Segregation has emerged as a topic of growing societal importance in Finland over recent decades. Although there is no national strategy explicitly focused on segregation, there have been numerous policy initiatives and programmes featuring reduced segregation and increased social inclusion as key objectives.
3.1.1 Policies and initiatives
The Government Programme
In Finland, the Government Programme is a political action plan that describes the objectives and main areas of activity during a specific government’s term of office (Finnish Government, n.d.). The notion of creating more socially inclusive, less segregated cities and neighbourhoods was strongly emphasised in the programme put forward by the government of former prime minister Sanna Marin for the years 2019–2023. Titled ‘Inclusive and Competent Finland – A Socially, Economically and Ecologically Sustainable Society’, the programme’s overall aim was to transform Finland into a sustainable society by 2030 (Finnish Government, 2019). In terms of social sustainability, the programme discussed ensuring equality, reducing inequalities, promoting wellbeing, and allowing people agency over their life paths irrespective of where they live. Cities and urban areas in particular were mentioned as key to promoting sustainable growth and employment, combating climate change, and preventing exclusion.
The 2019–2023 Government Programme placed strong emphasis on preventing urban segregation and revitalising suburban areas. Over recent decades, many of Finland’s suburban housing estates have been targeted by regeneration efforts in an attempt to counter unfavourable socio-economic development. The Government Programme’s strategic focus on this area prompted the initiation of a new horizontal programme called the Neighbourhood Renewal Programme (Lähiöohjelma) 2020–2022 (Lähiöohjelma, 2020). The Finnish government also acknowledged the need for a more long-term national housing policy by launching the comprehensive Housing Policy Development Programme (Asuntopoliittinen kehittämisohjelma), covering the years 2021–2028 (Ministry of the Environment, n.d.-a).
Another important instrument mentioned in the Government Programme are the so-called ‘MAL agreements’ on land use, housing and transport. These are urban development partnerships between the central government and Finland’s largest urban regions, and include specific objectives for land use development, housing production and key transport development projects over the coming years (Ministry of the Environment, n.d.-c). The MAL agreements also aim to mitigate segregation and diversify neighbourhoods by allocating land for building affordable housing and sustainable transport links.
Regional policy priorities
Recent years have also seen social sustainability, inclusion and segregation feature prominently in Finnish regional policy priorities, as demonstrated by the Regional Development Decision 2020–2023 (Ministry of Economic Affairs and Employment, 2020b). The document contains six key priorities, of which increasing inclusion and wellbeing and preventing inequality is the most relevant to this study.
Several key points were highlighted under this priority, including multidisciplinary cooperation on methods designed to reverse inequality trends and increase participation; promoting partnerships between companies and third/fourth sector actors; and well-functioning public services. Moreover, the Regional Development Decision emphasised that segregation in cities, along with disparities in wellbeing and health, are best addressed by ensuring equal access to services, education, employment and adequate livelihoods (Ministry of Economic Affairs and Employment, 2020b).
National urban strategies
The relevant strategic aims contained within the 2019–2023 Government Programme were concretised in a variety of urban policy strategies and programmes. An important document in this regard is the National Urban Strategy 2020–2030. Aptly titled ‘Stronger Together – Cities and Central Government Creating a Sustainable Future’, the strategy sets out a vision of vibrant, climate-smart, socially sustainable cities (Ministry of Finance, 2020). Towards this end, partnerships are highlighted as an important means of strengthening cooperation between cities and urban areas of different sizes. Such cooperation encompasses everything from goal-setting to embarking on different paths that lead to shared objectives.
Underlining the responsibility borne by cities in mitigating spatial and demographic disparities, the National Urban Strategy advocates for a shared knowledge base that can help inform decision-making, particularly when it comes to education, employment and wellbeing. Social sustainability hinges on societal participation and solidarity, coupled with inclusive service provision across diverse demographics. Urban planning is mentioned as a tool for increasing inclusion and reducing social inequality, while housing affordability is another key focus area for the policy (Ministry of Finance, 2020).
The National Urban Strategy was concretised through various urban policy programmes and agreements between the central government and cities. Central to this was the Urban Programme 2018–2022 (Urjankangas & Voutilainen, 2018), which placed particular emphasis on the large cities and regional centres where socio-spatial disparities are most pronounced. Here, a key focus was on mitigating socio-economic and ethnic segregation, which have become increasingly intertwined. Addressing disparities in education, employment and income was highlighted as a prerequisite for levelling out socio-spatial differences between people and neighbourhoods, thereby ensuring equal opportunities and fostering community security.
The Urban Programme 2018–2022 underscores the importance of cross-sectoral cooperation within city administrations, including the need for a common knowledge base when setting shared targets and aligning activities across administrative branches. In recognising the risk factors for marginalisation, especially among young people and those with migrant backgrounds, the programme advocates prioritisation of early childhood education, family support and youth services, alongside measures aimed at combating loneliness among older adults.
Also emphasised is the need for spatially targeted interventions in specific neighbourhoods, backed up by sufficient resources for implementation. Examples mentioned include improving public transport, cycling lanes and walking paths; applying social mixing to housing policy; and enhancing cultural and recreational services in order to promote participation and active citizenship (Urjankangas & Voutilainen, 2018).
In addition to the Urban Programme 2018–2022, several other national policies have been introduced targeting specific urban regions or types. One area of focus has been on Helsinki and its surrounding urban region, which has been addressed through the so-called ‘Metropolitan Policy’. The Metropolitan Policy for 2019–2023 had a strong emphasis on sustainable urban development, with areas covered including the prevention of segregation; housing policy and land use; and the transition towards carbon neutrality (Ministry of the Environment, n.d.-d). In doing so, the policy encouraged a holistic approach to addressing urban challenges and leveraging opportunities for inclusive growth in the Helsinki metropolitan region, highlighting affordable housing and employment/skills development – especially for young people and migrants – as focal points for policy interventions.
So-called ‘regional cities’ have also been a focus of national urban policy. Although medium-sized centres in their own functional regions, these cities are not regional administrative, economic or cultural centres, nor located in the vicinity of larger regional centres. Such cities were the subject of the 2018 Regional Cities Programme (Seutukaupunkiohjelma) (Ministry of Finance, 2018), and its accompanying Implementation Programme of the Regional Cities Programme Seutukaupunkiohjelman toimeenpano-ohjelma) 2020–2022 (Ministry of Economic Affairs and Employment, 2020a).
The policy was based around the idea of effective cooperation, partnerships and networking between key actors at the national, regional and municipal level. This included efforts towards addressing structural unemployment, which poses a major challenge in many cities of this type. Another issue highlighted was that declining property values present difficulties in financing housing renovations in many regional cities. In this respect, a possible solution put forward in the programme was demolishing social rented housing units in low-demand areas, with subsidies made available to cover demolition costs.
Housing policy initiatives addressing segregation and social inclusion
A central document for guiding Finland’s national housing policy – which represents a key area for addressing segregation and social inclusion – is the Housing Policy Development Programme (Asuntopoliittinen kehittämisohjelma) 2021–2028 (VNS, 2021). The programme was prepared by a working group led by the Ministry of the Environment, although it included representatives from other key ministries and agencies dealing with housing. By ensuring extensive cooperation in preparing a programme that extends beyond a single government term, the aim was to make national housing policy more long term and goal oriented (Ministry of the Environment, n.d.-a).
The Housing Policy Development Programme defines the relevant objectives in this area, as well as the measures needed to achieve them. Key goals include safeguarding the right to good and affordable housing, and ensuring housing supply meets the needs of different population groups. In this respect, a diverse mix of residents within neighbourhoods is underlined as important for preventing segregation (Ministry of the Environment, n.d.-a). It also mentions state-subsidised housing as an important tool for preventing segregation when deployed alongside market-based housing, the programme acknowledges that policy initiatives in areas such as education, employment and access to services is crucial when it comes to addressing the root causes of segregation (VNS, 2021).
Urban policy programmes and national funding for local projects and interventions
Besides the national strategies detailed above, various other urban policy programmes involving national funding have been implemented with the intention of strengthening social inclusion and mitigating segregation in cities.
One such programme is the Sustainable City Programme (Kestävä kaupunki -ohjelma) 2019–2023, which promoted sustainable urban development through practical development initiatives and strategic management (Sustainable City Programme, n.d.). Based on cross-sectoral collaboration and a partnership-based approach, the programme brought together ministries, municipalities and other actors working towards sustainable urban development, and was strongly influenced by the UN New Urban Agenda and the Agenda 2030 Sustainable Development Goals. Concrete actions included developing new solutions through pilots and development projects, replicating good practices, and sharing experiences.
The programme’s two main thematic focus areas – sustainable growth and sustainable wellbeing – were further divided into sub-themes (see Table 4). As can be seen, many of the core topics addressed in this report (e.g. preventing segregation, reducing inequality, affordable housing, integration) were grouped under the socially sustainable cities sub-theme (Sustainable City Programme, n.d.).
Table 4. Focus areas, sub-themes and topics in the Sustainable City Programme 2019–2023
The Sustainable City Programme had a total budget of around €6 million, with €4.4 million of this provided by state funding. During the first two years of the programme, around 80 municipalities and 50 other organisations participated. In an interim evaluation carried out in 2021, the adoption of a broad perspective on sustainability was assessed positively. In a similar vein, strengthened cooperation was highlighted as important, as the various aspects that constitute sustainability are not the responsibility of any individual sector in the municipalities (Owal Group, 2021). According to the evaluation, the programme had helped in the development of new solutions, networks and expertise, successfully engaging and supporting municipalities based on their own needs.
Several projects relevant to this study were carried out under the Sustainable City Programme. In one project, 36 Finnish municipalities of varying sizes worked together to monitor sustainable development, setting and measuring sustainability targets using different indicators (Sustainable City, n.d.-c). In another project (discussed further in Chapter 4), the City of Tampere’s approach to monitoring segregation was scaled up to the broader city region (Hynynen, 2020; Sustainable City, n.d.-b). Several projects funded by the programme had a focus on participation, such as the City of Helsinki’s efforts to develop a replicable model for enhancing the participation of residents with immigrant backgrounds in urban development projects (Sustainable City, n.d.-a).
In recent decades, a number of area-based regeneration projects targeting specific residential areas have been carried out, often with state funding. The first national programme for neighbourhood renewal in suburban districts launched back in the mid-1990s (Stjernberg, 2019a), while the most recent is the Neighbourhood Renewal Programme (Lähiöohjelma) 2020–2022 (Lähiöohjelma, 2020).
Figure 3. The suburban district of Jakomäki, in northeastern Helsinki, which has been targeted by numerous regeneration initiatives
Source: Helsinki City Museum, SKY-FOTO Möller
The latter was the fifth such national programme and a continuation of previous initiatives. Through the programme, state funding was provided to municipalities carrying out development projects in selected neighbourhoods, as well as for research projects addressing the development of suburban housing estates. In total, 24 development projects were carried out in 13 Finnish cities, along with 18 research projects, which were led by universities and research institutes from across Finland and implemented in cooperation with partner cities.
The Neighbourhood Renewal Programme 2020–2022 took a comprehensive approach to the renewal of suburban housing estates. Specific aims included strengthening the vitality of these neighbourhoods, promoting wellbeing and social inclusion, and combating segregation. Towards this end, a variety of themes was addressed, such as strengthening a sense of neighbourhood community and security through cooperation between key actors, and promoting neighbourhood vitality via interventions in the physical living environment. Other focus areas concerned the role of local schools in promoting educational equality, as well as child wellbeing; creating better, sustainable transport solutions; promoting infill development; and ensuring high-quality services and housing (Lähiöohjelma, 2020).
3.1.2 Implementation and governance structure
In Finland, regional and urban policy is to a great extent implemented through close cooperation between different administrative branches and actors at the national, regional and municipal levels. The key actors in this regard, together with their main responsibilities and duties, are presented in Table 5.
The Ministry of the Environment is central to steering national urban policy, together with the Ministry of Economic Affairs and Employment. Most programmes and initiatives addressed in this chapter were coordinated by the Ministry of the Environment, but implemented through close collaboration between several ministries and national agencies. Relevant ministries include the Ministry of Economic Affairs and Employment, the Ministry of Social Affairs and Health, the Ministry of Education and Culture, the Ministry of the Interior, and the Ministry of Justice, while the national agencies involved include the Housing Finance and Development Centre of Finland (ARA), the National Institute for Health and Welfare (THL), the Criminal Sanctions Agency, and the Social Insurance Institution (Kela). Up to now, ARA has had responsibility for coordinating housing-related subsidies, grants and guarantees, as well as supervising the use of state-subsidised ARA housing. In 2024, however, a decision was made to transfer the functions of the agency to the Ministry of the Environment, beginning in 2025 (ARA, 2024).
Regional policy in Finland is increasingly implemented not only through interactions at the national level, but through partnerships between actors at the national and regional levels, within the regions, and between public and private actors, organisations and citizens. The regional development legislation was revised in 2021 to include new forms of interaction, knowledge-based approaches and the consideration of longer-term objectives (Ministry of Economic Affairs and Employment, n.d.-b). When it comes to implementing regional policy in Finland, the Advisory Board on Regional Renewal (AUNE) has a central role in promoting cooperation between national and regional actors, compiling the development needs of regions, and monitoring the effectiveness of measures (Ministry of Economic Affairs and Employment, n.d.-a).
At the national level, the Urban Policy Committee – which is appointed for each four-year government period – is responsible for promoting implementation of national urban policies, coordinating the ministries’ urban policy measures, developing cooperation between the government and urban regions, and facilitating national and international networking (Ministry of Economic Affairs and Employment, n.d.-c). The committee includes representatives from most ministries, numerous Finnish cities, and the Association of Finnish Local and Regional Authorities.
At the regional level, regional councils are statutory joint municipal authorities that have two main functions defined by law: regional development and regional land use planning (AFCM, 2017). In addition to their statutory mandate, the councils take on a broad scope of voluntary tasks determined by the relevant region’s characteristics, and are involved in the preparation of regional programmes and plans, together with their implementation plans and regional EU programmes (Ministry of Finance, n.d.-b). Also relevant at the regional level are ELY Centres (Centres for Economic Development, Transport and the Environment), which are tasked with promoting regional competitiveness, sustainable development, and supporting implementation of central government policy measures in the regions (ELY Centre, 2024).
While this section has focused on national-level policy initiatives, implementation is often managed and implemented at the municipality level. For instance, the Sustainable City Programme and Neighbourhood Renewal Programme allowed for state funding to be provided to municipalities, which were then responsible for carrying out practical interventions related to the broader thematic focus of the programmes.
In Finland, municipalities have a number of statutory duties when it comes to organising services for their residents, encompassing education; early childhood education and care; cultural, youth, library and sports services; urban planning and land use; water and waste management; and environmental services (Ministry of Finance, n.d.-a). Health and social services, along with fire and rescue services, which to date have fallen under the remit of municipalities, will be transferred to the counties as part of the current health and social services reform. In addition to their statutory duties, the municipalities may assume other tasks relating to, among other things, economic development, employment and housing.