Working Paper No. 498

Swedish Lessons for Post-Socialist Countries

Published: June 8, 1998Pages: 37Keywords: Sweden, Lessons for Post-Socialist Countries, Transition EconomiesJEL-codes: H00; N00; P10; P20

Swedish Lessons for Post-Socialist Countries Assar Lindbeck


Sweden experienced exceptionally fast economic growth during the century-long period 1870-1970. This illustrates that a decentralized market economy, highly open to international transactions, may be quite conductive to sustained productivity growth if the government fulfills its "classical" functions well. The subsequent period of centralization and large government, 1970-1985/90, was characterized by considerable social achievements. But that rate of economic growth was quite low as compared to other developed countries. The last period discussed in the paper, after about 1985/90, may be characterized as a "period of transition" away from the centralized and highly interventionistic system of the 1970s and 1980s. A number of transition problems are discussed in the paper.

Assar Lindbeck

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An Agenda for Europe

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The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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