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Jalaluddin Rakhmat

Ideological Background

Economical Background

The Swedish Social Welfare System

Swedish Pensions

Social Services Act
The Swedish Case

Perhaps the most famous welfare

One of the richest, but also perhaps
the most equal countries in the world
What can we learn from the Swedish
The Swedish Welfare Model
Daniel Ankarloo

In the ‘golden era’ of welfare capitalism

(1950-1980) it was hailed left and right for its
unique combination of a capitalist
ownership structure and a ‘social market’:
a ‘middle way’ between ‘unregulated
capitalism’ and ‘planned economy’ with
striking achievements as regards both
economic growth and social equality. In Gösta
Esping-Andersen’s famous typology of
‘welfare regimes’ under capitalism, Sweden is
the prime example of the ‘social democratic’
Swedish Values and Political Philosophy:
 Social Democracy:
 Key difference from communism is the liberal
belief in gradual change rather than revolution
 Core Values:
 Compassion and Collective Responsibility
• All individuals have a moral and collective
responsibility to help others in need
 Democracy
• People should be encouraged to participate
actively in government and have the freedom of
 Freedom and Tolerance
• People have the right to express themselves
and to explore personal values
 Social Equality
• Equal and universal access to social programs,
redistribution of wealth through progressive
taxation, and a mixed economy
– Private enterprise is important to promote growth
in the economy, but this growth is not stable
without significant government intervention and
public enterprise
 Collective social action (welfare state)
• Government funded social programs that will
raise the standard of living as well as quality of
Political Spectrum Sweden

Radical Liberal Conservative Reactionary

Left Centre Right

Centre Party
Left Party •Promote the
•Communist Christian
interest of the
party including Liberal Party Democrats
Swedish farmers
violent change •Has changed •Attempted to
•Limited support policies with the deal with
Green Party changing economic
Social •Environmental economic problems with a
Democrat Party party realities ‘Christian’
•Reforms and philosophy
Moderate Party
•Former conservative party
•Have held New
•Main Right wing party
power Democracy
•Generally conservative
sporadically form •Neo-
economic policies
the 1950s conservative

Socialist Block Non Socialist Block

Swedish Political System:
 Parliamentary Democracy
 Executive
 Monarch
• Represents the country
• Cannot participate in political affairs or be a member of the government
 Prime Minister
• Head of government and accountable to the Riksdag
• The speaker of the Riksdag chooses the PM who must then win a majority
of votes in the Riksdag
– Appoints cabinet, government officials, and judges
– Determines government policies and submits them to Parliament
 Legislative
 Riksdag
• Any decision in this body must be made with the approval of the majority of
the members
• Political parties that can keep the majority of votes stay in power
• If they cannot then the speaker asks the other leaders of the political parties
to form a majority
 Judicial
 Supreme Court
• Five appointed members (serve until 65 or removed)
• Are able to determine if a law is constitutional or not
The Swedish Economic System
Swedish Economy:

 Private Sector
 Consumers
• Largest and most
influential group in the
 Business Enterprise
• Cooperatives
– 1/3 of population
members of
cooperatives profit
sharing and increases
buying power
 Corporate Sweden
• Large corporations
dominate the economy
Swedish Economy:
Public Sector:
 Fiscal Policy
• Maintain full employment
• Progressive taxation (depending on time period)
 Monetary Policy
• Neoconservative policies especially within the bank post
 Indicative planning
• Meeting with all members of the economy to determine the
goals of the economy (all levels of the government and
• As a result of this system Sweden has one of the most
peaceful labor records of any Western nation
 Collective bargaining
 Co-Determination and collective ownership
• These actions gave greater voice to employees to all aspects
of the Swedish economy
The ‘Cradle to Grave Welfare
 The Swedish Government provides
comprehensive social services
such as:
 Free prenatal care
 Maternity and paternity benefits
 Free daycare and nursery
 Family allowances
 Free lunches for older children
 Free university education
 Free medical and dental care
 Subsidized lunches and bus
 Guaranteed 5 weeks paid
vacation per year
 Pensions tied to the cost of
The Cost

In order to pay for

these benefits
Swedes pay the
highest taxes of any
industrialized nations
Steep progressive
 The more money you
make the more you
pay in taxes
• 60-80%
Fundamental Starting points

 an effective taxation system-

national, regional, and local
 joint responsibilities with
contributions from empoyers
and employees
Three levels of welfare support

general benefits and services

 social insurances
 means tested benefits
General benefits and services
 Prenatal care, child health care,
vaccination program, free
education, early
education/preschool and care for
children, child benefit
 subsidized health care and
 financed mainly by taxes
Social insurances

Parental insurance,
unemployment benefits, sickness
benefit, income pension
 financed mainly by joint
contributions from employers and
Means-tested benefits

 housing allowance, social

assistance, care allowance,
home care services
 often based on household
financed mainly by taxes
Pension System

 Private Savings
 Public pension
Income pension system

 pension based on life time

 basic security by guarantee
a financially stable system
No fixed retirement age-
retirement possible from 61 yrs old

 social services shall promote people’s

 economic and social security
 equality of living conditions
 active participation in the life of the community
 social services shall be aimed atliberating and
developing the innate resources of individuals
and groups, built upon the respect of people and
self determination
Social Security in each level

State County
Council Municipal

•Social insurance
•Housing allowance Health •Social allowance
•child allowance •Schools
•Maintenance advance and
•Care for the elderly
•Study allowance medical •Child care
• unemployment benefits care
•Higher education
Jalaluddin Rakhmat