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Swedish Capitalism: How an Experiment in New Economic Policy Made Sweden a Global Power

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Swedish Capitalism: How an Experiment in New Economic Policy Made Sweden a Global Power
October 1st, 2013
Swedish Capitalism
How an experiment in new economic policy, made Sweden a global power.

“They might not like to admit it, but Europeans don’t mind a bit of capitalism,” says the author of a 2010 article in The Economist titled, “Charlemagne: Europe’s dark secret.”1 While France and some of its neighbors may give off an image of, “…contempt for free enterprise ,” Sweden has gone in an opposite direction. Swedish, free market education system, budget reform, and de-regulation of the market, show the scope of their capitalist nature. Sweden had successfully allowed the free market to run its course, in the form of privately owned and operated schools. In 1992, Sweden implemented a new voucher system for schools.2 Anyone with a teaching degree could start a school, so long as they met, “certain basic requirements set out by the National Schools Inspectorate.”3 By removing restrictions on private schools, Sweden created an incentive for people to start and invest in them. The voucher system made entry to these schools accessible to most children, as seen in the number of Swedish children who attend private schools went from less than 1% before 2009, to 11%.4 The 1992 system disallows fees from the private school, making them viable options to all.5The freedom in the creation of schools, also gives choice to the family. The private schools receive funding per attending student, funding that would otherwise go to the municipality’s public school. This gives incentive to both; the private school attempts to attract more students and the public school has competitive pressure, often raising its educational standard.6 Sweden has kept this system competitive by regulating the schools’ accepting policies. “They cannot use ability, socio-economic status, or ethnicity.”7 This forces the schools to compete based on productivity, and improve themselves.8 This is seen in the students’ results. The privately operated schools have, on average, see

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