MEMORANDUM FOR THE UNITED STATES SECRETARY OF STATE, HILLARY
CLINTON
For immediate release; 23 October, 2011
From Freddie Hensen, Student at the University of Washington Bothell
SUBJECT: Functional Democratic Process in Sweden: Politics and Policy-making in a Social Democracy
CONTEXT: In spite of recent global economic volatility, Sweden, aside from a brief period of economic recession in 2008 and
2009—as shared by most developed countries internationally, emerged from global market decline with net growth in GDP by the
end of 2010. Considering particular disparity among European markets, perhaps due to single currency and European Union (EU)
market amalgamation, the readiness by which the Swedish domestic market has been able to resume pre-recession-like economic
growth compared with other European and world markets that continue to experience sluggish growth or even further decline
today is potentially meaningful and perhaps enlightening. In this document I will illustrate the market equilibrating effects of
Swedish political ideology and culture. Further, I will describe the political ideologies of the eight represented political parties,
pointing to areas where they agree and where they disagree, and then explicate the political culture manifest in multi-party political
debate by examining how these attributes have influenced recent economic decisions that fortified Sweden against economic
insolvency during the recession (CIA Factbook, EIU Report 5-8).
POLITICAL IDEOLOGY: The eight political parties of Sweden are divided between two primary ideological blocs and are:
The Alliance bloc– current government and first party other than the Social Democratic Party (SAP) to control government for
more than one term in nearly a century; aims to strengthen the economy by increasing work incentives and controlling welfare
dependency through increasing job opportunities, education and infrastructure development.
 Moderate Party: Second largest party since 1979, strongly in favor of joining the single currency Euro of the European Union (EU),
aims to lower taxes and moderating welfare programs, is demographically diverse and tends to be fiscally conservative.
 Liberal Party: Supports a market economy diversified with social welfare programs and education reform, in favor of joining the
single currency, attracts marginal constituencies.
 Centre Party: Focuses on agriculture and environmental issues, is in opposition to joining with single currency, typically rural
constituency with recent growing liberal urban support.
 Christian Democratic Party: Lutheran Christians, focuses on family issues, ethical values and can be socially conservative.
The Socialist bloc – Dominant in Sweden for nearly a century, historical voter participation as high as 91.8%, and very pro advanced
welfare state.
 Social Democratic Party: Founded in 1888, is the country’s largest party, advocates for a market economy with a strong
advanced welfare state, favors joining single currency, represents broad range of constituencies.
 Left Party: Hopes to increase public spending, end unemployment, and is highly critical of joining single currency.
 Green Party: Claims to be independent, however typically aligns with the social left; strongly opposes single currency
incorporation; represents “fundamentalist” and “realist” economic factions.
 Swedish Democrats: Won necessary 4% of vote in 2010; newest party. Far right and independent from either bloc, though tends
to vote with the Socialist bloc. This casual alignment has increased socialist voting power and has somewhat destabilized
Alliance majority (EIU Report 4).
(EIU Profile 10-14, SCB Survey)
POLITICAL CULTURE: Sweden’s Riksdag (parliament) is proportionally representative and thus requires ruling party
governments to gather majority support from constituent parties to pass policy. This has helped form a system of politics that
thoroughly vets public opinion when approving policy change. On issues where political parties within blocs staunchly disagree—
single currency, the ruling Moderate Party in this case has been unwilling to overturn the 2003 referendum rejecting single
currency ratification due to strong intra-bloc dissent. Sweden’s reluctance to ratify the Euro gave its economy greater buoyancy
during the recession while many nearby Euro zone countries shared in decline. Being tied to imprudent economic policies of other
countries was the opposition parties’ argument in the early 2000s. Fortuitously, the vetting process tends to temper controversial
policies while enabling swift ratification of important ones. For example, the government has recently focused on gathering support
for a multi-year economic improvement plan, successfully passing a financial stabilization package that includes a “government loan
guarantee scheme for bank borrowing, a stabilization fund to deal with liquidity problems and equity injections if necessary” (EIU
Report 5). The country remains in a position of budgetary surplus, low-public debt, with strong banking sector and continued
economic balance and reform.
(CIA Factbook, EIU Report 7)
REFERENCES
Central Intelligence Agency (CIA). 2011. World Factbook: Sweden. https://www.cia.gov/library/publications/the-worldfactbook/geos/sw.html#top
Economist Intelligence Unit (EIU). 2008. Country Profile 2008: Sweden. London, UK. www.eiu.com
Economist Intelligence Unit (EIU). 2011. Country Report: Sweden. London, UK. www.eiu.com
Statistics Sweden (SCB). 2008. Party Preference Survey. Stockholm. http://www.scb.se/Pages/SubjectArea____12262.aspx