Advanced

What are the policy lessons from Sweden? On the rise, fall and revival of a capitalist welfare state.

Bergh, Andreas LU (2014) In New Political Economy 19(5). p.662-694
Abstract
This paper discusses a number of questions with regard to Sweden’s economic and political development:

† How did Sweden become rich?

† What explains Sweden’s high level of income equality?

† What were the causes of Sweden’s problems from 1970 to 1995?

† How is it possible that Sweden, since the crisis of the early 1990s, is growing faster than most EU countries despite its high taxes and generous welfare state?

These questions are analysed using recent insights from institutional economics, as well as studies of inequality and economic growth. The main conclusion is that there is little, if any, Swedish exceptionalism: Sweden became rich because of well-functioning capitalist institutions, and... (More)
This paper discusses a number of questions with regard to Sweden’s economic and political development:

† How did Sweden become rich?

† What explains Sweden’s high level of income equality?

† What were the causes of Sweden’s problems from 1970 to 1995?

† How is it possible that Sweden, since the crisis of the early 1990s, is growing faster than most EU countries despite its high taxes and generous welfare state?

These questions are analysed using recent insights from institutional economics, as well as studies of inequality and economic growth. The main conclusion is that there is little, if any, Swedish exceptionalism: Sweden became rich because of well-functioning capitalist institutions, and inequality was low before the

expansion of the welfare state. The recent favourable growth record of Sweden, including the period of financial stress (2008–10), is a likely outcome of a number of far-reaching structural reforms implemented in the 1980s and 1990s. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Sweden, welfare state, equality, growth, institutions, capitalism
in
New Political Economy
volume
19
issue
5
pages
662 - 694
publisher
Taylor & Francis
external identifiers
  • scopus:84906943040
ISSN
1356-3467
DOI
10.1080/13563467.2013.849670
language
English
LU publication?
yes
id
1438d36a-05ef-476c-b771-8cbee38bce5a (old id 4173227)
date added to LUP
2013-11-21 13:31:23
date last changed
2017-01-01 03:11:58
@article{1438d36a-05ef-476c-b771-8cbee38bce5a,
  abstract     = {This paper discusses a number of questions with regard to Sweden’s economic and political development:<br/><br>
† How did Sweden become rich?<br/><br>
† What explains Sweden’s high level of income equality?<br/><br>
† What were the causes of Sweden’s problems from 1970 to 1995?<br/><br>
† How is it possible that Sweden, since the crisis of the early 1990s, is growing faster than most EU countries despite its high taxes and generous welfare state?<br/><br>
These questions are analysed using recent insights from institutional economics, as well as studies of inequality and economic growth. The main conclusion is that there is little, if any, Swedish exceptionalism: Sweden became rich because of well-functioning capitalist institutions, and inequality was low before the<br/><br>
expansion of the welfare state. The recent favourable growth record of Sweden, including the period of financial stress (2008–10), is a likely outcome of a number of far-reaching structural reforms implemented in the 1980s and 1990s.},
  author       = {Bergh, Andreas},
  issn         = {1356-3467},
  keyword      = {Sweden,welfare state,equality,growth,institutions,capitalism},
  language     = {eng},
  number       = {5},
  pages        = {662--694},
  publisher    = {Taylor & Francis},
  series       = {New Political Economy},
  title        = {What are the policy lessons from Sweden? On the rise, fall and revival of a capitalist welfare state.},
  url          = {http://dx.doi.org/10.1080/13563467.2013.849670},
  volume       = {19},
  year         = {2014},
}