The Nordic Economic Model
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ECON026
Case Length : 19 Pages
Period : 1950-2007
Pub. Date : 2008
Teaching Note :Not Available
Organization : --
Industry : -
Countries : Norway, Denmark, Finland, Iceland, and Sweden
To download The Nordic Economic Model case study (Case Code:
ECON026) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
» Economics
Case Studies
» Short Cases Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
|
|
<< Previous
Introduction Contd...
|
The Nordic economic model was characterized by high taxes, a
large public sector, and moderate market regulation. These countries were
welfare states, with healthcare, education, and other social services provided
free for all citizens.
Negating the commonly held belief that high tax rates
curtailed growth, the Nordic countries showed growth despite high taxes mainly
because they were able to achieve efficiency and bring about innovation in the
public sector. Besides, with the Nordic economies being only slightly less
liberal than Anglo-Saxon economies such as the UK and Ireland, foreign
investment was high in these countries.
|
|
Also, these economies had benefited from the absence of
corruption and red tape.
|
However, there were challenges. With globalization,
immigration, and aging populations, there was increasing pressure on the
welfare model.
The Nordic countries had responded by introducing reforms in pension and
healthcare in the early 2000s.
As of 2007, though the Nordic economies were among the best performers
globally, reforms to sustain growth and support government expenditure
were still being conceptualized and implemented. |
Background Note
Though 'Nordic countries' or 'Nordic region' traditionally referred to all the countries of Northern Europe, with the establishment of the Nordic Council in the 1950s, the term came to refer to the five countries of Denmark, Finland, Iceland, Norway, and Sweden, and their associated territories
- the Faroe Islands, Greenland, and Åland7 (Refer Exhibit I for a map of the Nordic region, Exhibit II to know more about the countries, and Exhibit III for some statistics)...
Excerpts >>
|
|
