Trouble in the Swedish paradiseThe Week
17/10/2003
EXCERPT:
The recent murder of Swedish Foreign Minister Anna Lindh shocked the consensus-loving Swedes to the core. Has Sweden's long pursuit of the model society finally reached its end?
What makes Sweden unique?
Swedes have spent a century trying to create a society based on consensus, not conflict, incorporating the best of both capitalism and socialism. Sweden started the 20th century as a poor peasant society with no big cities, but by embracing free-market capitalism it became the fourth wealthiest nation on earth by 1970. At the same time, Sweden built a fabulously generous welfare system. The success of the "Swedish model" was a source of national pride, and leaders from other nations streamed in to see how the Swedes had done it. "It was absurd," said newspaper columnist Arne Ruth, "but we thought of ourselves as a kind of superpower."
How extensive is the welfare system?
It provides Sweden's 9 million citizens with proverbial cradle-to-grave support. Schoolchildren get a free education--and free books and lunches, as well. Everyone has medical coverage under a national health plan. Parents are guaranteed a year off after the birth of a child, at 80 percent of their full salary. At age 65, workers get a generous pension that rises with inflation. Many credit the massive government safety net for giving Sweden the lowest infant-mortality rate in the European Union, and the longest male life expectancy (78 years). The role of government is so great that more than 50 percent of Swedes now either work for the state or depend on it for welfare benefits.
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What happened?
As global markets became more competitive, Swedish companies began to stumble, hobbled by high taxes and stringent labor regulations. Sweden fell from fourth to 17th on the list of the world's wealthiest nations. In the early 1990s, dissatisfaction with the economy prompted Swedes to turn to a more conservative government, but tinkering with the welfare state led to a record 15 percent unemployment rate, and the Social Democrats regained power. But with immigrants flocking to Sweden to take advantage of its liberal social policies, and with its population aging, social tensions have continued to grow. Younger Swedes say they feel unmotivated to work because of the high tax rate, and teenage alcoholism, violence, and drug abuse are rising. Half of all Swedish children are born out of wedlock. Today, Sweden's per capita murder rate is the highest in Europe.
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