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The Scandinavian Model

The Scandinavian Model. or the flexicurity model. One of 3 models. The Continental model The Anglo-American model The Scandinavian Model. The Anglo-American welfare state model 1. The liberal welfare state model (the USA, England, Canada, Australia). Income-graded social security

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The Scandinavian Model

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  1. The Scandinavian Model or the flexicurity model

  2. One of 3 models • The Continental model • The Anglo-American model • The Scandinavian Model

  3. The Anglo-American welfare state model1. The liberal welfare state model (the USA, England, Canada, Australia) • Income-graded social security • Limited universal welfare benefits/transfer incomes • Limited social security schemes • The state supports the market either passively – by guaranteeing only a minimum of welfare – or actively – by encouraging private welfare insurance schemes • Economic redistribution only on a very small scale

  4. The welfare state in Continental Europe2. The Continental European welfare state model (France, Italy, Germany, Austria)The Continental model • - The family remains the primary welfare producer (provision for relatives, child-minding, etc.) • - In principle, the state only interferes if the family is unable to carry out these tasks • - There is no focus on the market as welfare producer (e.g. private insurance schemes, etc.). Instead focus is on voluntary work carried out by non-profit organisations • - Economic redistribution only to a relative degree

  5. The Scandinavian model3. The Social Democratic welfare state model (Scandinavia)The Nordic model • Universal or general principle, everyone has the same right to social security and welfare • The state is the primary welfare producer, and this “welfare production” is financed through taxes • A high standard of living is sought for everyone (the principle of equality) • Economic redistribution on a large scale

  6. The Scandinavian model Norway Sweden Finland Iceland Denmark Although these countries are very alike compared to the rest of Europe there are large differences between them.

  7. What does the Scandinavian model offer its members/inhabitants • Free education from the age of 6 to professional level • Free primary healthcare • Free hospitals • Free social security - Doctor available 24 hours a day - Health visitor - Student wages - Free dental care up to age 18 - Homecare - Institutional care for all - Social security benefits - Retirement pension - Early retirement pension - Sickness benefit - Aids and appliances for handicapped - And more

  8. What does the Scandinavian model offer its members/inhabitants • Financial support: Regulated by income 70% of the cost to kindergartens for children aged 0-6. Dentist (after the age of 18) Student salary Rental of appartments Bus tickets Cheap tickets for the theatre And much more

  9. Perhaps most important • A very safe society • Less than 100 murders per year • Very low crime rate as regards - violence - offence against property - Increase of serious violence - Increase in young people shoplifting!!!

  10. Report 70-80% of the Danish population will receive more from society than they will pay in taxes

  11. TAXES - Average 35-45% - Highest 60% 30,600 DKK before the age of 18 41,000 DKK after the age of 18 Company costs per employee per hour Denmark no. 14 among OECD countries

  12. Right wing government • For the last 7 years, the government has refused to let the income tax inrease – instead it has remained at the same level.

  13. Report More than 60% of the Danish tax payers would like to pay more tax

  14. Income • 11.8% < 100,000 DKK • 36.9% 100,000-200,000 • 21.5% 200,000-300,000 Social and healthcare helpers • 11.5% 300,000-400,000 Teachers, nurses • 8.0% 400,000-500,000 • 7.4% 500,000-750,000 • 1.6% 750,000-1,000,000 • 0.8% > 1,000,000 DKK 100,000 DKK = 13,300 euro

  15. THE SCANDINAVIAN MODEL is based on The relationship between employer and employee: - salary - work conditions No social and health assurances

  16. Flexicurity • Unemployed Normal salary Unemployment Benefit 14,000 per month 12,000 16,000 - 13,200 18,400 - 15,200/82.6%

  17. Flexicurity • Facts - That social and health security is not related to the job - The high level of unemployment benefits • Easy to fire employees On average Danes have 6 different jobs during a lifetime Portuguese have 3 different jobs during a lifetime • Very flexible and adaptable labour market We close down 200,000-300,000 workplaces each year • Easy to be re-educated for another job Education and re-education is free

  18. FlexicurityA flexible labour market • A fact: All employees create values • Many: not much more than their own salary • Many: 2 x their own salary • Some: 3 x their own salary • Few: 4-7 x their own salary • Too few: 10 times their own salary It takes a secure and fair tax system

  19. Why – and how – did we make the Scandinavian model We have a very long historical tradition of sharing Vikings Luther Co-operative 1840 – Folk high schools Social democracy

  20. Some people will say ”the Scandinavian countries are one big assurance company – where all the inhabitants are members” • Others will say ”the Scandinavian countries are one big cooperation • In Sweden they just name it ”The swedish folk home”

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