From pioneering to a major boom

The phase starting from the first decade of the 20th century reveals three interesting turning points regarding the evolution that dwell on the extraction of local natural resources (Fig. 7). The first concerns the closure that led to the shake-out of lake iron ore extraction and refining (Fig. 7: 1.) that represents devolutionary outcome with an end (Fig. 2: c). The disruptions behind a major bust most commonly originate from a collapse in demand; overexploitation of the resource; or changes in market access, transportation, or production technologies (Clapp 1998; Kortelainen & Rannikko 2015; Halseth 2017). The shake-out of lake iron ore, however, was not directly caused by any of these common issues. Neither the markets, nor the external institutions transformed radically. Early mechanisation was over in most advanced economies;

this was reflected in the case periphery but could not be claimed to be the initial cause for the shake-out. Contrary to Clapp’s (1998) predictions, even the resource did not dry up. The major explanation seems to originate with a poor connection to global trade that is here seen as not necessarily a disadvantage of distance but as a lack of interest in enhancing the market connection after the observation of better chances for the forest industry (Art. II). Private owners were the driving actors behind the shake-out that finally resulted from the lack of interest towards lake iron ore that could be replaced by more beneficial production of wood (Art. I). As such, selecting out lake iron ore caused negative consequences for a short moment but turned out to

be a better choice as it created space for new industry. Since the lake iron ore was not the only sector in the community, let alone the foremost, the necessity for only partial resilience (cf. Art. IV) was increased.

By following the evolutionary outcome in the early 20th century, remarks on shift-like renewal (Fig. 2: c -> d) can be made as the community reoriented towards forestry and agriculture but especially forest industries (Fig. 7: 1. -> 2. & 3.). This presents an expression of resilience that led into ‘visible evolution’, as after a decline of one sector, growth in another sector followed (Art. IV; Fig. 2: c -> d). The steep growth in forestry and agriculture (Fig. 7: 2.) pushed the whole resource community into a major boom which mostly follows the basic pattern of the booming of resource peripheries. As is typical, the driving mechanism was the increased demand for timber (cf. Clapp 1998; Edenhoffer & Hayter 2013, 141) that became available through improved technologies (cf. Argent 2017, 20–22) behind steam power and railroads that were deployed also in Lieksa (Art. II). The increased demand for timber originated directly from domestic demand, but it was closely related to the increased demand for wood products at foreign European markets (Art. I). As the boom was connected with the foreign demand, the case periphery become linked into the global market system as peripheries typically do (Art. II; cf. Kortelainen 1996, 39). Domestic firms were the main external actor-like drivers and executers directing their acts to Lieksa, but since the state assisted with the building of connections and access of needed labour, the state may also be seen as an external actor-like driver. The place dependency with extensive forest resources, relatively arable land, and waterway connection became highly necessary dependencies for this development. The existing surplus population was turned from burden to human capacity, as they offered the labour that was needed in the growth process. First, the demand for seasonal forestry workers and the needs of year-round livelihood for the families was enabled by the legislation concerning the parcelling out of the land that aimed at the settlement of the existing landless population (Art. I). Thence the local reactions required merely adapting to these rather smooth flows of pioneering. Afterwards the land reforms pushed the Finnish version of colonization, as a corollary of the post-civil war era in 1918, and especially after the WWII settlement policy (Art. I; Art. V). After WWII, the local authorities seemed to be in a rush to catch the speed of this externally pushed boom (Art. V), which describes the ability to function on one hand, but increasing the risks of unmanageable vulnerability on the other hand.

Figure 7. Evolution and resilience by sectoral scopes in a phase I. (≈1900s–1950s)

The forest mills evolved rather simultaneously with the booming of forestry and agriculture (Fig. 7: 3.) from the early 20th century. The ‘export mentality’ (Argent 2017, 22) describes the boom of forest mills, as by the external impulses new opportunities were created. Although this export mentality binds the periphery more tightly with the external environment, at this point it benefited from this relation. The case profited from non-local (national and foreign) investments, demand, and more advanced technologies that, for instance in the Canadian context, have often been turned as a dependency of external factors that have caused vulnerability of resource peripheries (cf. Barnes et al. 2001; Markey et al.

2012, 94; Ryser et al. 2018). Foreign demand pushed the demand for wood products which benefited from the emerging new technologies by adopting the external innovations in electrical and heavy engineering. A significant private foreign firm

and smaller domestic entrepreneurs realised the potential of forest resources and the existing forestry industry, which led to the establishment of the mills (Art. III).

In the late 1920s, the state became the driving actor with new economic policies which included direct involvement through ownership of local forest mills (Art.

II; Art. IV). Already existing and improved railways, waterways, and especially the adoption of waterpower benefited the mills as the available labour force made possible the growth of production (Art. II). A significant forest mill still operating today was established in the same location where a lake iron ore operation existed previously (Art. I). As such, a forest mill benefited directly from the heritage of lake iron ore due to existing infrastructure, labour, and capital. Indirectly, the local forest industry benefited from the heritage of early mechanisation, as it grounded the early industrial culture that assisted in the establishment of the forest mills.

In all, the reactions were forward looking, resulting in ‘visible economic renewal’

as an outcome. Together, forestry (Fig. 7: 2.) and the forest industry (Fig. 7: 3.) laid a clustering foundation for the growing staple industry in this forest resource community.