“Finlandization” refers to the neutralization, particularly in foreign policy, of a small country that borders on a much bigger country without making it a satellite state or being taken over.
Finland, which shares a long border with the Soviet Union (now Russia), was able to maintain its democracy and cordial relations with its more powerful neighbor by signing a treaty of “friendship, cooperation and mutual (military) assistance” with Moscow in 1948.
While not a formal alliance, the treaty required Finland to have neutral or friendlier policies with the Soviet Union, including requiring the Finns to commit to repel any attempt by other Western nations to use any territory of Finland as base for attacks against the Soviet Union.
The treaty posed a challenge to Finland’s desire for neutrality as the country tried to balance its relations with the Soviet Union and function as a neutral country between East and West.
Prior to the treaty, Finland fought the Soviet Union twice—from 1939 to 1940 and from 1941 to 1944—but lost both wars, although not its independence.
To many Finns, the policy of building cordial relations without being a part of the Soviet Union was a geopolitical necessity and something foreigners would not easily understand.
But the special Finno-Soviet relations also led to self-censorship in the Finnish press and also affected domestic political events in Finland.
In 1992, the friendship treaty of 1948 was declared void following the collapse of the Soviet Union. Finland turned increasingly toward the West and joined the European Union in 1995.
Last October, Finland signed an agreement on closer defense collaboration with the United States amid growing concern over Russian military activities in the Baltic region.
Sources: Time.com; Encyclopedia of the Cold War; Nonalignment and Its Origins in Cold War Europe; bbc.com