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The Swedish Model : What , why and whereto ?

The Swedish Model : What , why and whereto ?. Lars Niklasson, Associate Professor Political Science Linköping University, Sweden. What is the Swedish Model ?. Collective bargaining since 1938 Welfare for work (”Arbetslinjen”) since the 1950s (?)

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The Swedish Model : What , why and whereto ?

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  1. The Swedish Model: What, why and whereto? Lars Niklasson, Associate Professor Political Science Linköping University, Sweden

  2. What is the Swedish Model? • Collectivebargainingsince 1938 • Welfare for work (”Arbetslinjen”) since the 1950s (?) • A welfarestatesince the 1970s (?) • A ”high tax equilibrium”: hightaxes and highquality (?) • ”Goodgovernment” generates trust in government? • Reforms since the 1990s • A new ”supermodel” (The Economist, February 2013)

  3. Topicsof the course • The roots: from the Vikings to the present days • ---1809-1932-1968-1995 • The effects: qualityoflife and competitiveadvantage? • (Betterthan the alternatives?) • The logic: self-supporting trust (”equilibrium”) • (Only in Sweden?) • Operations: central/local, fragmented/coordinated • Whereto? Europeanization, globalization

  4. The ambition of the course Aftercompletionof the course, the student should… …be ableto show a fundamental knowledgeof the origins and structureof the Swedish government and the Swedish social system …have the capacityto deal with the manymythsconcerning Sweden and Swedish society

  5. 1: The rootsof the Swedish Model IntroductiontoStatebuildingLars Niklasson Swedish historyto 1600 Sofia Gustafsson Swedish history 1600-1800 Henrik Ågren Swedish history 1800-2000 Björn Ivarsson Lilieblad Goodgovernment from 1850 Lars Niklasson The earlypoliticsof the WS Elin Wihlborg Seminar on the literature Seminar on individualpapers

  6. 2: The Swedish Welfare System IntroductiontopoliticsLars Niklasson Education and trainingLars Niklasson Governance & privatizationBo Persson Legitimacy & efficiencyLars Niklasson Drivers ofchangeElin Wihlborg Seminar on the literature Seminar on individualpapers

  7. Course requirements • Active participation at the seminars • Questions on the literaturewill be provided • Submit and defend a short individual paper • 1,000-1,500 words • A topicrelatedto the course • A question and a short analysis • Onlyfew extra sources (use the literature) • Collaboration is encouraged • Highgrades for clarity and creativity

  8. The literature • A historycompendium • Articles by Bo Rothstein et al • QualityofGovernmentInstitute, Gothenburg • Morel, Palier & Palme 2012: Towards a Social Investment Welfare State? Ideas, Policies and Challenges, Bristol: The Policy Press • Articles from Oxford Handbook on Swedish Politics(forthcoming) • Articles on highereducation policy

  9. 1. IntroductiontoStatebuilding • States are different • Nordic, Anglo-Saxon, German, French, Asian etc. • Parliaments, governments, bureaucracies etc. • Comparisonhelpsus understand and seecausalitys • The historical process helpsexplain present variety • Whatwasbeforestates? • Whyhavethey dominated from 1648? • Howwerepatternsformed?

  10. Sweden and Denmark:Different pathsand outcomes • Estates (the nobility) vs absolutist kings • Strong peasants or towns (Not West/East) • A militarystate vs separation • ”Corruption” until 1870s vs 1730s • The legal systems, universityeducation • Gradualshift from conservatismtocorporatism vs radical break and strong liberalism (by the farmers) • S: Protectionism, administrative corp., social corp. (statism) • D: Radical break 1848-49, farmers and towns, littlecorporatism • More private providers in the Danish WS, less paternalism

  11. Knudsen & Rothstein 1993:State-building in Scandinavia • Whatare ”western” and ”eastern” patterns? • How do Sweden and Denmark fit thesepatterns? • Sweden’sbureaucracywasmorecorrupt for a longertimethanDenmark’s; How? Why? • Whatwere the important steps in Sweden’s ”road tomasspolitics”? Howdid it differ from Denmark’s? • Howdid the popular movements differ? • Canweseedifferences in the welfarestates? (1993) • (Why is Sweden moresimilartoDenmarknow? A new path?)

  12. Swedish history Lecture 2: Swedish historyto 1600 Lecture 3: Swedish history 1600-1800 Lecture 4: Swedish history 1800-2000 Based on the compendium Excursionto western Östergötland

  13. Questions on the historycompendium To be completed!

  14. 5. The rootsofgoodgovernment • The puzzle: Whatcauseswhat? • A. Economicdevelopment, industrialization • B. ”Goodgovernment” withoutcorruption • C. Welfare policies • Rothstein et al: the qualityof the government is the key • Corruption is a barriertowelfare and development • (Co-evolution withearlyindustrialization?) • Howcanyou go from corruptionto non-corruption? • Corruption is a stableequilibrium • Now: oneof the leastcorruptcountries in the world • LessonsapplicabletoRussia, Africaetc

  15. Sweden was a thirldworld country • The Frenchambassador 1771: Twoserious problems, love for democracy and total corruption • A patrimonial, nepotisticstate • A blurredlinebetween public office and private interest • Heckscher: Marshy (försumpad) administration • Hiring not based on merit • Offices were sold tofinanceretirement • Holdseveraloffices and hireothersto do the job • Fees, housing and grain insteadofsalary • Briberywas a crimeonly for judges

  16. Howcanweexplain the transformation? • Howto stop takingbribes? • Morecontrolpresumes a benevolentprincipal • Howtocontrolstateleaders? • Democraticelections, accountability, presumes… • A social trap, a suboptimal equilibrium(”collectiveaction theoryofcorruption”), explainspersistence • ”Big bang” as a wayout: impossible? • An endogenouswayout? (Ostrom 1990)

  17. Ostrom’ssolution Supplyof a solution, Comitment, Monitoring A cooperationgame (as overfishingetc) A highpayoff from cooperation ”Another world is possible” New ideas: Liberalism Exogenousfactors?

  18. Data shows the transformation • Appeals Court cases on malfeasancepeakedtwice, i.e. therewasincreased attention to the problem • A new HighCourt in 1789, by the absolutist kingbutwith a long-term positive impact • A needto save moneyafter the wars 1808-09, 1814 • A new political situation after the collapseof the government 1809. A new constitution and a new king • A threatto national survival, becoming a small state • Corruptionwasmainly in the rural administration

  19. Debates in the Parliament (the Diet withfourestates) • The separation of public and private money: punishment for taking private ”loans” 1823 • Severalinitiativestooutlaw promotion based on fees (pension system introduced in the 1870s) • A new tax system and the introductionofsalaries • A Weberianperspective: an impartialbureaucracywasneededtostrengten the legitimacyof the public sector (not divinity, heritage, tradition etc) • The bureaucracy as a machine (hierarchy) tohandleroutinecases in governments (and companies)

  20. Wheredid the ideas come from? • Enlightenment liberalism: meritocracy, impartiality, professionalism, accountability • Britain, France, Prussia, Bavaria (Schiller/Beethoven…) • Stronger from 1830 dueto a liberal press and more liberals in the Parliament/Diet (industrialists) • Demand for a more representative parliament and a governmentthatrespected the constitution

  21. Bureaucracy and the economy From feudalloyalty (back) to Roman legal traditions Need for education and gooduniversities Morerationalgovernment: Railway Board 1862, Telegraph Board 1865, Road and Waterway Commission 1841 Feudalguildsabolished 1864: freetrade and commerce Industrializationstartedaround 1870

  22. Goodgovernment from 1850 From aristocratic/particularisticstatetobureaucratic/universal state Bureaucracy and its alternatives Important for the developmentof the economy; cause or effect?

  23. Teorell & Rothstein2012: Gettingto Sweden: Malfeasance and bureaucratic reforms 1720-1850 Whatare the key elements in a theoryinspired by Ostromtoexplain the abolishmentofcorruption? Whatare the keyevidencethat Sweden confirmstoOstrom’sexplanation? What external (exogenous) factorscanhavehelped in the transformation of Sweden?

  24. Rothstein1998: State Building and Capitalism: The Riseof the Swedish Bureaucracy Whatare the key elements of a bureaucracyaccordingto Max Weber? Howdid the Swedish civil service differ from the Weberianmodel? Whatare the benefits of a bureaucraticgovernment? Is the bureaucraticmodel still appropriate for governments? Howcan it be improved?

  25. 6. The politicsof the earlywelfarestate Popularprotest and organized civil society Freetrade vs. protectionism Democracy for men and women Saltsjöbaden 1938: corporatism The dominanceof the labormovement 1932-76 ATP as a keyevent and major conflict ”The solidaristic pay policy” and the booming 1960s 1968 and the 1970s: triumphor hubris?

  26. Rothstein2008b: Is the universal welfarestate a cause or an effectof social capital? Whatare universal welfarestates? Whatareitselectoral and politicaleffects? Whatare the alternative explanations for a relation betweenbiggovernments and social capital? Whatevidencepointsto the welfarestate as an outcomeof social capital? Whatevidencepointsto the welfarestate as a producerof social capital?

  27. Rothstein, Samanni & Teorell2012: Explaining the welfarestate: Power resources vs the qualityofgovernment What is the Power ResourceTheory? Whatare the problems with PRT? What is ”bringing the state back in”? Whatare the keyideas in the QualityofGovernment (QoG) theory? Whatdoes the empiricalevidence show? Arethereany problems with the evidence?

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