Welfare devolution and Sweden: a model for Europe?

A model which guarantees its citizens’ protection from the day they are born to the day they die.

This is the motto for which the Swedish welfare system is so admired around the world.  Even if it went through trying times at the beginning of the 1990s because of a slowing down of the economic growth, the social model of the country which starts its EU presidency on July 1, still guarantees a universal access to services, active policies towards employment, redistribution of wealth policies, and limited salary differences.

Adding to all of this, from January 2009: the Law on the Freedom of Choice enables social services to be provided not only by the public sector, but also from the private one as well as the non profit sector.  The citizen is given the freedom of choice between all sectors at no extra cost.  It all continues to be paid for from the state via taxes.

A new challenge for the Swedish third sector which already represents 5.3% of the GDP, on a same level as the US, the UK and Germany.  The Swedish non profit sector employs over 200,000 people, and one in two Swedes volunteers.  Sweden comes second in a Johns Hopkins 36 country ranking for philanthropic and voluntary activities.  Donations and private contributions are variable though, and not always consistent.  Indeed, almost 50% of non profit organisations are self financed, thanks to subscription fees, services provided and relative commercial activities.  30% of third sector financial resources directly come from the government.

Will the new law make the third sector less independent from the State as a consequence to increased financial support?

Not according to Lars Petterson of Famna, a network of non profit associations who now provide welfare services in Sweden.  The third sector and the Swedish government came to an agreement (called “Compact”) with the government last October permitting the non profit world to maintain its own independence and its ability to continue being a critical observer of governmental policies.