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The rest are green with envy …. generous social benefits "from cradle to grave" yet, economies generally doing well …. Finland, Denmark, Sweden & Norway in top 6 for competitiveness high standards of education, health & living standards – low corruption
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The rest are green with envy …. • generous social benefits "from cradle to grave" • yet, economies generally doing well …. • Finland, Denmark, Sweden & Norway in top 6 for competitiveness • high standards of education, health & living standards – low corruption • unemployment relatively low (but how real are figures?)
HOW DO THEY DO IT? • painful restructuring in 80s/90s • manufacturing allowed to decline without paranoia • R&D and development of services privileged • example: Getinge, maker of medical respirators, 120 out of 300 in R&D • "mature", realistic attitude to globalization, outsourcing, delocating…… • workforces flexible – agree to adapt hours to work • more acceptance of dismissals • co-operative unions – management-union partnerships, not confrontation • workforce generally rejects protectionism – accept restructuring COST OF NORDIC MODEL? • high taxes: 50% of income compared to Anglo-Saxon 35% & French 42% • people accept it, as benefits are good ….
SO, ALL IS ROSY IN GARDEN? • Nordic countries on upward curve, but nothing lasts for ever • high taxes are brake on economy: IKEA, TETRA PAK, SKYPE all based outside Scandinavia • massive benefits of oil to Norway, Steel in Sweden & wood pulp to Finland • Norway just elected leftish government ….. WHY NOT EXPORT THE “MODEL”? • human nature to want the benefits, but not the pain • cultural gulf between Northern & Southern Europe • being a large country not always a help (pretentions ….) • Adoption of Nordic model demands change in "Olde Europe" mindset