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Tuesday, December 06, 2005

Can France follow Sweden?

Interest by continental Europe in the Nordic/Scandinavian model shows no sign of abating. See for example Eric Le Boucher's recent piece in Le Monde, Suivre le modèle suédois? (Follow the Swedish model). A translation was posted as 'Flexicurity': A Hybrid Anglo-Saxon/European model, by way of Uppsala? Boucher praises Sweden's approach to restructuring, as explained by Thomas Östros, the Swedish minister of industry and trade:

This "renewal strategy", sums up Thomas Östros, is composed of three components: (1) an openness to competition and the forces of change; (2) a massive drive to support innovation, universities, and research; and (3) a state that remains strong, but that has been completely retailored [adapté].

Boucher asks: "Is it possible to copy Sweden?" While he has objections, Östros disagrees:

"It's neither a question of size, nor of morale," retorts the Swedish minister, "but one of model" -- that is, of a coordinated strategy of structural reforms.  The key is not to change mentalities, but to propose "lots of State and lots of free market, both together [beaucoup d'Etat et beaucoup de marché, les deux ensemble]."

"France and Sweden are very close," he adds, "a strong state, the same industrial structure.  We have demonstrated that we can fight and preserve many industries in our country.  And create many jobs in related services."

Apologies if the translation is a bit rough. The piece is also worth reading for the numerous comments below the fold, specially on 'flexicurity'. (Hat tip: The Brussels Journal piece Myth of the Scandinavian Model). More on the Nordic model tomorrow...

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Listed below are links to weblogs that reference Can France follow Sweden?:

» (Almost) everything you wanted to know about the Nordic model from New Economist
Edward Hugh has already stolen my thunder, but as promised yesterday here is some more about the so-called 'Nordic model'. The Nordic countries are ranked among the most competitive countries in the world, have high living standards, and are home to qu... [Read More]

» Nordi-Flexi-Curity from A Few Euros More
New Economist has been indulging himself (actually, truth be known he wants us to indulge him) with three posts on the Nordic Model (here, here and here). Two things strike me. Firstly the fact that the UK presidency has been... [Read More]

» Nordi-Flexi-Curity from A Few Euros More
New Economist has been indulging himself (actually, truth be known he wants us to indulge him) with three posts on the Nordic Model (here, here and here). Two things strike me. Firstly the fact that the UK presidency has been... [Read More]

» Europe's leaders look to the 'Swedish model' from New Economist
We will be hearing a lot more about 'flexicurity' and the Swedish and Nordic models over the next few months, with the Austrian EU Presidency - and the Commission - keen to promote them in preference to the supposed 'evils' of the anglosaxon model. Las... [Read More]

Comments

One thing that is a little strange, in most EU debates at the moment it is Denmark which seems to be most cited in relation to 'flexicurity'. This has an interesting piece on the topic:

http://www.theepc.be/TEWN/pdf/720902918_EPC%20Working%20Paper%2020%20The%20Nordic%20Model%20a%20recipe%20for%20European%20success.pdf

Sorry, I've made a mess, maybe this will work better.

I was being lazy :).

I can only say that I find this very interesting indeed ... more to follow at my blog later on!


... Talking in terms of "model" is indeed the right approach. Prosperity does not depend on having a specific level of wages or taxes, but it is a result of a legal, educational, political, ... comprehensive platform. So cheers to those who talk about "models" rather than about specific narrow issues.
On the other hand, why talk only about the Swedish model??? Isn't there a Bavarian model in Germany (or rather a Alpine model covering Switzerland, Austria, and some parts of Italy)? And, if we were less racist, should we look at how hi-income Asian countries (such as Singapore and the now rebounding Japan) are tackling Chinese competition?
What we need is a healthy, wide, and no-holds-barred discussion about where we want to stand in 20 years.

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