Four fifths of Finland are covered by boreal forests and ten per cent by water, with 190,000 lakes and some 180,000 coastal and lake islands. The fragmented coastline and the lakes were formed at the end of the Ice Age when the edge of permanent ice retreated to the north. One third of the country lies north of the Arctic Circle. Less than 10 per cent of Finland is under agricultural cultivation. The forests and lakes are used widely for recreational purposes.
Nature is an inseparable part of the Finnish way of life.
The needs of the economy and Nature have been reconciled reasonably well in Finland. The quality of both air and water is good and has even improved in the last few decades. Despite the strong economic growth, environmental emissions produced by industry have in many respects diminished. While the world's forest resources have continued to dwindle, wood reserves in Finland have grown even in the 1990s. Finland's welfare is based on open and modern market economy, which brings to bear its Nordic sense of social responsibility.