The Swedish Model: What, why and whereto?

Lars Niklasson, Associate ProfessorPolitical Science

Linköping University, Sweden

Collective bargaining since 1938 Welfare for work (”Arbetslinjen”) since the

1950s (?) A welfare state since the 1970s (?)

A ”high tax equilibrium”: high taxes and high quality (?)

”Good government” generates trust in government?

Reforms since the 1990s A new ”supermodel” (The Economist,

February 2013)

What is the Swedish Model?

The roots: from the Vikings to the present days ---1809-1932-1968-1995

The effects: quality of life and competitive advantage? (Better than the alternatives?)

The logic: self-supporting trust (”equilibrium”) (Only in Sweden?)

Operations: central/local, fragmented/coordinated

Whereto? Europeanization, globalization

Topics of the course

After completion of the course, the student should…

…be able to show a fundamental knowledge of the origins and structure of the Swedish government and the Swedish social system

…have the capacity to deal with the many myths concerning Sweden and Swedish society

The ambition of the course

Introduction to Statebuilding Lars Niklasson Swedish history to 1600 Sofia Gustafsson Swedish history 1600-1800 Henrik Ågren Swedish history 1800-2000 Björn Ivarsson Lilieblad Good government from 1850 Lars Niklasson The early politics of the WS Elin Wihlborg Seminar on the literature Seminar on individual papers

1: The roots of the Swedish Model

Introduction to politics Lars Niklasson Education and training Lars Niklasson Governance & privatization Bo Persson Legitimacy & efficiency Lars Niklasson Drivers of change Elin Wihlborg Seminar on the literature Seminar on individual papers

2: The Swedish Welfare System

Active participation at the seminars Questions on the literature will be provided

Submit and defend a short individual paper 1,000-1,500 words A topic related to the course A question and a short analysis Only few extra sources (use the literature) Collaboration is encouraged High grades for clarity and creativity

Course requirements

A history compendium Articles by Bo Rothstein et al

Quality of Government Institute, Gothenburg Morel, Palier & Palme 2012: Towards a Social

Investment Welfare State? Ideas, Policies and Challenges, Bristol: The Policy Press

Articles from Oxford Handbook on Swedish Politics (forthcoming)

Articles on higher education policy

The literature

States are different Nordic, Anglo-Saxon, German, French, Asian etc. Parliaments, governments, bureaucracies etc. Comparison helps us understand and see causalitys

The historical process helps explain present variety What was before states? Why have they dominated from 1648? How were patterns formed?

1. Introduction to Statebuilding

Estates (the nobility) vs absolutist kings Strong peasants or towns (Not West/East) A military state vs separation ”Corruption” until 1870s vs 1730s

The legal systems, university education Gradual shift from conservatism to corporatism vs radical

break and strong liberalism (by the farmers) S: Protectionism, administrative corp., social corp. (statism) D: Radical break 1848-49, farmers and towns, little

corporatism More private providers in the Danish WS, less paternalism

Sweden and Denmark:Different paths and outcomes

What are ”western” and ”eastern” patterns? How do Sweden and Denmark fit these patterns? Sweden’s bureaucracy was more corrupt for a longer

time than Denmark’s; How? Why? What were the important steps in Sweden’s ”road to

mass politics”? How did it differ from Denmark’s? How did the popular movements differ? Can we see differences in the welfare states? (1993)

(Why is Sweden more similar to Denmark now? A new path?)

Knudsen & Rothstein 1993:State-building in Scandinavia

Lecture 2: Swedish history to 1600 Lecture 3: Swedish history 1600-1800 Lecture 4: Swedish history 1800-2000 Based on the compendium Excursion to western Östergötland

Swedish history

To be completed!

Questions on the history compendium

The puzzle: What causes what? A. Economic development, industrialization B. ”Good government” without corruption C. Welfare policies

Rothstein et al: the quality of the government is the key Corruption is a barrier to welfare and development (Co-evolution with early industrialization?)

How can you go from corruption to non-corruption? Corruption is a stable equilibrium Now: one of the least corrupt countries in the world

Lessons applicable to Russia, Africa etc

5. The roots of good government

The French ambassador 1771: Two serious problems, love for democracy and total corruption A patrimonial, nepotistic state A blurred line between public office and private interest

Heckscher: Marshy (försumpad) administration Hiring not based on merit Offices were sold to finance retirement Hold several offices and hire others to do the job Fees, housing and grain instead of salary Bribery was a crime only for judges

Sweden was a thirld world country

How to stop taking bribes? More control presumes a benevolent principal

How to control state leaders? Democratic elections, accountability, presumes…

A social trap, a suboptimal equilibrium (”collective action theory of corruption”), explains persistence ”Big bang” as a way out: impossible? An endogenous way out? (Ostrom 1990)

How can we explain the transformation?

Supply of a solution, Comitment, Monitoring A cooperation game (as overfishing etc) A high payoff from cooperation ”Another world is possible” New ideas: Liberalism Exogenous factors?

Ostrom’s solution

Appeals Court cases on malfeasance peaked twice, i.e. there was increased attention to the problem A new High Court in 1789, by the absolutist king but

with a long-term positive impact A need to save money after the wars 1808-09, 1814 A new political situation after the collapse of the

government 1809. A new constitution and a new king A threat to national survival, becoming a small state

Corruption was mainly in the rural administration

Data shows the transformation

The separation of public and private money: punishment for taking private ”loans” 1823

Several initiatives to outlaw promotion based on fees (pension system introduced in the 1870s)

A new tax system and the introduction of salaries A Weberian perspective: an impartial bureaucracy

was needed to strengten the legitimacy of the public sector (not divinity, heritage, tradition etc) The bureaucracy as a machine (hierarchy) to handle

routine cases in governments (and companies)

Debates in the Parliament (the Diet with four estates)

Enlightenment liberalism: meritocracy, impartiality, professionalism, accountability Britain, France, Prussia, Bavaria

(Schiller/Beethoven…) Stronger from 1830 due to a liberal press

and more liberals in the Parliament/Diet (industrialists)

Demand for a more representative parliament and a government that respected the constitution

Where did the ideas come from?

From feudal loyalty (back) to Roman legal traditions

Need for education and good universities More rational government: Railway Board 1862,

Telegraph Board 1865, Road and Waterway Commission 1841

Feudal guilds abolished 1864: free trade and commerce

Industrialization started around 1870

Bureaucracy and the economy

From aristocratic/particularistic state to bureaucratic/universal state

Bureaucracy and its alternatives Important for the development of the

economy; cause or effect?

Good government from 1850

What are the key elements in a theory inspired by Ostrom to explain the abolishment of corruption?

What are the key evidence that Sweden confirms to Ostrom’s explanation?

What external (exogenous) factors can have helped in the transformation of Sweden?

Teorell & Rothstein 2012: Getting to Sweden: Malfeasance and

bureaucratic reforms 1720-1850

What are the key elements of a bureaucracy according to Max Weber?

How did the Swedish civil service differ from the Weberian model?

What are the benefits of a bureaucratic government?

Is the bureaucratic model still appropriate for governments? How can it be improved?

Rothstein 1998: State Building and Capitalism: The Rise of the Swedish Bureaucracy

Popular protest and organized civil society Free trade vs. protectionism Democracy for men and women Saltsjöbaden 1938: corporatism The dominance of the labor movement 1932-76 ATP as a key event and major conflict ”The solidaristic pay policy” and the booming

1960s 1968 and the 1970s: triumph or hubris?

6. The politics of the early welfare state

What are universal welfare states? What are its electoral and political effects? What are the alternative explanations for a

relation between big governments and social capital?

What evidence points to the welfare state as an outcome of social capital?

What evidence points to the welfare state as a producer of social capital?

Rothstein 2008b: Is the universal welfare state a

cause or an effect of social capital?

What is the Power Resource Theory? What are the problems with PRT? What is ”bringing the state back in”? What are the key ideas in the Quality of

Government (QoG) theory? What does the empirical evidence show? Are

there any problems with the evidence?

Rothstein, Samanni & Teorell 2012: Explaining the welfare state:

Power resources vs the quality of government