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Perspective-kansi- 10.6.2003 14:58 Page 1 C M Y CM MY CY CMY K In 2003 Finland commissioned a Partner fromtheSouth Improving EffectivenessofFinnish DevelopmentCooperationPerspectives Review of its development cooperation in order to gain insight into its efforts and aims within the realm of fight against global poverty from a new perspective. A team of researchers and experts representing several of Finnish long-term partner countries was given a task to evaluate Finland’s relations with developing countries, its successes and failures, challenges and possibilities, in the context of the specific characteristics of the Photo: Pia Herme Finnish society – with its past and present values and experiences, as well as its relative strengths and weaknesses. The Partner Review presented innovative ideas and reflected Finland as a partner in development cooperation, from the Southern perspective. The review team consisted of a Zambian economist (Prof. Oliver S. Saasa), a Nicaraguan anthropologist (Dr. Galio C. Gurdian), an Ethiopian sociologist (Dr. Zenebeworke Tadesse), and a Nepalese lawyer (Mr Gopal Siwakoti ’’Chintan’’). The research was facilitated and coordinated by UNRISD (the United Nations Research Institute for Social Development). Oliver S. Saasa, Galio C. Gurdian, Zenebeworke Tadesse, Gopal Siwakoti ’’Chintan” Improving Effectiveness of Finnish Development Cooperation Perspectives from the South MINISTRY FOR FOREIGN AFFAIRS OF FINLAND Photo: Kuvaario Department for Development Policy Composite IMPROVING EFFECTIVENESS OF FINNISH DEVELOPMENT COOPERATION Perspectives from the South Oliver S. Saasa Galio C. Gurdian Zenebeworke Tadesse Gopal Siwakoti Chintan Study commissioned by Ministry for Foreign Affairs of Finland Helsinki May 2003 ISBN 951-724-415-0 Hakapaino Oy Helsinki 2003 IMPROVING EFFECTIVENESS OF FINNISH DEVELOPMENT COOPERATION 3 Introduction The main objective of this Assessment, that ran over the November 2002 to April 2003 period, is to record how researchers and experts from the South evaluate the present practice of Finland’s relations with developing countries and as they see their role in the realisation of the Millennium Development Goals. The assessment took place in the context of Finland’s own development lived experiences, opportunities and restrictions presented by the structure and dynamics of developments within the country. In this regard, the main aim of the Evaluation is to assess how well Finland has succeeded in implementing its policy goals; what opportunities exist that could be better utilised; and identification of the type of approaches and roles that could be particularly suited for Finland in pursuance of its development cooperation objectives. The Assessment covered Finland’s relations with developing countries, focusing on political, economic, development cooperation and cultural relations. The researchers collected considerable amount of literature that articulates key policy positions of the Finnish Government, supplemented by other relevant documents on the country’s experience with respect to the establishment of a domestic social policy. Apart from extensive interviews within Finland during mid-January 2003, the Researchers visited eight countries in the South and conducted extensive interviews with both government officials and civil society actors. The countries covered were Ethiopia, Tanzania, Zambia, Namibia, Nepal, Vietnam, Nicaragua, and Honduras. A particular focus during missions to both Finland and the eight countries in the South was to assess Finland’s role and influence in its relations with developing countries, paying particular attention on bilateral relations. The role of multilateral relations were also critically reviewed, focusing primarily on the EU, WTO and other multilateral financial institutions, OECD/ DAC poverty reduction initiatives, and the UN Millennium Development Goals. The Draft findings of the evaluation were presented by the researchers to the Ministry for Foreign Affairs officials in April 2003. To facilitate the implementation of the Study, the Ministry for Foreign Affairs of Finland reached an agreement with the United Nations Research Institute for Social Development (UNRISD) to identify the researchers to carry out the review; provide logistical support; and coordinate and administer the work. The researchers are greatly indebted to the Director of UNRISD, Prof. Thandika Mkandawire, for facilitating their involvement in this important task. Further gratitude goes to Ms. Anna Hemmingson who was specifically recruited by UNRISD to administer the Project. 4 IMPROVING EFFECTIVENESS OF FINNISH DEVELOPMENT COOPERATION At the Ministry for Foreign Affairs in Helsinki, the Researchers would like to express their appreciation of the logistical support extended by Ms. Krista Napola, Krista Napola, Programme Officer, Department for Development Policy and Mr. Timo Voipio, Adviser, Social Development Unit for Sectoral Policy, Department for Development Policy. Mr. Voipio’s useful comments on the Researcher’s working drafts were particularly insightful. Appendix 2 gives the list of persons met in Helsinki during the course of the Assessment. This report begins with the Executive Summary of the Evaluation’s main findings and recommendations. This is followed by Chapter One that gives the historical perspective of Finland. This is followed by Chapter Two that explores the multidimensional profile of poverty, then Chapter Three that addresses the form and nature of bilateral and multilateral cooperation in which Finland plays a role. Chapter Four on Democratic Governance follow, focusing on the relationships that exist between Finland and its Southern partners. Lastly, the Report presents the Study’s main findings. Oliver S. Saasa Team Leader 7 May 2003 IMPROVING EFFECTIVENESS OF FINNISH DEVELOPMENT COOPERATION 5 Table of Contents Introduction ....................................................................................................... 3 Table of Contents ............................................................................................... 5 Acronyms............................................................................................................ 8 Boxes and Tables ............................................................................................ 11 Executive Summary of Main Findings and Recommendations ............................ 13 Main Findings .................................................................................................... 13 Main Recommendation ...................................................................................... 16 CHAPTER 1: BACKGROUND TO FINNISH EXPERIENCE ....................... 19 1.1 The Country, the People, the History .................................................... 19 1.1.1 The ancestors ............................................................................... 19 1.1.2 Boundaries ................................................................................... 20 1.1.3 Karelia: battlefield, bridge, myth. ................................................. 20 1.1.4 Independence: “Swedes we are no longer, Russian we cannot become: let us be Finns” ............................................................... 22 1.2 Culture .................................................................................................. 23 1.3 Finnish Literature Society ...................................................................... 24 1.4 The academic intelligentsia.................................................................... 25 1.5 Nordic Identity: natural man ................................................................. 30 1.6 Political and military events shaping Finnish Nation State and society... 32 1.7 The survival society: The Winter War and its consequences ................... 34 1.8 Neutrality .............................................................................................. 37 1.9 From Survival Society to Information Society ........................................ 37 1.10 The Finnish Welfare State as a Post Survival State and a Legitimiser of the Nation State. ............................................................................... 43 1.11 Main Weaknesses of Finnish Welfare state and Information Society....... 46 1.12 Development Cooperation .................................................................... 47 1.13 Historical Background to the South’s Perception of Finns ...................... 48 CHAPTER 2: MULTIDIMENSIONAL PROFILE OF POVERTY.................. 53 2.1 Introduction .......................................................................................... 53 2.2 Lessons from the Finnish Experience ..................................................... 55 2.2.1 Growth with Equity ..................................................................... 55 2.2.2 Strong State Involvement ............................................................. 56 2.2.3 Inclusive Citizenship and Political Stability .................................. 57 6 IMPROVING EFFECTIVENESS OF FINNISH DEVELOPMENT COOPERATION 2.2.4 Gender Equality and Child Welfare ............................................. 57 2.2.5 Crisis Management ...................................................................... 57 2.3 Responses to Poverty ............................................................................. 58 2.3.1 Labour-intensive Growth ............................................................. 58 2.3.2 Access to Social Services and

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