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Scandinavian countries
Why are Scandinavian countries so rich and prosperous? With Switzerland, it’s totally understandable as the country was on a gold standard until the 1970s. But what about Norway and Sweden? As I understand these countries have large welfare states, which in my logic should be even more devastating to the economy. But somehow it’s not?
Any ideas?
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1 Reply
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A good question!
Personally, I’ve been fascinated by the ways these countries leverage their unique strengths and manage potential weaknesses.
In Norway, there’s a wealth of natural resources, particularly oil. I was really struck by how they have turned this into a strength, exporting oil to the world and creating a sovereign wealth fund. It’s their way of making sure future generations also benefit from the country’s oil wealth.
https://www.norskpetroleum.no/en/production-and-exports/exports-of-oil-and-gas/#:~:text=73%25,exports%20of%20goods%20in%202022.
Another aspect that stands out to me is the institutional strength of these countries. It’s hard not to admire their efficient bureaucracy, low levels of corruption, and the rule of law. Plus, there’s a high level of social trust in Scandinavian societies. To me, this seems like a foundation that allows economic performance to thrive.
Would love to hear other thoughts on tis topic.
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