ABSTRACT
The inclusive Nordic welfare model has facilitated economic growth, stable business environments and excellent living conditions as demonstrated by a number of scholars. The Nordic ‘happy democracies’ have been characterised by consensual decision-making procedures, corporatism, relatively high voter turnout, wide representation of various social groups, active membership in social organisations and remarkable levels of both institutional and social trust. The eradication of poverty is not merely a matter of expenditures and compensation. A convincing body of literature demonstrates that the level of trust in a society has consequences for economic performance as well as for individual well-being. Robert Putnam has identified two dimensions of social capital: bridging or inclusive, and bonding or exclusive social capital. Labour union membership has declined in Nordic countries with new forms of contracted work and other types of non-standard employment contracts.
