Dissent Magazine – How Sweden Tweaked the Washington Consensus

Thursday, January 13th, 2005

Daniel Brook’s How Sweden Tweaked the Washington Consensus notes that the Swedes wholeheartedly embrace the one aspect of “neoliberalism” that Americans are most ambivalent about: free trade:

It is no surprise that the libertarian right in Sweden backs free trade. What is surprising is the support on the left; the near-universal unionization rates in Sweden make the country’s trade policy less protectionist, not more. In the United States, it is often labor unions that call for tariffs and subsidies to protect unionized industries. Not so in Sweden. ‘We don’t want to sell T-shirts made in Sweden because people can’t live on those wages. It’s good that those industries have moved away,’ explained Social Democratic Parliament member Mikael Damberg, sounding very unlike an American congressmember of either party.

In Sweden, where equitable distribution of corporate profits is assumed, the focus can be on growing those profits even if it means economic dislocation for some in the short-run.

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