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'Sweden's welfare model needs a make-over'


Cecilia Hermansson, chief economist at Swedbank

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In many countries it will become harder to afford welfare and more private funding will be needed, Swedish bank Swedbank said in a report published Monday.

It's not only debt-burdened countries that will face difficulties. Also in the Nordics – and not least in Sweden – the gap between demand and supply of welfare services will increase. At the same time the gap between costs and tax income swell.

So the turn has come to analyse the welfare system of education, health, and care.

"The financing gap will remain, which means that Sweden will have to mix public and private financing of welfare", said Cecilia Hermansson, chief economist at Swedbank. "To start the reform process already now would be wise, and there is a need to make priorities on what should and should not be publicly financed".

The Swedish welfare system has so far disguised the financing gap that already exists, the report points out. Health institutions make priorities on who has the right to obtain certain health services, but without being particularly transparent.

Many will not receive the care they need, or they will have to wait in line longer than necessary. In other countries, meanwhile, the fees and insurance premiums increase to counteract the trend of more expensive welfare services.   

Last Updated (Monday, 30 May 2011 14:12)

 

Comments 

 
#3 2011-06-07 16:09
Funny, Ben has no points, unable to prove me wrong, unable to argue, because of his weakness and all he is left with is to be rude.

Moreover, i am not advocating socialism or capitalism or any other "ism". People stuck between 2 paradigms: government controls all vs big corporations (especially international financial institutions) control all. Both lead to the luck of democracy and further suppression of man's free will.
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#2 2011-06-07 14:06
Every planned service that is not depending on a free market will suffer from rationing. Bumper is reasoning so typical. In spite of all failures made by all socialist systems the socialists insist on carrying on the same path. How much evidence does a socialist need before proven wrong.

Perhaps the DRD4 gene makes it impossible to argue in an intelligent manner with a socialist.
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#1 2011-06-01 10:07
Who cares what Swedbank or any other private financial institution says. They have multi-billion profits and they always need a little bit more. So in a long term they want all public services go private - education, health etc. They talking about debts but they are actually creators of all those debts. Ass-wholes!
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