Geography and climate
Sweden has an area of 450,000 km2 (174,000 sq. mi.)similar to
California, Cameroon, Iraq, Spain or Thailand. Half its land surface is
covered with forest. Less than 10% is farmland. Nearly 100,000 lakes
dot the countryside, which is relatively flat. A long mountain chain in
the northwest reaches heights of up to 2,111 m (6,926 ft). There are
thousands of islands along the jagged coast. The warm Gulf Stream in
the Atlantic gives Sweden a milder climate than other areas equally far
north. Stockholm, the capital, is at almost the same latitude as southern
Greenland but has an average temperature of about +18 C (64 F) in
July. The winter temperatures average slightly below freezing and
snowfall is moderate. Far northern Sweden has long and cold winters
and bright summers of moderate temperatures; in June and July
daylight lasts around the clock.
The people
Sweden has a population of 8.8 million, with about 85% living in the
southern half of the country. Around 90% belong to the Church of
Sweden, which is Lutheran. Swedish is a Germanic language.
Like other industrialized countries, Sweden has a low birth rate. It rose during the 1980s and early 1990s but is now in decline again. Life expectancy is highabout 76 years for men and 81 for women. Since the 1940s, immigrationmostly from neighboring Scandinavian countries but also from elsewhere in the worldhas accounted for over 40% of the population growth. Sweden has two minority groups of native inhabitants in the north: the Finnish-speaking people of the northeast and the Sami (Lapp) population.
Parliamentary democracy
Sweden is a constitutional monarchy with a parliamentary form of
government. The King, Carl XVI Gustaf, today has only ceremonial
functions as Head of State. Parliament consists of one chamber, whose
members are directly elected by proportional representation for four-
year terms as from January 1995. Sweden has universal suffrage and
the voting age is 18. Voter turnout is traditionally very high, 8590%.
The Social Democratic Party has held power alone or in coalitions during the periods 19321976 and 19821991, while the nonsocialist parties were in government 19761982 and 19911994. After the 1994 elections, the Social Democratic Party returned to power and formed a minority government with 162 of the 349 seats in Parliament.
There are 13 ministries and these are small units mainly concerned with preparing new government bills. Enforcement of the laws is handled by 100 or so relatively independent central administrative agencies and the 24 county administrations.
Each county also has a popularly elected council entitled to levy an income tax and is responsible chiefly for health care in its area. Today Sweden has 288 municipalities covering the entire country (including rural areas), each with a popularly elected council which collects an income tax and operates such public services as schools, child and elder care, utilities, housing, and cultural and leisure activities. Immigrants resident for three years in Sweden have the right to vote and run for office in local elections.
The Parliamentary Ombudsmen investigate suspected abuses of authority by civil servants. Other ombudsmen protect the public by keeping a watchful eye on consumer rights, ethnic and sex discrimination, press ethics, and the rights of children and young people, and persons with disabilities. Most government documents are open to inspection by the public and mass media at any time.
Foreign policy and defense
The end of the Cold War and of the political division of Europe has
created new perspectives for Swedens foreign and security policy, and
new opportunities to participate in the process of European
integration.
A referendum which was held in November 1994 resulted in a vote for Swedish membership in the European Union and Sweden is a full member of the EU as from January 1995. Prior to membership, the EEA agreement already provided the legal framework for far-reaching economic integration between Sweden and the EU countries. The free movement of goods, services, capital and persons had been achieved in many respects. As a full member Sweden participates in the EU decision-making process and can more effectively influence and contribute to the further development of European integration, of which the Common Foreign and Security Policy (CFSP) is an important element.
After the dramatic changes in Central and Eastern Europe, Sweden has taken an active part in the task of securing democracy and new security structures for the continent as a whole, for example through the Organization for Security and Cooperation in Europe (OSCE) and in the Council of Europe. It has also taken up observer status in the Western European Union (WEU). In addition to this, Sweden participates in the Partnership For Peace (PFP), and it has contributed both to the UNPROFOR and to IFOR in the former Yugoslavia. Sweden is also actively involved in promoting regional cooperation, i.a. in the Council of Baltic Sea States and in the Barents Euro-Arctic Council. Swedens policy of non-participation in military alliances remains unchanged.
Swedens strategic location between the North Atlantic and Russia is one of the major factors determining Swedish security policy. A strong and independent national defense system is a fundamental element of Swedish security policy. The armed forces are based on general male conscription.
Sweden is an active participant in international cooperation. Strong support for the United Nations is one cornerstone of its foreign policy. Other basic elements are promotion of human rights, democracy and the rule of law, international disarmament and protection of the environment. Sweden appropriates almost 1% of its Gross National Income (GNI) for international development aid. It is also a member of many other international organizations, such as the OECD and the World Bank. There is far-reaching cooperation between the Nordic countries in social welfare, cultural affairs and a joint labor market.
Industry and the economy
In the past 100 years Sweden has evolved from a largely agrarian
country to one where less than 3% of the labor force is employed in
agriculture. Huge increases in farm productivity have nonetheless kept
Sweden more than 80% self-sufficient in food.
During the second half of the 1980s, the economy experienced excessive domestic demand, leading to the need to tighten government economic policies. Due to capacity restrictions the upswing in industrial output soon leveled off, and the growth rate remained moderate compared to other industrialized countries during the same period. The overheating of the labor market eroded the cost competitiveness of Swedish industry and contributed to a deep recession between 1990 and 1993. Another major factor was overbuilding and a resultant drop in real estate values, which severely affected the financial services sector. However, in the beginning of 1996, the Swedish industry is strongly competitive, due to major structural reforms, slow growth in wages, the depreciation of the Swedish currency and productivity increases resulting from rationalisations. Thus profitability has improved and production and investment are rising.
Sweden has, like other industrialized economies, evolved rapidly into a service- and knowledge-based society. Between 1960 and 1994 employment in the service sector rose from about 1,700,000 to 3,000,000, while manufacturing employment fell from around a million to 750,000. This trend toward a service economy mainly took the form of a growing public sector, since key welfare-oriented services such as health care and education have been provided mainly under public auspices. Manufacturing, however, still plays a dominant role in exports. In 1994 manufacturing accounted for more than 80% of total merchandise and service exports. While most manufacturing has been exposed to mounting competition, this process has only recently begun in the service sector.
Of Swedens traditional basic industries, forest products still play a major role in the economy. The engineering industry (excluding shipyards) has expanded and today accounts for nearly half of manufacturing, but the fastest-growing manufacturing sector is pharmaceuticals, which, however, remains rather small in terms of output and employment.
Sweden is among the worlds biggest spenders on industrial research and development in relation to national output. About 80% of R&D expenditures are related to transportation and telecommunications equipment, pharmaceuticals and machinery. A small number of industrial groups also account for most R&D spending, with ABB, Ericsson, Volvo, Saab Automobile, Scania and Astra among the leaders.
Natural resources
Sweden has rich natural supplies of coniferous forest, water power,
iron ore, uranium and other minerals but lacks significant oil and coal
deposits. The only iron ore mines are situated in the far north. Their
production is mainly exported.
Swedens vast forests of spruce, pine and other softwoods supply a highly developed sawmill, pulp, paper and finished wood product industry. Despite high domestic consumption, Sweden exports about 60% of its forest products.
Cheap hydro power was a major factor in Swedens industrial development. Today around 15% of the countrys energy supply comes from its hydroelectric plants, many of them on the main northern rivers. Over 40% of energy consumed in Sweden comes from imported oil, 7% from imported coal and coke. Swedens twelve nuclear reactors provide over 15% of total energy or almost 50% of electrical energy. The rest of the energy supply comes from biofuels, peat, waste heat, etc. After an advisory referendum in 1980, Parliament decided that the use of nuclear power should be phased out by 2010. That does not appear to be the end of the matter, however, for the subject is one which continues to give rise to debate.
Labor market
About 4.3 million people (50% of the population) are in the labor
force. This high figure is mainly due to the fact that more than 75% of
all women aged 1664 are gainfully employed. Unemployment was
given high priority in the 1980s and was for many years kept low by
international standards, due to a strong business sector, the growth of
the public sector, and an ambitious labor market policy. However, due
to the recession that began in 1990, the jobless rate has risen
considerably and open unemployment amounted to some 78% by late
1995.
The standard working week is 40 hours by law. Roughly 25% of the labor force, mainly women, work part-time. There are five weeks statutory paid vacation.
About 80% of all employees are members of a trade union. The central union bodies are: the Trade Union Confederation (LO) for manual workers, the Confederation of Salaried Employees (TCO) for white- collar employees, and the Confederation of Professional Associations (SACO) mainly for graduate-level white-collar employees. The main business organization, the Swedish Employers Confederation (SAF), represents all kinds of private companies grouped in trade associations.
Pay bargaining is primarily handled by the SAF, LO, TCO and SACO member associations/unions. A large number of laws regulate the labor market, including acts on employment security, the status of shop stewards, the work environment and employee participation in decision-making.
A tax reform that took full effect in 1991 is aimed at lowering rates and broadening the tax base. A great majority of employees now pay only SEK 100 in national income tax, whereas local income tax is a fixed percentage of income, which varies between counties and municipalities but usually totals about 30%. Value-added tax (VAT) on most goods and services is 625%. Employers pay 33.06% and employees 4,95% in social security contributions to cover pensions, health insurance and other social benefits. In addition, companies pay another 67.4% in pensions etc. under collective agreements.
Social welfare
Health care and social welfare services are seen as public sector
responsibilities, and are supported by a national social insurance
system. Responsibility for health care, both inpatient and outpatient, is
a duty of 23 county councils and 3 large municipalities. Responsibility
for social welfare services rests primarily with the municipalities.
All residents in Sweden are covered by the national health insurance. If a person is ill, or must stay home to care for sick children, he/she receives a taxable daily allowance, 7585% of lost income, depending on the length of the absence. The patient is charged a fee for medical consultations and any drugs prescribed. For persons with considerable costs for medical treatment and drugs there is, however, a ceiling of SEK 1,800 per year (2,500 from July 1996), after which further treatment/drugs are free of charge. The county councils together with the health insurance system then pay most of the hospitalization costs and laboratory fees. A large proportion of private doctors fees in outpatient care are covered by this insurance. For dental care, adult patients pay the full cost up to SEK 700. Above this, the health insurance bears a rising proportion of the costs, from 25% up to 70% (for treatment exceeding SEK 5,000). Dental care subsidies will however be reduced from October 1996.
When a child is born, the parents are legally entitled to a total of twelve months paid leave from work, which can be shared between them and used any time before the childs eighth birthday. One of these months is reserved specifically for the father and is forfeited if he does not use it. The parents also receive tax-free child allowances, equal for everyone, until the childs 16th birthday. Children who then continue their education are entitled to study allowances. At university level these consist chiefly of repayable loans. Municipalities provide children with day care and after-school activities at subsidized rates. Under certain conditions low-income families and pensioners are eligible for housing allowances.
A national occupational injury insurance system pays all health care costs for work-related accidents. Most working people in Sweden have unemployment insurance through their trade unions, while unemployed people without such coverage can receive a smaller cash benefit from the government. There are extensive government programs of employment training, sheltered employment and relocation grants to help the unemployed find new work.
A basic old-age pension financed by both employees and employers is payable to everyone from the age of 65. The State also pays an income-related supplementary pension financed from employer payroll fees. These two types of pension, which are today no longer fully inflation-linked, are designed to provide two thirds of a pensioners average real earnings during his 15 best-paid years. What shape a new supplementary pension system should have in the future is being discussed at present.
Education
Nine years of schooling are compulsory for all children from the age of
6 or 7. About 95% go on to the upper secondary school, which offers
both vocational and academic programs. Schools are run by
municipalities and provide free instruction, books and lunches. A
separate municipal adult education system enables adults with
inadequate schooling to reach the same level of education as young
people.
Altogether there are about forty institutions of higher education in Sweden, operated mainly by the State and providing free instruction. About half the students are women, and a large number are people over 25 taking advantage of special admission rules for those with work experience. Almost one fourth of adult Swedes have a higher education.
Private, government-subsidized adult education associations arrange study circles for more than 2.5 million course participants a year.
SEK 1 (Swedish krona) = USD 0.15 or GBP 0.10 (March 1996)
This fact sheet is part of SIs information service. It can be used as background information on condition that the source is acknowledged.
April 1996
Classification: FS 99 aa Nc
ISSN 1101-6124
Fact Sheets on Sweden