Along with the rest of the Western World the Nordic
countries are also in decline. This is a relative decline due to the fact that
there are new winners in the globalized world. China is the most prominent
example of a new rising economy that is shaking the old world order.
In this globalized world efficiency and competitiveness
is vital. We need to be competitive in order to get investments which create
more jobs. These jobs create welfare. We have a declining work force in Finland
and large youth unemployment. According to the bank of Finland the word force
in the private sector is declining by 0,2% annually until 2030 while the
workforce in the public sector is increasing by 0,4% until the same year. This
is due to the negative demographic growth where larger older age groups are
withdrawing from the work market. These small percentages may not sound much. And
are around average all over the Nordic countries except Sweden where they have
a growing labor force due to larger immigration. More workers would push down
prices of labor making the job market more efficient. The issues in the Nordic
countries are the structural changes and the small amount of people. Old
industries have been offshored to China. Several of the transnational companies
have gone for cheap labor in China leaving large amounts of people unemployed.
This labor force is forced to re-structuralize themselves which costs a lot of
money for society during the transition. But this is a far cheaper solution
than permanent unemployment.
Since we have a small and declining labor force
several people have presented the idea of immigration. An increased immigration
would revitalize the economy. This might be a part solution. But not much is
talked about policies designed to increase child bearing families. Policies
should be implemented to cut-off the negative demographic trend. Besides it is
difficult to get skilled work force to a cold and dark North. If we are to get
skilled work force there must be extensive marketing and awareness rising. It’s
quite pointless to get unskilled labor force to the Nordic countries as it get
expensive. How are our educational systems which are primarily designed to deal
with homogenous populations going to cope with people far away? There are no
magic switches that would make people all of a sudden functional in a new culture
and its language. These things take time. Thus there should be put a priority
on skilled labor force which would only need to learn the culture and language
and the rules and laws of society.
Youth unemployment is around 18%-25% in Finland and around
the same in the other Nordic countries, except in Denmark where youth
unemployment is just about 10%. Youth unemployment is a big issue. In Finland
there are about 40 or 50 thousand young people unemployed. The saddest part is that
most of them are unskilled with only primary school education. Their issues are
massive. They are not part of society in anyway. Saddest part is their personal
misery but society pays terribly much for them. It’s expected that around 40%
of those young people will be permanently unemployed. This trend has to be cut.
One person who is cast away from society costs around 1,6 million euros to
society. It means that the total cost for society would be at around 24 billion
euros! In Finland. This is a terrible tragedy in a situation where Finland
needs every single person to work and keep active in society, because we are so
very few.
This trend must be broken. Measures are luckily
already taken in order to deal with this issue. With the youth guarantee policy by the Finnish
government taking effect rather soon. We must ensure that these people get a
prosperous future with jobs. It’s in nobody’s interest to have them become
welfare bums. They are needed to help to take care of the ageing population. Besides we don't want a growing radicalization amongst the homeland population.
Furthermore the issue points are that careers usually
start relatively late in Finland at around the age of 22-27. Those more highly
educated start at the latter. The second issue is that a lot of people exit the
labor market at around the age of 52 due to illness. The average
retirement age is 60,4 when the target age is 64. How will we get people to
work earlier and how will we get people to work longer? Because efficiency is
ever more important now. At least for the time being when there are massive
demographgic changes.
Could a country wide online-company-network slash
public sector common labor market lessen the time of unemployment? Imagine if
Finland or another country would create department of labor doing matching.
Imagine a national matching-service. Where people could leave their CV’s and
where employers could easily recruit workers. This would be an instrumental
solution. Employer gets easily and quickly information of a possible employee
who would match the job description. And job seeker, future employee, would get
hired more quickly into a job. This could be a service that the country funds
with public money as it would be of the interest of all. Issues are physical
distances. How would these be solved? Must there be different geographical
sectors for the employee etc?
There are of course many ''matching companies'' but a public one could be more accessible for small businesses. It could compete agaisn't the more expensive consulting firms. Thus supporting small businesses.
Thus the objectives are to: get people quickly from job to job. To maximize the labor forces potential. And to get the youth back to working. Policies must be implemented which encourage to create more jobs. We must get the people working again and create policies which support small businesses. So we can get real innovations. We must encourage innovations because that’s the way to create jobs.
There are of course many ''matching companies'' but a public one could be more accessible for small businesses. It could compete agaisn't the more expensive consulting firms. Thus supporting small businesses.
Thus the objectives are to: get people quickly from job to job. To maximize the labor forces potential. And to get the youth back to working. Policies must be implemented which encourage to create more jobs. We must get the people working again and create policies which support small businesses. So we can get real innovations. We must encourage innovations because that’s the way to create jobs.
New foreign policy to help in competiveness?
We live in a globalized world and the issues facing
the Nordic countries are large by far. Our advantages are a highly skilled
(educated) work force a functional society with liberal democracy. We respect,
we not only respect we love human rights. Lets compare with China. They have no
functional liberal democracy. They are a one party technocratic state. Do they
respect human rights? No. Do they thus respect the rights of the labor force?
No. Furthermore they don’t even respect our intellectual properties our
patents. They just copy everything and produce cheap copies to their own
markets. Virtally making our products pointless in their markets. China has no functional trade unions defending the rights of the labor
market unlike the Nordic countries.
What is to be done in order to fix this unjust
competition? How about enforcing transnational companies which aim to sell
their products in European and American markets to enforce western laws in
their offshore production facilitates. It’s not a very comparable competition if
there’s different rules from country to country. We must ensure the human
rights of the people in other countries. That’s our responsibility. After all
we buy their products. Products must be ‘human right’ certified. To broaden the perspective this same principle could be expanded to environmental
policies. Why would we want to buy products which are ruining the planet? (more than the ones we produce).
- Trade unions could also be used to spread human rights. Helping workers in developing countries to organize themselves.
- Trade unions could also be used to spread human rights. Helping workers in developing countries to organize themselves.
The fundamental question and matter is to make the
globalized part of the world to come on the same page. We need rules which are
implemented on everyone not just for a few. Offshore oppression and neglect of
human rights and the environment can no longer be tolerated. This is something
we should promote in the EU-level and something America should also realize. I suggest that the western world should come together in this to make common rules which transnational companies have to respect, inorder for them to be able to sell their products in the respective markets.
It would be in our interest in the North to promote
human rights and environmental policies on a global level. At least on that
level we are the most competitive part of the world. And thus it would be in
our very interest to promote those Nordic values.
The task will be difficult due to the special interest groups, but it's not an impossible task.
The task will be difficult due to the special interest groups, but it's not an impossible task.