Sunday, 18 September 2005 Chris SNUGGS, ISUGA 1 The Nordic Model ….

Sunday, 18 September 2005Chris SNUGGS, ISUGA

1

The Nordic Model ….

Sunday, 18 September 2005Chris SNUGGS, ISUGA

2

The Nordic Model ….

generous social benefits "from cradle to grave"

yet, economies generally doing well ….

Finland, Denmark, Sweden & Norway in top 6 for competitiveness

high standards of education, health & living standards – low corruption

unemployment relatively low (but how real are figures?)

The rest are green with envy ….

Sunday, 18 September 2005Chris SNUGGS, ISUGA

3

The Nordic Model ….

UNEMPLOYMENT BY GENDER - 2004

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

FRANCE

GERM

ANY

ITALY

FINLAND

SWEDEN

DENMARK

BRITAIN

NORW

AY

MEN

WOMEN

Sunday, 18 September 2005Chris SNUGGS, ISUGA

4

The Nordic Model ….

PUBLIC HEALTH EXPENDITURE - 2002

$2 9

00,0

0

$2 3

00,0

0

$2 2

00,0

0

$2 2

00,0

0

$2 1

00,0

0

$1 8

00,0

0

$1 7

50,0

0

$1 5

00,0

0

$0,00

$500,00

$1 000,00

$1 500,00

$2 000,00

$2 500,00

$3 000,00

$3 500,00

NORW

AY

GERMANY

SWEDEN

DENMARK

FRANCE

BRITAIN

ITALY

FINLAND

Sunday, 18 September 2005Chris SNUGGS, ISUGA

5

The Nordic Model ….

PRODUCTIVITY GROWTH - 2004

SWEDEN4,40% NORWAY

4,25%

FINLAND3,75%

DENMARK2,90% FRANCE

2,80%BRITAIN2,75%

GERMANY1,00%

ITALY2,50%

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

3,50%

4,00%

4,50%

5,00%

Sunday, 18 September 2005Chris SNUGGS, ISUGA

6

The Nordic Model ….

NATIONAL BUDGETS - 2004

NORWAY 12,00%

SWEDEN 1,50%

FINLAND 2,00%

DENMARK 2,50%

BRITAIN -3,00%

ITALY -3,00% GERMANY

-3,30%FRANCE -3,25%

-6,00%

-4,00%

-2,00%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

Sunday, 18 September 2005Chris SNUGGS, ISUGA

7

The Nordic Model ….

high taxes: 50% of income compared to Anglo-Saxon 35% & French 42%

people accept it, as benefits are good ….

COST OF NORDIC MODEL?

HOW DO THEY DO IT?

painful restructuring in 80s/90s

manufacturing allowed to decline without paranoia

R&D and development of services privileged

example: Getinge, maker of medical respirators, 120 out of 300 in R&D

"mature", realistic attitude to globalization, outsourcing, delocating……

workforces flexible – agree to adapt hours to work

more acceptance of dismissals

co-operative unions – management-union partnerships, not confrontation

workforce generally rejects protectionism – accept restructuring

Sunday, 18 September 2005Chris SNUGGS, ISUGA

8

The Nordic Model ….

SO, ALL IS ROSY IN GARDEN?

Nordic countries on upward curve, but nothing lasts for ever

high taxes are brake on economy: IKEA, TETRA PAK, SKYPE all based outside Scandinavia

massive benefits of oil to Norway, Steel in Sweden & wood pulp to Finland

Norway just elected leftish government …..

WHY NOT EXPORT THE “MODEL”?

human nature to want the benefits, but not the pain

cultural gulf between Northern & Southern Europe

being a large country not always a help (pretentions ….)

Adoption of Nordic model demands change in "Olde Europe" mindset