Nordic World – serie

Many experts attribute the Nordic region’s high levels of happiness to factors such as greater relative national wealth, wellfunctioning institutions, or the welfare state model. Instead, economist Christian Bjørnskov argues that the true key to national happiness is social trust — the ability to trust other people one does not know personally.The populations in three of the five Nordic countries are also characterized by a very strong sense of personal freedom. These two factors contribute to a fuller and richer life. Bjørnskov ends by discussing to what extent these elements can be exported to other parts of the world.

Rising inequality is one of the most prominent characteristics of the modern age of globalized economies. To some observers, inequality is a natural consequence of economic growth that ought to be accepted to ensure a prosperous future. To others, rising inequality is a cause for alarm—not just because it is unfair, but also because, as Pope Francis has said, “inequality is the root of social evil.”By most measures, the Nordic countries consistently rank among the best not only when it comes to equality, but also when it comes to business friendliness. Political scientist Carsten Jensen delves into what is exceptional about equality in the region, and outlines “the four equalities” that set it apart: economic (the distance between the poor and rich is relatively low), inter-generational (success in life is not dependent on the status of one’s parents), gender (women are highly integrated into the labor market and independent from the family), and health (the poor have access to the same medical treatments as the well-off).All four types of equalities have their origins in unique political settlements made in the 20th century. The resulting special social market economies of these countries affect their growth and levels of equality even today.

The Nordic model rests on two pillars: the social safety net and the provision of services like education, childcare, and healthcare for all. It can also be characterized as an “employment model,” since its financial viability depends upon a high labor participation rate with very few working poor.Economist Torben M. Andersen lays out the model’s structure and highlights factors important for understanding its economic performance. He then looks into specific policy areas based on Denmark’s experiences and addresses the challenges arising from new technologies and globalization.