Sweden - Becky Ohlsen [13]
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The transformation to an industrial society brought with it trade unions and the Social Democratic Labour Party (Social Democrats for short), founded in 1889 to support workers. The party grew quickly and obtained parliamentary representation in 1896 when Hjalmar Branting was elected.
In 1905 King Oscar II (1829–1907) was forced to recognise Norwegian independence and the two countries went their separate ways.
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Only the US, Switzerland and Denmark rank ahead of Sweden on the World Economic Forum’s list of the world’s most competitive and prosperous countries.
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WORLD WARS & THE WELFARE STATE
Sweden declared itself neutral in 1912, and remained so throughout the bloodshed of WWI.
In the interwar period, a Social Democrat–Liberal coalition government took control (1921). Reforms followed quickly, including an eight-hour working day and suffrage for all adults aged over 23.
Swedish neutrality during WWII was ambiguous: letting German troops march through to occupy Norway certainly tarnished Sweden’s image. On the other hand, Sweden was a haven for refugees from Finland, Norway, Denmark and the Baltic states; downed allied aircrew who escaped the Gestapo; and many thousands of Jews who escaped persecution and death.
After the war and throughout the 1950s and ’60s the Social Democrats continued with the creation of folkhemmet (the welfare state). The standard of living for ordinary Swedes rose rapidly and real poverty was virtually eradicated.
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The Olof Palme International Center (www.palmecenter.org) has taken up the former prime minister’s baton, working for cross-border cooperation.
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MODERN SWEDEN
After a confident few decades, the late 20th century saw some unpleasant surprises for Sweden, as economic pressures clouded Sweden’s social goals and various sacks of dirty laundry fell out of the cupboard.
In 1986 Prime Minister Olof Palme (1927–86) was assassinated as he walked home from the cinema. The murder and bungled police inquiry shook ordinary Swedes’ confidence in their country, institutions and leaders. The killing remains unsolved, but it seems most likely that external destabilisation lay behind this appalling act. Afterwards, the fortunes of the Social Democrats took a turn for the worse as various scandals came to light, including illegal arms trading in the Middle East by the Bofors company.
By late 1992, during the world recession, the country’s budgetary problems culminated in frenzied speculation against the Swedish krona. In November of that year the central bank (Sveriges Riksbank) was forced to abandon fixed exchange rates and let the krona float freely. The currency immediately devalued by 20%, interest rates shot up by a world record–breaking 500% and unemployment flew to 14%; the government fought back with tax hikes, punishing cuts to the welfare budget and the scrapping of previously relaxed immigration rules.
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Sweden’s presidency of the EU during 2001 was marred by demonstrations that turned to riots in Göteborg.
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With both the economy and national confidence severely shaken, Swedes narrowly voted in favour of joining the European Union (EU), effective from 1 January 1995. Since then there have been further major reforms and the economy has improved considerably, with falling unemployment and inflation.
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Sweden joined the League of Nations in 1920 and the UN in 1946, and participates in international peacekeeping efforts through these organisations.
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Another shocking political murder, of Foreign Minister Anna Lindh (1957–2003), again rocked Sweden to the core. Far-right involvement was suspected – Lindh was a vocal supporter of the Euro and an outspoken critic of both the war in Iraq and Italy’s Silvio Berlusconi – but it appears that her attacker had psychiatric problems.