Sverige i den globala
Sjögren (2008),”Welfare capitalism: the
Pdf-fil på kurshemsidan
Waves of globalization
First global economy Disintegration 1914-50 New global
1880-1914 Beginning of a economy
1914 1950 1980 2010
The Hockey Stick Phenomena
Does capitalism and business
• Between 1820 and 1990 the advanced
capitalist countries increased their
production by a factor of 75.
• These advanced countries, with less than
15% of the world's population, produced
half the world's GDP in the 1990s.
Questions to reflect on
• Why and how have some entrepreneurs,
companies and countries been more successful
than others in creating economic growth?
• How has capitalism and entrepreneurial
leadership evolved over time?
• When and why did this strong economic
growth began? Is it reversible? Is it
sustainable? Does it make everyone happy?
Todays message to you
• The evolution of Swedish
welfare economy and the
“Swedish Model”. Reflections on
a Nordic Model?
• Country-specific characteristics
and the role of business in the
transformation of the economy.
Driving forces - periodisation problems
• Waves of globalisation
• Industrial revolutions: 1780s-, 1880s-,
1970s- (steam-power, electr./engines,
• Historical layers: path depedency in
combination with change of
institutional and techno-economic
• Four periods of economic transformation:
Formative phases (20-25 years)
Four periods in Swedish economic history
• Liberalism and early industrialisation within
agriculture society 1850-1890 – the foundation
• Industrial society and financial capitalism
• The Swedish model, mature industries and
welfare economy 1935-1975
• Neo-liberalism and internationalisation within
the service society 1975-2005
Liberal, company act (joint
stock banks), capital Period 1850-1890
projects, tension in the
represents for agriculture
Financial Education &
Institutional reforms, Compulsary six years
industry and mining,
formalisation of the schooling from 1842,
export of iron, timber
system, joint stock technical training,
and saw products,
banks, Scandinavian import of foreign skills.
Custom-based, free setting of
wage rates, urbanisation, working
class, emigration (1.15 million
people 1850-1930 with a peak in
technological procurement, Period 1890-1935
coordination of large
investments, launching of
Financial Company Education &
Corporate finance inventions, cartels, strong Special institutes for
(universal banks), growth in energy, pulp and technical and
growing stock paper, then electronics, commercial education,
market, deflation chemical-technical and taylorism,
crisis 1920-21, building and construction, from professionalisation
mergers, Kreuger the 1920s strong processes
crash 1932, new rationalisation and structural
banking law 1934 transformation
First unions and employers’
confederations (LO 1898 and SAF
1902), collective agreements,
Shares of employment in various sectors and change in absolute numbers.
Sector 1890 1930 Absolute change 1890-
1.Agriculture & related 58 34 - 165,000
2. Industry and craft 17 26 + 400,000
3.Building& construction 7 9 + 120,000
4.Transport& communication 3 6 + 110,000
5. Private services 11 19 + 290,000
6. Public services 5 6 + 70,000
Total employment 100 100 + 825,000
model, growth of public
sector, regulatory regimes
and support of various
favoured sectors (mainly
Financial Education &
system Company training
Regulated credit- Mature multinationals, Senior high school,
based system, stock consumer-related expansion in
market low innovations, industrial educational system,
importance, large society with a growing advanced technology,
bond market service sector, golden training programs
age 1950s and 1960s,
Saltsjöbadsavtalen, solidaristic wage
policy, Swedish Labour Market Authority
and Swedish Labour Market Board,
increasing women participation.
Shares of employment in various sectors 1931-35, 1951-55 and
1971-75. Per cent.
Sector 1931/35 1951/55 1971/75
Agriculture and 34.2 18.6 6.8
Industry and craft 26.2 34.6 29.4
Building/construct. 8.1 8.4 8.6
Transport and 5.8 7.5 7.5
Private services 18.9 20.4 23.9
Public services 6.7 10.5 23.7
Total employment 100 100 100
Increasing state debt and budget
deficits leading to substantial
depreciations 1976-1982, neo-
liberalistic policies, joining the
European union in 1995, EU-
reforms, privatisation programs.
Financial Company Education &
Structural crisis and creative
Market-orientation destruction from the mid 1970s, Vocational training, mass
and reregulation, growth in services, increase in university and regional
financial crisis 1991- outward and inward foreign direct university colleges,
1993, growing stock investment and M&A from the science, innovation and
market, markets for 1980s and onwards, increasing technology policies.
venture capital. R&D, ICT-sector, biotech, change
of corporate governance 21st C.
Structural crisis, activated labour authorities, labour market
education system reorganised in 1986, high unemployment
rate (early 1990s), then more fragmentation and
differentiated wages, foreign labour, shorter labour contracts.
Shares of employment in various sectors 1971-75, 1991-1995. Per cent.
Sector 1971-75 1991-95
Agriculture and related 7.1 3.9
Industry 28.5 20.5
Building and construction 8.6 6.1
Transport/communication 6.6 7.0
Trade 15.5 15.3
Private services 9.7 13.8
Public services 24.0 33.4
Total employment 100 100
Cristina Mayville Stenbeck, 1977-
Annual growth in GDP/capita 1800-2000 in Sweden.
Per cent and fixed prices.
GDP for Sweden 1993-2011, volume-index, fixed prices
Distribution of Business Sector Employment by
Enterprise Size, 1991. Per Cent.
1-19 20-199 200-499 500- Total
Sweden 18 17 7 58 100
France 29 21 16 34 100
Germany 26 19 18 37 100
United 33 16 17 34 100
Is there still a Swedish Model? Definition 1
• Solidaristic Wage Policy, central negotiations
(Saltsjöbaden Agreement 1938-, Rehn-Meidner
Wage Bargaining Model, EFO-model)
Break up in the 1970s
2007-2009 unsuccesful re-start of Saltsjöbaden
Result: No Swedish Model today
• Welfare state, certain range and size of the
The People´s Home 1930s, housing and
infrastructure programmes, unemployed and
women access to the labour market 1940s-, re-
distribution of income, transferring system,
high taxes, the state plays an active role, state
ownership in the business sector, public
expenditure/GDP 31%-62% 1960-80.
• Mental modes, compromise thinking, egalitarian
spirit, corporatism (negotiations between business,
labour, and state interest groups to establish
• State is centralized but open
• Bureaucracy professional but not authoritarian
• Policies differentiated but have a central
• Low level of corruption
• Close links between interest groups, trade unions,
business leaders and the state (corporatism)
• To reach consensus in the parliament
Swedish Model today –
Yes or No?
• Definition 1 – No Swedish Model today
• Definition 2 – Partly
• Definition 3 – Yes!
Is there a Nordic Model?
• Or are there two, or even four
• Or, the other way round: is the
Nordic model only a variation of
models in other European countries?
• Reminds of models in other parts of
YES, there is a Nordic model of
But clear variations between the countries exist:
– An ’eastern’ and ’western’ dimension: Sweden-
Finland vs. Norway-Denmark
– Or regional: southern Sweden and Denmark
similar, as, Ostrobothnia in Finland and
Northern part of Sweden.
– But also a forerunner vs. latecomer: dimension
Sweden-Denmark vs. Norway-Finland
A Nordic Model of Welfare Economy
• The Nordic countries have had and still have a lot
in common, culturally, politically and
• But the Nordic Model of welfare capitalism has
been challenged by globalisation, EU-reforms -
weakened the power of the national states.