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12/5/07

eGov monitor: A European social model an asset or a liability? - by Erkki Liikanen

For the complete report from the eGov monitor click on this link

A European social model an asset or a liability? - by Erkki Liikanen

In recent years, the strengths and weaknesses of different European social models have received increasing attention as all European countries have sought to find ways to cope with the challenges brought on by globalization. Much of the attention has focused on a perceived tradeoff between equality and efficiency. As exceptions to the rule that these should be conflicting goals, the Nordic countries have often been mentioned. The Nordic model has attracted considerable interest because it seems to have been able to combine – also in the past decade – a high level of social protection and egalitarian income distribution with high economic dynamism.

So, does the Nordic model really offer a way to reconcile the European ideals with the demands of the global economy? To answer this question, we need to look more closely at the Nordic experience.

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