Econchange : State’s changing role in regard to the economy in turbulent times

Economic systems around the world are facing pressure to change from multiple directions. The COVID-19 pandemic as well as Russia's invasion of Ukraine and its aftermath have required states' active involvement to ensure the sustainability of their economies and societies. In addition to short-term shocks, the economy is facing a number of long-term challenges:, the need to tackle climate change and rapidly transition to a fossil-free energy system, the strengthening of geopolitical blocs and tensions, an ageing population and the effects of technological development on employment. These changes challenge the established premises of fiscal, trade, labour, industrial and innovation policies in Finland and call for the state to take a more active orchestration role in the economy. This more active role in economic policy requires new capabilities from the state. The state must be able to maintain an up-to-date overall understanding of the complex and constantly changing operational environment, steer societal resources towards implementing politically-decided strategic goals, and more strongly coordinate different actors and sectors of society amidst the changing economy. Strengthening these capabilities requires adequate resources in public administration and training for civil servants.This publication is part of the implementation of the Government Plan for Analysis, Assessment and Research (tietokayttoon.fi). The content is the responsibility of the producers of the information and does not necessarily represent the view of the Government

Evolutionary leap in large-scale flood risk assessment needed

Current approaches for assessing large-scale flood risks contravene the fundamental principles of the flood risk system functioning because they largely ignore basic interactions and feedbacks between atmosphere, catchments, river-floodplain systems and socio-economic processes. As a consequence, risk analyses are uncertain and might be biased. However, reliable risk estimates are required for prioritizing national investments in flood risk mitigation or for appraisal and management of insurance portfolios. We review several examples of process interactions and highlight their importance in shaping spatio-temporal risk patterns. We call for a fundamental redesign of the approaches used for large-scale flood risk assessment. They need to be capable to form a basis for large-scale flood risk management and insurance policies worldwide facing the challenge of increasing risks due to climate and global change. In particular, implementation of the European Flood Directive needs to be adjusted for the next round of flood risk mapping and development of flood risk management plans focussing on methods accounting for more process interactions in flood risk systems