Politics | Social democracy » Helen Fisher Hohman - Social Democracy in Sweden

Source: http://www.doksinet SOCIAL DEMOCRACY IN SWEDEN H E L E N F I S H E R HOHMAN * Although conditions in Sweden differ widely fromthosein the United States, many basic problems encountered in establishing a program of social security are common to the two democracies. This summary, drawn from the introductorychaptersof a comprehensive report on provisions for the aged in Sweden, outlines the setting in which these and other social programs have developed in that country. I N S P I T E OF its modern o u t w a r d appearance, the up-to-date efficiency of its a d m i n i s t r a t i o n , and the charming sophistication of its people, to the student of social affairs Sweden has the atmosphere of h i s t o r y . As has been a p t l y said, i t is a "modern democracy on ancient f o u n d a t i o n s . " Perhaps i t is because the i n d u s t r i a l r e v o l u t i o n and urbanization came later there t h a n elsewhere, perhaps i t is because i n recent times the c o u n t

r y has escaped the violence of w a r ; b u t whatever the cause, one feels i n Sweden the force of historical continuity. Economic g r o w t h and social change have never been so rapid or so v i o l e n t as to get beyond c o n t r o l . Public policy has never been altogether d o m i n a t e d by the doctrinaire laissez faire of the Manchester School or by the defiant individualism of the A m e r i c a n frontier. For generations the Swedes have l i v e d i n an ordered society, and a l t h o u g h the sources of political power have shifted f r o m the K i n g to the estates and from the estates to the people, and the sanctions of political action have passed f r o m religion to an enlightened r a t i o n a l i s m , the Swedish people accept the rule of law and t r a d i t i o n w i t h practical good sense. G o v e r n m e n t is a realistic business to be efficiently performed, and the o r d i n a r y citizen is orderly and law abiding. The Swede is not w i t h o u t a touch of

temperament, b u t he does not express his i n d i v i d u a l i t y b y defying the law. He is the p r o d u c t of a stable and vigorous culture, and i t is n a t u r a l t h a t he should believe in the possibility of achieving social progress along rational lines and t h r o u g h the m e d i u m of p a r l i a mentary government. The National Background Sweden is the largest of the Scandinavian c o u n tries i n area, p o p u l a t i o n , and w e a l t h . I t s t e r r i tory is almost one and a half times t h a t of G r e a t * Consultant, Bureau of Research and Statistics; and L e c t u r e r i n the D i v i sion of Social W o r k , N o r t h w e s t e r n U n i v e r s i t y . The volume f r o m w h i c h this article is taken w i l l be published b y the Social Security B o a r d under the title Old-Age in Sweden: A Program of Social Security. B r i t a i n and I r e l a n d . The p o p u l a t i o n of 63 m i l lion places i t among the smaller countries of Europe, b u t

, unlike B e l g i u m or H o l l a n d , i t is n o t compactly contained w i t h i n a small compass. The economic expansion w h i c h began i n the sixties a n d seventies of the last c e n t u r y came r e l a t i v e l y late as compared w i t h other countries of Western c u l t u r e , a circumstance w h i c h p e r m i t ted Sweden to meet the changes of the i n d u s t r i a l r e v o l u t i o n better equipped to deal w i t h i t s p r o b lems t h a n were those countries w h i c h first f e l t i t s i m p a c t . The N a t i o n h a d t i m e t o c a r r y t h r o u g h necessary political reforms before i t was called upon to test the s t r e n g t h of the liberal state i n dealing w i t h the problems of p u b l i c regulation and control on a large scale. I n the p o l i t i c a l and social fields, Sweden seems to have made the t r a n s i t i o n f r o m the past t o the present w i t h o u t destructive waste. The erection of factories and m i l l s close to the

mines a n d forests and the dispersion of n a t u r a l resources made possible a decentralization of i n d u s t r y w h i c h has spared the N a t i o n the affliction of the great c i t y and has resulted i n a wholesome balance between t o w n and c o u n t r y . T h o u g h the p r o p o r t i o n of the people occupied i n i n d u s t r y and trade has been increasing steadily d u r i n g the past 50 years a n d i n 1930 absorbed a b o u t 54 percent of the p o p u l a t i o n , agriculture has m a i n t a i n e d an i m p o r t a n t position, occupying 39 percent of the p o p u l a t i o n ; the public services and the liberal professions accounted for the r e m a i n i n g 7 percent. Because of the decentralization of i n d u s t r y , a b o u t half of the persons engaged i n i n d u s t r i a l pursuits l i v e i n small communities i n r u r a l areas. A c c o r d i n g t o the census of 1930, 70 percent of the t o t a l p o p u l a t i o n of Sweden l i v e d i n r u r a l

areas and o n l y 16 percent i n towns of 20,000 or more i n h a b i t a n t s . D u r i n g the period of i n d u s t r i a l i z a t i o n , there has been a steady m o v e m e n t of p o p u l a t i o n f r o m the farms to the towns and cities and overseas. N e i t h e r the g r o w i n g demand for labor a t home Source: http://www.doksinet n o r the efforts of the G o v e r n m e n t t o discourage m i g r a t i o n abroad have been effective i n p r e v e n t i n g people f r o m l e a v i n g the c o u n t r y , and the stream of e m i g r a t i o n t o A m e r i c a w h i c h reached i t s crest i n the 1880s continued to flow s t r o n g l y , u n t i l the W o r l d W a r a n d i t s a f t e r m a t h a l l b u t closed the U n i t e d States t o European settlers. T h o u g h Swedish statesmen m a y l a m e n t this less of p o p u l a t i o n t o the N e w W o r l d , the needs of i n d u s t r i a l progress have been m e t w i t h o u t d i s t u r b i n g the c u l t

u r a l u n i t y of the c o u n t r y b y a t t r a c t i n g i m m i g r a n t s f r o m other nations. F o r t w o centuries there has been l i t t l e infusion of foreign blood i n t o the Swedish p o p u l a t i o n , a n d , except f o r the nomadic L a p p s and the F i n n s i n the N o r t h , there is no significant m i n o r i t y w h i c h can be differentiated on the basis of race, religion, or n a t i o n a l i t y . T h e i n t i m a c y of the village pervades the larger cities T h e complete registrat i o n of citizens w h i c h has been carried on cont i n u o u s l y since the early p a r t of the eighteenth c e n t u r y u n d o u b t e d l y strengthens the feeling of social s o l i d a r i t y a n d a t the same t i m e contributes to the efficiency of c i v i l government. A n o t h e r set of factors w h i c h has c o n t r i b u t e d t o the s t a b i l i t y of Swedish life is connected w i t h the gradual e v o l u t i o n of the p o l i t i c a l and social

i n s t i t u t i o n s of the c o u n t r y d u r i n g the n i n e t e e n t h c e n t u r y . T h e foundations of Swedish democracy i n r u r a l life a n d local g o v e r n m e n t go back m u c h f u r t h e r , b u t i t is i n the period t h a t has intervened since 1800 t h a t p a r l i a m e n t a r y g o v e r n m e n t responsible t o a democratic electorate has been firmly established. I t was n o t u n t i l the reforms of 1866 t h a t a democratic, two-chamber p a r l i a m e n t was i n s t i t u t e d , and o n l y i n 1909 was the franchise extended t o include v i r t u a l l y the whole a d u l t male p o p u l a t i o n . I n 1919 suffrage was made u n i versal for b o t h m e n and w o m e n T o d a y every Swedish citizen 23 years of age or over is e n t i t l e d t o v o t e , w i t h the exception of persons under guardianship, undischarged b a n k r u p t s , a n d inmates of workhouses. E l e c t i o n t o the R i k s d a g is o r g a n ized on a basis of

p r o p o r t i o n a l representation F r e q u e n t l y this electoral system has prevented a n y one p a r t y f r o m g a i n i n g a clear m a j o r i t y , a n d consequently Sweden has h a d a n o p p o r t u n i t y t o experiment w i t h various methods of m i n o r i t y g o v e r n m e n t . T h i s m e t h o d has tended t o give c o n t i n u i t y t o p u b l i c p o l i c y inasmuch as a new g o v e r n m e n t has seldom m e a n t a complete change, as is the case i n the t w o - p a r t y system familiar in E n g l a n d and the U n i t e d States, b u t rather a new coalition w h i c h contains some elements of the g o v e r n m e n t w h i c h preceded i t . T h e Social Democratic P a r t y , w h i c h t o d a y controls the National G o v e r n m e n t , holds office i n coalition w i t h the F a r m e r s P a r t y , a n d , t h o u g h i t s m a i n strength lies i n the trade-unions, i t prides itself upon having w o n the s u p p o r t of a considerable

section of the m i d d l e class. A l o n g w i t h the d e m o c r a t i z a t i o n of the franchise has gone the m o v e m e n t for popular education. The first compulsory public-education act was p r o m u l g a t e d i n 1842. A t t e n d a n c e at public elementary schools is n o w compulsory for all c h i l d r e n between t h e ages of 7 and 14 who are n o t receiving e q u i v a l e n t education f r o m some other source. C o n t i n u a t i o n schools and higher elementary schools p r o v i d e either practical traini n g or general education for children who have completed the prescribed course of instruction in the elementary schools. E x c e p t for certain small fees, secondary education is tax-supported, and the possibility of numerous scholarships i n the p u b l i c secondary schools opens these opportunities to a considerable number of c h i l d r e n f r o m families of l o w income. U n i v e r s i t y education also is free Popular a d u l t education is

well-established t h r o u g h such mediums as p u b l i c libraries, popularscience lectures, and the peoples colleges and v o l u n t a r y - s t u d y groups. A vigorous educational p r o g r a m i n c u r r e n t affairs is carried on through the press a n d b y the political parties, as well as b y v o l u n t a r y agencies such as the cooperative societies, trade-unions, taxpayers organizations, and employer a n d trade associations. The economic expansion of the past 60 or 70 years has p r o v i d e d a favorable environment for the steady development of democratic institutions. T h e p r o s p e r i t y of Sweden is shown b y the rising curves of t o t a l n a t i o n a l and per capita income over a period of 70 years. The t r e n d of real wages for the same period shows t h a t the gain has been shared b y the workers, whose t o t a l purchasing power more t h a n trebled between 1860 a n d 1930. Statistics of c o n s u m p t i o n for the past t w o decades add f u r t h e

r evidence t h a t the standa r d of l i v i n g of the whole p o p u l a t i o n has improved m a t e r i a l l y . A l t h o u g h i n t e r n a t i o n a l comparisons should be used w i t h c a u t i o n , Sweden undoubtedly belongs t o the group of countries i n w h i c h living Source: http://www.doksinet conditions for most sections of the i n d u s t r i a l population are favorable. Nevertheless, as i n a l l other countries, the great advances of the i n d u s t r i a l revolution have n o t solved the N a t i o n s economic problems or freed large sections of the people from poverty. No altogether satisfactory d a t a exist u p o n which to base a statement of income d i s t r i b u t i o n . The figures published i n the census of 1930 are taken from t a x r e t u r n s and are k n o w n to be too low, especially for the a g r i c u l t u r a l p o p u l a t i o n . They serve, however, t o indicate the r e l a t i v e size of the various income groups, and f r o m t h

e m some broad conclusions m a y be d r a w n as t o the p r o p o r tion of the p o p u l a t i o n l i v i n g below a satisfactory standard. T h u s the census for 1930 indicates that 29.3 percent of the g a i n f u l l y occupied p o p u lation received less t h a n 1,000 k r o n o r a year, a n d in addition 22.6 percent h a d no stated income Since this latter group largely consisted of persons receiving less t h a n 600 k r o n o r a year, i t appears that more t h a n half the g a i n f u l l y occupied p o p u l a tion had incomes of less t h a n 1,000 k r o n o r i n 1930. The average income of a l l g a i n f u l workers w i t h stated income has been estimated a t a b o u t 1,700 kronor i n 1930. T h i s figure is p r o b a b l y too l o w , but if taken as a p o i n t of reference i t is significant to note t h a t o n l y f r o m o n e - f o u r t h t o onethird of the g a i n f u l workers of the c o u n t r y r e ceived more t h a n this average. Figures for 1935 show t

h a t about 50 percent of families received incomes below 2,000 k r o n o r a year. Average wages v a r y g r e a t l y among the occupations and f r o m one p a r t of the c o u n t r y t o another. The average y e a r l y wage income for m a r r i e d male workers i n a g r i c u l t u r e i n 1937 was 1,471 k r o n o r and for u n m a r r i e d m e n 1,163 k r o n o r . Women workers on farms received an average of 946 kronor. I n i n d u s t r y a n d trade the figures were higher. The average for a l l industries, i n 1936, was 2,848 k r o n o r for m e n a n d 1,691 k r o n o r for women. The unequal d i s t r i b u t i o n of income is i n d i c a t e d in the figures t a k e n f r o m income-tax r e t u r n s . I n 1930 about 50 percent of the w o r k i n g p o p u l a t i o n earned less t h a n 1,000 k r o n o r a year a n d received 12 percent of the t o t a l income, whereas the 0.3 percent who earned 20,000 k r o n o r or more r e ceived 9.6 percent P r o p e r t y ,

however, is more equitably d i v i d e d t h a n i n c o m e ; nearly h a l f of the 1 1 The krona was e q u i v a l e n t t o a b o u t 25 cents at 1939 rate of exchange. p r i v a t e l y owned p r o p e r t y of the c o u n t r y belongs t o persons w h o earn less t h a n 2,500 k r o n o r a year, most of w h o m are peasants. I t is impossible t o say t o w h a t e x t e n t these incomes p r o v i d e maintenance a t a socially t o l e r able m i n i m u m s t a n d a r d of l i v i n g . Analysis of t h e food consumption of 1,245 u r b a n families of m o d est income, a l l b u t 4 of w h i c h h a d an income of 2,000 k r o n o r or more, indicates t h a t , w h i l e average c o n s u m p t i o n m i g h t be considered q u i t e adequate, an i m p r o v e m e n t i n d i e t w o u l d be beneficial t o an appreciable p a r t of the p o p u l a t i o n . T h e u n desirable l i v i n g conditions imposed b y l o w income bear m o s t h e a v i l y o n large families. T h

o u g h less t h a n 10 percent of a l l households i n Sweden have three or more c h i l d r e n under 15 years of age, t h e significance of l o w standards i n these families should n o t be underestimated, since more t h a n one-half of every new generation is reared b y mothers who have g i v e n b i r t h t o three or more children. Standards of l i v i n g v a r y g r e a t l y i n different p a r t s of the c o u n t r y . T h e y are definitely lower i n the r u r a l areas. Especially b a d conditions are f o u n d i n the t i m b e r regions of N o r r l a n d a n d i n the neighborhoods dependent u p o n the declining stone quarries i n certain coastal d i s t r i c t s of southern Sweden. H o u s i n g problems have recently occupied a c o n spicuous position i n p u b l i c discussion of t h e s t a n d a r d of l i v i n g . Travelers w h o v i s i t t h e cities of Sweden are l i k e l y t o be impressed b y t h e absence of slums. C i t y g r o w t h is a recent

development, a n d consequently m u c h of the c o n s t r u c t i o n is new. T h e r e are, however, serious defects w h i c h are n o t apparent t o t h e casual observerdefects w h i c h are intensified b y t h e conditions of overcrowding under w h i c h a large p a r t of the Swedish people lives. I n t o w n a n d c i t y alike, overcrowding is prevalent among low-income families. T h e r e is n o t h i n g novel i n the p i c t u r e of i n a d e quate l i v i n g standards w h i c h these facts suggest. U n d e r n o u r i s h m e n t a n d b a d housing are n o t c o n d i tions peculiar t o Sweden. T h e y are m e n t i o n e d here o n l y because t h e y p r o v i d e the s e t t i n g for m o d e r n social-reform efforts. The Evolution of Pensions T o understand the social politics of present-day Sweden one m u s t k n o w something of the past. D u r i n g the n i n e t e e n t h c e n t u r y , public relief i n Source: http://www.doksinet Sweden was subject t o

the terms of a r e s t r i c t i v e poor l a w administered b y local a u t h o r i t i e s . The past 40 years have witnessed a process b y w h i c h one after another of the dependent groups of socie t y has been removed f r o m the scope of the poor l a w a n d assisted b y G o v e r n m e n t provisions under more favorable terms. The reaction against the h a r d conditions of the o l d poor l a w f o u n d expression, i n the 1880s a n d 1890s, i n an interest i n social insurance programs along the lines of the early G e r m a n legislation. F r o m the t i m e i n 1884 w h e n Sven A d o l f H e d i n , a vigorous advocate of social-reform movements, first called the a t t e n t i o n of the Swedish R i k s d a g to the need for a system of social insurance to the passage of the first pension act i n 1913, the subject of pensions was f r e q u e n t l y under discussion, a n d d u r i n g the period f r o m 1913 to 1938 few sessions of the R i k s d a g sat w i t h o u t

passing amending legisl a t i o n . The h i s t o r y of pensions spans the period of l i b e r a l influence i n social politics a n d carries over i n t o the opening phases of socialist p r e d o m inance. Since pensions have c o n s t i t u t e d one of the m a j o r items i n the welfare p r o g r a m of liberals a n d Social D e m o c r a t s a l i k e , one can trace i n the develo p m e n t of pensions the m a i n trends i n m o d e r n Swedish social h i s t o r y . T h e o n l y positive a c t i o n t a k e n before 1913 was the establishment of the w o r k m e n s insurance f u n d i n 1895. I n t h a t year the R i k s d a g , a n t i c i p a t i n g f u t u r e legislation, v o t e d a g r a n t of 14 m i l l i o n k r o n o r to prepare the w a y for the system of i n v a l i d i t y insurance. A similar a p p r o p r i a t i o n was made i n succeeding years so t h a t i n 1914, w h e n a pension system was finally established, the f u n d a m o u n t e d to a b o u t

36 m i l l i o n k r o n o r . T h e purpose of the Pension A c t of 1913 as set f o r t h b y the c o m m i t t e e t h a t prepared i t was t o p r o v i d e an economically more secure and socially m o r e w o r t h y f o r m of aid t h a n was available to o l d people a n d i n v a l i d s f r o m poor relief or the c h a r i t y of relatives. T h e new pension act w e n t i n t o effect o n J a n u a r y 1, 1914. I t i n t r o d u c e d a compulsory system of old-age a n d i n v a l i d i t y insurance w h i c h i n c l u d e d w i t h i n i t s scope the whole a d u l t p o p u l a t i o n . I t combined i n one organization c o n t r i b u t o r y pensions based on the insurance p r i n c i p l e of i n d i v i d u a l e q u i t y a n d payable as a r i g h t , w i t h n o n c o n t r i b u t o r y pension supplements a n d s u p p o r t p a y m e n t s financed o u t of p u b l i c funds, w h i c h were g r a n t e d to permanent i n v a l i d s w h o qualified under a means

test. T h i s l a w of 1913 l a i d the basic foundation of pension insurance i n Sweden f r o m 1914 u n t i l 1937 w h e n the l a w of 1935 became effective. Under the system, every Swedish citizen between the ages of 16 a n d 66 registered as residing i n the country was liable for the p a y m e n t of a y e a r l y contribut i o n of 3 to 13 k r o n o r (the m a x i m u m was raised i n 1921 to 33 k r o n o r ) according to the size of his income. The p a y m e n t of c o n t r i b u t i o n s entitled a person to a c o n t r i b u t o r y pension when he reached 67 years of age, or a t an earlier date if he became p e r m a n e n t l y i n v a l i d e d . The amount of the pension was closely related to the value of the c o n t r i b u t i o n s w h i c h an i n d i v i d u a l had p a i d , a n d , because the m o r t a l i t y statistics indicated t h a t women w o u l d d r a w more heavily upon the f u n d t h a n m e n , their benefit scale was set somewhat lower. I t was

clear a t the outset that the c o n t r i b u t o r y system w o u l d fail to provide a sufficient a m o u n t to cover the needs of persons m a i n l y dependent upon the pension for support. I n order to offset this s i t u a t i o n a plan of pension supplements or bonuses was incorporated i n the l a w , whereby pensioners w h o were declared to be permanent i n v a l i d s and whose incomes fell below a c e r t a i n a m o u n t m i g h t receive an annual increm e n t i n a d d i t i o n to the c o n t r i b u t o r y pension. A law of 1918 provided for allowances to minor children of i n v a l i d s . Also, persons 15 years of age or over who were declared to be permanent invalids, whether t h e y had paid c o n t r i b u t i o n s from age 16 or n o t , were e n t i t l e d to d r a w support payments according to the terms established for the bonus. A n a t i o n a l system of v o l u n t a r y pensions authorized under the act provided an opportunity for the small investor

to augment the benefits payable under the general p r o g r a m . The pension act had scarcely begun to function when the illusion of permanence and stability in w h i c h the nineteenth c e n t u r y ended and the t w e n t i e t h c e n t u r y began was suddenly dispelled b y the o u t b r e a k of w a r . I n s t e a d of growing to m a t u r i t y i n a settled and predictable environment, the pension p l a n , l i k e other social programs, has h a d t o meet a succession of sudden and drastic changes i n the economic life of the N a t i o n . I t has h a d to w i t h s t a n d v i o l e n t swings of the business cycle and a d a p t itself to the accompanying changes Source: http://www.doksinet in national income, e m p l o y m e n t , the value of money, and the altered position of specific i n d u s tries i n the n a t i o n a l economy, as well as to m a r k e d changes i n social a t t i t u d e s w h i c h are the inevitable concomitant of economic i n s t a b i l i t y

. These factors have been significant i n their effect u p o n the fiscal arrangements on w h i c h the system rests and also in their bearing on public o p i n i o n and p o l i t i c a l necessity. Although numerous acts were passed after 1913 amending various features of the o r i g i n a l l a w , the main provisions of the Swedish pension p l a n remained i n t a c t u n t i l 1935, i n spite of the fact t h a t considerable dissatisfaction was felt w i t h the system. The legislation of 1935 and 1937 opens a new era i n Swedish pension h i s t o r y . A l t h o u g h the system retains certain of the earlier features, such as universal coverage, the coordination of i n v a lidity and old-age pensions, and a unified system of contributory and supplementary pensions, the purpose and the rationale have been changed. Contributory pensions are no longer reckoned on the principle of i n d i v i d u a l e q u i t y b u t according to a formula w h i c h , b y i n t r o d u c i n g a

flat a m o u n t , materially increases the sums payable to persons of low income of the present generation of p e n sioners and reduces the pension payable i n the upper brackets of the scale. The m a x i m u m s u p plementary pension is increased and graded according to three cost-of-living categories For persons who have reached age 67, the supplementary pension has acquired the status of an old-age pension w i t h o u t the requirement of p r o v i n g permanent i n v a l i d i t y . The formulas for c o n t r i b u tory and supplementary pensions are the same for both men and women. The income l i m i t is raised, and the definition of income exempted f r o m the means test is expanded. The n a t i o n a l v o l u n t a r y pension system is continued on m u c h the same terms as before. C h i l d allowances are made the subject of p a r t i c u l a r legislation and their scope is extended, t h o u g h t h e y continue to be administered by the Pension B o a r d . The m a i n

objective i n pension r e f o r m has been to make pensions adequate so t h a t the recipients will not be obliged to a p p l y for poor relief. T h i s objective has been a t t a i n e d o n l y i n p a r t b y the new legislation. The c o s t - o f - l i v i n g bonus is a device for increasing pensions i n the towns a n d cities, b u t the scale is s t i l l too low to achieve this result i n a l l instances. The recognition of t h i s fact has directed a t t e n t i o n t o the possibility of i m p r o v i n g the s t a n d a r d of l i v i n g of pensioners b y other means, such as subsidized housing, i m p r o v e d medical services, extension of the c o m m u n a l - p e n sion supplement, a n d , last b u t n o t least, the r e f o r m of the poor l a w . Other Welfare Measures Pensions comprise o n l y one of the m a n y a n d varied aspects of the Swedish welfare p r o g r a m . V o l u n t a r y sickness societies have been active for m a n y years, and they have been

strengthened b y an act of 1931 w h i c h gives the sick funds a semipublic character; u n e m p l o y m e n t insurance is also v o l u n t a r y , and some trade-union systems receive a subsidy f r o m the N a t i o n a l G o v e r n m e n t . O t h e r measures financed e n t i r e l y o u t of p u b l i c funds have p r o v i d e d for special groups outside the scope of general relief. Dependent c h i l d r e n , cared for outside their homes, receive assistance under the C h i l d Welfare A c t of 1924; and allowances for dependent m i n o r s , first restricted t o the c h i l d r e n of certain categories of n a t i o n a l pensioners, have recently been extended t o cover c e r t a i n groups of orphans and fatherless c h i l d r e n , i n c l u d i n g those of u n m a r r i e d or divorced mothers even t h o u g h the father m a y be k n o w n and obligated t o p r o v i d e properly for t h e m b u t fails to do so. B l i n d c o m pensation has been p a i d b y the N a t i

o n a l G o v e r n m e n t since 1935 As early as the eighteenth c e n t u r y the care of the i n d i g e n t sick was g r a d u a l l y transferred f r o m general asylums t o c o u n t y hospitals. T o d a y , medical attendance and hospital care a t low rates are available t h r o u g h o u t the c o u n t r y , t h o u g h the accommodations are n o t always equal to the need. C o n t r a r y t o the predictions a n d desires of some reformers, the poor l a w has remained an i m p o r t a n t element i n the t o t a l p r o g r a m of social provisions. Indeed, this result is to be expected. Temporary relief p r o b a b l y always w i l l be necessary, a n d , f u r t h e r m o r e , since the new reforms are categorical a n d n o t universal i n scope, c e r t a i n groupsfor instance, w i d o w s per soare n o t covered b y a n y of the special programs. E v e n more i m p o r t a n t i n the past has been the f a i l u r e of the social insurance systems, n o t a b l y old-age

pensions a n d u n e m p l o y m e n t insurance, because of l i m i t e d coverage or l o w benefits, to p r o v i d e adequate p r o t e c t i o n , w i t h the result t h a t m a n y persons of Source: http://www.doksinet l o w income have h a d t o seek s u p p l e m e n t a r y a i d f r o m t h e relief a u t h o r i t i e s . T h e proponents of social insurance measures have defended t h e m , n o t because the benefits were adequate b u t because i t has been t h e i r belief t h a t once adopted i n p r i n c i p l e i t w o u l d be r e l a t i v e l y easy t o increase g r a d u a l l y the a m o u n t of benefits. A n d there is s t i l l another reason for t h e v i r i l i t y of t h e poor l a w . I t too has f e l t the force of new ideas a n d t h e challenge of new methods of social security. T h e poor-relief act of 1918 widened t h e scope of relief w h i c h the c o m m u n a l a u t h o r i t i e s m i g h t f u r n i s h a n d set u p a c e n t r a l b o a r

d t o supervise t h e a d m i n i s t r a t i o n of local guardians. One b y one t h e pauper restrictions o n the franchise have been removed u n t i l t h e receipt of relief no longer debars a c i t i z e n f r o m v o t i n g . T h e change i n t h e a t t i t u d e of m a n y guardians a n d relief officers has been f u l l y as i m p o r t a n t as these legal changes. Standards of relief have been raised i n response t o t h e r i s i n g s t a n d a r d of l i v i n g of t h e N a t i o n . I n a n u m b e r of communes the general m i x e d workhouses have been converted i n t o c o m f o r t a b l e homes for t h e aged a n d i n f i r m . A few communes supplement n a t i o n a l pensions, sick care, b l i n d compensation, a n d c h i l d allowances according t o terms less onerous t h a n those p r e scribed b y the poor l a w . T h u s relief is c o m i n g t o be regarded as a positive f a c t o r i n social a d m i n istration. I n t h e fields of b o t h finance a n d

a d m i n i s t r a t i o n , the o r g a n i z a t i o n of p u b l i c welfare i n Sweden offers i n t e r e s t i n g examples of the successful cooperation of n a t i o n a l a n d local agencies of g o v e r n m e n t . I n d e e d , few welfare functions can be said t o be t h e exclusive field of the N a t i o n a l G o v e r n m e n t , t h e commune, or t h e c o u n t y . I t is the d u t y of the M i n i s t r y of Social Affairs, t h r o u g h i t s various d e p a r t m e n t s , t o exercise large powers of supervision a n d c o n t r o l over local affairs. E v e n w h e n the c o m m u n e furnishes n e a r l y a l l t h e funds, as i n t h e case of poor relief, a c e n t r a l b o a r d responsible t o a n a t i o n a l m i n i s t e r exercises supervision a n d , t h r o u g h i t s advice a n d influence, encourages the local a u t h o r i t i e s t o b r i n g their administration i n line w i t h national standards. T h e r e is no stereotyped p a t t e r n w h i

c h determines the exact relations between the coo p e r a t i n g agencies of g o v e r n m e n t . E a c h p l a n has been w o r k e d o u t t o fit the needs of a p a r t i c u l a r s i t u a t i o n , b u t w i t h the extension of services a n d the g r o w i n g b u r d e n of costs i n recent years the p a r t p l a y e d b y t h e N a t i o n a l Government has gained i n i m p o r t a n c e . The p r o m u l g a t i o n of a definite, coordinated n a t i o n a l p o l i c y b y the Social D e m o c r a t i c P a r t y has accelerated this tendency i n the d i r e c t i o n of centralized c o n t r o l . The cooperation among agencies extends to the field of private effort. The a c t i v i t i e s of governm e n t directed t o w a r d establishing a socially desirable m i n i m u m s t a n d a r d of l i v i n g for the people have n o t supplanted the endeavors of p h i l a n t h r o p i s t s , t h o u g h b y u n d e r t a k i n g the main b u r d e n of the s u p p o r t

of the i n d i g e n t and the less well-to-do the G o v e r n m e n t has g i v e n t o private effort a n emphasis q u i t e different f r o m the tradit i o n a l role of A m e r i c a n p h i l a n t h r o p y . A striking difference is the absence i n Sweden of " d r i v e s " to raise m o n e y for welfare projects. Private charitable enterprises consist to a large extent of foundations created b y special gifts and managed b y private boards b u t subsidized b y public funds. T h e y f u n c t i o n over a w i d e field to supplement the p u b l i c social services and to experiment along new lines of development. T o a m a r k e d degree t h e y p a r t a k e of a semipublic character. Expandi n g p u b l i c social services represent o n l y one aspect of t h e awakened social consciousness of the past 50 years. Private a c t i v i t y has also been stimul a t e d , a n d even t h o u g h the m a j o r role i n future p l a n n i n g a n d financing m u s t be

assumed by the G o v e r n m e n t , the dimensions of the task are such t h a t the cooporation of a l l is welcomed. Present Social Planning A t the present t i m e , the Social Democratic P a r t y is the d o m i n a n t factor i n shaping social policy i n Sweden. The early leadership i n the m o d e r n reform m o v e m e n t w h i c h dates from the last q u a r t e r of the nineteenth c e n t u r y was assumed b y i n d i v i d u a l s of enlightened views, among w h o m were personalities of w i d e l y varied gifts and opinions. W h a t legislation was passed was adopted t h r o u g h the cooperation of the Social D e m o c r a t s w i t h the liberal parties of the Riksdag. C o n t r i b u t o r y systems of social insurance won s u p p o r t because t h e y combined the principle of self-help w i t h t h a t of G o v e r n m e n t aid and offered a p r o g r a m for increasing the security and selfrespect of the lower-income groups w i t h o u t introd u c i n g a n y

direct changes i n economic processes. W i t h the assumption of p a r l i a m e n t a r y control Source: http://www.doksinet by the Social Democrats, social policy has been given a new t u r n . The h u m a n i t a r i a n m o t i v a t i o n is not l a c k i n g , b u t the policies n o w being p r o mulgated base their claim t o s u p p o r t on economic considerations, whereas the earlier legislation sought to a i d the poor b y p r o v i d i n g p r o t e c t i o n against certain i n e v i t a b l e risks of the c o m p e t i t i v e system. The proposals of the Social Democrats are framed i n terms of the whole N a t i o n , a n d the specific measures they advocate are regarded n o t as correctives b u t as i n t e g r a l elements i n the economic and social life of the people. W i t h i n the welfare field the Swedish Social Democrats have been concerned w i t h problems of old-age security, public medical care, u n e m p l o y ment, and the v a r i e t y of problems

raised b y the population crisis. T h e i r p l a n f o r c o m b a t i n g u n employment, chiefly b y means of a p r o g r a m of planned public works a n d t o a lesser extent b y subsidies to private i n d u s t r y , has a t t r a c t e d the attention of economists i n a l l countries. Quite as arresting has been the development of a welfare p r o g r a m t o p r o v i d e security for t h e family as one means of increasing the b i r t h r a t e . I n Sweden the b i r t h r a t e has been f a l l i n g since 1880 even more r a p i d l y t h a n i n most other c o u n tries of Western E u r o p e a n c u l t u r e , w i t h the result that since 1925 i t has been so far below the r e placement level t h a t the c o u n t r y faces an a c t u a l decrease i n p o p u l a t i o n i n the years 1940-45. Public o p i n i o n has been aroused o n the issue b y the work of Professor and M r s . G u n n a r M y r d a l , and since 1935 a p o p u l a t i o n commission a p pointed b y

the G o v e r n m e n t has been engaged on a comprehensive s t u d y of problems of p o p u l a t i o n and the standard of l i v i n g . The reports of this commission and the child-welfare legislation r e cently enacted m a r k a sharp break w i t h the social insurance philosophy w h i c h for four decades d o m i nated social-reform movements. The new p r o grams stress the i m p o r t a n c e of raising l i v i n g standards b y p r o v i d i n g special services and assistance i n k i n d instead of s u p p l y i n g cash income o n l y . Public housing is the most conspicuous of the projects t o w h i c h the theory has been applied, but other features include an extension of health services for mothers and c h i l d r e n ; free school meals, nursery schools, and better educational and developmental o p p o r t u n i t i e s f o r the y o u n g ; essential foods a t low prices for large families; and similar measures. T h e a r g u m e n t for assist- ance i n k i n d has

been elaborated i n connection w i t h t h e p o p u l a t i o n question, b u t i t s i m p l i c a t i o n s extend beyond t h e scope of this special field, a n d i n the f u t u r e i t m a y have a wider a p p l i c a t i o n . T h e i m m e d i a t e issue before Swedish Social Democrats has been a choice between benefits i n k i n d a n d a f a m i l y wage. So far the f a m i l y wage has n o t been adopted whereas some progress has been made i n f u r t h e r i n g the former p r o g r a m . T h e advocates of benefits i n k i n d reject the device of the f a m i l y wage because i t reaches o n l y a p a r t of the p o p u l a t i o n t h e wage earnersleaving o u t such i m p o r t a n t groups as farmers, independent craftsmen, a n d s m a l l traders; because i t runs counter to the t r a d e - u n i o n policy of the standard wage; a n d because i t is i n i m i c a l t o t h e p r i n c i p l e of equal pay for equal w o r k w h i c h w o m e n i n e m p l o y m e n t h

o l d t o be essential. B u t t h e y do n o t rest t h e i r case o n these negative arguments. O n the c o n t r a r y , their theory is founded o n the positive advantages of economy a n d efficiency w h i c h t h e y anticipate f r o m a public policy based o n the p r i n ciple of social provision of the essential requisites of sound f a m i l y life. A n i n d i v i d u a l a c t i n g alone, t h e y say, cannot hope t o o b t a i n adequate h e a l t h services, n o u r i s h i n g food, good housing, education, a n d recreation even i f his wages are subsidized b y I f the public is t o be adequately a cash allowance. served, these services need t o be organized and a d ministered along socially efficient lines. T h e advocates of benefits i n k i n d p o i n t t o t h e experience w i t h the insurance programs to show t h a t , i f i t is deemed desirable t h a t a group should enjoy certain advantages, t h e sound procedure is t o s u p p l y t h e a c t u a l goods a n d

services a n d t o educate the p u b l i c i n t h e i r use r a t h e r t h a n t o dole o u t cash w h i c h m a y or m a y n o t be used for t h e purposes intended. N o t o n l y are benefits i n k i n d cheaper, because of t h e economies of centralized b u y i n g a n d organization, b u t i n Sweden f a r m income could be increased b y p r o m o t i n g the use of such foods as m i l k , eggs, b u t t e r , cheese, m e a t , f r u i t , a n d vegetables, i n w h i c h t h e d i e t of the people is deficient. T h u s a p r o g r a m of adequate d i e t can be i n t e g r a t e d w i t h t h e basic econo m y of the c o u n t r y a n d a n oversupply of a g r i c u l t u r a l products t u r n e d i n t o a n a t i o n a l asset S i m i l a r l y , the p r o g r a m of p u b l i c housing can be organized i n such a w a y as t o p l a y a p a r t i n equalizing b u i l d i n g operations t h r o u g h o u t t h e phases of the business cycle. Source: http://www.doksinet I n a

d d i t i o n to these considerations, the p r o g r a m of direct p r o v i s i o n of goods a n d services appeals t o m a n y persons because i t seems to solve the t w o troublesome problems of the means test a n d the supervision of f a m i l y expenditure. T h e insurance programs, w h e t h e r compulsory or v o l u n t a r y , have failed t o p r o v i d e benefits of sufficient size t o m a i n t a i n a large p r o p o r t i o n of their beneficiaries, a n d recourse t o supplementary aid subject t o a means test has been the r u l e r a t h e r t h a n the exception for the aged, the p e r m a n e n t l y disabled, the sick, a n d the u n e m ployed. The Swedish R i k s d a g has f r o m t i m e t o t i m e modified the severity of the tests of means a n d need, b u t i n m a n y instances t h e y are s t i l l rigorous. I n a p r o g r a m of assistance i n k i n d the means test m a y be m i n i m i z e d more easily t h a n w h e n the p l a n calls for cash allowances;

indeed, i t is n o t illogical t o discard i t e n t i r e l y w h e n the objective of social policy is n o t l i m i t e d to i m p r o v i n g the status of the poor b u t is expanded t o include p l a n n i n g for t h e needs of a democratic society. S i m i l a r l y , assistance i n k i n d , b y exercising c o n t r o l a t the source, so to speak, offers an acceptable s o l u t i o n t o the v e x i n g p r o b l e m of supervising f a m i l y expenditure. T h o u g h t f u l observers of the Swedish social services have been satisfied w i t h neither the i n q u i s i t o r i a l practices of overzealous guardians nor the lack of supervision w h i c h the R i k s d a g has hold to be appropriate for the social insurances. T h e socially wasteful consequences of the l a t t e r have been n o t e d i n connection w i t h i n v a l i d i t y pensions and the allowances g r a n t e d to c h i l d r e n of i n v a l i d s . O b v i o u s l y , the laissez-faire a t t i t u d e w h

i c h was compatible w i t h the i n d i v i d ualistic ideals of n i n e t e e n t h - c e n t u r y liberalism is n o t acceptable to Swedish Social Democrats, whose aims are more definite and specific t h a n the general e n j o y m e n t of l i b e r t y . C o n t r o l , accordingly, is an essential element i n their p l a n n i n g , b u t for practical as well as philosophical reasons i t must be exercised w i t h a m i n i m u m of direct interference, and f r o m this p o i n t of view assistance i n kind is almost a perfect m e d i u m for the accomplishment of the Swedish p r o g r a m . Swedish social politics stands today at the threshold of a new era. Over a period of less t h a n 30 years public policy has evolved from the negative a t t i t u d e of the nineteenth-century poor law t h r o u g h the period of liberal self-help and enlightened p h i l a n t h r o p y to the positive phase of social and economic p l a n n i n g f r o m a social policy w h i c h punished

d e s t i t u t i o n to one which treated the s y m p t o m s of economic insecurity and, finally, to the p r o g r a m of prevention w h i c h the Social Democrats propose today. One sees here the logical w o r k i n g o u t of a process w h i c h , but for w a r and r e v o l u t i o n , m i g h t have been the hist o r y of social democracy elsewhere Some things have been accomplished and even more planned, b u t m u c h remains to be done. A l l parties are c o m m i t t e d i n principle to a policy of improving the standard of n a t i o n a l life, b u t there are differences of opinion regarding methods and the speed at w h i c h new ventures should be undertaken. At each new p o i n t of development there is opposition f r o m those w h o fear t h a t the extension of governm e n t a l a c t i v i t y w i l l weaken the i n d i v i d u a l effort upon w h i c h economic progress depends and that the m o u n t i n g expenditures for social purposes will absorb a

disproportionate share of the national i n c o m e B u t these domestic differences may not be the d e t e r m i n i n g factors i n the coming decade. The fate of Swedens social progress i n the next few years is inseparable f r o m the fate of Europe