Cold War Finland: Finlandization (1945-91)

Figure 1.--The post-War Finnlandization Era era was dominated by long-serving president Urho Kekkonen (1900-86). The real danger of Soviet intervention gave him a weapon to use against his critics. He was able to maintain essentially a monopoly on power to the relief of the Finnish people by sucessfully keeping the Soviet threat at bay (1956-82). After The Winter War and Continuation War, the Finnish people had no appetite for Cold War heroics as long as they retauned their indeopendence and basic civil liberties. Here we see President Kekkonen visiting Montreal as part of a state visit to Canada in 1961. Finnland used to have an Arctic Ocean port, but it was seized by the Soviets in the Winter War. The press caption read, "President and Mrs. Urho K. Kekkonen of Finland. are greeted & presented with flowers by Tina Lehtonen, 4, of Monreal, on their arrival here 10/10. President Kekkonen arrived for a six-day state visit in Canada."

Finlandlandization became a Cold War term for a country neutralized by the Soviet Union, but able to retain a democratic government with civil liberties. It was a term that came out of the West German press and focused primarily on foreign policy. Less discussed at the time was how forced Soviet economic poilicies meant economic stagmation and poverty, the same failures that would eventually lead to the collapse of the Soviet Empire andthe Soviet Union itelf. The Finns managed to maintain their independence. Stalin demaned a high price, including more territory. Probably because of his World War II alliance with the West and early post-War image, he decided to tolerate Finnish independence. Stalin was hopeful of controlling Western Europe, expecting an American withdrawl and election victories in France and Italy. Finnish indepence, however, had limits. Finland was allowed a free hand in its domestic policies as long as it did not ally with the West or critisize Soviet conduct in international fora. As a result, Finland persued stritly neutral policies during the Cold War. The Finns were allowed to control their domestic policies as long as they essentially accepted Soviet influence if not control of their foreign policy. The Finns did not join either NATO or the Warsaw Pact. They benefited from NATO, however, because of NATO blockading further Soviet control in Europe. This left space for both Austrian, Finnish and Swedish neutrality on the Iron Curtain borderlands. Of the three, the Soviets exercized more contol over Finland. After World War II, the Finno-Soviet Pact of Friendship, Cooperation and Mutual Assistance (YYA Treaty) gave the Soviet Union ways of intervening in Finnish domestic politics. The post-War era was dominated by long-serving president Urho Kekkonen. The real danger of Soviet intervention gave him a weapon to use against his critics. He was able to maintain essentially a monopoly on Soviet relations (1956-82). President Kekkonen's failing health forced him to retire after holding office for 25 years. His policies remained in force after he left office until the implosion of the Soviet Union (1991). The policy was to avoiding any policy or statement that would affend the Soviets.

World War II

Stalin turned the Eastern European countries occupied by the Red Army into brutal Communist police states. The three Baltic republics were actually annexed into the Soviet Union. Finland was, however, different. And it is not clearly known why. Stalin could have treated Finland like the Baltics. The Western democracies could not have prevented it. But Stalin chose not to do so The major concession he got along with more Finnish territory was that the Finns would have to drive the Germans out of the northern part of the country, thus releasing the Red Army to concentrate on the drive to Berlin (1944-45). But the Finns had to pay a price and that price was Findlandization.

Cold War Term

Finlandlandization became a Cold War term for a country neutralized by the Soviet Union, but able to retain a degree of independence and a democratic government with civil liberties. It was a term that came out of the West German press and focused primarily on foreign policy. Less discussed at the time was how forced Soviet economic poilicies meant economic stagmation and poverty, the same failures that would eventually lead to the collapse of the Soviet Empire andthe Soviet Union itelf. The Finns managed to maintain their independence.

Stalin's Price

Stalin demaned a high price, including more territory. For several decades, while Finland survived as an independent and unoccupied democracy, it did so under the looming shadow of Soviet Union and the NKVD. It gave the Soviets real influence over the country's politics, especially foreign policy. While Finnish neutrality largely meant Soviet influence in political and foreign policy, there were also economic consequences.

Stalin's Calculation

Probably because of his World War II alliance with the West and early post-War image, he decided to tolerate Finnish independence. Stalin was hopeful of controlling Western Europe, expecting an American withdrawl and election victories in France and Italy. Either would be a major break in the West. Losing France to the Communism would have made anu coherent military defense impossible. Italy would have been a problem, but a Communist France would have made military defense impossible. Finland on the other hands was of little importanbce in the high-stakes battle for Europe.

Neutrality

The Finns were allowed to largely control their domestic policies as long as they essentially accepted Soviet influence if not control of their foreign policy. The Finns did not join either NATO or the Warsaw Pact. They benefited from NATO, however, because of NATO blockading further Soviet control in Europe. This left space for both Austrian, Finnish and Swedish neutrality on the Iron Curtain borderlands. Of the three, the Soviets exercized more contol over Finland.

Limits of Independence

Finnish indepence, however, had limits. Finland was allowed a free hand in its domestic policies as long as it did not ally with the West or critisize Soviet conduct in international fora. As a result, Finland persued stritly neutral policies during the Cold War. After World War II, the Finno-Soviet Pact of Friendship, Cooperation and Mutual Assistance (YYA Treaty) gave the Soviet Union ways of intervening in Finnish domestic politics.

Urho Kekkonen

The post-War Finnlandization Era era was dominated by long-serving president Urho Kekkonen (1900-86). The real danger of Soviet intervention gave him a weapon to use against his critics. He was able to maintain essentially a monopoly on power to the relief of the Finnish people by sucessfully keeping the Soviet threat at bay (1956-82). After The Winter War and Continuation War, the Finnish people had no appetite for Cold War heroics as long as they retauned their indeopendence and basic civil liberties. Kekkonen would be the eighth and longest-serving Finnish President (1956-82). He served for over 25 years. He ammassed a questionable degree of power for a susposedly democratic leadr. Some referred to him as an autocrat. 【Häikiö】 Despite is autocratic rule, he remained a truly popular and respected leader. Most Finns understood that given the power of the Soviet Union and willingness to use that power, that Kekkonen worked out with the Soviet was the obkly real option. Kekkonen had many posts before being elected presidnt: Prime Minister (1950-53, 1954-56), Minister of Foreign Affairs (1952-53, 1954), Parliament Speaker (1948-50) and Minister of Justice (1936-37, 1944-46, 1951). After being elected president in 1956, Kekkonen continued the 'active neutrality policy of his predecessor President Juho Kusti Paasikivi. This became known as the 'Paasikivi-Kekkonen line', meaning Finland retained its independence while maintaining good relations with both NATO and the Warsaw Pact countries. He notibly hosted the European Conference on Security and Co-operation in Helsinki (1975). As a result, he was considered a potential candidate for the Nobel Peace Prize. The Siviet Union signed the resulting Convention thinking it was just agreeing to plaltitudes. Th Conmvention would, however, enboldned dusidents in a way that gthe Siviets had not nticipated. This would not have been possible under Stalin as jit would have meant certain death or the Gulag. By the 1970s the KGM could still be brutal, but operared with far more restraint. Kekkonen was also a writer. He was noted for informative, often humerous columns (causerie) for the Suomen Kuvalehti magazine using various pseudonyms. President Kekkonen's failing health forced him to retire after holding office for 25 years. His policies remained in force after he left office until the implosion of the Soviet Union (1991). The policy was to avoiding any policy or statement that would offend the Soviets.

Economic Costs

Another matter that the Soviet Union left untouched was Finland's market economy and private owenership of fams. Herewe are not entirely sure about what transpired in Finland. The Finns thus did not paricipate in the Marshall Plan This meant that for nearly two decades, the Finns did not participate in the American-led post-War European economic recovery beginning with the German Economic Mircle. The Soviet Union offered an alternative to the Marshall plan--the Molotov Plan. The Soviets claimed to offer subsidies and trade preferences. It eventually evolved into the COMECON. In actuality the Soviet economic relationship developed into Finnish and other Easern European subsidies to the Soviets. The Finns had to export to the Soviets what might have earned them valuble hard currency in the West. It did provide needed raw materials, often at below market poices. In return they got low-quality, high-cost Soviet manufactured goods. The result was that the Swedish and Finnish economies that had become cloesly linked developed very differently. Sweden like the rest of Western Europe boomed. Finns endured low wages and high unemploymnt (1950s-60s). Various industries benefited from trade privileges with the Soviets. One source maintains that there was widespread support for pro-Soviet policies among business interests in Finland.

Integration with the West

Sources claim that there was rapid in the postwar era and by 1975 Finland's GDP per capita was the 15th highest in the world. Here we are looking into just what occurred. It is true that economic success enbled Finland to finance one of the most extensive welfare states in the world. Integration with the West brought trade liberalization. This had, however, to be managed with small steps diplomatically so as not to bring about a Soviet reaction. The steps had to be carefully calculated while Stalin lived. His death (1953) meant that great engagement with the West was possible. Finland's Cold War neutrality dance meant retaining more economic and trade relations with the Soviets than it might have liked. The Finns, for example, were not allowed to accept American Marshall Plan aid (1948). Bilateral trade agreements with the Soviet Union started in 1947 and continued until the Soviet Union was dissolved (1992). On the other hand, the Finns were allowed to join important Western economic bodies: the World Bank, the International Monetary Fund (IMF) and the Brenton Woods agreement (1948), Finland became a member of the General Agreement on Tariffs and Trade (GATT) (1950). Finland participated in European trade liberalization. The first step was an agreement between the European Free Trade Area (EFTA) and Finland (Finneft) (1961). Finland eased tariffs in trade with Western countries. Of course, NATO was out of the question, but neither was Finland forced to join the Warsaw Pact. While Finlandization enabled the country to avoid the painful fate of Central and Eastern European satellite states which became part of the Soviet empire, Finland’s independence came with a large dose of self-censorship and accepting a substantial degree of Soviet controls. Finland after the War was still not fully industrialized. Many Finns despite losing Karelia were still involved in agriculture as well as mining and forestry. And the process of industrialization was slowed by limits the Soviets placed on engagement with the West. The country did industrialize and unlike the Soviets created efficient profit making companies that could compete in Western markets. And as a result, Finnish living standards steadily improved, much more rapidly than in the Soviet Union.

Sources

Häikiö, Mrtti. "Kekkonen, Urho (1900-1986)" National Biography of Finland / Biografiakeskus.

Created: 11:52 AM 12/11/2018
Last updated: 11:52 AM 12/11/2018