Joint Closing Ceremony of Arctic Opportunities Conference

and Opening of Board of Directors Meeting of the Northern Forum Romanise,

September 15, 1994

Speech by Mr Martti Ahtisaari President of the Republic of Finland

These days' events in Rovaniemi - the Arctic Opportunities Conference and the meeting of the leaders of the Northern Forum - demonstrate the dynamics and pragmatism of northern and Arctic cooperation.

Your agenda combines the elements of successful international cooperation: political leadership and management, deliberation of new ideas and establishment of an adequate infrastructure for joint projects. We are pleased to see that Rovaniemi, a city rebuilt from ashes after the war, has become one of the centres for international cooperation covering not only the North Callotte here in Northern Europe but the Circumpolar North as a whole.

As we meet here, the members and observers of the Barents Euro-Arctic Council meet in the neighbouring Norway to take further steps in the promising cooperation launched less than two years ago.

In the richness of its structures and processes, the Arctic scene today is one of the most vivid examples of the prospects created by the end of the cold war. The rigid division and hierarchy of the international order has given way to freedom, creativity and flexibility.

A crucial factor in the transformation of the Arctic is that the initiative lies not only with the central governments but with the peoples and institutions of the northern regions themselves. By setting up and working with its own priority projects, the Northern Forum has established in a short time its own place in the Arctic architecture.

Where the central governments have launched new forms or institutions of regional cooperation, local and indigenous participation and representation have been secured in ways that are not commonplace in the international life. The Barents Regional Council, established in tandem with the inter-governmental Barents Euro-Arctic Council, is a prominent example of such a political innovation.

The prominent role of indigenous peoples is an inherent feature in Arctic developments. Progressive solutions have been found for integrating indigenous representatives not only in the work of the Barents Council but also in the Rovaniemi process of ecological cooperation as well as within activities of the Northern Forum. This relationship involves mutual learning. Through their traditional skills and habits, the indigenous peoples contribute in vital ways to the development and survival of the Arctic as a society and an economy.

The right of the indigenous peoples to effectively determine theirown lives grows out of the international norms and morals pertaining to minority rights and, ultimately, human rights. Although the northern countries are showing the way in many respects, a lot remains to be done. The authentic and active organizations of the indigenous peoples, notably the Inuit Circumpolar Conference, the Saami Council and the associations of the northern peoples of Russia have seized the opportunity and carried their responsibility in an admirable way.

The search for common solutions had been suppressed by the cold war confrontation in the political and military spheres. But the rapid expansion of Arctic cooperation is not only the result of international political change; it is an answer to real and specific needs of today and tomorrow. Revolutionary changes in global economics pose a challenge to the survival of the Arctic ecosystem; but they present also an opportunity to improve life in the Arctic.

It was natural and significant that the breakthrough in broad Arctic cooperation took place in the field of environment. The Rovaniemi process has shown that the protection of the fragile and unique environment in the North requires a regional effort. Common interests unite the Arctic countries facing ecological challenges inside and outside the region.

The Circumpolar North is a region of global significance in environment, energy, natural resources and transportation. The feasibility of the Northern Sea Route and the exploration of the Barents Sea oil and gas are parts of the future strategy of Europe as a whole. In parallel with such "mega" projects, small steps will be taken in transboundary cooperation and in business and trade leading to the better use of Arctic possibilities.

The establishment of an Arctic Council with umbrella and coordination functions, as suggested by Canada, could promote practical cooperation. Such a political institution representing the Circumpolar North could also raise the profile of the Arctic in the world political and economic marketplace.

As the largest northern country, Russia occupies a central place in all plans for the use of Arctic resources and for the future of the Arctic as a whole. It has been essential for the success reached so far in the post-cold war era that Russia has been actively involved in Arctic cooperation.

In geo-economic terms, the Barents region - together with the Baltic Sea region - is Russia's gateway to the West. Russia's participation in Arctic cooperation is an important part of Russia's integration within Europe as a whole. Consequently, the domestic reform and restructuring will determine Russia's capability to contribute to overcoming the economic and political gaps and to a creating new Arctic.

Changes towards regionalism in the Arctic will be the right course if they produce one key consequence: a better congruence between human interaction and political structures. Institutions will correspond to the real needs and aspirations of peoples and their cultures. Those that are affected by decisions will have their voice heard. In short, the quality of decision-making will improve at all levels - a goal that is often stated by the Northern Forum.

Legitimacy is the ultimate test of politics. It will determine the capacity of the institutions and fora where decisions are made. This is one of the reasons behind the need for regionalism in post-cold war world affairs. The Arctic can become a model region, a success story in regional cooperation.

The increased centrality of regions grows out of the crisis of the state and the hierarchy around the state in international relations. But states and regions can complement each other. Regions can be created from up-to-down, on the initiative of governments, and they can emerge from bottom-to-up, as a result of transnational pressures.

It is important to recognize that regionalism today is a new regionalism. It is not only a rational answer to the requirements of markets. Regionalism is also driven by politics, including historical symbolism. It is not by chance that philosophical starting points for the Baltic Sea region have been found in the fourteenth and fifteenth century Hanseatic commercial league and for the Barents region in the eighteenth and nineteenth century Pomor trade. It is not by chance that forgotten or suppressed national minorities find in regionalism a platform for their resurrection as political actors.

Finland is a northern country. Finland is also a European country. In joining the European Union - which is sometimes, incorrectly, in the Finnish debate coined as "joining Europe" - Finland will not lose her northern identity, on the contrary, it will become a driving force of her Union policy.

With the accession of Finland, the European Union will have a common border with Russia. With the joint accession of Finland, Sweden and Norway, the Union's area will enlarge by a half. After enlargement, having been predominantly Central European and Mediterranean, the Union will have a northern dimension.

It is not only in geopolitical or geo-economic terms that the Union will have a northern dimension. With the Nordic membership, the Union will have a stronger political commitment to the North. The Union will be present in regional institutions, not only through the Commission but also through member countries on a broader basis.

It will be Finland's policy in the Union to make integration support regionalism as a force promoting stability and transition in Northern Europe.

We are convinced that we speak for significant requirements. An enlarged Union will have to take into account new northern demands, otherwise its common policies will not be complete or balanced. On the other hand, the northern enlargement will give the Union and all its members new possibilities for promoting stability and creating cooperation eastwards, which is in their common interest.

The contribution of the Union to regional cooperation is based, above all, on the availability of its pooled resources. The Union is widely seen by transition countries as a source of financial and technical assistance. The Union can also provide management models as well as rules and norms for economic and environmental cooperation. In the end, the members of the Union will act in the interest of their own welfare and security.

In Baltic Sea cooperation, the European Union already is a strong actor, supporting the peaceful resolution of disputes and the development of good-neighbourly relations between Russia and the Baltic states. The Union will continue this policy through the Pact on Stability process and within the CSCE framework.

In Barents cooperation, the Union has understandably had a lower profile. We in Finland are well aware that the future role of the European Union in the Barents region will largely depend on the Nordic members' commitment and capability. Another crucial factor is the extent to which Russia will be perceived by the Union members as an obstacle or an opportunity, as a recipient of assistance or a partner for cooperation.

Because of the nature of the problems and the central position of Russia, growing together with the rest of Europe is likely to be a greater challenge in the Barents region than it is in the Baltic Sea region.

In the Barents region, Russia will be the dominant party or at least the other pole in most endeavours. A proper functioning of the Russian federalism and economic administration as well as the privatized sector is needed for smaller or larger joint projects to work.

The presence of the European Union will make the scene more symmetrical in the Barents region. In its northern policy, the Union will be an effective equal economic force to Russia. In addition, bilateral processes will provide growing dynamics for northern cooperation with Russia. This is the political basis where a successful partnership between Russia and the European Union in the North can be founded.

The tasks ahead in the North are Herculean; nuclear safety, environment, oil and gas resources, an alternative sea route to the Far East. They require huge resources and they take a long time to carry out, starting with the creation of political awareness and the building up of economic, technical and legal infrastructures - all issues that are on the agenda here in Rovaniemi.

The capability of the European Union to assume an efficient northern and Arctic role will depend on resources but also on incentives and motivations. We in Finland are convinced that prerequisites for such a role exist. The Union will perceive the Arctic North as an essential part of Europe and the ongoing European change. The European Union will become a northern factor.