THE NORDIC MODEL


The expression of Scandinavian Welfare State is often used to describe the way the Danes, the Swedes, the Finns and the Norwegians decide to organize and finance the social welfare, the public health, the education, etc. And, compared to other countries, the Scandinavian countries clearly distinguish themselves from other European countries. 

The principle of the Scandinavian model of social welfare1 is to grant financial support to all the citizens who satisfy some required conditions, no matter their employment situation or their family structure. It’s universal, it applies to all and a large part of the services is financed by general taxes, and not mainly by contributions reserved for the social services.  

In Scandinavian countries, much more than in the other European countries, the State is involved in the financing and the organization of social benefits2 created to the advantage of the citizens. The Scandinavian Welfare state put at the disposal of their citizens (often) free public services
The Scandinavian Welfare state also distinguishes itself by the fact that it puts widely3 at the disposal of the citizens an often free public services or a subsidized4 one instead of giving to the Scandinavian people financial support in cash. For example, health services and educational establishments are free.  

A. What is a welfare state system? If we look into a dictionary, the welfare state is:   in a broad sense, it represents all of the economic and social interventions of the State;  On a more restricted way, it designed the intervention of the State in the social domain, particularly through the system of social welfare.  

The notion of welfare state has to be opposed to the one of "État-gendarme", which is limiting the role of the State to the kingly functions5 (justice, police and national defense). The term was used for the first time on 1864 by Émile Ollivier, a French deputy but it’s the creation of the first systems of welfare at the end of the XIXth century, like the system of Bismarck in Germany and the development of the Social Security in Great Britain thanks to Beveridge in 1942 that permitted the reflections on this subject. 

B. The first models of welfare system In the history, the notion of welfare state was first introduced by Otto Von Bismark, a German Chancellor of the XIX° century, who was famous not only for his welfare system but also for the annexation of Alsace and Lorraine to Germany and by William Beveridge, an economist and British politician of the XX° century (and not to forget, a contemporary of Keynes, who even provide him some advices6 to write his report on the Welfare State).
 the Bismarckien Welfare State, which was created in Germany by the laws of 1880. The motivations which were at the origin of the system were political and was a solution to stop the labor-union and socialist movements by improving the living conditions of the labor workers. This system based itself on the mechanism of the welfare, in which the services are the counterparty of contributions.  

The main objective is to give a compensation to a person who is confronted with of loss of incomes7. One of the conditions to access this service is to have already paid contributions knowing that those ones are calculated according to the incomes you receive.  

Several principles underlie this model: o Protection based on the work and on the capacity of each one of us to have access to it thanks to a professional activity; o An obligatory protection for all o Protection based on a financial participation of the workers and employers  o Contributions are not proportional to the risks 
 The Beveridgien Welfare State, which is based on the Social report of William Beveridge in 1942 (said "Plan Beveridge") and was created in the United Kingdom after the Second World War. This report deals with the system of health insurance.    

The main objective is to give a free support in order to cover all the risks you may encounter8. The only condition to have access to this service is to be in the need9 knowing that it is financed by a tax paid by the society.  
Several principles underlie this model (the three U):  Universality of the social welfare for all and for all the risks;  Uniformity of the services based on the needs and not on their losses of incomes  Unity in the state management of the whole social welfare; 
Universal social systems:  It is available for all the citizens in an equal way, the sanitary and social system aims15 to be protective. The advantage of the importance of tax and social security deductions, the social systems require national insurance contributions less raised on behalf16 of the employees and the employers.  

Furthermore, the efficiency of the systems is strengthened17 due to a decrease of the cost of functioning of hospitals there. The management saw itself decentralized, these are managed by municipalities and the number of municipalities saw itself reduced.
This model is based on the well-being29 of the population which, in a way, is satisfied by an important part of the GDP assigned to the public spending.  
However, even if the well-being of the population is the base of this system, it does not prevent the countries from pulling upwards30 their economy thanks to the importance of the spending regarding research and development (the number of certificates deposited by these countries is clearly upper to the European average), an active policy in term of employment (flexicurity) which made the unemployment fall, etc.  

Therefore, the Scandinavian model appears as an enlightened, humanist and successful system. 
On the other hand, this model shows some limits which are in correlation with the public spending. Indeed, who says high public spending said also high tax and social security deductions.  
The rates of VAT are superior to it in most of the countries of Europe, we denote an increase in the request of the services, and the inevitable increase in prices of the same services because they have low productivity gains31.
THE NORDIC MODEL Reviewed by Dev17.club on samedi, janvier 28, 2017 Rating: 5 The expression of Scandinavian Welfare State is often used to describe the way the Danes, the Swedes, the Finns and the Norwegians decide to...

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