When classifying countries into different social policy clusters or regimes types, Sweden is normally placed in categories such as the social democratic regime ...
Rescaling Social Welfare Policies A comparative study on the path towards multi-level governance in Europe
Rescaling Social Welfare Policies in Sweden National report provided by Åke Bergmark Renate Minas Institute for Future Studies
Stockholm February 2006
Rescaling Social Welfare Policies
National Report Sweden
Table of contents Introduction
3
1
Changing contexts: demography, economy, society, politics
5
1.1
Socio–demographic patterns and trends
5
1.2
The State, its organisation and normative foundation
8
1.3
The Market, commodification and labour market performance 1.3.1 Current topics
10 12
2
Institutional analysis: actors and governance arrangements
13
2.1
Identification of the territorial institutions and their development 2.1.1 Summary
13 15
2.2
Changing institutions 2.2.1 Summary
15 18
2.3
Resources flows among territorial levels
18
2.4
Horizontal institutions and actors (subsidiarity) at each level
21
2.5
The division of labour
22
2.6
The model of regulation: how does coordination take place?
24
3
The process of rescaling in the four policies in Sweden
27
3.1
Social assistance and local policies against poverty
27
3.2
Employment policies
29
3.3
Care for the elderly 3.3.1 Current topics: Increased debate on care for elderly
32 35
3.4
Integration of migrants
35
References
40
2
Rescaling Social Welfare Policies
National Report Sweden
Introduction When classifying countries into different social policy clusters or regimes types, Sweden is normally placed in categories such as the social democratic regime (Esping-Andersen, 1990) or the encompassing model. The overarching principles of these regimes are universalism and equality. Universal programs covering the entire population and offering them basic security are combined with earnings related benefits for the economically active population. The principal goal of the welfare state is often defined in terms of poverty reduction, but he Scandinavian Countries have gone further and also included the ambition of reducing overall inequalities in society (Kangas and Palme, 2005). The Swedish welfare state promotes the principle that all citizens should be equally entitled to a decent standard of living and particularly supports those needing help to be able to participate in society. Other distinctive characteristics of the Swedish welfare state are comprehensive social services and the degree of institutionalization (Kangas and Palme, 2005). The Nordic Countries are often labelled as “Service States”. The Nordic model combines an extensive social insurance system with labour market policies that promote full employment, equal opportunity and an equitable distribution of wealth. Since 1980 gross total benefit social expenditures lied about one third of GDP towards 1990 and shot up with the economic downtown in the beginning of the 1990’s (with a peak of 39 percent in the beginning of the 1990’s) but levelled out to 33 per cent in 2001 (OECD Adema and Ladaique, 2005). Both regarding social transfers and services Sweden is in the lead concerning social service spendings among other European Countries (Kangas and Palme, 2005). High spending on disability and unemployment helps to prevent poverty and social exclusion in these groups. Similar, generous support to families and housing subsidizes child bearing and helps to smooth the life-cycle income of families (Kiander, 2005). As a result child poverty is low in the Nordic countries. Comparing poverty rates there are clear indications that social policy provisions are important for explaining variations in poverty. In a study by Eurostat the share of population in EU countries, which is at “risk of poverty” (defined as an income less than 60 per cent of the medium income) shows that the Nordic countries have the lowest poverty rates (Kiander, 2005).
Table 1
Relative Poverty Rates for the Total Population, Children and the Elderly, Sweden 1995-2000 Total Population
Children
Elderly
Poverty Line (Percent of Median
Poverty Line (Percent of Median)
Poverty Line (Percent of Median
Year
40
50
60
40
50
60
40
50
60
1975
2.8
6.5
12.5
1.0
2.4
5.0
1.4
13.9
35.0
1981
3.0
5.3
7.7
2.3
4.8
18.6
0.1
2.9
11.8
1987
4.4
7.5
12.5
1.8
3.5
6.3
1.1
7.2
20.6
1992
4.1
6.7
12.1
1.6
3.0
6.2
1.5
6.4
19.8
1995
4.7
6.6
10.0
1.3
2.6
5.5
0.8
2.7
7.8
2000
3.8
6.5
12.3
1.8
4.2
9.2
2.1
7.7
21.2
Source: http://www.lisproject.org/keyfigures/povertytable.htm
3
Rescaling Social Welfare Policies
Table 2
National Report Sweden
Income Inequality Measures
Year
Gini Coefficient
1975 1981
1
Percentile Ratio (90/10)
Percentile Ratio (90/50)
Percentile Ratio (80/20)
0.215
2.73
1.53
1.92
0.197
2.43
1.51
1.76
1987
0.218
2.71
1.51
1.89
1992
0.229
2.78
1.59
1.91
1995
0.221
2.61
1.56
1.76
2000
0.252
2.96
1.68
2.01
Source: http://www.lisproject.org/keyfigures/ineqtable.htm
1
The Gini coefficient usually used to measure income inequality, but can be used to measure any form of uneven distribution. The Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the income, and everyone else has zero income). The Gini index is the Gini coefficient expressed in percentage form, and is equal to the Gini coefficient multiplied by 100. 4
Rescaling Social Welfare Policies
National Report Sweden
1
Changing contexts: demography, economy, society, politics
1.1
Socio–demographic patterns and trends
Table 3
Some socio- demographic patterns and trends 1960-2004 1960
Total population 31 Dec. (million)
1970
1980
1990
2000
2003
2004
7,4
8,0
8,3
8,5
8,8
8,9
9,0
Persons 0-17 year in %
27,3
24,8
23,8
21,9
21,8
21,6
21,5
Persons 65- years in %
11,8
13,8
16,4
17,8
17,2
17,2
17,2
2,5
5,1
5,1
5,6
5,4
5,3
5,3
4,0
6,7
7,5
9,2
11,3
12,0
12,2
Birth rate (per 1000)
13,7
13,7
11,7
14,5
10,2
11,0
11,2
Summerad fruktsamhet
2,13
1,94
1,68
2,14
1,55
1,72
1,75
3,5
9,6
4,7
7,0
6,6
7,1
6,9
2,0
3,6
3,8
2,9
3,8
3,9
4,1
4,8
9,5
1,8
7,4
2,4
3,9
4,0
Marriage
50 149
43 278
37 569
40 477
39 895
39 041
43 088
Divorce
9 563
12 943
19 887
19 357
21 502
21 130
20 106
Foreign citizens Share foreign citizens in % Born abroad Share born abroad in % Born
[2]
Immigration Immigrants per 1000 of population. Emigration Emigrants per 1000 of population Increase of population Increase of population per 1000 of population
Source: Statistics Sweden
Increasing life expectancy, combined with changes in fertility, results in an EU population that is becoming increasingly older. This demographic ageing means that the number of older people is growing while the share of those of working age (15 to 64) is decreasing. For Sweden, the life expectancy lies over the average for the EU with an increase for women from almost 79 years (1980) to nearly 83 years (2004) and for men from nearly 73 years (1980) to 78 years (2004). One of the most obvious changes in Sweden is the aging of the population, especially the share of people elder than 80 years. In the year 2004, slightly more than 5 per cent of the population was older than 80 years. Both the proportion of marriages and divorces was relatively stable in Sweden over the last 20 years. There were about 4 marriages per 1 000 inhabitants (not shown) and the proportion of divorces was between 2,2 and 2,6 per 1 000 inhabitants. With 1,75 the total fertility rate in Sweden in 2004 in clearly below the replacement level, only in 1990 it was slightly above with 2,13.
5
Rescaling Social Welfare Policies
National Report Sweden
The share of immigrants, defined as born in a foreign country, is another dramatic sociodemographic change in Sweden during the last 25 years. The share immigrants has increased from 7,5 percent in 1980 to 11,8 in 2002. In 1990, 86 percent of the Swedish male population aged 15-64 were employed, a rate that decreased noticeably to 73,6 in 2004. For women, the respective trend was from 81 percent in 1990 to 70,5 per cent in 2004. Most dramatically, however, is the pattern of the employment rate for the youths. Here the rate dropped from 66 per cent to 37, 6 per cent within 5 years that was from 1990 to 1995, the climax of the economic crisis in Sweden. Still, the employment rate lies low, that shows that entry in the labour market still is difficult for youths. Correspondently, the rates for unemployment have increased for all groups, mostly however for the youths. The expenditures for social protection has increased over time, also here was the point of culmination 1995 and lies now around 32 percent of the GDP, that is the highest share within the EU. By function, the highest amount is spent on old age and survivors. Table 4
Some socio- demographic patterns and trends 1980
1985
1990
1995
2000
Latest
from
Old age index
92,1
93,5
96,6
2004
Share of +80 (f/m)
4,6
4,9
5,3
2004
Population
Life expectancy (f/m)
78,8/72,8 79,7/73,8
80,4/74,8
81,4/76,2
27,7
27,4
Dependency rate
82,0/77,4 82,7/78,4 26,9
Child in single parent family
26,5
2004 2004
n.a.
Fertility rate
1,68
1,74
2,13
1,73
1,54
1,75
2004
Births out of wedlock
39,72
46,35
47
52,96
55,33
55,4
2004
2,4
2,4
2,3
2,6
2,4
2,2
2004
10,5
11,3
11,8
2002
Divorce Immigrant population (foreign-born)
2
3
7,5
9,2
Share of 1person households
n.a.
Share of 5
