Nokia-1 - Why did Finland move from a sleepy economy to one...

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Unformatted text preview: Why did Finland move from a sleepy economy to one of the most competitive nations in the world? Finland had a sleepy economy until the 1990’s after which the telecommunication cluster’s rapid growth and liberal government policy helped to make it one of the fastest and competitive economies in the world in 2001; it won the top spot from the United States in the Global Competitiveness Report 2000. Economic growth after the Second World War was slow; trade was mostly with the Soviet Union, mostly trading industrial goods for natural resources. Finland’s banking and industrial regulations were tight and so was its macroeconomic policy through the 80’s that resulted in high public spending, nominal exchange rates, increasing budget deficits and currency devaluation every decade. This perception that the economy was losing ground made the government do some major policy changes such as increasing R&D expenditure, investing in education and universities, setting up a National Technology Agency to...
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