Finland is a country in Europe with a population of 5.5 million. The nation borders Sweden, Norway and Russia. Despite the nation’s small population, Finland is extremely impressive on the global scale. The nation is known for high quality education, equality and a national social welfare system. The poverty rate in Finland is also among the best in the world.
The Organisation for Economic Co-operation and Development (OECD) defines poverty rate as “the ratio of the number of people (in a given age group) whose income falls below the poverty line; taken as half the median household income of the total population.” As of 2014, Finland’s total poverty rate of .068 is the fourth best in the world, trailing Denmark, the Czech Republic and Iceland. For people under the age of 17 in poverty, Finland does even better, ranking second in the world.
The poverty rate in Finland is not among the world’s best by accident. The nation’s economy is open and transparent. It has well-maintained laws and a very low tolerance for corruption.
The nation’s many successes does not mean that everything is perfect. The economy struggled in recent years, forcing the government to take measures to bring back economic growth and reduce public debt.
Maintaining a Low Poverty Rate in Finland
Fortunately, things are already starting to turn around. In 2015, the economy grew for the first time since 2011, and that growth continued in 2016. In January of this year, Finland began a new program designed to help the nation’s people and economy. The trial, which will last for two years, will pay 2,000 randomly-selected citizens unemployment benefits of 560 euros every month.
The experiment aims to limit bureaucracy, reduce poverty and increase employment. At the moment, we cannot know for sure how effective this program will be. Critics argue that the program may encourage laziness, since people will be receiving a paycheck without working. However, there is hope that it can accomplish its goals.
Looking forward, Finland must work hard to strengthen its economy, which will include lowering labor costs and increasing demand for its exports. The population of Finland is aging and the nation is experiencing a decrease in productivity in traditional industries. All of this threatens the nation’s economy.
Nevertheless, the poverty rate in Finland is something to be admired. The country has and will continue to face many challenges, economic and otherwise, but its unique actions may be what it needs to stay ahead of the curve.
– Adam Braunstein
Photo: Flickr
Bangladesh has made remarkable gains over the past two decades in the education sector. In 2016, statistics from Bangladesh Bureau of Educational Information and Statistics (BANBEIS) showed great developments in gross enrollment with 112.1 percent of children listed in primary education. The ratio of girls to boys also improved that same year. This allowed Bangladesh to achieve gender equality for educational access in both primary and secondary education. Despite victory in registration and elimination of gender disproportion, challenges continue to keep Bangladesh from advancing further. Here are three problems facing
Libya has long been home to a
Liberia is a country in West Africa and is one of the poorest countries in the world. Although Liberia is the oldest republic in Africa and has a long running relationship with the U.S., the alarming
Is there
Israel, a small country wedged between Africa and Asia, is one that has faced many challenges. The country was created as a Jewish state in 1948, but ever since, it has worked towards developing a strong and stable economy. With this economy,
North Korea is in the news often lately—from the comatose American student Otto Warmbier dying after his release from the country, to dictator Kim Jong Un testing missiles capable of reaching the United States. What is less mainstream knowledge, however, is the plight of 25 million North Koreans who face chronic food shortages,
Water quality in 
On March 14, 2003, then-German chancellor Gerhard Schröder announced Agenda 2010, a series of reforms executed by the German government. More than 10 years later Agenda 2010 is seen as one of the leading causes of 