Ideology, Welfare and Social Cohesion Presentation by Peter Gustavsson, Uppsala Party Dictrict of the Swedish Social Democratic Labour Party (SAP). Democratic Party Youth, Serbia, December

To Compare Social Models A social model is a result of certain values applied to a certain context. What works in one place won’t necessarily work in another place. The Swedish Model is Social Democratic values of liberty, equality and solidarity applied to Swedish preconditions. It’s in constant change.

Sweden 100 Years Ago 5,1 million citizens (today 9 million) Infant mortality rate 100/1000 (7/1000) Average age: men 53, women 58 (74/80) Average working hours a week: 75 (38) Average income/hour: 0,45 SEK (115) Price of pork/kg: 1 SEK (75)

Sweden 100 Years Ago Number of doctors: (today ) Number of hospital beds: ( ) The employers also owned the houses people lived in, and the stores you shopped in Blacklisting, starvation and lousy living conditions

When We Started Sweden was one of the poorest countries in Europe Starvation and poverty Bad living conditions Blacklisting and harrassment by police/military Strong patronage system Factory owners and land owners who also had the political power ( no democracy)

The Background and Founding 1889 the Social Democratic Labour Party was founded by trade unions – mostly labour issues in the beginning To be able to concentrate on the political work, the party formed and founded LO, the trade union congress, 1898 Ever since then, there has been a very close cooperation between LO and the party

The Background and Founding 1932 election was a big land slide for the Social Democrats Social Democrats has been governing , and 94- (next election is 2006) Reform policy and governing has been made possible because of cooperation with and support and criticism from the trade unions Ever since then, the main issue for the party has been to win elections, and implement our political agenda.

How Long Time Did It Take? Organising/struggle for democracy, 29 years ( ) Fighting to win power, 14 years ( ) Reformation of society/creating a welfare state, 30 years ( ) Financial crises during the 30’s and second world war delayed the development

The Swedish ”Model” Make sure that everyone has a job and can support themselves Redistribution and Solidarity Everyone pay taxes Education Economic growth Security

The Strong Society I: Universal Welfare Universal welfare: the benefits are for all, not only for the poor. ”The paradox of redistribution”: As everyone gets something out of the system, high taxes can be maintained and public support for the system is high

The Strong Society II: Public Sector and Social Insurances Public sector: Schools, hospitals, elder care, kindergartens, roads etc. Free of charge or strongly subsidized. High quality - Only the best is good enough for the people. Social insurances: Pensions, unemployment benefits, health insurance, parental leave etc. Income security: level of benefits related to previous income.

The Strong Society III: Collective bargain treaties Trade unions negotiate on wages with employers’ organizations. Collective agreements to achive high wages and to avoid companies using low wages as a means of competitition. Solidaric wages policy – more to those with lower wages. Wages increase with the rise of productivity. Politics for full employment, active labour market policies, high unemployment benefits and strong labour laws to protect collective bargaining. Low-wage competition from abroad threatens collective bargaining. The labour movement want everyone who work in Sweden to get wages according to colletive bargain treaties.

Basic Principles for the Tax- paying System (1) From each and everyone out of capability, to each and everyone out of their needs Redistribution between generations, groups and over the lifetime (you get the first and last 20 years, you pay the 40 years in between) Income from work and capital shall be equally taxed

Basic Principles for the Tax- paying System (2) You contribute and you benefit During different periods of life the needs are different, as well as the capability We have a common responsibility

How Much Do You Pay? Everyone with an income pay tax to the municipality (30% of your income to municipality, province, church) If you have a high income, you also pay tax to the state (20% of the higher income) VAT 25%, taxes on petrol, real estate, vehicles, liquor and tobacco etc Payroll tax on 32% (Paid by the employers)

The Strong Society and Women The discontent of rising expectations Gender equality at first a result of reforms for the working class. Elder care, hospitals, kindergartens made it possible for women to take part in the labour force Trade union demands for equal pay resulted in higher salaries in ”female jobs” Today – the Social Democratic Labour Party is a feminist party

The 1980’s and 90’s Stronger international competition, globalisation, neo liberal ideological turn internationally (Reagan, Thatcher...) Social Democrats on the defence – ”save what can be saved”. Partial adaption - the ”Third Way” Cuts in the welfare state, privatisations etc High unemployment, especially for young people and immigrants

The Pendulum Goes Back Sweden as ”the bumblebee” Even the Conservatives embrace the Swedish Model Higher self-conscience among Social Democrats, we were right and they were wrong The 1990’s are over – first budget without any cutbacks ”The most successful society the world has ever known” (Polly Toynbee, The Guardian, October 25 th 2005)

Workshop on Ideology, Welfare and Social Cohesion What do you think about the Swedish Model? What parts of the Swedish Model could be good if it was introduced in your country? What should Sweden change and learn from your country? The Swedish Model is developed according to Swedish political, economic and social conditions. What obstacles do you see to an introduction of Social Democratic policies in your country? What would a Social Democratic Model in your country look like? How could it be achieved?