The Nordic Economies
How the Model Emerged
Nordic countries were poor and agrarian a century ago, and built their systems through political compromises between workers, farmers and business.
The model is a product of history, not a blueprint.
Poverty and emigration
In the 19th century, many Nordic people emigrated to North America in search of a better life.
Compromises
Historic deals between unions and employers, like Sweden’s 1938 Saltsjöbaden agreement, promoted peaceful bargaining.
Social democracy
Social democratic parties shaped welfare expansion after the 1930s.
Growth first
Welfare grew on top of strong economic growth.
A grand bargain
Unions accepted market-driven change and employers accepted strong worker protection.
Assuming welfare came before growth
Growth funded welfare.
Key takeaways
- Nordic countries were once poor.
- Labour-business deals were key.
- Social democrats built welfare.
- Growth funded it.
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