february 2018 ISSUE no. 1 Othmar Karas Matti The straight path Saarelainen forward A need for clarity in the era of hybrid threats Jorma Turunen Kaisa Leiwo Digitalization as Turku region the key success enjoying factor of the Finnish positive manufacturing structural industry shift To receive a free copy, register at www.utu.fi/pei The Pan-European Institute publishes the Baltic Rim Economies (BRE) review which deals with the development of the Baltic Sea region. In the BRE review, public and corporate decision makers, representatives of Academia, as well as several other experts contribute to the discussion. Pan-European Institute ISSN 1459-9759 Editor-in-Chief | Kari Liuhto (responsible for writer invitations) Technical Editor | Teemu Itälinna University of Turku Turku School of Economics Pan-European Institute Rehtorinpellonkatu 3 FI-20500 TURKU, Finland Tel. +358 29 450 5000 www.utu.fi/pei [email protected] 28.2.2018 Baltic Rim Economies ISSUE # 1 expert articles Sampo Terho 4 Eini Haaja & milla harju 25 Anne Kovalainen, Seppo Poutanen & Direction of the Finnish humanitarian ECOPRODIGI – bringing eco- Jatta Jännäri 45 immigration policy efficiency to maritime sector in the Gender equality in the Baltic Sea Baltic Sea region through region – similarities and differences Othmar Karas 5 digitalisation The straight path forward Emil Edenborg 46 Tommi Inkinen 27 Has the Baltic Sea become a frontier Sirpa Pietikäinen 6 Digitalization is strongly present in in a global conflict over sexuality? China is ahead in the game – where the current Maritime Studies of the is Europe? Alexander Kondakov 48 Baltic Sea at the University of Turku Hate crime against LGBT individuals Elina Lepomäki 7 Michael Emerson 28 in Russia European perspectives on the Nord Prospects for Lisbon to Vladivostok Stream 2 gas pipeline Xue Fuqi 49 Claus-Friedrich Laaser & Klaus Schrader 29 An interpretation of deficiency of Hannu Muhonen 8 A German view on the Baltic Sea development in Russia Towns need a well-functioning Baltic region Sea Nis Høyrup Christensen & Ari Kokko 51 Kaisa Leiwo 30 Chinese FDI in the Nordic and Baltic Marjukka Vihavainen-Pitkänen 10 Turku region enjoying positive countries Many potential benefits to improving structural shift connectivity in the Arctic Galina Gavrilko 52 Toni Sulameri 31 Chinese version of the Marshall Plan Allan Rosas 12 Future of wind power is offshore CBSS: small, unknown but beautiful? Konstantinas Andrijauskas 53 EMIN AKCAOGLU, HARALD J. BOLSINGER & The Baltic States and China’s Joakim Berndtsson & Karl Ydén 13 RAINER WEHNER 32 infrastructure push: appreciation of Back to the future? Swedish public Recent developments exposing insecurities opinion on Russia, defence spending further political risks: what about and NATO membership Enn Listra 54 multinational corporations’ reaction? Slowing leaptigers contested by Kari Liuhto 14 Elmira K. Zilber & Andrey S. Mikhaylov 35 skilled elephants Russia’s economic interaction with Limited territorial capital and the the NATO member states Vello Pettai 55 development of a university Taking stock of Estonia’s political left Margarita Šešelgytė 16 Sergey Kadochnikov & Anna Fedyunina 36 turn Security challenges for the Baltic Sea The shifting structure of Russia’s region Henning Sten Hansen, Lise Schrøder & export 2014-2016 Michael Kull 56 Henri Vanhanen 18 Andrey Vinogradov 37 BONUS BASMATI Maintaining stability at the Baltic Sea Logistics of internet retailing in region Thomas Backhaus 57 Russia faces new challenges Chemical pollution of the Baltic Sea Mykhailo Gonchar 19 Rajib Sanyal 38 – a brief overview and assessment Future of natural gas transit from Bribery in international business in Russia via Ukraine to the EU Vladislava Vladimirova 58 post-USSR countries The green economy in Russia Juha-Antero Puistola 20 Andres Metspalu 39 Nord Stream 2 – divide et impera Jørgen Jørgensen 59 Biobanking and precision medicine European Humanities University – Ruslan Mustakimovich Shafiev 21 Ramūnas Povilanskas 40 bridging Belarus to Lithuania and the The main directions of Russia’s Health tourism in Estonia, Latvia and West energy diplomacy Lithuania Vladimir Chaplygin 60 Matti Saarelainen 22 Ellu Saar 41 Russian and Belarus monetary A need for clarity in the era of hybrid Youth unemployment in the Baltic union: experience, problems and threats States perspectives Jorma Turunen 24 Göran Larsson 42 Vitaly Zinovchuk 61 Digitalization as the key success Global conflicts with local Ukrainian agriculture is on the factor of the Finnish manufacturing consequences – some examples threshold of a cooperative boom industry from Sweden Luule Sakkeus 43 Population development of Estonia 3 www.utu.fi/pei 28.2.2018 Baltic Rim Economies ISSUE # 1 Sampo Terho Direction of the Finnish humanitarian immigration policy Expert article • 2300 ecause there exists no one kind of immigration there cannot we possibly can. If we know that by using those resources in the exist unequivocal and simple solutions to immigration. alternative way would produce significantly more of the things we are To make this issue even trickier one has to by necessity trying to achieve we should act accordingly and change the way we to assess often conflicting goals and values when are using the resources. The decision to use taxpayer’s money to contemplating the alternative approaches for immigration achieve certain objectives in the field of humanitarian immigration is Bpolicy. clearly political but we still should not be committed intrinsically to Even though overlap does exist, to tackle the subject matter any certain model as long as it delivers the desired outcomes. After we should separate labour based and humanitarian immigration. all, if we can use the limited resources in a way that provides human Generally, with exceptions, the labour based immigration is often rights and protection for bigger proportion of people we have moral beneficial to the receiving society when humanitarian immigration obligation to do so. often causes negative financial impact for the receiving society. This would mean that we should start shifting our support and However, the purpose of humanitarian migration is not necessarily funding to refugee camps, safe havens, and neighbouring regions. to be beneficial for the receiving society but to provide human rights, We should seriously study and advocate system where humanitarian protection from persecution and uphold international treaties. protection is the most important variable inside chosen financial Current government has made crucial reforms and by and large, constraints. Therefore our long term goal should be that both the Finnish approach to humanitarian immigration is in better condition application for asylum, processing of the application, and possibly the than it has ever been. However it would be foolish to blindly endorse asylum itself should be located outside of European Union. status quo and there exists nothing preventing us from continuing to The model I am suggesting would be superior to our current improve the existing policies and treaties. Therefore, in this article I am system at least in three different ways. Firstly it would effectively introducing my party´s solution to what I think is the biggest challenge reduce the amount of unfounded and illegal immigration which is concerning humanitarian migration and which I think Finland and EU currently burdening heavily our public finances. When you uncouple at large should strive for. I believe that it is possible to combine our the link between the asylum and the country of application, this most important values with sustainable finance in the way that allows creates better incentives where only those who are really entitled us to reach our ultimate objectives more efficiently. for protection will be able to get it and where incentives for illegal In the world of limited disposable resources the morally robust immigration are greatly reduced. starting point should be the evaluation of the most cost-effective Secondly, this would reduce many of negative consequences way to providing human rights and protection for the biggest amount resulting from the current model of asylum system. Integration of people. Compulsion to do good is not good enough because programs have turned out to be often tedious, slow and expensive. opportunity costs can amount to unacceptable outcomes where poor Many of the challenges regarding integration would be significantly selection of production method amounts to the unacceptable loss of reduced when the amount of asylum seekers arriving to Finland and human rights and protection. EU would decline. When we compare different counterfactual ways of providing Thirdly, this model would allow as provide protection and human humanitarian protection it is clear that current model of taking asylum rights to significantly larger amount of people with the same resources. seekers to Finland and other EU-countries is an inefficient way of Therefore we should strive for it even if it would not bring any kind of providing human rights and international protection from prosecution. benefits for the receiving countries themselves. After all, inefficient The cost of an asylum seeker in Finland is very high in comparison and unreasonable humanitarian immigration policy costs persecution of the humanitarian refugee in neighbouring regions of the countries and lost human lives. where refugees are fleeing from. Even conservative estimates point to the fact that it is at least ten times more effective to provide protection