Professor: Return of Karelia to Finland would cost EUR 28 billion

"Karelia could be the investment of the millennium"

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"The total cost of the rebuilding of Karelia, which would take ten years, would run up to around EUR 28 billion", calculates Arto Lahti, Professor of Entrepreneurship from the Helsinki School of Economics. Of this, the share of public investments could be EUR 8 billion, while EUR 20 billion would come from the private sector.
      Lahti presented his calculations at a ProKarelia movement seminar on Tuesday, which explored the economic possibilities for the return of Karelia. Lahti has also been in the public eye as a possible presidential candidate: the Liberals are currently collecting supporter cards to back their candidate.
     
According to Lahti, the Karelia discussion should not start from the assumption that the funding for the project would automatically come from the state budget. The funding model could be a combination of private and public sector investment, and the role of the state could be that of a warrantor.
      Other possible funding sources for the rebuilding of Karelia could be the European Union, investment banks, and international funds.
      "I categorically dismiss the idea that Karelia would be a bottomless money pit", Lahti said.
     
According to a recent survey commissioned by Helsingin Sanomat and conducted by Suomen Gallup, a clear majority of respondents - 62% - felt that the restoration of Karelia is hardly or not at all desirable. Some 52% of those opposed to the move say that repairs to buildings and infrastructure would be prohibitively expensive.
      Even those who in principle support the idea of returning Karelia to Finland would not be prepared to invest taxpayers' money in the project.
      The survey was referred to many times in the course of the ProKarelia seminar. Veikko Saksi, M. Sc. (Econ.), doubted if those taking part in the poll knew what the return of Karelia would really mean.
      Saksi felt the conversation should include what Finland would get in return for the investments.
      According to Lahti, the Finnish economy is at a standstill, but the returning of Karelia would stimulate economic activity in eastern Finland and the whole country.
     
The area would become a "competitive force against globalisation", in Lahti's view.
      He estimates that the rebuilding of Karelia would create 150,000-200,000 jobs and employment equalling 500,000 man-years.
      "These are just speculative arguments, but Karelia may well turn out to be the investment of the millennium", said Lahti.


Previously in HS International Edition:
  Poll: over one third would grant Finnish citizenship to residents of ceded Karelia if area is returned to Finland (23.8.2005)
  Poll: Fewer Finns want Karelia back (22.8.2005)

Links:
  ProKarelia

Helsingin Sanomat