ABSTRACT
The ability of the ‘Swedish Model’ to successfully pursue traditional social democratic objectives - chiefly full employment, economic growth, low inflation, international competitiveness, the development of a comprehensive welfare state, together with the redistribution of income and power - has been called into question by a combination of factors external to the Swedish economy. Globalisation has arguably weakened nationally-located labour movements together with the ability of the state to pursue social democratic-Keynesian policies. Similarly, European integration, itself partly conditioned by globalisation and partly a reaction intended to regulate unfettered capitalism, reinforces the neo liberal economic orthodoxy presently dominant throughout the international community. Thus, many theorists claim that the future of national economic management is limited, and that Sweden should adapt to these external forces through membership of the EU, potentially including EMU. Indeed, it may do so relatively successfully due to its ingenuity in developing unique institutional arrangements and policy instruments in order that social democratic goals may still be pursued despite limitations upon autonomy of action.
