The Swedish Socio-Economy – Sustainability Through “Prosperity Despite Austerity”

As individuals, also in families, everyone knows that bringing economy in balance may not be a simple task especially in life transitions and critical periods, e.g. leaving school, starting university, entering the labor market, moving to another city or immigrating to a different country, also building a family and supporting the diverse needs of growing children. From here and extrapolating to community and national levels, the financial issues become more and more complicated and challenging especially for bringing about major socio-economic transformations, coping with highly dynamic globalized economy and having timely marginal for meeting environments and climate threats through appropriate mitigation policies. Among important issues in many societies are implementation of safety, security and welfare policies, also providing satisfactory public services as well as meeting known and unknown emerging economic needs arising from demographic changes

In historical perspective and throughout the world humans have developed, tested and applied may economic systems with variable levels of success. After WWII Europe went through major socio-economic transformation and political changes that brought around what we know today as the European Union. Sweden, however, demonstrated a unique example of prosperous and stable economy even during periods of severe global economic instabilities and recessions. It is interesting to demonstrate how “Prosperity despite Austerity” works in Sweden and how other countries can learn from the dynamic socio-economic policies where Swedish citizens make use of the election systems to guide politicians and politics to necessary corrections and adaptation. Can the Euro bankrupt learn from Sweden’s austerity success? Can the rest of the world extract some ideas from the economic models that brought Sweden to the very top of sustainable socio-economic societies? Well, the story has a start also. After years running an all inclusive welfare state, Sweden was by the early 90s, in deep crisis. The government pulled on the emergency brake and the social sector was reformed massively. Yet,”in comparison to many other countries, the Swedes have a great confidence in the state”. Drastic austerity measures were coupled with good tax incentives and an open budget. “We have a very long tradition of making information available to the public; this principle has had a big impact.”


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