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STAKES

The changing context

The average welfare and life span of the resident population of Finland is expected to develop positively. However, this bright overall picture may disguise the negative developments underway that are partly associated with the country's internal developments and partly with global developments. With regard to people's living conditions and also service provision and policy-making, the goals and preconditions of "a good life" are affected by the globalisation of economy, the marketisation of society, and demographic changes.

Welfare and health

Welfare and health among the Finnish population will be affected by a number of factors in the near future, including demographic changes, increasing inequalities, work- and employment-related developments, public health trends, and new technologies with their opportunities and pressures. Demographic changes will involve both an increasing number of older people and a declining child population.

The deep economic recession in Finland in the 1990s increased social exclusion and contributed to its becoming more persistent, even intergenerational. Welfare and health are still unevenly distributed between regions and population groups. As for exclusion, specific areas of concern include psychosocial problems among children and young people and the high number of the older long-term unemployed. Mental disorders are among the most common public health problems, and they will require even more attention than previously. Moreover, social and health problems will increase in the near future with the growth of alcohol consumption. New public health threats include obesity, metabolic syndrome, adult diabetes with related complications, and outbreaks of new global infections. Despite these threats, trends in major national diseases are expected to develop as positively as in the past few decades.

The service and income transfer system needs to be constantly assessed and adjusted in order to address changes in the age structure, internal migration, and increasing immigration. In particular, people's well-being and health is affected by the rapid changes taking place in working life and working environments. In order to be able to increase the attraction of work in ways that take into account demographic changes, policy makers both need to increase the possibilities for young people to start a family and to promote older workers' coping at work.

The rapid changes in working life and working environments are also felt in the social and health sector, where the increasingly high employee retirement rates in the forthcoming years and high work pressures will lead to a shortage of labour unless efforts are made to ensure the availability of professional personnel. Technological advancement also contributes to shaping activities in the social and health sector. Advanced communication technologies facilitate interaction between service systems and citizens. Health-care technology offers new devices, methods of treatment and medicines, all of which tend to increase health-care costs.

Changes in welfare policy and the steering system

Changes in the age structure and other demographic changes automatically increase social expenditure, thus imposing increasing pressures on the public finances. This takes place through the growth of pension expenditure and an increase in the need for nursing and care. Finland has made attempts to lower the overall tax rate while also being committed to coping with an increasing pension expenditure. This may require a redefinition of the scope and nature of public sector welfare responsibilities.

Models for organising and providing social and health services probably need to be reconsidered. The service system should be based on regional structures larger than municipalities. In order for sound and sufficiently uniform health and social policies to be realisable even in the future, the systems for steering social and health care activities should be adjusted to these foreseeable developments. In practice, this means a shift from an extremely decentralised model towards a more integrated model that safeguards the future of the services that currently are the responsibility of the municipalities by giving them an appropriate structural and financial basis.

The range of social and health service providers will diversify, with a greater emphasis on consumer- and client-oriented approaches. When client expectations change and competition increases, new challenges emerge. Global and international co-operation becomes more important with changes in the world economy and other global developments, and this is also reflected in welfare among Finns. The country's social and cultural development and the need for social and health services are affected by developments in its neighbouring areas and the free movement of labour within the EU and other types of immigration. Long-term approaches should be applied in responding to challenges posed by cross-border co-operation and Northern Dimension policies. It becomes increasingly important to ensure effective co-ordination between various international and national projects in the social and health sector.

Immediate operational prerequisites

In the operating environment of STAKES, one of the major challenges in the forthcoming years is to be able to develop the system for steering social and health care activities. In the future, steering through information should be based on a strong strategic view of development trends in society and an understanding of the development needs of the service system. In addition, it should make use of modern tools and appropriate knowledge and skills to bring about the desired effects.

Multi-stakeholder approaches will obviously become increasingly important in the area of research and development, too. Rearrangements in national research funding practices and the requirements concerning competitive tendering represent challenges that STAKES must face by focussing on its core expertise and by networking with its key co-operation partners. When national research funding is reallocated and opened up to competition, all research institutes will find themselves in a competitive environment where the impact of activities plays a key role.

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Published 2.2.2006, Updated 29.1.2007

Last updated 29.1.2007
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