Sweden was once considered a very backward country,
especially during the early nineteenth century.
This was due to the religious oppression which existed in the region at that time.
The situation was better in countries such as Denmark, USA, and the UK.
The then economy of Sweden was ruled by guilds
and restrictions which were truly medieval.
People were not at all happy with the state of the country then.
A lot of Swedish nationals began migrating to
countries such as the USA and neighboring Denmark.
This led to a public worry that the country would be completely depopulated.
And then came Johan August Gripenstedt.
He was the person who made Sweden a liberalism country.
How Was Liberalism Introduced In Sweden?
By a series of speeches in the parliament, he garnered enough support and
promoted the idea that wealth can truly be accumulated through liberalism.
The people were moved and hence, Sweden moves towards becoming a liberal state.
The following changes were brought into effect:
1. The system of a guild was abolished forever and
anyone could start any business of their choice.
2. The free form of trade was on the rise.
People could trade within the city and if they wished, trade between cities.
This was a sort of trade freedom which never existed in Sweden before.
3. Taxes were very meager in comparison to other countries.
4. The traditional political system was earlier based on
four estates such as nobles, clergy, burghers, and yeomen.
This was then replaced by a system which was bicameral.
Such changes were never anticipated in the Swedish society.
It was hard to believe at first, but people got used to it with time.
By the system of free enterprise in place, Sweden had the base
to create and harbor some of the world’s biggest companies.
Sweden became a place where doing business was more of a pleasure than a pain.
Emphasis On Development
The state government began paying a lot of emphasis on
developing the infrastructure of the region as well.
This was in the form of good roads, sanitation
facilities, education infrastructure, etc.
To achieve this, they needed capital which was in
the form of loans borrowed from neighboring states.
The money was duly spent on improving the infrastructure of Sweden.
Thins were pretty much going fine.
Sweden began to heavily industrialize in the mid-nineteenth century.
While a host of European nations were moving way ahead if the global average GDP
per capita, Sweden managed to catch up with the United Kingdom by the early 1950s.
This led to it becoming marginally richer than its neighboring states.
However, by the 1980s, Sweden had overtaken the United Kingdom
and cemented itself as one of the richest nations in the world.
Despite it hitting a few economic downfalls along the way, it
has managed to bounce back and return even stronger than ever.
Absence From Major Wars
While the world major nations were at loggerheads with each other during
the world war 1 and world war 2, Sweden opted to sit out both the wars.
While other nations were sending their military arsenal
and weapons, Sweden was busy developing its surroundings.
The money it earnt was utilized to pay off its debts
while its neighbors were busy destroying each other.
The base for a healthy and sustainable future was set.
With no distractions such as political unrests,
wars, etc., Sweden could concentrate its efforts
towards innovations, inventions, along with
concentrating on the overall development of the nation.
Swedish Economy
Sweden has gotten habitual to enjoying a high and stable standard of
living, despite it coming at a very high price to individual taxpayers.
Sweden is often considered as one of the equitable societies
in the world, with a Gini rating of close to about 25.
A Gini index is an index which measures the economic equality of a nation.
A zero in the index represents perfect equality
and a cent percent represents perfect inequality.
The index rating indicates that Sweden has no
extremes of wealth and poverty in the country.
Both coexist in harmony with each other, maintaining a perfect balance.
Low taxation on personal income couple with a low rate of executive compensation
has contributed towards maintaining a healthy and equally distributed society.
Sweden is very much an export-oriented country.
The majority of its current wealth comes from businesses
in the field of timber, hydropower, and iron ore.
The country is home to some of the biggest companies in the world.
Some of these companies are H&M, Ikea, Ericsson, Skype,
etc. amongst a host of other super companies in the region.
Amongst ninety percent of Sweden’s resources and companies are under privatized
ownership, while about five percent is under the control of the state government.
The rest of the five percent is operating as consumer operatives.
Sweden’s Wealth Distribution
The wealth distribution in Sweden is a cause for concern.
It has been reported that almost ten percent of the total population
control close to seventy percent of the country's wealth.
This means that the rich are getting even richer, however, unlike
other countries, the middle class enjoy a high standard of living.
This is all down to the policies put forth by the state government.
Education is free of cost along with a host of
other facilities provided by the government.
Health insurance is free and every citizen is entitled
to an exciting pension scheme post-retirement.
Because of these reasons, Sweden boasts one of the highest GDP per capita in the world.
It is a model which modern-day nations are urged to follow.
Sweden: Home Of The Mega Rich
Sweden has also worked towards diversifying its economy.
Sweden has been ranked as the seventh most
competitive country in the world to do business.
Such a free and tension free business environment
is a perfect place for companies to flourish.
The biggest of firms are flourishing and their owners are becoming even the richer.
According to reports, there are more than 25 billionaires in Sweden which is even
more astounding that it is a country of close to about only nine million people.
Sweden continues to be one of the richest countries in the world.
It's not just wealth that makes it rich, but
it's the happiness of its citizens as well.
This is a modern-day model of how countries should actually function.
Paying more attention to overall national development, rather than
focusing on political tensions, is the key to a stable and rich economy.