ECO - Summary of documents regarding Nordic countries\' economy PDF

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Summary of documents regarding Nordic countries' economy ...

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Saturday 10, 2018 Reading Report 1 Works-Cited

The Economist. The Nordic countries. The next supermodel. Feb 2nd 2013 The Economist-The secret of their success – Lessons. Feb 2nd, 2013.

The Economist. Northern Lights The Nordic countries are reinventing their model of capitalism. Feb 2nd 2013

In this model- the Scandinavian one- economic growth is analyzed using different perspectives. Nordic countries gathered to complete each other to achieve the best economic growth relying on multiple mechanisms that boosted their GDP. Talking about economic growth doesn’t mean depending only on investment and the quantities of goods and services provided by the economy, but it does rather count on other aspects; the management of human and natural resources, the well governance, and the forecast of the countries’ future needs, for instance. Identifying the drivers of the economic growth in the Nordic countries will be the subject of my report. Scandinavian countries were occupied at the first place by the wellbeing of their citizens. That means that they mainly emphasis on providing public services with good quality; the government started to act as a welfare state. For that reason, the government decided that the private sector becomes part of the public one, which means privatizing health and education services. This step has both enhanced the private sector investment and decreased the public spending which make the Scandinavian countries a mix of market capitalism and socialism. The second point is having a skilled and innovative labor force. Therefore, human capital skills are used to be updated with new technologies. These new technologies are used to cut the costs of production and mistakes as it was used in Norway in drilling and exploration oil. Also, there is an important point that is reflected in encouraging the consumption of national products to stir the production of a value added inside the country first and then it will be exported to foreign ones. However, Scandinavian countries are not fully perfect in everything since they couldn’t figure out how to manage the immigration problems and the fact that young entrepreneurs decide on selling their start-ups to America rather than keep them local. As it was mentioned, immigrants and especially refugees are harmful more than they are useful to the economy. Welcoming more foreigner is a threat to the local residents; these latter are paying taxes so a redistribution of

wealth is guaranteed for some ones who probably doesn’t have a job , they are also dealing with new cultures and needs of other people, and they are living in fear of crimes. The other point is failing to keep the successful startups local rather than being sold to America. Youths have a greedy ambition to excel the national border to an international one which hurts the Nordic countries and make them loose the opportunity of owning national large brands. All these points are doing well in terms of driving the economic growth, but what comes in first seats are: reducing the government spending and moving from a budget deficit to a budget surplus by paying back their debts. Also, they did cut corporate taxes on societies to encourage investment. But the major actions mirrored in taking care of human capital by providing systems as flexicurity system that does support labor force that loses its jobs. Not only systems but also by education that provides high skilled brains and entrepreneurs that lead to a high productivity in industries. In addition, the huge part that new technology has taken to fill up the human capital has a significant impact on their economic growth. High skilled labors were provided by what they need to success in meeting the new needs of human being. The press has always both impacts on what a country is doing. Talking about the relation between economic growth and the press is as a bit confusing; media is an intermediate between what is happening in a country and in the world and citizens. The problem is that sometimes how the press interprets facts can mislead the citizens’ understanding. What I mean is that if there isn’t a global maturity and vigilance, the press can take you whenever it desires by its articles and shows. Everyone must be aware about what is happening and must be conscious about her or his position toward what the government is deciding to apply or abolish for the country’s sake. From my point of view, I think that the articles did cover interesting points that showed the basis mechanisms that Scandinavian countries followed. I stand for the government to be concerned by human capital at first. What every country need are brains and skills so that

everyone contributes in the country’s development. Being healthy, educated, living in peace and surrounded by a government that helps in providing free public services and founds is the half of the way to economic growth and development. It is not only the act of possessing natural resources, that most of time help in creating new technologies and building physical capital, that makes the country a strong economic model, but serving citizens who can give back their trust in their country by following the rules that don’t make them obedient but responsible is the most powerful weapon....