SOCIAL DILEMMAS OF THE SWEDISH ECONOMIC MODEL IN THE POST-WAR PERIOD

Abstract

The article analyzes the stages development of the Swedish economic model from the mid-nineteenth century to the crisis in period 20082010. Sweden is the richest Scandinavian country and one of the most industrialized countries in the world. Sweden is an economically highly developed and efficiently organized country. For the last few years, the economy has been in a phase of economic growth. In the period 20182021, the gross domestic product (GDP) grew at a rate of almost 2.0% in the conditions of low inflation (approx. 3% annually) and a relatively high unemployment rate (7.0% in 2019 and 8.8% in 2021). The economic results achieved by Sweden are not accidental. This is the result of the harmonized economic policy pursued continuously by the Swedish government, which actively affects the material course of economic growth processes in this country. The development of economic policy in Sweden can be divided into two periods: the first (1970s and 1980s) was characterized by the decline of traditionally understood industrialization. The change in the political arena in the period 1976-1982, which resulted in the removal of the Social Democrats from power, did not stop the subsequent fiscalism and the increase in public and social spending. The rate of economic growth in the long-term horizon was declining. Between 1961 and 1970, the average annual growth of Swedish GDP was 8.9%, 5.6% in the 1970s and 6.9% in the 1980s, respectively.The process of internationalization of Swedish enterprises, liberal approaches to economic cooperation with foreign countries and the recovery of public finances, whose dynamic development took place in the 1990s, are the second characteristic period in Swedens economic policy. For more than two decades, Swedish governments have maintained strong fiscal discipline. After theeconomic reset in the early 1990s, the general downward trend in the share of public spending in Swedish GDP seems to have come to a halt. In the last 3 years (20192021), public spending did not exceed 50% of GDP. Moreover, Sweden has maintained a low level of public debt for years. The ratio of public debt to GDP decreased from 78% (1994) to 35.2% (2019), 39.6% in 2020 and in 2021 36.7%. One of the important factors enabling the rapid economic growth of Sweden was high expenditure on research and development (R&D). For several years, Sweden has been at the forefront of countries investing the most in the development of new technologies. An important factor in Swedens economic growth has also been the high level of foreign investment. According to UN statistics, Sweden is one of the most attractive places to invest foreign capital. The impulse of the Swedish economy over many years was the development of exports, which in 2021 reached the level of approx. PLN 176 billion. Euro, which puts Sweden at the forefront of the world. The share of exports in creating the Swedish GDP in 2021 was as much as 45.5%.The EU membership also had a positive impact on Swedens economic development.Swedens social and economic success has also been achieved on the basis of the lessons learned from the financial crisis of the early 1990s. The unchanging strategy and economic policy, together with competitiveness, innovation and a flexible approach to trade, have made Sweden today a highly competitive country with an economy that achieves measurable successes.