The Efficiency of the Scandinavian Economic and Social Model

Résumé du document

?A socioeconomic model is the way in which society functions within a state. There are no set rules that define a social model; only loose definitions characterized by certain attributes like taxation, pension funds and employment'- Wikipedia. The Scandinavian model is often described as a reference in terms of gender equality, low income disparity, little unemployment and economic prosperity. Is this just a myth based on outdated arguments or is the Scandinavian way indeed a role model? The Scandinavian welfare model is characterized by specific elements which, when put together, create the particularity of this socio-economic system. Nevertheless, there are numerous other aspects to be taken into account:
-Are the Scandinavian countries really thriving or is it a myth?
-Would the implementation in other countries have positive consequences or can it only function in Scandinavia?
-Are the Scandinavians satisfied with the efficiency of their welfare system?

Extraits

[...] This unique system has been an inspiration to France: Nordic model, combining flexible 'hire and fire' rules with generous social protection benefits has influenced French PM Dominique de Villepin's new measures to boost employment.” The Economist (2006) The Belgian Economist André Sapir presents a more negative point of view in an interview in the German newspaper Die WELT (17 September 2006), Germany, as well as in France, the law protects employees very well against dismissal. At the same time, there are generous social contributions for the unemployed. But this model is inefficient, because the unemployment rate is high. [...]

[...] “Politicians in all European countries are discussing whether or not the Scandinavian economic model is efficient.” The Economist (April 2006) According to the The Observer (25 June 2006, based on a study by Work Foundation's David Coats, afraid of labour market flexibility?”), the UK, for instance, has to social justice and equality to its version” to create an efficient ‘Anglo-Saxon' model, and then “will it be something to unite Europe rather than divide “Europe should adopt The ‘Scandinavian model', which is said to combine the economic efficiency of the Anglo-Saxon social model with the welfare state benefit of the continental European ones.” Le Monde (2005) each country there are different historical and cultural traditions, like Great Britain's liberalism and individual responsibility, or Germany's and France's strong states. In Scandinavia there was no sudden revolution either. The reforms resulted from several crises. Each country has to find its own way. But flexibility and equity can match everywhere.” André Sapir, in Die WELT (17 September 2006) do not say the Nordic model should be copied. [...]

[...] Nevertheless, there are numerous aspects to take into account: -Are the Scandinavian countries really thriving or is it a myth? -Would the implementation in other countries have positive consequences or can it only function in Scandinavia? -Are the Scandinavians satisfied with the efficiency of their welfare system? The basic elements of the Scandinavian model The high price to pay for living in a generous welfare society: Taxes In Scandinavia taxes remain excessive, even by European standards. The income-tax rates can be as high as 60 percent, which makes the Scandinavian countries among the most punishing in Europe. [...]

[...] Nordic Region has the world's highest taxes and most generous welfare benefits. And yet Sweden, Finland, Denmark and Norway have delivered strong growth and low unemployment, and rank among the world's most competitive economies.” The Economist (September 2006) Yet, The Brussels Journal (2005) is not as positive concerning the economic growth of the Scandinavian countries. tax structure is not adapted to the challenge of globalization. [ ] They double Europe's production costs and by doing so, halve its productivity.” According to the American economist James Gwartney, the main cause is the essence of the nanny state. [...]

[...] So how come the Scandinavians are grumpy? Most governments with that kind of record could expect to be swept back into power. The problem is that the countries may be getting richer overall, but if people's living standards aren't rising, they won't feel any happier with the government. As Timbro's Munkhammar says, per capita hasn't been growing nearly as fast as the general economy. In short, people aren't getting richer - and they don't like As David Coats (former member of TUC) said: standard view of the Nordic model is shot through with myths, half-truths and downright manipulation of the evidence.” So it is indeed questionable if the Scandinavian social economic model is efficient!! [...]