It Is Not Only Work That Ensures the Wealth;
Achieving Wished Results Often Requires
Tremendous Efforts
We have been hearing about many positive signs of the
performance of Finnish economy. While GDP and confidence
figures were freshly referred positive, the export figures from
recent years showed barely any signs of growth by the end of
2016. A share of R&D intensive business has diminished during
past years, though the amount of public funding for R&D and
education was cut some time ago. Finland belongs to the
worlds’ most highly educated nations. The unemployment of
highly educated has also remained high in the recent years, as
has the number of long-term unemployed. One way, in which
Finland differs from many other countries that have high
education levels, is the share of people working in knowledge
intensive business services sectors and the target markets of
Finnish KIBS sector. The creation of clusters generally
increases the potential to succeed.
The vacancies
Public discussion very often concentrates on vacancies that are
apparently existing, easy to identify, have the possibility to
receive short-term public funding, or have no need for funding
at all. Nevertheless, there are some peculiarities in Finnish
system: The funding available for certain types of work has
been due to the fact that municipalities have been able to
evade certain sanctions and create income by engaging an
unemployed in supervised activities. The hasty effort to evade
sanctions has in many cases outweighed the purposefulness of
the activity and shifted the focus from considerations on value
added and capabilities of a job seeker to the creation of rather
strange modes of action.
Often vacancies that seem easily identifiable do not exist or are
short termed and lead to increase in public debt. Easy to
identify also indicates that there might be loads of competition
and replacing solutions to cure the problem. On the other hand,
the “open positions” that could provide for long-term growth, i.e.
the income that needs to be created, are often considered non-
existent and not encouraged by public sector.
As the world is becoming ever more complex, it is more likely
that the potential growth comes from tasks that provide a large
value added and therefore require high level of knowledge. It
does not increase motivation or confidence to hear about any
initiatives on assigning highly educated valuable resources to
activities that are not consistent with their skills or have barely
any potential to provide value added.
In my opinion, thoughtless public sector involvement in
employment creation very often results in decreased economic
growth and increased unemployment.
The activation
It seems to be a widely-presented opinion that the threat of
losing benefits would lead to increase in activity. If an activity
that empowers the benefits is rather narrowly defined and the
decisions regarding availability of funds skewed or arbitrary, the
influence is likely be undesirable. It would be beneficial to
consider the influence of e.g. internationality, travelling, self-
motivated interaction with others, or participation in happenings
as potential initiators of future earnings. In general, I have been
wondering the role of public sector in certain issues related to
entrepreneurship, employment and even personal activities. I
do not recall any research that would praise the active
involvement of public sector e.g. in corporate decision making.
What is work
The world has for ages created the ever-fancier ways to
achieve the best possible results with ever lesser amount of
resources. How should we feel about investing in activities that
do not serve any goals, are somehow detrimental or could be
replaced by more efficient means? What should be an
acceptable goal and who should get to decide the acceptability
of an activity? We have a system, which in many cases,
rewards for working for the goals of others, though even
punishes for the efforts that one makes to achieve own ones.
Voluntary work
One of the latest ideas to treat the unemployment in Finland
has been to encourage voluntary work. Voluntarism might have
a place in the society, nevertheless we should also discuss the
means we plan to use to maintain and increase our standard of
living. We can aim to increase the availability and reduce the
cost of essentials by rationalizing and automating. Any public
benefits or services require funds, and one way to achieve the
required funds is through taxation of value added. Salaries and
profits belong to the important components of value added, and
therefore preferring activities that do not provide means to
create value added in large scale, but rather cost, is at least
questionable, if not even detrimental.
Operating environment influencing
How big role does the stable environment play in the
encouragement towards earning and entrepreneurship? How
much do changes in legislation, taxation and other rules cause
indirect costs in the society ( e.g. modifications in operational
structures, clarification work, delays, lost income etc.), or are
the consequences more likely to be only positive?
The benefit of stability, fairness and predictability
Our legal system has evolved during a long time. To me, it
seems that there is a good reason for most of the rules in the
legislation. Fundamentals in legislation have been deliberately
made difficult to change, which protects us from unnecessary or
detrimental changes. In addition, especially the fundamental
rules have many connections to e.g. practices and other ruling.
Making an inappropriate change can prove extremely costly to
the society. I am not saying all the rules and practices in the
existing system are all up to date. I just wish for carefulness and
reasoning in any changes. Having a situation, where the public
sector exactly follows the legislation is always desirable.
Johanna Sandman
24.4.2017 11:42