- Nordic model
The Nordic model refers to the economic and social models of the Nordic countries (Denmark, Iceland, Norway, Sweden and Finland). This particular adaptation of the mixed market economy is characterised by "universalist" welfare states (relative to other developed countries), which are aimed specifically at enhancing individual autonomy, ensuring the universal provision of basic human rights and stabilising the economy. It is distinguished from other welfare states with similar goals by its emphasis on maximising labour force participation, promoting gender equality, egalitarian and extensive benefit levels, large magnitude of redistribution, and liberal use of expansionary fiscal policy. The Nordic Model however is not a single model with specific components or rules; each of the Nordic countries has its own economic and social models, sometimes with large differences from its neighbours.
Economic publications, such as "The Nordic Model - Embracing globalization and sharing risks", characterize the system as follows:
- An elaborate social safety net in addition to public services such as free education and universal healthcare.
- Strong property rights, contract enforcement, and overall ease of doing business.
- Public pension schemes.
- Low barriers to free trade. This is combined with collective risk sharing (social programmes, labour market institutions) which has provided a form of protection against the risks associated with economic openness.
- Little product market regulation. Nordic countries rank very high in product market freedom according to OECD rankings.
- Low levels of corruption. In Transparency International's 2010 Corruption Perceptions Index all five Nordic countries were ranked among the 11 least corrupt of 178 evaluated countries.
- High degrees of labour union membership. In 2008, labour union density was 67.5% in Finland, 67.6% in Denmark, and 68.3% in Sweden. In comparison, union membership was 11.9% in the United States and 7.7% in France.
- Sweden has decentralised wage co-ordination, while Finland is ranked the least flexible. The changing economic conditions have given rise to fear among workers as well as resistance by trade unions in regards to reforms. At the same time, reforms and favourable economic development seem to have reduced unemployment, which has traditionally been higher. Denmark's Social Democrats managed to push through reforms in 1994 and 1996. (See Flexicurity).
- Sweden at 56.6% of GDP, Denmark at 51.7%, and Finland at 48.6% reflects very high public spending. One key reason for public spending is the very large number of public employees. These employees work in various fields including education, healthcare, and for the government itself. They often have lifelong job security and make up around a third of the workforce (more than 38% in Denmark). The public sector's low productivity growth has been compensated by an increase in the private sector’s share of government financed services which has included outsourcing. Public spending in social transfers such as unemployment benefits and early-retired programmes is high. In 2001, the wage-based unemployment benefits were around 90% of wage in Denmark and 80% in Sweden, compared to 75% in the Netherlands and 60% in Germany. The unemployed were also able to receive benefits several years before reductions, compared to quick benefit reduction in other countries.
- Public expenditure for health and education is significantly higher in Denmark, Sweden, and Norway in comparison to the OECD average.
- Overall tax burden are among the world's highest; 51.1% of GDP in Sweden, and 43.3% in Finland, compared to 34.7% in Germany, 33.5% in Canada, and 30.5% in Ireland.
- ^ Esping-Andersen, G. (1991). The three worlds of welfare capitalism. Princeton, NJ: Princeton University Press.
- ^ a b c d e f g h i ETLA: The Nordic Model
- ^ a b c Index of Economic Freedom
- ^ "CPI 2010 table". Transparency International. http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results. Retrieved 2010-10-26.
- ^ "Trade Union Density" OECD StatExtracts. 2009. Accessed: 11 February 2011.
- ^ OECD. Growing Unequal? Income Distribution and Poverty in OECD Countries. Organisation for Economic Co-Operation and Development. 2008. p. 232, p. 233
Nordic · Continental · Anglo-Saxon · Mediterranean
- Christiansen, Niels Finn et al. The Nordic Model of Welfare (2006)
- Hilson, Mary. The Nordic model: Scandinavia since 1945 (2008)
- Kvist, Jon, et al. Changing social equality: The Nordic welfare model in the 21st century (2011)
Social democracy Precursors Development Policies Organizations Leaders
Wikimedia Foundation. 2010.
Look at other dictionaries:
Nordic countries — Norden redirects here. For other uses, see Norden (disambiguation). Nordic countries Norden (Danish)/(Norwegian)/(Swedish) Pohjola … Wikipedia
Nordic agrarian parties — The Nordic agrarian parties, or Nordic Centre parties, are agrarian political parties that belong to a political tradition peculiar to the Nordic countries. Positioning themselves in the centre of the political spectrum, but fulfilling roles… … Wikipedia
Nordic race — Meyers Blitz Lexikon (Leipzig, 1932) shows a famous German war hero (Karl von Müller) as an example of the Nordic type. The Nordic race is one of the racial subcategories into which the Caucasian race was divided by anthropologists in the first… … Wikipedia
Nordic Classicism — Stockholm Public Library, 1920 28 Nordic Classicism was a style of architecture that briefly blossomed in the Nordic countries (Sweden, Denmark, Norway and Finland) between 1910 and 1930. Until a resurgence of interest for the period during the… … Wikipedia
Social model — A social, or 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.Elements of a social modelTaxationHow the state … Wikipedia
Scandinavian welfare model — The Scandinavian welfare model is the term used to describe the way in which Denmark, Sweden, Norway, Finland and Iceland have chosen to organize and finance their social security systems, health services and education.Nordic model describes the… … Wikipedia
European United Left–Nordic Green Left — Infobox European Parliament group name = European United Left–Nordic Green Left title = European United Left–Nordic Green Left imagewidth = 123px imagecaption = EUL/NGL logo from=6 January 1995 to=n/a precededby = Confederal Group of the European … Wikipedia
Hydrological transport model — An hydrological transport model is a mathematical model used to simulate river or stream flow and calculate water quality parameters. These models generally came into use in the 1960s and 1970s when demand for numerical forecasting of water… … Wikipedia
Object model — In computing, object model has two related but distinct meanings: The properties of objects in general in a specific computer programming language, technology, notation or methodology that uses them. For example, the Java objects model, the COM… … Wikipedia
Free flight (model aircraft) — The segment of model aviation known as free flight is the original form of the hobby, extending back centuries.DescriptionThe essence of free flight is that the aircraft have no need for any form of external control, for instance by radio.… … Wikipedia