- Gateway House - https://www.gatewayhouse.in -

Why is Sweden number one?

Those unfamiliar with this sparsely populated country perched in the Northeast of Europe will be surprised to learn that Sweden, sandwiched between Norway and Finland, bounced back in a robust and dynamic manner after experiencing a huge downturn during the 2008 international economic crisis. Sweden was as severely affected by the crisis as several other economies in Europe, Latin America, Africa and Asia were. Its GDP plummeted by 5.8% in 2009 with unemployment zooming to double digit figures. However in the following years, Sweden has been able to pull itself up and emerge at the top of the pecking order in Europe along with Germany with a GDP growth of 5.2% in 2010 and 4.9% in 2011. The prudent fiscal and monetary policies adopted by Anders Borg, the Swedish Finance Minister of course had an important role to play in this recovery. Not for nothing was Mr Borg elected as Europe’s best Finance Minister in both 2010 and 2011!

But to find the real reasons for the rapid recovery of Sweden, it would be useful to peep into the make-up of the Swedish mind. Why is it that other countries which have experienced similar downturns have seen their citizens come out on the streets to protest, damage and destroy private and government property refusing to undertake any austerity measures, while in Sweden, people have focussed on doing what needed to be done and have in a determined and steadfast manner, been able to achieve remarkably positive results.

It is not widely known that till about a century ago, Sweden was also a poor country. Their prosperity and riches are of recent origin. No one knows it better than the Swedes themselves. They have not forgotten, nor do they wish to forget that in the latter half of the nineteenth century, more than one million people migrated from Sweden to the United States to escape hunger and famine and to eke out a better living on shores far away.

So what are the underlying reasons that within a short span of a hundred years, Sweden has emerged as one of the foremost leaders in creativity and innovation, high development indicators in education, healthcare, impressive levels of prosperity, high economic growth, etc.? What is it that makes this land of 9.1 million people stride majestically at the top of several international rankings like being No. 1 in Global ICT Ranking (WEF), 2nd in Global Innovation Index (INSEAD), 2nd in Global Competitiveness Ranking (WEF), 1st as intellectual capital of the world, health and security (PwC and Partnership for NY City), most respected country in Nation Brand Survey etc.? How is it that this country has produced top world brands in diverse sectors ranging from Ericsson, ABB, Atlas Copco and Sandvik to Volvo, Scania, IKEA and Alfa Laval?

Some of the following factors could assist us in understanding the reasons why Sweden has managed to acquit itself so creditably in the most challenging of circumstances.

The above strains of character and a desire to lead a frugal and disciplined life have contributed to Sweden occupying the enviable position that it finds itself in today.

The way of life practiced in Sweden has useful pointers and indicators for adoption and adaptation, not only by developing countries, including India, but also by several developed countries in Europe and elsewhere.

Ashok Sajjanhar is India’s ambassador to Sweden and Latvia.

This article was exclusively written for Gateway House: Indian Council on Global Relations. You can read more exclusive content here.

For interview requests with the author, or for permission to republish, please contact outreach@gatewayhouse.in.

© Copyright 2012 Gateway House: Indian Council on Global Relations. All rights reserved. Any unauthorized copying or reproduction is strictly prohibited.