Scandinavian welfare model

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The Scandinavian welfare model is the term used to describe the way in which Denmark, Sweden, Norway, Finland and Iceland have chosen to organize and finance their social security systems, health services and education.

Nordic model describes the larger economic model.

[edit] Welfare Benefits

The system covers everyone; it is universal. In addition, the benefits are given to the individual, so that e.g. married women have rights independently of their husbands.

In the Scandinavian countries, the State is involved in financing and organising the welfare benefits available to the citizens to a far greater extent than in other European countries. For that reason the welfare model is accompanied by a taxation system which has both a broad basis of taxation, high taxation burden and resulting income redistribution.

The benefits given are more generous than is the case in the British Beveridge model – and in combination with the taxation system this brings about a greater redistribution than is the case in the Bismarck welfare model, which is aimed rather at maintaining the present status.

Economists in favour of the Scandinavian pattern of organisation argue that it is far simpler and immediately comprehensible than is the case in the other European countries. In the Scandinavian countries most of the social welfare tasks are undertaken by the State or local authorities, and only to a limited extent by individuals, families, churches or national welfare organisations.

Economists against the Scandinavian pattern point at the increased state interference in all public matters, and forced redistribution of income, which leaves the more productive members of the society without the rewards for their labours. They note that the system seems to work because it has been implemented in small countries with a uniformly high level of education.