The Swedish Model: A Comment on Mancur Olson's Analysis

Erik Moberg

in A Not-so-dismal Science

Published in print January 2000 | ISBN: 9780198294900
Published online November 2003 | e-ISBN: 9780191596728 | DOI:
 The Swedish Model: A Comment on Mancur Olson's Analysis

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Sweden is a famous example of the modern democratic welfare state. This chapter discusses the rise and fall of the ‘Swedish model’ and disputes Olson's analysis (in two separate publications) of the successful pre‐crisis period and the subsequent crisis. Olson's analysis emphasizes the important long‐run effect of encompassing interest organizations in the decline of the Swedish model. In contrast, Moberg, emphasizes the importance of the country's particular constitutional structure, and discusses the role of this structure in the emergence of encompassing organizations. He also points out the lack of flexibility in Swedish society, and in particular, in the labour market, which has increased the country's vulnerability to price shocks, and its subsequent dependence on the welfare state.

Keywords: constitution; encompassing interest organizations; encompassing organizations; flexibility; labour market; Sweden; welfare state

Chapter.  6362 words. 

Subjects: Economic Systems

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