Part 251

Administrative divisions: 12 provinces (laanit, singular - laani); Ahvenanmaa, Hame, Keski-Suomi, Kuopio, Kymi, Lappi, Mikkeli, Oulu, Pohjois-Karjala, Turku ja Pori, Uusimaa, Vaasa

Independence: 6 December 1917 (from Soviet Union)

National holiday: Independence Day, 6 December (1917)

Constitution: 17 July 1919

Legal system: civil law system based on Swedish law; Supreme Court may request legislation interpreting or modifying laws; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Martti AHTISAARI (since 1 March 1994) was elected for a six-year term by popular vote; election last held 31 January-6 February 1994 (next to be held NA January 2000); results - Martti AHTISAARI 54%, Elisabeth REHN 46% head of government: Prime Minister Paavo LIPPONEN (since 13 April 1995) and Deputy Prime Minister Sauli NIINISTO (since 13 April 1995) were appointed by the president cabinet: Council of State (Valtioneuvosto) was appointed by the president, responsible to Parliament

Legislative branch: unicameral Parliament (Eduskunta): elections last held 19 March 1995 (next to be held NA March 1999); results - Social Democratic Party 28.3%, Center Party 19.9%, National Coalition (Conservative) Party 17.9%, Leftist Alliance (Communist) 11.2%, Swedish People's Party 5.1%, Green League 6.5%, Ecology Party 0.3%, Rural 1.3%, Finnish Christian League 3.0%, Liberal People's Party 0.6%, Young Finns 2.8%; seats - (200 total) Social Democratic Party 63, Center Party 44, National Coalition (Conservative) Party 39, Leftist Alliance (Communist) 22, Swedish People's Party 11, Green League 9, Ecology Party 1, Rural 1, Finnish Christian League 7, Young Finns 2, Aaland Islands 1

Judicial branch: Supreme Court (Korkein Oikeus), judges appointed by the president

Political parties and leaders: government coalition: Social Democratic Party, Paavo LIPPONEN; National Coalition (conservative) Party, Sauli NIINISTO; Leftist Alliance (Communist) People's Democratic League and Democratic Alternative, Claes ANDERSSON; Swedish People's Party, (Johan) Ole NORRBACK; Green League, Pekka HAAVISTO other: Center Party, Esko AHO; Finnish Christian League, Toimi KANKAANNIEMI; Rural Party, Raimo VISTBACKA; Liberal People's Party, Tuulikki UKKOLA; Greens Ecological Party (EPV); Young Finns, Risto PENTTILAE

Other political or pressure groups: Finnish Communist Party-Unity, Yrjo HAKANEN; Constitutional Rightist Party; Finnish Pensioners Party; Communist Workers Party, Timo LAHDENMAKI

International organization participation: AfDB, AG (observer), AsDB, Australia Group, BIS, CBSS, CCC, CE, CERN, EBRD, ECE, EIB, ESA, EU, FAO, G- 9, IADB, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, IOM, ISO, ITU, MTCR, NACC, NAM (guest), NC, NEA, NIB, NSG, OAS (observer), OECD, OSCE, PCA, PFP, UN, UNCRO, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNIFIL, UNIKOM, UNMOGIP, UNPREDEP, UNPROFOR, UNTSO, UPU, WEU (observer), WFTU, WHO, WIPO, WMO, WToO, WTrO, ZC

Diplomatic representation in US: chief of mission: Ambassador Jaakko LAAJAVA chancery: 3301 Massachusetts Avenue NW, Washington, DC 20008 telephone: (202) 298-5800 FAX: (202) 298-6030 consulate(s) general: Los Angeles and New York

US diplomatic representation: chief of mission: Ambassador Derek N. SHEARER embassy: Itainen Puistotie 14A, FIN-00140, Helsinki mailing address: APO AE 09723 telephone: (0) 171931 FAX: (0) 174681

Flag: white with a blue cross that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)

Economy -------

Economic overview: Finland has a highly industrialized, largely free-market economy, with per capita output equaling that of the UK, France and Italy. Its key economic sector is manufacturing - principally the wood, metals, and engineering industries. Trade is important, with the export of goods representing about 30% of GDP. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. The economy, which experienced an average of 4.9% annual growth between 1987 and 1989, sank into deep recession in 1991 as GDP contracted by 6.5%. The recession - which continued in 1992 with GDP contracting by 4.1% - has been caused by economic overheating, depressed foreign markets, and the dismantling of the barter system between Finland and the former Soviet Union under which Soviet oil and gas had been exchanged for Finnish manufactured goods. The Finnish Government has proposed efforts to increase industrial competitiveness and efficiency by an increase in exports to Western markets, cuts in public expenditures, partial privatization of state enterprises, and changes in monetary policy. In June 1991 Helsinki had tied the markka to the European Union's (EU) European Currency Unit (ECU) to promote stability. Ongoing speculation resulting from a lack of confidence in the government's policies forced Helsinki to devalue the markka by about 12% in November 1991 and to indefinitely break the link in September 1992. The devaluations have boosted the competitiveness of Finnish exports. The recession bottomed out in 1993, and Finland participated in the general European upturn of 1994. Unemployment probably will remain a serious problem during the next few years; the majority of Finnish firms face a weak domestic market and the troubled German and Swedish export markets. The Finns voted in an October 1994 referendum to enter the EU, and Finland officially joined the Union on 1 January 1995. Increasing integration with Western Europe will dominate the economic picture over the next few years.

GDP: purchasing power parity - $92.4 billion (1995 est.)

GDP real growth rate: 5% (1995 est.)

GDP per capita: $18,200 (1995 est.)

GDP composition by sector: agriculture: 4.6% industry: 28% services: 67.4% (1994)

Inflation rate (consumer prices): 2% (1995 est.)

Labor force: 2.533 million by occupation: public services 30.4%, industry 20.9%, commerce 15.0%, finance, insurance, and business services 10.2%, agriculture and forestry 8.6%, transport and communications 7.7%, construction 7.2%

Unemployment rate: 17% (1995)

Budget: revenues: $21.7 billion expenditures: $31.7 billion, including capital expenditures of $NA (1993 est.)

Industries: metal products, shipbuilding, pulp and paper, copper refining, foodstuffs, chemicals, textiles, clothing

Industrial production growth rate: 5% (1993 est.)

Electricity: capacity: 13,360,000 kW production: 58 billion kWh consumption per capita: 12,196 kWh (1993)