situation and was compelled to cede its authority to King Charles XI, who implemented the decision of the Estates to reclaim the landed property in order to rescue the state from bankruptcy. As a result, former landowners were left with a mere tenth of their previous tax-exempt fiefs.

In practice, power became concentrated in the hands of a single individual, as the king possessed the right to pose questions to the Council of State, but the council lacked the authority to advise the monarch unless specifically solicited. This effectively dismantled the most potent tool of aristocratic governance with a single decree. To ensure the success of this transition, a law was passed a few years later in 1682, affirming that legislative power resided solely with the king.

Of particular significance to us Finns in this progression was the nearly unanimous support of our representatives in the Estates, including the nobility, for the king's absolute power, which placed them in opposition to the Swedish nobility. It is possible that it was during this time that the Finnish people's subsequent yearning for a strong monarchy, their belief in the righteousness of the Tsar, and ultimately the potent authority of the independent country's president originated.

Alongside the establishment of absolute monarchy in the late 1600s, there were additional significant developments. The administration of justice underwent a redirection towards the "law of nature", which was widely viewed as being largely consistent with the traditional Swedish law.

Previously, the nobility had exploited the flexibility of the old Swedish law, particularly drawing upon interpretations rooted in Roman law, enabling them to interpret it according to their own discretion. The recruitment of military personnel transitioned to a more stable conscription system, and civil servants' salaries were secured through the use of designated official positions.

Following the defeat of young King Charles XII in the Great Northern War, and ultimately his demise, the influence of the civil service serving the state did not waver. On the contrary, it continued to exert its power while the king lost much of his own authority. The Estates Assembly became the instrument through which the civil-service nobility wielded their power.

A notable change in public administration was the shift from hereditary status to formal education and other qualifications as the basis for filling positions. Furthermore, social changes enabled a commoner to marry a noblewoman without her family having the ability to disinherit her—an aspect not to be overlooked.

Simultaneously, Sweden's mercantilist policy also suffered a collapse. In this regard, the country followed a trajectory akin to the pre-capitalist development observed in England and the Netherlands, where exportation became an increasingly vital driving force. Sweden's primary export commodities included iron, copper, timber, and tar.

As a result, decisions and practices were instituted that favored the protection of private property rights, the freedom to engage in contractual agreements, the application of rationality in legal proceedings, and enhanced autonomy for citizens. The driving force behind this progression was particularly the pursuit of profit, which stemmed from the recognition and enforcement of private property rights.

For Finland and its people, these changes marked a gradual improvement in the status of the (lower) nobility, bourgeoisie, and peasants, filling the void left by the upper nobility. However, this transformation faced further challenges during the subsequent period of the Great Famine and the Great Northern War, which represented the lowest point for the upper nobility. The ascent of the eastern regions within the Swedish kingdom also became apparent through the emergence of notable Finnish figures who achieved prominence.

Notable examples include Fabian Wrede, a member of the lower nobility from Elimäki, who rose to become the chairman of the Reduction Commission, and Heikki Vaanila, a peasant estate owner from Lohja, who assumed leadership of the peasant estate in the Estates of the Realm. These Finnish individuals found themselves at the core of the kingdom's power structure, serving as compelling illustrations of Finland's growing influence within the realm.

The original blog post in Finnish: Voiton tavoittelu pelasti maan

22 May 2023

Does the attack by Russian rebels pose a problem for Ukraine?

Today's news reported that a military unit composed of Russian rebels from Ukraine crossed the border into Russia. The reason for the attack has been attributed to increased attacks on Ukraine by Russian forces. According to the Visegrad 24 channel, the attackers have threatened that "their goal is Moscow's Red Square."

This turn of events is not rational from the perspective of Ukraine or, especially, Western countries because Vladimir Putin could use it to legitimize Russian military operations in Ukraine and elsewhere. It is also important to remember the statement made by Kremlin spokesperson Dmitry Peskov in an interview with the US channel CNN: "If our country faces an existential threat, the (use of nuclear weapons) may be considered."

Of course, it is evident that a Russian military unit from Ukraine will never reach Red Square and, therefore, does not pose an "existential threat" to Putin or Russia itself. However, facts have never mattered in Putin's actions. Therefore, the border crossing that has occurred now could lead to at least nuclear threats against Ukraine.

Another unfortunate consequence for Ukrainians may be that public opinion in Western countries turns against assisting Ukraine. If this happens, Ukraine's received military aid may decrease, endangering the country's defense against Russian aggression.

Hence, President Zelensky's advisor's comment stating that Ukraine has nothing to do with the attacking unit is sensible. It remains to be seen whether it will be believed in Putin's administration or even in Western countries.

Of course, I hope that the advisor's statement about Ukraine's dissociation from the attack by the Russian unit holds true and is believed everywhere beyond Ukraine's borders. I also hope that neither of the unpleasant possibilities I mentioned earlier materializes.

Instead, I hope that the Russians do not exploit the propaganda advantage offered to them and that Western countries perceive the Russian rebels' attack as a rebellion against Putin's regime. Unfortunately, the outcome does not depend on my earnest wish. And not even from the fact that crossing the border could still be a repetition of the shots fired at Mainila.

Previous thoughts on the same topic:
Will China ally with Russia against Ukraine?
Did the Finnish Prime Minister promise Hornet fighter jets to Ukraine?
Incapable of learning but capable of genocide

20 May 2023

Discrimination against women?

As my esteemed reader is aware, gender-related issues are currently a prominent subject of discussion. In light of this, it was delightful to come across a recent study that provided fresh and surprising insights on the matter.

Traditionally, gender discrimination has been widely regarded as a significant contributor to women's disadvantages in the labor market. However, previous studies have produced mixed results due to variations in research designs, making it challenging to compare discrimination estimates across countries.

To address this challenge, the researchers conducted a comparative field experiment on gender discrimination in hiring across six countries. By directly comparing employers' responses to fictional male and female applicants, they were able to draw intriguing conclusions.

Despite variations in crucial institutional, economic, and cultural aspects among the participating countries, the researchers found no evidence of discrimination against women. However, they did observe discrimination against men in Germany, the Netherlands, Spain, and the UK, while no discrimination against men was found in Norway and the United States.

Even within diverse institutional contexts, employers tended to perceive female applicants as more suitable for roles in female-dominated occupations, all other factors being equal. However, the researchers found no evidence to support the claim that employers prefer male applicants in any location.

Hence, the researchers concluded that the well-known differences in salary between genders likely stem from women and men choosing different types of jobs rather than employers discriminating against women, as sometimes alleged.

Previous thoughts on the same topic:
The change in the demographic structure of Helsinki
Afghanistan now and in the future
Sexual harassment and bullying in working life

16 May 2023

The people long for strict economic policy

Finland is a politically unique state. It is a stable democracy with nearly ten parties in its Parliament, which necessitates the involvement of multiple parties in forming the Government.

This system has led to relatively consistent politics, with abrupt policy changes being rare. However, such a change might be on the horizon in the ongoing Government negotiations, where instead of the previous left-leaning majority Government led by Sanna Marin, a program is being formed by political right-wing parties.

In this process, the parties do not populistically pander to the people or promise to distribute tax funds to various beneficiaries. Instead, the negotiators agree that the public finances need to be adjusted by as much as 10 percent of the state's entire budget—and they certainly don't hide it. One could imagine that the support for these parties would be plummeting among the public!

However, that is not the case, as indicated by the party support survey published today. According to the survey, the combined support for the parties involved in the government negotiations has actually seen a significant increase: the support for the two largest parties, the National Coalition Party and the Finns Party, has risen by a total of 1.5 percentage points, or almost four percent, compared to the elections a couple of months ago.

All of this reflects the dissatisfaction that Finns feel towards the left-wing government led by Sanna Marin, which they believe has brought Finland's public finances to the brink of disaster. It also provides assurance to the negotiators that the citizens have confidence in their firm economic approach.

Previous thoughts on the same topic:
The Guardian misleads its readers
Elections in Finland enlight journalistic views
Reducing taxes, enhancing export and paying the governmental debt

13 May 2023

History of Finland IV: The bleakest time in Finnish history

This is the fourth part of a blog series where I delve into the significant phases of Finnish history. In the previous post, I discussed the rebellion of the peasants who feared becoming serfs but ultimately lost their battle, resulting in the permanent weakening of their previously strong position in relation to the nobility.

Following the Cudgel War, Charles, Duke of Södermanland, ascended to power in Sweden after defeating King Sigismund in the Battle of Stångebro. As King Charles IX, he successfully curbed the nobility's thirst for power during his reign. However, after his sudden demise in 1611, the situation underwent a transformation.

This presented an opportunity for the high nobility to place the underage Gustaf Adolph on the throne, whose decisions were heavily influenced by the dominance of the nobility itself, the ruling Council of State, and the Estates General, all of which were effectively controlled by the high nobility. Consequently, the king found himself compelled to advocate for the privileges of the nobility, resulting in his position being somewhat like the first of his peers. As a result, the king also had an interest in promoting the interests of the high nobility.

As a result of this development, approximately 63 percent of the kingdom's land came under the ownership of the nobility. Consequently, the position of ordinary peasants and even lower nobility further deteriorated. However, they still served a purpose as representatives in the Estates General, which was established to endorse the privileges of the high nobility.

Soon, the nobility acquired exclusive rights to the highest positions, which were rapidly created. Consequently, power, legal authority, and wealth in the country shifted into the hands of the upper echelons of nobility, while the significance of local parish meetings, which were closer to the people, diminished.

Nevertheless, the peasants in the northern regions were spared from serfdom due to the sparse population. Unlike the southern European cities that attracted the surrounding rural population, the small settlements in the north lacked the same appeal, eliminating the need to bind peasants to the land.

Consequently, the Finnish and Swedish peasants were formally allowed to maintain their free status. However, the decrease in the number of farms and cultivated areas between 1570 and 1660, instead of growth, clearly indicates their actual distress. Moreover, the common people bore the burden of conscription by the great power, directed by the nobles towards difficult people in their own fiefdoms and neighboring estates, seeking to redeem them for their own control when their own men became depleted.

Simultaneously, the common people endured an unprecedentedly stringent discipline, resulting in various side effects such as witch hunts in the wealthiest peasant regions, religious revivalist movements, and devastating famines that claimed the lives of at least a quarter, if not a third, of Finland's population. The destructiveness of these famines was not only caused by the well-known Little Ice Age but also by rural poverty, which eroded people's ability to withstand years of poor harvests.

Furthermore, even during the worst famine years, Finland, under the rule of the nobility, saw the exportation of grain instead of utilizing it to feed the starving population. Meanwhile, cities on the eastern coast of the Baltic Sea decayed due to the mercantilist ideology centered around a Stockholm-dominated trade system.

The position of the peasants was further weakened not only by the Swedish conscription that transformed Finland into a massive military camp but also by the constant need for funds to sustain a military perpetually engaged in warfare. This necessity stemmed from the fact that approximately half of the state's income was allocated to military endeavors. The nobility benefited from these wars, as they provided various advantages to the military class, from advancing their own careers to amassing land.

Overall, the era of the aristocracy represented the darkest period in Finnish history for the common people. However, it also sowed the seeds of its own destruction, as the nobility's insatiable thirst for power and wealth, coupled with their incessant warfare, gradually weakened the entire kingdom and ultimately left it vulnerable and defenseless in the face of external threats.

The original blog post in Finnish: Suomen historian kurjin aika

10 May 2023

Medieval trade ranged from North America to Ukraine

We all know that the Vikings were the first Europeans to land in North America. In addition, they had settlements in Greenland where no trees grow. Therefore, the Norse people, who lived in Greenland from AD 985 to 1450, relied on imports, mostly from Northern Europe, for various materials, including iron.

Now a new investigation of ancient pieces of wood has revealed that at least 26 out of over 8 500 wood remnants found in five Norse sites in western Greenland came from trees that could not have reached Greenland solely through the natural action of tides and waves. The researchers from the University of Iceland examined the microscopic structure of the 800 years old wood remnants and concluded that the imported timber, which included species like hemlock and Jack pine, originated from mainland North America.

This discovery challenges the previous belief that Norse people exclusively imported materials from northern Europe. It suggests that they were, in fact, importing materials from the northeastern coast of mainland North America for a longer duration than previously assumed.

Furthermore, it indicates that the Norse people had established trade connections and actively imported resources not only from distant locations within Europe but also maintained long-distance connections extending to the west. As a result, their international trade network spanned from what is now Ukraine to North America.

Previous thoughts on the same topic:
Long distance trade
Ivory trade from Greenland to Ukraine
Vikings and the technological cutting edge

6 May 2023

The European Commission appears unreliable as a decision-maker to the Finns

In Finland, it is customary to trust a person's word, whether it be a man's or a woman's, once it has been given. Therefore, a person who goes back on their word is considered unreliable.

This cultural characteristic has contributed to making Finnish society quite functional in many ways, despite the fact that there are many unreliable individuals also in Finland.

That is why it was interesting, but unfortunate, to read about how Commissioner Jutta Urpilainen (Social Democrat) lightly approached the promise that the EU made when establishing the European Union Recovery Instrument. That is, the promise that the EU would no longer take on shared debt.

The article mentioned that Finland has been opposing the mentioned EU sovereignty fund. According to the article, it could be established either with debt financing or by granting the Union new types of fundraising possibilities - in plain language, some form of taxation authority.

So far, Finnish political parties have been quite united in this matter, likely due to the influence of negative public opinion. It remains to be seen what kind of operation the EU propaganda machinery will embark on to change it - as the article in question seems to ultimately address this issue.

In the article, Urpilainen also brought up another point. According to her, Finland's decision-making concerning EU matters should be altered to enable more proactive influence.

Regarding this matter, it is likely that all Finns can agree, to some extent, that Finland should indeed allocate resources to proactively influence EU decision-making. This is necessary to counteract decisions that could be harmful to both Finland and the entire EU, ideally at the earliest possible stage. However, it is important to acknowledge that each influencer or lobbyist operating in Brussels contributes to indirect costs associated with the EU, thereby increasing the financial burden on our national economy and that of other countries within the EU.

Therefore, the most crucial EU matter for the upcoming Finnish government this year is to exert influence on all EU member states to ensure the selection of competent individuals capable of making sensible decisions as commissioners. This is crucial to prevent future catastrophes similar to the von der Leyen Commission, which consists primarily of politicians who had largely failed in their national political careers.

Previous thoughts on the same topic:
Finnish Prime Minister Sanna Marin is quickly losing her national credibility
Fair policy will build a strong Union
Will an attitude lead Ukraine into EU?

3 May 2023

History of Finland III: The legal and economic weakening of the position of the people

This is the third part of a blog series in which I go through the significant phases of Finnish history. In the second post, I described how Finland became a part of an early modern state, where the power was concentrated in the hands of the king, who also had the means to use it.

After Gustav Vasa, there was a long power struggle in Sweden. First, the throne was inherited by Eric XIV, then John III, and his son Sigismund. Finally, after various twists and turns, Dude Charles, i.e., Charles IX, came to power. During this power struggle, the Swedish nobility tactfully maneuvered between the different parties and thus managed to improve its position, which was also strengthened by the wars that Sweden was fighting at the same time - after all, the nobility was ultimately a military class.

The longest of the Swedish wars was the war between Sweden and Russia at the end of the 16th century, which was preceded by a heated exchange of words. This 25-year-long conflict, known as the "Long Wrath," ended with the Treaty of Tyavzino in 1595, in which victorious Sweden's power expanded to include areas from the depths of the Gulf of Finland to the desolate borders of Lapland.

Sweden fought the war using a mercenary army, as was customary at the time, and the maintenance of this so-called castle camp was a burden on the peasants. There were widespread abuses associated with this, resulting in people having to sell their valuables and even their land due to financial difficulties. Thus, the wealth gap between the estates grew rapidly.

After the Treaty of Tyavzino, the peasants assumed that their burdens would end, but this did not happen. Instead, Klaus Fleming, the governor appointed by King Sigismund Vasa - who was staying in Poland - and effectively the dictator of Finland, kept his army ready. This provided the nobility and the wealthiest segment of the peasant population, the cavalry farmers, the opportunity to continue to increase their profits during peacetime as they had done during wartime by equipping the cavalry.

Since the maintenance of garrisons had severely impoverished ordinary peasants during the long war, the future seemed extremely bleak for them. This created a tremendous fear among the people of becoming tied to their estates as serfs, as had happened earlier in Central Europe.

As a result, Finland's first civil war, known as the "Cudgel War" erupted, and Fleming's cavalry brutally defeated the peasant armies: nearly 3,000 peasants were killed, a remarkably high number considering that there were less than 30,000 farms in Finland at the end of the 16th century. The outcome of the lost war was the formation of a class society, in which the legal and economic status of the common people was weak, and the position of the nobility was even stronger than before.

The original blog post in Finnish:
Kansan aseman oikeudellinen ja taloudellinen heikentyminen

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