We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Analysis of the Sustainability of Nordic Welfare Model in Times of Economic Recession - Essay Example

Comments (0) Cite this document
Summary
This essay critically assesses the sustainability of Nordic welfare model in the times of protracted recession in the world economy. The Nordic countries are unique in combining the best qualities of market liberalism and socialism in order to produce societies which are wealthy but yet egalitarian…
Download full paperFile format: .doc, available for editing
Polish This Essay98.9% of users find it useful
Analysis of the Sustainability of Nordic Welfare Model in Times of Economic Recession
Read TextPreview

Extract of sample
"Analysis of the Sustainability of Nordic Welfare Model in Times of Economic Recession"

Download file to see previous pages The first challenge for Nordic countries is the demographic shift. The population in the entire developed world is greying and Nordic countries are no exception. With the increase in longevity of people and reduced child births, the number of people above the age of 65 is rapidly increasing (Adema, 2001). All Nordic countries provide generous pension facilities to enable the old to live a life of dignity. Thus if the number of dependents increase, it becomes increasingly difficult to finance their pension out of the income of working population. It has been assumed that in the next 3 decades the old age dependency ration will increase from 0.25 to 0.40 in the Nordic countries. The dependency ratios over the next 40 years in three Nordic countries is shown in the graph below – Source: (Kvist & Greve, 2011) Thus it is clear from the above figures that it will be unsustainable for Nordic countries to provide pension to their elderly without significantly deteriorating their finances. It is assumed that Denmark will suffer deterioration of finances up to 4% of GDP; it will be 6% of GDP for Norway and up to 4.5% of GDP for Sweden (Kvist & Greve, 2011). Clearly no country can suffer such an impact on its finances. It is often said that the problems of a welfare state can be circumvented by ensuring a high GDP growth. The Nordic countries should focus on increasing their GDP growth rate to mop up extra finances for their welfare schemes. In this section I will discuss the challenges of achieving high GDP growth for Nordic countries in this era of recession and globalisation. The Nordic countries have historically seen higher growth rates as compared to other European economies. However...
This essay examines, whether the Nordic welfare model is sustainable in these difficult economic times and the age of globalization. The Nordic welfare model is also called as the Nordic social democracy. The Nordic countries have been strictly pro trade and suspicious of any kind of protectionism but at the same time they have made policies which ensure a large degree of equality and welfare of the children, unemployed, sick and the old. However, as it is shown in the essay, the Nordic model is increasingly become unsustainable due to pressures of an ageing population, globalization, immigration and the financial crisis which has engulfed the whole world.
All Nordic countries provide generous pension facilities to enable the old to live a life of dignity. Thus if the number of dependents increase, it becomes increasingly difficult to finance their pension out of the income of working population. It has been assumed that in the next 3 decades the old age dependency ration will increase from 0.25 to 0.40 in the Nordic countries.
It is often said that the problems of a welfare state can be circumvented by ensuring a high GDP growth. The Nordic countries should focus on increasing their GDP growth rate to mop up extra finances for their welfare schemes. In this section I will discuss the challenges of achieving high GDP growth for Nordic countries in this era of recession and globalisation. The problem for these open and free economies has been attracting investment in this climate of recession ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analysis of the Sustainability of Nordic Welfare Model in Times of Essay”, n.d.)
Analysis of the Sustainability of Nordic Welfare Model in Times of Essay. Retrieved from https://studentshare.org/macro-microeconomics/1477190-analysis-of-the-sustainability-of-nordic-welfare-model-in-times-of-economic-recession
(Analysis of the Sustainability of Nordic Welfare Model in Times of Essay)
Analysis of the Sustainability of Nordic Welfare Model in Times of Essay. https://studentshare.org/macro-microeconomics/1477190-analysis-of-the-sustainability-of-nordic-welfare-model-in-times-of-economic-recession.
“Analysis of the Sustainability of Nordic Welfare Model in Times of Essay”, n.d. https://studentshare.org/macro-microeconomics/1477190-analysis-of-the-sustainability-of-nordic-welfare-model-in-times-of-economic-recession.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economic Effects of Welfare
Economic Effects of Welfare. Social and economic soundness is desirable by each and every individual in any society. Welfare provided by government helps individuals to meet their basic necessities of life and live peacefully. These welfare activities have great impact on economy of a country whether it’s a developed country or a developing one.
3 Pages(750 words)Essay
Business contiunity Management is a luxury in times of recession
It is relevant to any types of organizations that operate in a very high risk environment, such industries like telecommunications, finance and transportations. In a survey conducted by Patrick Woodman (2007) about BCM, there's a 73% of managers report that establishing this kind of program is helpful for the whole organisation; thus 94% agreed that disruption in their business operations had been reduced.
12 Pages(3000 words)Essay
Esping-Andersens Welfare Regime Model
Esping-Andersen came up with the most relevant typology for welfare states. Esping-Andersen using classical European political economy approach differentiates between three types of welfare regimes (Edwards, 2003). Esping-Andersen differentiates the state welfare regimes on three major principles.
5 Pages(1250 words)Essay
The Economic Recession: UK Responses and Theory Analysis
The same paper continues to say that it would be the greatest tragedy if people continue to say that they did not see it coming because it will happen again. The recession did not hit the U.S. alone but the whole world. Its effects were felt even in the small cities across the globe.
7 Pages(1750 words)Essay
Causes of the Economic Recession
Many indicators of macroeconomics vary in an almost similar perspective and this includes the measurements of production which are investment spending, incomes of the households, employment, investment spending and business profits. During an economic recession all these indicators are at low levels.
10 Pages(2500 words)Essay
Economic recession
Large business conglomerates have also suffered huge losses due to the recession this time. But, what exactly is the recession' When a country's Gross Domestic Product (GDP) growth registers a decline for six or more months in a year on a continual basis or fails to recover for years together, it results in a recession.
12 Pages(3000 words)Essay
Economic recession and human behavior
The financial life that has been carefully cultivated by many individuals is being hit by dropping investment returns and banking policies that adversely affect credit. As unemployment and inflation change the nature of a culture, domestic violence and criminal behavior can
17 Pages(4250 words)Essay
Economic Effects of Welfare
These welfare activities have great impact on economy of a country whether it’s a developed country or a developing one. In welfare states, such procedures are applied by governments which help to improve lives of needy individuals. These might include unemployed; physically or mentally disable people, widows and orphans.
3 Pages(750 words)Essay
Global economic and lobal recession
In this discourse, the mixed fortunes of the performance of the industry as presented by economic recovery and political uncertainty will be discussed as Niththyananthan (1) observes.
7 Pages(1750 words)Essay
Economic Recession of United Kingdom
An overall deceleration of economic activities and business cycle reductions are defined as recession in economic terms. However, no standard definition exists but generally, a period of falling economic activity is characterized as recession.
4 Pages(1000 words)Essay
Let us find you another Essay on topic Analysis of the Sustainability of Nordic Welfare Model in Times of Economic Recession for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us