Mains Practice Questions

Approach

• Start your answer by giving a brief about the Nordic Model of Democracy.
• Discuss the features of the Nordic Model.
• Discuss the advantages and disadvantages of the Nordic Model.
• Conclude your answer by giving a way forward.

Introduction

The Nordic model refers to the standards followed in Sweden, Norway, Finland, Denmark, and Iceland. These nations are known for high living standards and low income disparity.

Main Body

Features of the Nordic Model of Democracy

• The model is a unique combination of Free-Market Capitalism and Social Welfare.
  • An economic system that is based on supply and demand is known as the Free Market.
  • Social Benefits are funded by taxpayers and administered by the government for the benefit of all citizens.
• It is a mixed economic system that reduces the gap between the rich and the poor through redistributive taxation and a robust public sector while preserving the benefits of capitalism.
• Gender equality is a hallmark trait of the culture that results in not only a high degree of workplace participation by women but also a high level of parental engagement by men.

Advantages of the Nordic Model of Democracy

• The Nordic model yields equality and social mobility.
• Everyone has free access to decent public services, including some of the best education and healthcare in the world, and people appear happy to pay their taxes to make sure that this continues.
• These collective benefits are merged with entrepreneurship, creating an efficient blend of capitalism and socialism (Cuddly Capitalism).

Disadvantages of the Nordic Model of Democracy

• The model is criticized, because of the high taxes, high degree of government intervention, and relatively low Gross Domestic Product (GDP) and productivity, limit economic growth.
• The Nordic model redistributes assets, limits the amount of money available for personal spending and consumption, and encourages reliance on government-subsidized programs.

Way Forward

• There are fears that an aging population, globalization, and growing immigration will gradually tear apart the efficient welfare state of the Nordic model.
• Taxes can only increase so far, and there is always the risk that a more individualistic culture will begin to evolve.
• The Nordic model has a habit of overcoming obstacles better than many critics have expected. There are reasons to believe that the basic values behind it are so ingrained in these countries that they will always exist in one form or another.