The Economic Recovery of Finland, 1945‒1952
DOI:
https://doi.org/10.15584/johass.2026.1.5Keywords:
economic recovery, reparations, Finlandisation, international tradeAbstract
The Second World War was a conflict of critical importance for Finland's existence as an independent political entity. Between 1939 and 1945, the country waged war against both Moscow and Berlin. Complex geopolitical circumstances forced the Finnish political class to make many dramatic choices, including those concerning the country's economic model. War reparations awarded to the Soviet Union and limited sovereignty required skilful political and economic manoeuvring. The article presents the size of the post-war burden on the Finnish budget resulting from reparations and characterises the model of their repayment. Finland's economic situation, particularly its foreign trade (main trade partners and the trade structure), is shown in comparison with other Nordic countries. To this end, reports from the Bank for International Settlements and the United Nations were used. The article also shows that Finland, despite not participating in the Marshall Plan, took part in Western economic ventures, skillfully balancing its foreign policy based on the principle of neutrality.
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