HELSINKI, September 24 /PRNewswire/ -- Professor Paul Krugman was the keynote speaker at the first event in the Wellsprings of Finnish Vitality development programme which seeks solutions for the Finnish competitiveness and well-being in the future. Launched by Sitra, the Finnish Innovation Fund, this programme seeks factors that can help Finland reinforce and renew its vitality. Paul Krugman, Nobel Laureate for economics noted that small countries have the advantage of deploying their safety nets to help their citizens in times of crisis. He further addressed the potential of new economic growth and its causes of concern.

The Wellsprings of Finnish Vitality development programme seeks innovative solutions for the Finnish competitiveness and well being in the long run. 200 Finnish decision makers, politicians and representatives of businesses gathered to start a process to find new paths for Finland's success. The process comprises of three Leaders Forums and workshop process in between the forums.

The aim of the first forum was to create a common understanding what is the situation of Finland in the current economic recession.The process will last until March 2010.

Invited by Sitra to speak in Helsinki, Professor and Nobel Laureate Paul Krugman pointed out meny interesting views on the current crisis.

Krugman reminded for example that heavy dependency on exports is a risk for a small economy and that in the present global crisis, exports are not necessarily the solution to recession as they were before.

Krugman also commended small countries for their safety nets as this recession has been a big human crisis for many people. Its knock-on effects on individuals have been huge. For Finnish audience this was interesting since Finland is one of the countries that have strong safety nets, and thus a recession might not cause as much suffering and distress.

It was interesting also for the Finnish environmental businesses that seek opportunities to note that Krugman pointed out the possibilities of environmental business to lead the reckovery of the economies. This would however, require governments truly to commit for the environmental goals.

Krugman also talked about the euro zone, noting that the European Central Bank has weathered the recession quite well. But he wondered how far a monetary union without true political union can function successfully.

Mikko Kosonen, the President of Sitra was very content for Professor Krugman's contribution for the project.

"We must turn these great challenges into triumphs in the coming years, and this requires us to reassess our past recipes for success. Finland could be a laboratory for new solutions and could become the country best exploiting new technology and employing its active citizens, for instance, in solving the productivity problems and service challenges in the public secto, " Kosonen said.

Further information

http://www.sitra.fi/en

Sitra, the Finnish Innovation Fund

Finland's competitiveness and the well-being of its people depend on deep, broad-ranging changes. Sitra engages in foresight activities and advances these changes in cooperation with other actors. Through programmes and strategic processes, Sitra grasps the challenges that are most crucial for Finland. Sitra is an independent public foundation with a mission to build a successful Finland for tomorrow.

SOURCE Sitra

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