Published in
Olav Molven (ed.) Healthcare, welfare and law. Oslo: Gyldendal Akademisk.
Summary
The performance of the Nordic model over more than fifty years seems to suggest that capitalist dynamism and worker security do not compete so much as complement one another. The model is more robust in the face of globalization than in the internal social changes it generates. Perhaps it should not be considered an end in itself, but rather a productive development strategy for countries that seek an egalitarian road to affluence.
At the very least, the Nordic experience speaks against those who claim there always is a trade-off between equality and efficiency in the development path of an economy. In this chapter I contrast such trade-offs with my own views on the Nordic model: First of all, the Nordic model may be seen not as a concession by employers to workers, but rather as a political and economic system that benefits both. Secondly, the rise of the model should be understood as a cumulative evolutionary process, and not as the result of intelligent design. Thirdly, the special form of equality that the model provides seems to stimulate rather than hamper innovation and structural change. Fourthly, rather than being threatened by globalization, the model may become a victim of its own success. Finally, instead of references at the end of the chapter, a list of research papers is provided where claims for this overview are further elaborated.