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

All the blog posts in this series:
History of Finland I: How did Finland become culturally part of the West?
History of Finland II: From a hinterland of the Union into a modern state
History of Finland III: The legal and economic weakening of the position of the people
History of Finland IV: The bleakest time in Finnish history
History of Finland V: The pursuit of economic profit saved the country
History of Finland VI: Age of freedom and utility
History of Finland VII: The dictator of the era of Enlightenment promoted capitalist economy
History of Finland VIII: Joining of Finland to Russia led to an increase in crime
History of Finland IX: Enlightended dictator initiated economic growth
History of Finland X: The birth of Finnish identity
History of Finland XI: Finnish democracy and gender equality for women
History of Finland XII: Bloody civil war
History of Finland XIII: The far-right's rebellion
History of Finland XIV: The end of the first Finnish Republic
History of Finland XV: Paasikivi-Kekkonen doctrine
History of Finland XVI: Through rise and fall to a new kind of future