The Nordic Model - Embracing globalization and sharing risks

3
THE PERFORMANCE OF
THE NORDIC MODEL
This is a look into the
rear mirror – which
may be no guide for
the future
As was noted in chapter 1, there is a general perception that the
Nordic countries have done well in a number of respects and
notably in terms of reconciling the requirements of economic
efficiency with a high degree of social equality. This chapter will
present some facts to help evaluate the justification of that perception.
We will first examine aspects of economic efficiency in terms
of activity levels and growth performance, and then turn to social
considerations. It should be emphasized that we now look into
the rear mirror; this chapter provides a retrospective evaluation
of past performance. Needless to say, there is no strong reason to
presume that future developments will prolong past trends; many
countries and regions have experienced significant discontinuities
in their economic development. Subsequent chapters will set out
and assess some of the challenges that we think are of particular
importance in catering for the future.
3.1 EMPLOYMENT AND PRODUCTIVITY LEVELS
How should performance
be measured,
and with whom
should one compare?
There is no single measure of economic efficiency that could be
used for comparing Nordic performance to that of other areas
or countries. However, it may be argued that it makes sense to
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