Sweden’s socialist economic miracle not all that it seems
7 March 2016
The Swedish economic miracle model is highly misleading. South Africa cannot emulate Swedish economic success just by doing what that country does now. South Africa would first have to adopt the open market and free trade policies that made Sweden rich between the period between 1850 and 1950 and thus enabled it to support socialist tendencies.
This is according to Swedish national Johan Norberg, historian of ideas, academic and documentary filmmaker, who was presented with the Free Market Foundation’s (FMF) 8th Luminary Award at a ceremony in Johannesburg on 3 March. The FMF bestows the Luminary Award in recognition of inspirational individuals who have made an outstanding contribution to the principles of economic freedom and set an example to others.
Sweden enjoys almost mythical status for the economic success of its “third way” economic model which sees one of the world’s iconic welfare states having one of the most capitalist economies. Many countries, including South Africa, seek to replicate Sweden’s remarkable financial success.
Norberg told us, however, that Swedish wealth was not built under social democracy but on a competitive market economy. He disputes the idea that Sweden’s success was due to the 20 year socialist policy experiment adopted in 1970.