Shchypanova O. V., Nezhenets E. V., Bila A. A., Kuznetsova V. D.

Oles Honchar Dnipropetrovsk National University


One of the most crucial economy tasks is how to combine market and state mechanisms. Among the variety of state models one of the most interesting is Sweden. Sweden model means management of social and economic development through the state active intervention in the process of income distribution and redistribution, creating a strong social security system, the dominance of equality and solidarity idea. This model focuses on providing employment for the entire workforce by creating jobs with average working conditions and salary. There are more money to be spenton training and retraining employees, creation new jobs in public sector in Sweden, than in any other country [1]. It helps provide low inflation rate (0,4%) and rather low unemployment rate (7,1%) in the country [2].

Swedish model, which is built on theoretical basis of Swedish School of Economics, provided a high level of economical, social and political democracy. It represents «mixed economy» which is based on the «functional socialism» of Swedish social democrats concept: combination of market and state mechanisms, production private capitalist principles with high level of socialization of income redistribution through the state budget to promote social welfare and social protection. The main feature of this model is active government intervention in the economy with Keynesian recommendations, strong social policy, which is aimed at ensuring a high level of employment and reduction of income inequality through the redistribution of national income for the less wealthy segments of the population, who receive transfer payments. The model is based on high level of productive forces and it promotes innovation, science development, education and health protection, high level of employment, labour force reproduction and poverty reduction. Mixed economy model is based on achieving «macro consensus» (between government and civil society – unions, association of entrepreneurs, associations of farmers, consumers and so on): it provides most important needs satisfaction. They are education, health protection, social security of pensioners [3].

Despite the lacks of the Swedish economic model, like excessive taxes and government spending, disruption of economic efficiency, spreading of dependent mentality, it provides successfully social protection.

The list of references:

1. Floreskul N. The system of population social defence as the factor of the social state forming [Web resource] / N. Floreskul. – Access mode: portal/soc_gum/vknteu/2009_1_2/5_2.pdf

2. Mekshun L. The influence of Stockholm school representatives researches on Swedish economic development [Web resource] / L. Mekshun. – Access mode:

3. Site of the Swedish statistics [Web resource]. – Access mode: sverige/statistika-shvecii.php