Private Welfare in Swedenby
Nima Sanandaji
Sweden is well known for its extended welfare sector. But as a new Timbro report written by Anders Johnson shows, Swedish welfare has not always been associated with extensive bureaucracy, taxation and a big state. Before the Swedish welfare state was born, there were many successful private welfare initiatives in Sweden. Although most of them have been destroyed or engulfed by the big state, they serve as an excellent example that a free society can create welfare solutions based on individual choice rather than political cohesion. In the late 19th century a transition towards a capitalist economic system meant that the Swedish population could steadily begin to rise from their previous poverty. This economic development allowed for private welfare initiatives to spring up in Sweden. As more and more children were participating in nurseries, pre-schools and schools, a wide range of private initiatives were created. Rather than having a public sector "one solution fits all" approach of thinking, the various private schools were free to experiment with various educational approaches. New pedagogical knowledge was tested and some schools began mixing girls and boys in the same classes. Companies played an important role in providing welfare for their employees. Johnson exemplifies by how an association of Swedish industries already in 1882 provided health care, insurance and sick leave for their employees. He also points to an article series published in a Swedish magazine in 1911 which explains that corporate programs in two single companies amongst others included housing, libraries, bathing facilities, butcheries and hospitals. Midsommarkransen, near the Swedish capital of Stockholm, hosted the main offices of Ericsson between 1940 and 2003. Here, Ericsson company provided various welfare services to its workers from 1889 onwards. These services ranged from children's gardens to free health care and sports facilities. Most of the services that Ericsson offered were stopped at some point due to new government programs and bans. Above are a few examples of the wide range of private welfare programs that Johnson mentions in his report. They are a stark example that even in a country today famous for its extensive welfare state, private alternatives are not simply part of libertarian theory, but indeed a part of Swedish history that many today might have forgotten. Sweden might today have benefited greatly if the wide range of welfare programs that existed in the private sector during the end of the 19th century and the beginning of the 20th century could have evolved. But history played out in a different way. In the election year of 1928 the Social Democrats began using the term "Peoples Home" in order to describe their vision of a socialist welfare state. Siding with the communists, they lost this election. The Social Democrats did however gain power in the following election in 1932 and have since been in power in 65 out of the 74 years that have passed.
But massive taxation and state dependence do not necessarily need to be the future of Sweden. If we could get by without a massive state a hundred years ago, why can't we now? April 26, 2006 Nima Sanandaji [send him mail] is president of the Swedish think tank Captus and the editor of Captus Journal. He is a graduate student in biochemistry at the University of Cambridge. Copyright © 2006 LewRockwell.com |
The
result of Social Democratic politics, particularly after the radicalizations
of their policies in the 60s, is clear. Welfare is today implemented
through big government schemes and the self interest of politicians
and bureaucrats are the focus of welfare programs.