The Baltic Experience of Nordic Cooperation Published: 26.05.2010
Speech given by Mr Trivimi Velliste, Vice-President of the Baltic Assembly at the meeting of the Centre Group in Oslo, 13 April 2010.
As a dedicated believer in historical approach to matters regarding human society, I would like to interpret the Baltic experience of Nordic cooperation in its evolutionary context. Four continents out of five have been inhabited since times immemorial.
Europeans tend to believe they represent the best success story.
There have been significant transfers of civilization and culture from one continent to another. The Viking Age is one of the best known examples. The bold and entrepreneurial Vikings reached Iceland, Greenland and the big continent which is nowadays falsely called America.
But as we also know, more than a millennium ago they reached the origins of Russia. They ruled in Kiev and elsewhere. Linguists have claimed that even the very word “Rus” comes from Roslagen – the name of a county in Sweden. So, Vikings have contributed significantly to the developments in Europe and beyond.
I recall those old events only because I am convinced: history always leaves deep footprints. We cannot escape it!
There is an argument amongst scientists as to what extent is a human being determined by his or her own genetic code and to what extent by the environment. The two are, no doubt, interdependent and mutually reinforce one another – by way of evolution.
It is easy to argue that the mentality of Europeans can historically and geographically be divided into three branches. We have the catholic, we have the Greek-orthodox and we have the protestant. It is not difficult to distinguish between them.
I have kept wondering, why the descendants of the ancient Vikings – alongside with Northern Germans – decided half a millennium ago to adopt the protestant approach to their spiritual life. In my country Estonia which is also predominantly protestant (or: Lutheran) there is a widely used proverb: Igaüks on ise oma õnne sepp. The literal translation of which is: everyone himself is the smith of his own happiness. This is to say: work hard and rely on yourself and you will succeed.
But I believe the Nordic people have achieved something extra. Atop of relying on individual merit, they have – across many centuries, probably in their small boats – developed a capability to effectively help one another. And that is the crucial point!
Coming closer to this and the past century, I have noticed another striking peculiarity about the Nordic way of life. That is the role of women in their society. The Nordics have successfully harnessed this huge natural resource – the women - to admirably serve their well-being. But this could not have happened overnight. There must be an explanation for this achievement! Probably, the women were left alone for long periods of time while men were at sea – and the women had to manage daily life. They learnt to rule!
As you may have heard, during the long decades of Soviet occupation my countrymen, particularly in North Estonia, watched the Finnish TV which the Soviet authorities resented but could not stop. The Finnish TV was a real window into the free world. And what was that world like?
By and large, it was the Nordic welfare model. We could see relatively small countries dedicated to peace, freedom and democracy. We noticed they had a highly developed social security system. The people of the North had established extensive cooperation among themselves – at every possible level reaching from the parliaments to any walk of life at the grassroots.
Later on we have learned much more about the Nordic handwriting. For example, apart from other welfare states with similar goals they have put an emphasis on maximizing labour force participation, promoting gender equality, extensive benefit levels, large magnitude of redistribution, liberal use of expansionary fiscal policy.
It goes without saying that since we were able to restore our freedom and independence – even before that: on our path to freedom – the Nordic countries and the Nordic people have contributed enormously, have contributed crucially to our revival. It is important to recall with a deep feeling of gratitude that during many years until 2004 when the three Baltic States joined the EU, the Nordic Council and the Nordic Council of Ministers channelled almost one quarter of all their funds into an endless number of projects in the Baltic States – in social, economic, educational, scientific and other fields.
The Nordic countries extended to us significant political support in strengthening our independence, developing free and democratic social fabric – e.g. helping to set up state institutions, election system, free media, etc.
The economic support of the Nordic nations is equally important. Swedish and Finnish investments in Estonia, for example, are by far the biggest. Our banking system has survived the current world crisis only because of the general potential of the Nordic financial institutions. Investing into the research and development in the Baltic States is vital.
And, last not least, I should mention the support offered to the Baltic States in the international organizations. The Nordic countries were our indispensible counsels and sponsors on our long and sometimes difficult path towards full membership in both the European Union and the NATO. There has been significant cooperation also in the United Nations.
As we all know, the Nordic model is widely regarded as a benchmark. A number of comparative studies of economic and social performance have ranked the Nordics high. A common finding of cross-country comparisons is that the Nordics succeed better than other countries in combining economic efficiency and growth with a peaceful labour market, a fair distribution of income and social cohesion.
The model is pointed to as a source of inspiration for other people, other nations in their search for a better social and economic system. On the other hand, many observers around the world are amazed that “the bumble-bee can fly” – that the Nordic economies can prosper and grow in spite of the presumably weak economic incentives associated with high tax wedges, a generous social security system and an egalitarian distribution of income.
Critics have been looking for inner contradictions in the model and they have questioned its sustainability. Some even argue that the economic performance of the Nordic countries is simply a result of exceptional and temporary circumstance bound to disappear over time. So, we will see – who is right and who is wrong!
Let me say by way of conclusion: the Baltic-Nordic cooperation is based on strong and long-lasting historical, cultural, economic and political ties. Both Baltic and Nordic countries share similar views and many similar regional and global challenges.
The Baltic experience of Nordic cooperation is unique – because, on the one hand, we are physically so close to that community and, on the other hand, we have been compelled to view it from aside.
We can certainly recommend that model to anyone interested.
