The Nordic Model - Embracing globalization and sharing risks
The Nordic Model - Embracing globalization and sharing risks
The Nordic Model - Embracing globalization and sharing risks
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ENDNOTES<br />
1<br />
Wikipedia refers to popular views, according to which “the laws of aerodynamics prove that<br />
the bumble bee should be incapable of flight, as it does not have the capacity (in terms of wing<br />
size or beat per second) to achieve flight with the degree of wing loading necessary”. <strong>The</strong>re is an<br />
interesting sequel to this, because Wikipedia also reports that the erroneous view is based on “a<br />
simplified linear treatment of oscillating aerofoils”, while “more sophisticated aerodynamic analysis<br />
shows that the bumble bee can fly because its wings encounter dynamic stall in every oscillation<br />
cycle”. <strong>The</strong> analogy with the bumble bee obviously suggests that the <strong>Nordic</strong> model is something<br />
more than just high taxes <strong>and</strong> big government. On this analogy see also Thakur et al. (2003).<br />
2<br />
<strong>The</strong>re are residual forms of social assistance which are means-tested also in the <strong>Nordic</strong> countries,<br />
<strong>and</strong> which therefore give rise to “poverty traps”. However, it remains the case that countries<br />
with universal schemes in general have less means-testing <strong>and</strong> less severe poverty traps than<br />
many other countries.<br />
3<br />
This is the case notably if one starts from a (“Rawlsian”) perspective of a hypothetical individual<br />
who does not know what his position in society may be or become (who is reflecting on social<br />
choices from behind the “veil of ignorance”). <strong>The</strong> purpose for which Rawls employs this thought<br />
experiment is to help make the theoretical case for certain basic principles of justice. Its practical<br />
relevance is, needless to say, weakened by the fact that actual political discourse does not occur<br />
in a vacuum but in a context where various actors have well-defined <strong>and</strong> often conflicting interests.<br />
4<br />
While now highly secular, the <strong>Nordic</strong> culture is strongly influenced by the Lutheran faith,<br />
which gives prominence to a strong work ethic <strong>and</strong> solidarity between members of society (<strong>and</strong><br />
even conformist pressures). <strong>The</strong> long history of independent farmers <strong>and</strong> the tradition of local self<br />
governance are other features worth noting. Sc<strong>and</strong>inavian kings have shared some power not<br />
only with the nobility <strong>and</strong> the church but also with the l<strong>and</strong>-owning farmers for ages. <strong>The</strong> administration<br />
of the state was rather effectively organized in the Swedish kingdom as early as the 16th<br />
century. <strong>The</strong> <strong>Nordic</strong> countries have never been class societies to the same extent as, say, France or<br />
Engl<strong>and</strong>. In the 1920s (at the latest), the labour movement <strong>and</strong> the <strong>Nordic</strong> Social Democratic parties<br />
ab<strong>and</strong>oned the view that capitalism would collapse because of its inherent contradictions.<br />
Instead, the reformist vision was that the socialist future should be built not on the ruins of capitalism<br />
but on a flourishing <strong>and</strong> growing economy. Increasingly, as the labour movement acquired<br />
influence <strong>and</strong> power, it became an element of stability in society – though later in Finl<strong>and</strong> than in<br />
the other <strong>Nordic</strong> countries.<br />
5<br />
See, e.g., EEAG (2007), chapter 4.<br />
44 · <strong>The</strong> <strong>Nordic</strong> <strong>Model</strong>