Speeches
Minister of Defence Carl Haglund at the 6th Annual FIIA Day
The 6th Annual Finnish Institute of International Affairs -day
BRINGING THE ‘NORDIC MODEL’ UP-TO-DATE
ARE NORDIC VALUES IN CRISIS?
Ladies and gentlemen,
I want to thank Dr. Teija Tiilikainen and The Finnish Institute of International Affairs for the invitation. It is a privilege for me to speak at this event. FIIA has established itself as a top source of innovative and forward-looking thinking within the field of international affairs. Events and discussions like this are very important to keep the debate alive. As a keen proponent of Nordic cooperation I am especially happy to speak to you about the Nordic model. With roughly 26 million inhabitants the Nordic countries combined actually constitute the ninth biggest economy in the world. However, we do not exert the international influence we potentially could with a more concerted cooperation. There might have been some failures in the framework of the UN but I don’t think that this is a time for panic. The Nordic region still enjoys a high standing in the international arena. Today I will start of by generally discussing the Nordic regions standing in the world, and will then move on to what for me as Minister of Defence is of special relevance, namely Nordic defence cooperation and the possibilities and challenges it presents.
Finland’s standing and role in the international community as well as the general image of Finland abroad, is very closely tied to the Nordic community as a whole. Even though we Finns naturally see ourselves first as Finns, for the international community the Nordic countries are very often perceived as one collective entity. Most of you probably saw the feature in the Economist a few weeks ago about the Nordic welfare state model. One of the main things I took away from the articles was how homogenous the Nordic region is considered by the outside world. And this feature was in a European magazine nonetheless. My personal opinion, from years working in Brussels as a Member of the European Parliament is that the Nordic people do have a lot in common. We do not share just language and history, but also a way of doing things that make collaboration and cooperation smooth and easy. Whether the Nordic countries have more or less in common than other regional actors with similar images or not, it is very important for us to understand how the outside world views us when we discuss the challenges and opportunities our countries face in the international arena. In an article I read, András Simonyi, a former Hungarian ambassador to the United States and noted academic on trans-atlantic relations, talks about the successful “nation branding” efforts of the Nordic countries. This model is getting outdated. We need to start to consider moving to region branding, and for that to happen even closer Nordic cooperation and coordination will be necessary.
In the invitation to this event the following question was raised: Are the Nordic countries losing international credibility? Lately the Nordic region has received a fair amount of attention in the international press and it has been almost exclusively positive. We have been commended for the way we handled the economic uncertainties of the past few years and the apparent resiliency of our economies in times of crisis. The Nordic countries are consistently ranked in the top of rankings of prosperity, quality of life, standard of living, social equality, education and productivity.
Therefore I don’t think that we should draw too many conclusions from setbacks like the failed Finnish campaign for the UN Security Council or the Swedish campaign for the Human Rights Council with the same outcome. We have to keep in mind the strong behind-the-scenes lobbying efforts of campaigns of this nature and the broad spectrum of factors that actually play in to what country is elected. Finland is of course very grateful for the help our Nordic neighbors provided in our campaign. At the same time it is a fact that our campaign for the UN Security Council was a Finnish campaign aided by other countries. We have to have the courage to ask ourselves whether a better coordinated Nordic campaign would have had a different outcome. The Nordic brand is very strong, but it can of course become even stronger.
We Nordics also have a tendency to sometimes become a little self-righteous. We see our social welfare system as the only solution and enjoy basking in the glow of Economist or Newsweek articles about us. It is of course positive that we have many things to be proud of but we also need to realize that there is a risk of feeling entitled, entitled to, for example, a seat on the Security Council.
While nobody is arguing that Nordic cooperation can replace the European Union there is value to be found in regional collaboration, especially with the enlargement of the union. This has also been noted in Brussels as more emphasis is put on regional strategies. We were enamored with the EU for many years but lately there has been a renewed demand for deepening Nordic cooperation in Finland. I see that as a positive sign while I do want to stress that I that deepened Nordic cooperation in no way stands in conflict with European cooperation. Quite to the contrary it actually strengthens it.
I have never been a believer of resting on your laurels. The Nordic brand needs to be constantly updated. The world is changing at a faster pace than ever and the Nordic region needs to once again show its creativeness and innovativeness when dealing with the challenges of the 21st century. The elements that today form the strength of the Nordic model need to be adapted to the new realities of our time.
The natural question then becomes, how do we do it? As many other regions, we face tough challenges when it comes to dealing with structural budget deficits. As an economist I strongly believe that economic competitiveness is one of the most necessary elements of the attractiveness of the Nordic region and the strength of the Nordic brand. Without strong economic fundamentals we cannot uphold our welfare states with all the social safety nets they entail. The Nordic economic system has been liberalized for the past centuries and I truly believe that this process needs to be ongoing for us to stay in the top of all the ranking I mentioned earlier. We need to find innovative solutions and build a new Nordic welfare model for the 21st century. We cannot become complacent.
Dear friends,
In the field of Defence Nordic cooperation is highly topical. In both Finland and Sweden there have been lengthy debates about the futures of our national defences. On both sides of the Gulf of Bothnia we face rising costs of armaments and stagnating defense appropriations. The question then becomes how to solve this equation. Finland currently chairs the forum for Nordic Defence Cooperation, NORDEFCO and we have a very ambitious agenda for this year. Before I go into that, let me give you a brief overview of the history of Nordic defence cooperation.
The Nordic countries have collaborated in the defence realm for a long time. We however lacked a unified structure for that cooperation. During 2008 the Nordic Chiefs of Defence published a report on possible cooperation opportunities between our defence establishments. Approximately 140 different areas for cooperation were identified. Later in 2009 all previous cooperation fora in the field of Defence were welded into one. A NORDEFCO Memorandum of Understanding was signed and new NORDEFCO-cooperation structures as well as terms of reference were established for both Military and Policy levels. These bold ideas for intensified cooperation were also politically processed after Mr. Stoltenberg from Norway had published his famous report on same theme and the discussion culminated in the Nordic solidarity declaration in 2011.
However, declarations are only pieces of paper and for the average citizen they do not mean much. So what is NORDEFCO really all about? NORDEFCO as a cooperation model is very special. It is both unique in its depth and latitude. It involves both NATO members and partners. It allows flexibility within its frame, any area of cooperation may involve all Nordic countries or just two. It is worth noting that this Nordic model has aroused interest both in the European Union, Nato, United States and even Russia. One can argue that both Nato and EU have followed this development closely when developing concepts like Smart Defence and Pooling and Sharing. Needless to say that for us Nordic citizens, this is a source of pride and joy. Nordic defence cooperation enjoys strong political backing in all Nordic countries. The decision to participate in the Icelandic Air Space surveillance epitomizes the Nordic spirit. Despite of different allegations, the Nordic spirit has held this initiative alive. This is just one concrete example of Nordic defence cooperation. Other results achieved include the exchange of data regarding the recognized air and maritime picture, the joint exercise for army air defence, artillery and the naval forces, air force exercised across state borders and extensive cooperation in crisis management operations in, among other places, Afghanistan.
As I mentioned Finland is chairing NORDEFCO this year. Our aim is to utilize the prevailing momentum and open space for further deepening the cooperation, and in some areas integration, between our countries. We want to work on a political vision for NORDEFCO. A vision that defines how far-reaching the cooperation and collaboration can be. What are the possibilities? Where are the limits? Where do we see NORDEFCO in 10 years, in 20 years?
I think there still is a lot of potential in pooling assets and activities together as we have for instance done with the strategic airlift where we, Nordic countries, participate in the C-17 consortium. There is future potential in this model, in other words if we wish to obtain capabilities that would be too expensive for a single country. If we, in time, and this takes time, see more integration in our materiel base, we can see more integration also in the life cycle support functions, spare parts, maintenance etc. The joint decision to acquire the Archer- artillery system for both Sweden and Norway is a good example of that. Now the discussion of joint procurement for air surveillance radars in order to optimize the resources and output of such system has started between Norway and Sweden. I think that if we explore the possibilities with some patience and without prejudice we can see some new initiatives in the future that also can bring cost savings in the long run.
Yet, far reaching role specialization or division of labor is something we are not actively seeking at the moment due to the fact that defence still is so tightly bound with national sovereignty. We have achieved many things but we shall not mistake cooperation and collaboration for mutual defence. We have to keep in mind what NORDEFCO is what it is not. There are limits to the cooperation and as part of working on the political vision for NORDEFCO I hope that we can start a discussion about where those limits are.
What difference does it make? My sincere idea is that by acting together the Nordic countries can carry more weight in the international politics than if we would act alone. In today’s interdependent world the will and ability to cooperate during normal times makes it easier to cooperate also during the time of crises. Wherever it might be. When Swedish air force deployed to Libya, they had, according to later analysis, a low threshold to adapt into the international coalition partly thanks to the active previous participation in the Nordic Air Forces cross-border exercises. This is just an example. The point is that the output of NORDEFCO is more than the sum of its parts. Our regional brand in the field of defence, NORDEFCO, is strong.
Ladies and gentlemen,
I would like to round off my speech by saying that I am a strong believer in the vibrancy of the Nordic region and Nordic cooperation. I do not think that the Nordic model is in crisis but firmly believe that we need to make concerted and well thought out efforts to keep the model up-to-date. The Nordic welfare state model that lays the ground for what I believe make the Nordic countries internationally respected and really makes up the Nordic brand needs to be updated to meet the economic realities of the 21st century. However, we should not renege on our social contract and sacrifice our core values. This takes political courage and an active societal discussion, along with creative solutions. Maybe we can plant a seed for these solutions in the panel discussion here today?
Thank you very much.