Globalisation and the Finnish Forest Sector: on the Internationalisation of Forest-Industrial Operations
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Globalisation and the Finnish forest sector: On the internationalisation of forest-industrial operations ARI AUKUSTI LEHTINEN Lehtinen, Ari Aukusti (2002). Globalisation and the Finnish forest sector: on the internationalisation of forest-industrial operations. Fennia 180: 1– 2, pp. 237–250. Helsinki. ISSN 0015-0010. This article focuses on the most recent internationalisation of Finnish for- est companies. The profiles of the major companies are analysed. A ‘world map’ is drawn to illustrate the gradual formation of forest-industrial spac- es in three scales: the articulation of Finnish (national) forest interest is related to the strategic openings of the Finnish forest companies within European (continental) and global (transcontinental) contexts. The suggest- ed world map covers both the active exporting of the ‘Finnish model’ and the subsequent new location of Finland in the international networks. Both material and symbolic dimensions of the process are highlighted. The slow dynamics of the paper production is set against the current fluidity of so- cietal demands that are fed by intensifying competition between the lead- ing companies, profit maximation among the shareholders, and keen steer- ing by globally aware environmentalists and consumers. Finally, the eco-so- cial consequences of the contested globalisation process are addressed by ex- amining the most controversial signs and signals. These include size ranking of the companies, profit hunting, image and identity politics, and product cer- tifications. The theoretical framework is based on the political-ecology litera- ture inspired by actor- and context-specific approaches. Hence, the aim is a simultaneous analysis of both material and symbolic changes in forest-indus- trial practices. Ari Aukusti Lehtinen, Department of Geography, University of Joensuu, P. O. Box 111, FIN-80101 Joensuu, Finland. E-mail: [email protected] Material and symbolic forests The specific goal is to analyse the eco-social interdependencies and consequences of the glo- balisation of the forest industry and trade. On the The intensive internationalisation of the forest in- one hand, these are related to the growing de- dustry is currently rearranging the interrelations mands of profit maximation and, on the other between the leading companies and their suppli- hand, to widening sustainability demands and ers and customers. The governance of the com- concerns of justice. Theoretically at stake is the panies is also under redefinition: shareholder in- contested rearticulation of local–global interfac- terest increasingly conditions the managers’ de- es and nature–society relations. Both are informed cision-making. The entire societal setting of the by a conceptual refocus on the interrelations be- forest industry has therefore changed, both at the tween the material and symbolic spheres of our level of material production and in terms of finan- socio-spatial existence (e.g., Peet & Watts 1996; cial performance and image profilation. Accord- McAfee 1999; Murdoch et al. 2000; Zimmerer ingly, this article outlines the basic forest-indus- 2000). The empirical material is limited to the trial restructuring in connection to the rise of sym- Finnish forest-industrial companies that are cur- bolic and speculative values in paper production rently re-working their historical embeddednes in (see, e.g., Collins 1998; Sandberg & Sörlin 1998; Finnishness and Finnish forest resources. The anal- Saether 1998; Kortelainen 1999a). ysis focuses on the years 1990–2000. 238Ari Aukusti Lehtinen FENNIA 180: 1–2 (2002) The article’s starting point underlines the seri- The ‘qualitative turn’ within the forest trade is ousness of the current eco-social problems. The taking place in the negotiations concerning the challenges of globalisation are real and acute, and central criteria of credibility and indicators of sus- demand collective and effective reforms in soci- tainability. Concretely, the macro-level merger etal practices. These challenges can no longer be logic follows size and credibility rankings of the overlooked and labelled as ‘trendy’ constructions key actors. The stock markets are sensitive to the of eco-alarmism. This does not, however, change behaviour of the companies, and the markets the fact that ecological and social imperatives are ‘read’ the credibility labels of the suppliers. New human derivations and therefore loaded with a and contested measures of forest certification myriad of motives. There is no way back to the have been introduced and publishers and media modern(ist) worldview based on solid divisions houses are now willing to confirm the sound between ‘us’ and ‘them’, the ‘internal’ and the background of the paper they use (Fürstner 1996). ‘external’, or the human and non-human realms Finally, the disputed guarantees confuse the con- (Conley 1995; Whatmore & Thorne 1998; Lehti- sumers. The third frame view of the article thus nen 2000, 2001a). argues that the main forest-industrial actors are Environmental problems, violations of human increasingly conditioned by the (more or less pub- rights, and other dark sides of modernisation can lic) negotiations of credibility. These negotiations, no longer be excluded from global and local prac- while surfacing as economically significant, turn tices (see Brown & Flavin 1999). This is the first into forums of hegemonic competition. This com- and the most fundamental frame view of this arti- petition is about the formulation of the primary cle: it is here, in between and across the domi- form and content of the negotiations, including nating ways of knowing, that new openings and the subsequent optional distribution of loads and radical inclusions are needed. But difficult prac- benefits defined in the reached agreements. In tical challenges follow immediately: How to make known examples, the initial eco-social worries the inclusions deemed necessary? On what basis have turned into a ‘game’ of relational positions should the necessities be ranked? How to cope and benefits and have resulted in an illusion of with the consequences of these inclusions? How strengthening eco-social viability (see, e.g., Mc- to evaluate the relevance of the myriad of already Afee 1999; Tirkkonen 2000). Again, difficult ques- existing critical eco-social signals? tions emerge: How to learn to identify the con- The task seems paradoxical. The critical voices tinuously changing conditions and rules of this emerge from experiences of alarming material ‘game’? On what basis should the concerns with shortcomings, but they turn into qualitative at- ‘good’ and ‘bad’ motives be distinguished? How tributes when integrated into trade routines as ex- to avoid processes where the judges judge their penses or guiding rules. Sustainability, green cer- own cases? How to make an ethical argument tificates, organic farming, just forestry, etc., are economically convincing? ideal models that aim at changes in human be- The operations and negotiations are document- haviour. But they are also signals in the market ed in this study with the help of geographical scal- because they seek to measure the viability of the ing. The ‘Finnish model’ of forest-industrial mod- production process and the value of the end prod- ernisation is briefly described as a historical con- uct. This leads to the second frame view of the text whereupon Europeanisation (since the mid- article: the forest-industrial actors (as economic 1980s) and globalisation (since the mid-1990s) actors in general) are now more frequently forced have developed as new phases of activity for Finn- to integrate qualitative aspects into their produc- ish companies. All these phases, however, are in- tion and trading profiles. The direction of this tegrally characterised by strong interdependencies change is currently under heated contestation. The across these dominating spatio-temporal scalings (research) questions hence are: How to secure the and marked by rapidly evolving discursive con- validity of information concerning the basic criti- tents. This is the fourth and final frame view of cal material conditions in our local–global world? the article: the forest-industrial actors and activi- Especially, how to secure the validity of the tran- ties seem to become evaluated in connection to sition from material to qualitative criteria? How to the spatio-temporal scales they are primarily iden- identify and evaluate the signals of the actors and tified with. European companies differ from glo- target groups? How to confirm that even the most bal companies and this makes a difference, e.g., marginal(ised) but concerned voices will be heard? in merger negotiations. This tends to confirm and FENNIA 180: 1–2 (2002)Globalisation and the Finnish forest sector 239 legitimate the hegemonic historico-spatial prac- 29.4 percent in 1999. The Finnish export profile tices and, moreover, the direction of reach: glo- nevertheless still continues to be exceptionally balisation becomes the primary goal and even the forest-dominated. In other boreal countries with guiding ideological discourse. The scaling appears parallel forest-industrial histories the level of ‘for- as a construction of reference fields (for the com- est dependency’ has stayed below 20 percent of peting actors) and it proceeds through merit and the exports. The respective numbers were 14.9 status assessments. ‘Europe’ (or ‘Finland’), for ex- percent in Sweden and 16.7 percent in Canada ample, varies according to each discursive field: in 1996 (Avain... 1998). ‘Cultural