The Swedish Model (SM) was made famous because of its special character relating to industrial relations. The reasons for the failures of the system are complex. In the following some points about its failure are mentioned, however there are several other aspects, which can be discussed. The theme of this essay will be the changes in environment and their impact on the SM that can be seen as symptoms of the failures in the SM. The main reasons for the problems in terms of the SM are the static assumptions or framework of the system without covering dynamic effects and necessary reactions to changes. The main assumption of the class compromise between capital and labour cause many problems, however, it also made SM very unique and was the reason for the admired welfare system and economic growth. The problems and the interdependences between developments in respect of changes in environment will be analysed below.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Historical backround and characteristics of the SM
- Elements of the SM
- First: Economic growth, rationalisation and productivity growth
- Second: Government responsibility for full employment
- Third: Solidaristic wage policy
- Analysis
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to analyse the failures of the Swedish Model (SM), particularly focusing on the changes in environment and their impact on the system. It examines how the SM's static assumptions and framework struggled to adapt to dynamic effects and changes, leading to its decline.
- The SM's class compromise between capital and labor
- The impact of environmental changes on the SM
- The limitations of the SM's static assumptions
- The role of the SM in achieving welfare and economic growth
- The changing nature of industrial relations and labor market dynamics
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This section introduces the Swedish Model (SM) and its unique character related to industrial relations. It highlights the complex reasons for the system's failures and outlines the essay's focus on environmental changes and their impact on the SM.
- Historical Backround and Characteristics of the SM: This chapter delves into the historical context of the SM, emphasizing its foundation in social democracy and the class compromise embodied by the Basic (Saltsjöbaden) Agreement. It explores the SM's distinctive features, including its welfare system, economic growth, and the strong position of trade unions.
- Elements of the SM: This chapter explores the three key elements of the SM. These include the shared interest in economic growth and productivity, the government's responsibility for full employment, and the solidaristic wage policy.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this essay include the Swedish Model, industrial relations, class compromise, environmental changes, welfare system, economic growth, trade unions, solidaristic wage policy, full employment, and labor market dynamics.
Frequently Asked Questions
What are the core elements of the Swedish Model (SM)?
The SM is built on three key pillars: a shared interest in economic growth and productivity, the government's responsibility for full employment, and a solidaristic wage policy.
Why did the Swedish Model face a decline?
The main reasons were its static assumptions and framework, which failed to adapt to dynamic global changes and shifts in the economic environment.
What was the "class compromise" in the Swedish Model?
It was an agreement between capital (employers) and labor (trade unions) to work together for economic growth in exchange for a robust welfare system and stable industrial relations.
What is the "solidaristic wage policy"?
This policy aimed for equal pay for equal work across different sectors, regardless of a specific company's profitability, to promote social equity and industrial efficiency.
How did the Saltsjöbaden Agreement influence the system?
The Saltsjöbaden (Basic) Agreement of 1938 provided the historical foundation for the model, establishing the rules for peaceful labor market negotiations without government intervention.
- Quote paper
- Susanne Jung (Author), 2002, What were the faults of the Swedish Model?, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/12403
