The Nordic Social Democratic Model

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The Nordic Social Democratic Model
Lecture 15

• Sweden, Norway, Denmark
• (Finland, Iceland)

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Population of Finland Sweden Denmark Norway
lt 50 France
Size of Sweden alone130 of Italy
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Introduction

• Why do these countries seem to form a political
  bloc in Western Europe?
• Geographical proximity
• Historical links
• Political development
• Culture and Language (not Finland)
• Political links (Nordic Council)

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The Nordic Council (1952)

• Denmark
• Finland
• Iceland
• Norway
• Sweden
• Faroe Islands (Denmark)
• Greenland (Denmark)
• Åland (Finland)
• (Baltic Republics)

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The Nordic Council

• Established 1952 Finland joined 1956
• 87 reps from 5 national parliaments
• Founded to further regional cooperation
• Common labour market, social security, free
  movement long before EU
• Mostly operates as ideas swapping area
• Joint policy initiatives are
• Scandinavia as a nuclear free zone
• Common television satellite

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A bit of history

• Scandinavian kingdoms (Denmark, NorwayIceland,
  Swedenparts of Finland) formed Union of Kalmar
  from 1397-1524

• Conflict between Denmark and Sweden ? many wars
• Denmark-Norway-Iceland vs. Sweden-Finland
• After Napoleonic wars (1814), Finland given to
  Russia (until 1917)
• Norway given to Sweden as compensation
• Since then, largely peaceful history, but
• civil war in Finland (1917-18), attacked by USSR
  (1939), co-operation with Germany (41-44)
• German occupation of Denmark, Norway
• Uneasy position of Finland during Cold War

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Historical links

• Norway ruled by Denmark until 1814, then ruled by
  Sweden until 1905
• Iceland ruled by Denmark until 1944
• Finland ruled by Sweden until 1809, then by
  Russia until 1917 (as a Grand Duchy)
• Sweden and Denmark traditionally the dominant
  powers in the region
• Norway more assertive since discovery of North
  Sea oil and gas resources

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Political history

• Ancient tradition of political authority vested
  in peasants councils TING assembly
• Usurped by the monarchs and aristocracy but
  tradition of local, grass-roots participation
  lived on
• All basic institutions of parliamentary
  government in place by 1920s
• modern constitutions in place before social
  conflicts in the 1920s and 1930
• By large, broadly similar party systems
  (Five-party Scandinavian model)

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Political traditions

• Politics of neutrality (Sweden, Finland)
• Non-interference
• Culture of compromise
• Tolerance
• Protestantism
• Culture of constants, reform deliberation
• High levels of education
• Respect for the law, international trade and
  co-operation, very high level of aid for
  developing world

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Nordic Democracies - State Structure

• Unitary
• Monarch
• Republic
• President
• Unicameral

Sweden Norway Denmark Finland Iceland
v
v
v
v
v
v
v
v
v
v
direct (since 1994)
direct
v
v
v
v
v
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Head of State

• Finland (since 1994) directly elected president
  with large executive powers, reduction since
  constitutional reform in 2000
• Iceland directly elected president with largely
  ceremonial role
• Except for Sweden, head of state has power to
  appoint Prime Minister

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(No Transcript)
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Constitutions

• DK 1849/1953
• N 1814 (amended many times)
• S 1849/66 1974
• Fin 1919/2000 (reform)
• Ice 1944 (amended many times)
• BUT no separate Constitutional Court
• Instead Ombudsman, who investigates abuses of
  state power

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Institutional Learning

• Supremacy of parliament
• Unicameralism spread from Norway
• Ombudsman invented in Sweden
• Use of referenda spread from Denmark
• .

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Economic and social development

• Largely peasant farming and fisheries economies
  until late 19th century
• Sweden a fortified poorhouse
• Late but rapid industrialisation in the early
  20th century
• Developed as advanced industrial societies
  post-1945

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Economic and social development

• Rapid progress in direction of post-industrial
  societies (30-40 labour force in the service
  sector)
• Low unemployment (esp. Sweden) until 1980s
• Yet, uneven development between centre and
  periphery still creates a cleavage
• Agriculture and fishing still important

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Population Density
Population density for England 377 Population
density for UK 246
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The Welfare State

• The Scandinavian model
• Known for its extensive welfare programs
• Facilitated relatively peaceful transition from
  simple primary systems to advanced industrial
  economies
• Deliberate strategies to maintain employment by
  maintaining growth
• Strength of political institutions
• Social homogeneity
• Consensus-style of policy making

Total tax revenue as percentage of GDP
(2003) Denmark 49.0 Finland 44.9 Norway
43.9 Sweden 50.8 EU 15 40.6
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Three worldsof Welfare State Capitalism

• Anglo-Saxon (liberal) Model low-level of
  provisions, benefits means-tested, reliance on
  private provisions
• Continental (Conservative) Model Universal, but
  based on contributions/insurances retain
  previous level of achievement, corporatist
• (Mediterranean Model)
• Scandinavian (Social-Democratic) Model
  universal, high-level of benefits and
  redistribution, high taxes

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Consensus politics

• Set up in order to broaden social consensus
• Parties sought for cross-class appeal
• Social Policy
• Working methods
• Ministries have to consult with all interested
  parties when drawing up legislation
• Norway Sweden Royal Commissions of Enquiry
• Sweden unions employers encouraged to form
  large, centralized bodies
• Minority governments, oversized governments
  (Finland 75.3 per cent)
• Small societies, high degree of interlock within
  elites

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Cleavages

• The Scandinavian model reflects a COMMON cleavage
  structure
• Class partisan divisions
• Centre-periphery
• Divisions within class groupings (rural vs urban)
• Cultural cleavage division between modernizers
  and protectors
• Cleavages stable for a long time but pacified by
  consensus politics

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SCANDINAVIAN 5-Party MODEL

• Left Bourgeois bloc
• Radical Left Left Liberal Centre Right
• SWEDEN
• Socialist Soc Dems Liberal Centre Moderate
• (Conservative)
• NORWAY
• Socialist Peoples Labour Venstre Centre Hçyre
  
• (Liberal)
• DENMARK
• Socialist Peoples Soc Dems
  Venstre Centre Conservative
• (Liberal)
• FINLAND
• Left-wing SocDems Liberal Centre National
• Alliance Peoples Coalition

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Scandinavian Social Democrats

• Sweden 1932-1976 in government
• 1945-2003 20 out of 24 governments
• now opposition
• Norway 1935-1961 in government
• (Labour) 1945-2003 16 out of 25 governments
• now in government
• Denmark 1929-40 in government (whether alone or
  in coalition)
• 1945-2003 19 out of 3l governments
• now not in government
• Finland 1945-2003 largest single party in 24 out
  of 44 governments now tied with Centre and
  National Coalition in governing coalition
• Iceland relatively weak, but most interwar
  governments were red/green i.e. Social
  Democrats Agrarians
• now not in government (SD Alliance)

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Party groupings I

• Radical left
• most fragmented of the groupings (except Finland
  and Iceland)
• Traditionally well organized and modestly
  successful communist parties
• More modern leftist parties
• Social democrats
• Labour party in Norway
• Traditionally largest party (not Iceland)
• Dominated politics in DK, N S until 1970s

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Party groupings II

• Social democrats
• Extension of welfare provisions led to very high
  tax rates
• Huge growth in public sector (bureaucracy)
• Changes in social structure class structure
  blurred through decline of blue collar jobs
• (Issue of EC membership)
• Bourgeois coalitions in Norway (1965), Sweden
  (1976), Denmark (1982)
• Social democrats could recover in 1980

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Party groupings III

• Liberals
• Venstre in Norway and Denmark
• Descendants of 19th c. liberal parties
• In decline (Fin, Ice, N)
• Agrarian parties
• Very distinctive feature of Scandinavian politics
• Originated in farmers peasants parties of the
  19th century
• To be more competitive, they changed their names
  in the 1950s and 1960s into CENTRE PARTIES (Fin,
  N, S)
• Conservatives

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Erosion of political traditions

• Party system
• EU splits new left agenda open economy
  developments
• New parties Progress Party (Denmark Norway)
  New Democracy (Sweden)
• Greens left socialists/left libertarians
• 1980s 1990s conservative advance (occasional)
  bourgeois coalitions
• Huge debts welfare state under pressure
• Inflated public sector
• Partial abandonment of neutrality (Sweden)
• Restrictions on immigration (Denmark)

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Scandinavia and the EU

• Denmark entered EC in 1973
• Negative referendum on Maastricht Treaty (1993)
• negative referendum on EURO (2000)
• Opt-outs
• Sweden and Finland entered EU in 1995
• negative referendum on EURO in Sweden (2003)
• Norway failed two referenda in 1973 and 1994
• Finland member since 1995

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Assessment

• By and large, Scandinavian model a huge success
• Excellent education system
• Comprehensive childcare facilities, high degree
  of gender equality, high labour-force
  participation
• Extremely low rates of infant mortality
• Low unemployment in Denmark, Norway, Sweden

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Assessment II

• By and large, Scandinavian model a huge success
• GDP per capita higher than in most European
  countries
• High (but decreasing) level of income equality
• High environmental standards
• Comparatively high GDP growth (by WE standards)
• Still rather high taxes

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Assessment III

• Scandinavian politics today more controversial
  (esp. through conservative parties)
• Flexicurity in Denmark (Sweden)
• Reflected in greater voter volatility
• Class cleavage in demise
• Trend towards normal (liberal-democratic)
  politics?