In this theme page, you can find articles, films and podcasts about the Nordic Model. Many people refer to the Nordic Model in different ways. The Economist proclaimed the Nordic countries as the ‘next supermodel’ in 2013 based on their combination of competitiveness and innovation, equality and wellbeing. Democrat contender for President in the US Bernie Sanders is frequently quoted as putting forward what are often referred to ‘socialist’ or ‘social democratic’ policies based on one or more of the Nordic countries. Also outside the Western hemisphere there is discussion about the Nordic countries, such as Nordic councils being of particular interest in Asia, for example.
There is no simple answer to the question ‘What is the Nordic model?’ and, in fact, there are many differences, as well as Swedish, Danish, Icelandic, Finnish or Norwegian models. That said, since about 1970, the term ‘the Nordic Model’ has been used to denote some key characteristics that the five Nordic countries have in common. You can watch Mary Hilson describe these in the short film 'What is the Nordic Model?'
Most importantly perhaps is the combination of capitalist economies with relatively high levels of taxation and universal welfare benefits, including healthcare.
The political culture is one of multi-party parliamentary democracy dominated by strong social democratic parties and consensus. For example, you can read about political coalitions and parliamentary culture, which is often contrasted with more adversarial ones, such as, in Washington. Similarly, policy-making is more consensual with a greater level of negotiation and collective bargaining between employers and workers via trade unions in the labour market. Corporatism can also be seen in other contexts as well.
During the social democratic heyday of the mid-20th century, the Nordic countries were almost exclusively seen as ‘neutral’ or 'non-aligned' from a defence point of view. This remains largely true despite Denmark, Norway and Iceland being founding members of NATO in 1949. During the Cold War, they had a unique status between the Eastern and Western blocs. You can read more about Norway's status during the Cold War and Denmark's status during the Cold War, for example.
These states were also among the earliest to introduce lauded measures of open government in the Nordics and are often seen as examples of transparency and lack of corruption with high levels of public trust.
Although many of these aspects still hold true, they hark heavily back to the social democratic heyday in the mid-20th century in the Nordic region.
It is generally accepted that since the early 1990s the Nordic Model in its traditional sense has been disappearing, or at the very least has been significantly challenged (See the article 'Is the Nordic model in danger?', for example). Various internal and external factors have been highlighted as the cause for this, as set out in our article 'The Nordic welfare state: staying fit-for-purpose'. Neo-liberalism heralded the individual and market as more important than the old meaning of collectivity and 'the people's home', and the socialist overtures inherent in these old ideas of the Nordic Model are increasingly being shrugged off - for better or for worse. If you would like a more specific example, you can read about how unemployment insurance was tied to trade unions in the ‘Ghent’ Nordic countries. Recently Finland, for example, allowed the setting up of independent insurance schemes.
PICTURE: The Nordic model should not be considered to be the same as a strong state and/or interventionist economic policy. Aleksanterinkatu, Helsinki, Finland. Photo: Tapio Haaja, Unsplash.
With respect to Denmark specifically, you can watch a short film (in Danish with English sub-titles) tracking the developing of the welfare state from a tentative start around 1900 to its development as a social democratic project in 1960s. It sets out that the welfare state remains strongly accepted in Denmark even though it is under pressure and its design is continuously debated.
Associate Professor from the Centre of Nordic Studies at Helsinki University, Johan Strang gives examples of how the Nordics have moved away from the traditional idea of Nordicity since the end of the Cold War in this short film. These include the fact that democracy has become more based on the rights of the individual with the influence of, amongst other things, human rights. He also describes how they have moved away from collective participation and negotiation which was more prevalent during the mid-20th century. There has also been the shift from neutrality to a greater sense of Nordic cooperation around defence. Despite their humanitarian reputation, the production and export of arms has been significant in the Nordic countries (except Iceland).
Globalisation and the need to keep up with financial markets has also inevitably played a role, and you can read about this from an economic point of view, as well as its impact on society as a whole such as the recent rise of populism.
A more multi-ethnic population is also frequently quoted as a challenge to the Nordic Model. While this can be deeply problematic as it can lead to assumptions that racial homogeneity was a factor in the ‘success’ of the Nordic Model, the increase in multiculturalism must not be overlooked.
Bernie Sanders refers to the Nordics to give a concrete idea of future (some say socialist) policy ideas. Macron refers to the Nordics to give a concrete idea of future policy ideas where the state embraces neo-liberalism. Fox TV news presenter Trish Regan refers to Denmark as a socialist country like Venezuela and therefore not to be emulated under any circumstances. The White House report 'The Opportunity Costs of Socialism' heavily criticizes socialism and aspects of the Nordic Model in particular. Some economists criticise the Nordics as they do not resemble the 'textbook' model of efficiency with large public sectors, with extensive and generous welfare systems, a high level of taxation and considerable state involvement. What is one then to believe?
The term the Nordic Model should be used with caution as it can apparently mean many different things leading the renowned Finnish historian Pauli Kettunen describing the Nordic model as a single model with five exceptions. Listen to a nordics.info podcast discussing the myriad of ways the Nordic model has been seen and used over the last century: The Nordic Model: Heaven or Hell?
Here is a list of articles, in the order that they have been published, that are to do with the Nordic Model theme:
2020.04.06 | Outlook, Johan Strang, Public policy, Nation building
Given the striking similarity of the Nordic societies, it is interesting to note how differently some of them have reacted to the current covid-19 crisis. For example, Denmark and Norway were quick to implement a work and school lockdown and close their borders. In contrast, Sweden has raised international interest with a comparatively lax…
2020.03.19 | Article, Young-Kyu Shin, Petri Böckerman, Research, Public policy, The Nordic Model
The Nordic countries have some of the highest trade union rates of membership in the world. This has by some been attributed to unemployment insurance being largely administered by trade unions. Since around 1910, unemployment insurance in the Nordic countries Denmark, Finland and Sweden has been based on a voluntary system (‘Ghent’), rather than…
2020.03.17 | Film, Johan Strang, Research, The Nordic Model
In this short video, Johan Strang, Associate Professor at the Centre for Nordic Studies at the University of Helsinki compares the social democratic heyday of the mid-20th century in the Nordics with trends in politics and society since 1990. While some commentators apply the ‘socialist’ label to aspects of both these wide-ranging and complex time…
2020.02.12 | Outlook, Monica Quirico, Democracy, Nation building
The “Nordic model” is often presented as a solution to the dominance of neoliberalism and the rise of populism. Populist tendencies within the region, including the reclaiming of nationalist identities and anti-immigration and anti-globalisation sentiment, can often be overlooked by outside observers. Whereas elsewhere economic crises encourage …
2019.12.17 | Film, Nicola Witcombe, Branding, Region-building, The Nordic Model
Are the Nordic countries really that similar to one another? - Or different from the rest of the world? Is discussion of 'the Nordics' simply a branding exercise, or can it be a useful analytical lens? Join Nicola Witcombe, the editor of nordics.info, in a brief exploration of the some of the ways people talk about the Nordics. This is the first…
2019.12.10 | Outlook, Atle Midttun, Nina Witoszek, Nation building, Research
In the first decades of the 21st century, some Norwegian commentators have been calling for an increased emphasis on commercial competition in Norwegian business and education, and an increased focus on profits as a measure of relevance and utility. This trend poses a threat to the social welfare model in Norway as it is traditionally construed. …
2019.10.09 | Film, Peter Yding Brunbech, Governance, Nation building, The Nordic Model
Even though the welfare state in the Nordics is under pressure and its design is continously debated, it has rarely been more strongly supported in Danish history. Today, nearly all Danish political parties support the basic welfare society model, and they compete over who is best to secure it. Watch this mini-lecture and hear how, from a…
2019.09.18 | The Quick Read, Agnes Arnórsdóttir, Nation building, Region-building
Iceland was a largely uninhabited island in the northern Atlantic Ocean where Norsemen settled around 870. It began as a ‘free state’ but became a Norwegian province in the years 1262/64. As a dependency of Norway, Iceland came under the Danish-Norwegian Crown in 1380 and was in reality a Danish dependency from 1660. During the course of the 19th…
2019.09.11 | The Quick Read, Agnes Arnórsdóttir, Nation building, Democracy
Even though Iceland remained under Danish rule, the Icelandic ‘Althing’ was restored in 1845 as a national consultative assembly, and in 1874 the country obtained a constitution giving the Althing its own legislative power. Home rule was introduced in 1904, and in 1918 Iceland became an independent and sovereign state in personal union with…
2019.09.10 | Outlook, Thorsten Borring Olesen, Democracy, Nation building, Research
In the summer of 2019, the Trump Administration voiced an interest in buying Greenland from Denmark. The historical background for this stretches at least as far back as a case brought by Norway at the International Court in 1933 when it was decided that Denmark had full sovereignty over Greenland. Since then, Danish governments have engaged in…