Suggested reading for the weekend
The weekend is around the corner and it is time to suggest some reading: I hope you have not missed this article in the International Herald Tribune: "The envy of Europe: Success of Nordic economies is turning heads". The basic point is the one often missed in the Swedish debate: the Nordic economies are actually performing really well right now. Reading this article is a perfect way to end a week that included a new budget presented to the Swedish people, a budget that will make things better for a lot of ordinary Swedes, something you can read more about in the article "Metallare förlorar på borgerlig budget". Now it is time for an after-work beer.
posted by Eric Sundström at 4:59 pm
2 Comments:
"The basic point is the one often missed in the Swedish debate: the Nordic economies are actually performing really well right now."
The basic problem is rampant unemployment. It's been termed jobless growth and it's a problem all across EU-15. Our government has chosen to put a lid on it. Unfortunately, no possible lid will contain a boiling situation.
I think the basic point of the article is that although the Nordic countries do have large public sectors, they've managed to adapt to changing conditions. Sweden has successfully reformed pensions, benefits et cetera in the past and has a history of accepting neccesary structural reform.
But this time I'm not so sure. Development indicates special interests, mainly the unions, are not ready to save the youth from mass unemployment -- the growing gravity pulling the bumblebee down. Rather than crash, I'd but the bumblebee on a diet. ;)
The basic point sure is that the Nordic model has adopted, but I would also argue that the Nordic model is ideal if you need to adopt to new challenges often - as we have to do today. I think the future of the Nordic model very much depends on however we can adapt it this time again, with jobless growth as one problem, and the renewal of public serivces as another. The coming 10-15 years will give us a hint.
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