Profile


Sweden has one of the highest living standards in the world thanks to their long experience with democracy and their long-standing policy of neutrality through two world wars, which has allowed them to enjoy peace and political stability. The Social Democrats were in power for all but a short period in the twentieth century existence consequently Sweden has a very sophisticated welfare system, which has all but eliminated extreme poverty and has promoted good industrial relations, which have helped maintain high economic growth. The compatibility of these two objectives has been and is the object of significant national interest.

Sweden has a broad industrial base, which evolved from its natural resources of forests, iron ore and waterpower. Pulp and paper production, motor vehicles, engineering powering and high technology are all important. 85% of the businesses in Sweden are in private ownership; the government has ceased to bail out the unviable companies. The state industries are being given management autonomy and more and more the economy is moving over to the successful model of an internationally competitive market economy. Several major multinational corporations are Swedish-based. A major political and economic preoccupation is energy since Sweden is very dependent upon imported oil. Most waterpower sources have been tapped and the nuclear power segment of Sweden's energy net, especially after the Chernobyl disaster in 1986 has, is being, and will be decommissioned.

A founder member of The European Free Trade Association, Sweden applied in the early, and was admitted in the late 1990's to the European Community for membership seeing membership as helping to provide a greater climate for economic growth. The decision was made possibly because the of the realisation that a common EU defence policy is not likely to happen in any short term which would mean that Sweden would not have to compromise its policy of neutrality.