Nordic Model

Nordic Model

The Nordic model (or Nordic capitalism or Nordic social democracy) refers to the economic and social models of the Nordic countries (Denmark, Iceland, Norway, Sweden and Finland). Although there are significant differences among the Nordic countries, they all share some common traits. These include support for a "universalist" welfare state (relative to other developed countries) which are aimed specifically at enhancing individual autonomy, promoting social mobility and ensuring the universal provision of basic human rights, as well as for stabilising the economy. The Nordic model is distinguished from other types of welfare states by its emphasis on maximising labour force participation, promoting gender equality, egalitarian and extensive benefit levels, the large magnitude of wealth redistribution, and liberal use of expansionary fiscal policy. The Nordic combination of extensive public provision of welfare and individualism has been described by Lars Tragardh, of Ersta Skondal University College, as “statist individualism.”

The Nordic Model however is not a single identical set of policies and rules in every country; each of the Nordic countries has its own economic and social models, sometimes with large differences from its neighbours.