#learningfromsweden

by Selina Lee

October 15, 2014

A nation’s societal and economic development is greatly influenced by the welfare systems, pension plans, and tuition policies in place. Issues regarding these facets of the economy are actively examined and debated, with many nations internally conflicting on their policies. Sweden, however, has successfully created a welfare program that the world could learn from, as the topic was highlighted at the 15th Annual World Knowledge Forum. 

The former prime minister of Sweden, Carl Bildt, offered his insights on Sweden’s achievement of establishing its welfare system as a role model. He believes equal opportunity is a crucial aspect of Sweden’s model system. 

For one, he said, Sweden’s current advanced education system has emerged from a simple concept.

“The idea that everyone should learn to read and write was fairly rudimentary, but it was the basis of the basic education system that has now become exceedingly important,” said Mr. Bildt.

Additionally, the extension of childcare benefits was the primary motivator in integrating women into employment, which was necessary to balance the deficit of the labor force.

Difficult periods forced the Swedish government to repeatedly evaluate and reevaluate their systems in order to materialize new frameworks and reforms. Mr. Bildt said that Sweden was therefore able to handle the global financial crisis of 2008 better than other nations because of its history and experience handling such problems.

However, Sweden did not always do well, he explained. In fact, in the 19th century, Sweden was one of the poorest countries in Europe, according to Mr. Bildt. It was a “rapid miracle” that the nation was able to quickly transform into one of the world’s fastest developing economies, as well as one of the richest. In his view, the most basic decisions were key in laying the foundation for Sweden’s economic turnaround. 

The former prime minister also asserted that nations learn best from tackling prevalent problems. Sweden was a corrupt society in the past, but, as Mr. Bildt emphasized, that issue was precisely what “made the anti-corruption revolution” possible.

Although Sweden now has a stabilized and renowned system of social and economic policies, it is far from being perfect, Mr. Bildt explained.

“Problems? Yes, we do have problems in Sweden,” said the former prime minister.

The increase in immigration to Sweden could bring to light one point of concern, he noted. Mr. Bildt believes that integration of immigrants into the labor force needs to become a priority, and establishing policies to support that integration are key.

“If [immigrants] are outside [of the labor force] too long,” he said, “there are risks of tension, exclusions and more problems.” Solving this will be a challenging, but absolutely necessary, step towards sustainable reform, according to Mr. Bildt.

Another aspect of integration into the labor force deals with demographics. Younger generations are entering the labor market much later than in the past, Mr. Bildt noted, adding that the amount of time spent in employment is diminishing. To sustain economic growth rates and avoid tax increases, Mr. Bildt believes that societal structures need to be adjusted in order to increase labor force participation.

The current success in Sweden’s economy does act as a model for other nations, but Mr. Bildt said it was “no guarantee for the years to come.” He maintained that future-oriented goals should be prioritized for sustainable growth. He believes that all nations should be geared up for the future, and continually prioritize competitiveness.