Review article

THE NORDIC MODEL AND WELFARE STATE

Viktor Viljevac orcid.org/0000-0002-7242-115X ; Sveučilište u Zagrebu, Ekonomski fakultet Zagreb

Abstract

This paper analyses the Nordic model and functioning of the welfare state in the Nordic countries. The so-called „Middle Way“ between capitalism and socialism is successfully sustained in the Nordic countries albeit multiple pressures and challenges due to globalisation. The paper analyses and compares levels of economic development and citizen welfare measured by monetary and non-monetary indicators in Denmark, Finland, Norway and Sweden. Furthermore, these four countries are compared with the remainder of EU-28. Core ideas behind the Nordic model are analysed afterwards, as well as the crisis of the welfare state and the Nordic model during the rise of globalisation along with the subsequent reaffirmation of the Nordic model after the onset of the Great Recession. Analysis of macroeconomic data and review of the existing literature lead to the conclusion that it is possible to combine a high degree of state intervention in market outcomes with a high level of economic development and efficient functioning of the free market economy.

Keywords

Nordic model; welfare state; Nordic countries

Hrčak ID:

239603

URI

https://hrcak.srce.hr/239603

Publication date:

23.6.2020.

Article data in other languages: croatian

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