How Norway Dispels the Private vs Public Sector Myth


Complexity and the Art of Public Policy, Authors: David Colander, Roland Kupers.

By David Sloan Wilson and Sigrun Aasland – A strong state capable of building infrastructure is not enough. It must also be an inclusive state that works for the benefit of everyone, as opposed to an extractive state that works only for the benefit of an elite few.

Inclusiveness requires a balance of power among the various sectors of the society.

Perhaps the Nordic nations work well for this reason also—strong states working collaboratively with a strong private sector, strong labor unions, and a strong, well-informed, and trusting electorate.

The so-called Nordic model can be illustrated as a triangle consisting of three interlocking factors:

  • Aa strong tax-funded welfare state providing education, healthcare and social safety nets.
  • An open market economy with active monetary and fiscal policies to ensure stability, distribution, and full employment.
  • Strong collaboration in an organized labor market with coordinated wage formation and company-level collaboration.

A collectively bargained and compressed salary structure means that low-skilled labor is relatively expensive while high-skilled labor is relatively cheap.

Since high-skilled labor complements technology while low-skilled labor substitutes technology, three things happen. more>

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