Finland has been a pioneer in developing a governance model for the wellbeing economy, which is unique in three ways: (i) it involves a broad set of stakeholders, (ii) it is at the top of the political agenda, and (iii) it includes not only social but also planetary wellbeing. To implement this in other countries, there need to be highly localised and specialised suggestions for a steering model, relevant to each case individually. Here is how we did it for Finland.
by Leena Alanko
Where were you when you heard about the “wellbeing economy” for the first time, and by whom? In Finland, the concept was launched by SOSTE Finnish Federation for Social Affairs and Health when the organization was founded in 2012. Back then, the motivation stemmed from the urge to challenge the prevailing view that defines the economy and economic growth through absolute values instead of as a tool for sustainable wellbeing. Since then, the concept has gradually gained ground in Finland and beyond, even though much sensemaking and concretization is still needed before it can be called mainstream.
Looking back, it is inspirational that a concept initiated at the national level by an umbrella NGO was brought to the governmental agenda later. This example shows that these initiatives from non-governmental actors can impact the long-term agenda setting.
Ten years after its launch, the agenda to increase people’s wellbeing in an ecologically sustainable way has continued its relevance and gained more urgency. We know that environmental destruction caused by unsustainable models of production and consumption, growing health and social inequalities between and within countries, and diminishing democratic governance resulting in declining trust in public institutions indicate room for improvement in our decision-making. These developments in public discussion, combined with the aftermath of the pandemic, Russia’s invasion of Ukraine and its effects on the global economy and proactive pushes in the EU towards a just and green transition have all contributed to a political commitment to advance a wellbeing economy and develop steering now and in the future.
Finland: Developing a holistic steering model
In Finland, the development of the economy of wellbeing policy steering is linked to a historical social security reform, ongoing between 2020 and 2027. The reform aims to create a social security system that can reconcile work and social security in changing life situations.
Since the fall of 2019, the Finnish government has actively endorsed a wellbeing economy. In 2019, the year of Finland’s presidency of the EU Council, the “economy of wellbeing” was chosen as one of the main themes of the Ministry of Social Affairs and Health. Today, Finland does not only have the economy of wellbeing in the governmental program, but it has also joined the international Wellbeing Economy Governments (WEGo) network (2020), for example, and launched a cross-ministerial steering group for a wellbeing economy (2021) until the end of the current governmental term.
Demos Helsinki partnered up with SOSTE Finnish Federation for Social Affairs and Health and THL, the Finnish Institute for Health and Welfare, to assess what an economy of wellbeing in Finland might look like, what kinds of monitoring and steering mechanisms are needed and what next steps will facilitate a peaceful transition. Initially, the goal was to study how a wellbeing economy model could be introduced in the context of social security reform. (For a more detailed breakdown of our research questions, you can read here.)
However, as the project progressed, we had an idea in the back of our minds that grew more prominent and evident along the way: a systemic, holistic approach to the wellbeing economy steering model is more apt than piecemeal policies designed for the specific reform.
We thus identified three core steps in developing Finland’s wellbeing economy steering model, which we also find relevant for other countries turning towards the model now.
How to introduce a wellbeing economy steering model
In late 2021, we shared our takeaways from this project and focused on how to design policies for a wellbeing economy. What has been evident since then is that designing policies is not enough — at least not in Finland.
For effective policymaking toward a wellbeing economy, there are a few conditions that need to be clear:
- The government — in this case, the Finnish government — needs a clear and inclusive definition of wellbeing. This definition must take all living beings and the environment into account.
- The government should share ownership of the model. It should not be only the Ministry of Social Affairs and Health or other relevant Ministries in other countries that “owns” this transition. In Finland, the introduction of a cross-ministerial steering group for the economy of wellbeing gives promising signals on this.
- As the concept of a wellbeing economy has emerged from active NGOs and entered the governmental agenda from the third sector, the development of the definition and steering should not happen top-down but in close collaboration with civil society.
There are three key steps before you get to policy design:
1 Develop governance before policy
Due to the interconnected and unpredictable societal changes, we need a sound basis for holistic steering models. Silos do not make sense anymore. For the wellbeing economy in Finland, we suggested four different development paths that all form a different type of basis for developing the detailed steering model. Those models are:
- Steering within existing structures
- Centralized model
- Parliamentary mechanisms
- A model of humble governance
Whatever the route, most likely a hybrid, the conditions above must be met (definition of wellbeing, shared ownership, multi-stakeholder approach).
2 Involve multiple stakeholders
For our study, we researched the level of participation in case countries like Italy, the Netherlands and New Zealand. We found that the participation of civil society, as well as any other organizations outside central government, had not played a significant role in developing the steering model or its tools. In the comparative benchmarking, the level of civil society participation was moderate or increasing at best.
Some promising examples exist. For example, in the Netherlands, researchers have had a profound opportunity to make an impact on the governance model and its tools so far. In Iceland, the model was mostly developed by the government and parliament, but the results from a citizen survey that investigated the definition of a “good life” were used when formulating the indicators for the model. In Italy, a steering group consisting of relevant stakeholders from unions, entrepreneurs and NGOs participated in the development of the model. There are a plethora of good practices already available, and Finland could be a frontrunner in creating a holistic approach to multi-stakeholder participation when creating and developing the steering.
In addition, an underexplored area is the role of business: governments that want a wellbeing economy to thrive should ensure a shared language between the public and private sector.
3 Include a planetary perspective
The need to define “wellbeing” so it can be measured to monitor the economy’s health is paramount. To do that in Finland, we developed a set of wellbeing indicators that can eventually enrich (or even replace) GDP. Still, what we found in a lot of similar studies, was that these indicators typically miss a planetary perspective. Similarly, as this development effort was part of a social security reform in Finland, planetary objectives were not included in the planning process.
Those who started developing a wellbeing economy a while ago, like Finland, may not have set an objective to include planetary wellbeing in their definitions. Still, planetary wellbeing and pushing ecological goals further have become blatantly crucial for the flourishing of our societies. From recent IPCC reports ringing the alarm for humanity to energy’s grim outlook, wellbeing must serve as an all-encompassing term for humans, nature, and other living species. For this, we propose a frequent revision of goals to always consider the latest scientific, technological, and societal developments. For projects starting now, planetary wellbeing must be considered early on, thus pushing the agenda towards a more broadly regenerative landscape.
Another point we must emphasize as we develop models for a wellbeing economy is that wellbeing does not mean merely maintaining survival. The models we develop have to incentivize behaviours that promote a peaceful transition, a healthy planet, and a joyful society.
Recommendations and next steps
As said, Finland still lacks fixed national tools for a wellbeing economy, yet there is a commitment to take the initiative further. Our recommendations, which you can read more about here, define a route towards a wellbeing economy.
In the meantime, as we expect the Finnish government to take the first steps in the suggested approach and clarify ownership, we are inviting cities, municipalities and businesses to contribute. For example, doughnut economics has offered one way to implement a wellbeing economy and has been tested in the Finnish region of Pirkanmaa.
Can this be replicated in other countries?
Finland may have formally introduced the wellbeing economy through its social security reform. However, that is only one way to do it. Despite our economies’ interconnectedness, each country still has its specificities and political realities that shape transformative policymaking. Countries like New Zealand, Scotland, the Netherlands and now Finland, are producing enough know-how for others to implement new and exciting wellbeing economy strategies. Starting from a contextual analysis will likely ensure a healthy springboard for a national economic paradigm shift.
Our time window to transform our economies is ever-narrowing. There is still a lot we can do, provided we start now.
Want to build a strategy for a wellbeing economy?
Leena Alanko
Emancipatory Economy Lead
leena.alanko@demoshelsinki.fi
Read more:
- Policy Brief: Paths to a wellbeing economy
- You can read the full report (currently only in Finnish) here.
- Designing policies for a wellbeing economy — learnings from Finland
Feature Image: Tapio Haaja / Unsplash