Advantages and disadvantages of the Scandinavian business model.

Abstract

In the twentieth century Sweden there was something that is often called “an economic miracle”. In only a few decades, a poor agricultural country became one of the richest and most highly developed industrialized countries. The special feature of this model is the leading role of the private sector. The low proportion of state property combined with the role of the public sector. The cooperative sector plays the essential role in agriculture, industry, trade, housing, banking and insurance. Private property and market competition with government programs aimed at the equal profits distribution. The high level of the economy socialization is shown in the redistribution of a large part of GDP through the tax system, which allows implementing active social policy. In the context of crisis, Ukraine must look for ways to overcome it, one of the most obvious and probably the most effective ones is the transition to the mixed economy model, as the market economy is ineffective and worsens the situation in Ukraine.