Strengthening social support and assurance

FROM BI

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Sweden’s egalitarian society is underpinned by a comprehensive welfare state, which provides generous benefits for all residents from cradle to grave.

A pertinent question is whether Singapore should emulate Sweden’s welfare state to encourage Singaporeans to take risks and explore alternative pathways in life.

The answer isn’t so straightforward. The Nordic social democratic model, long admired internationally, is coming under increasing fiscal and political strain.

As a Swedish friend explained to me, Sweden’s welfare state is based on a strong sense of social solidarity and shared values. Of late, the foundations of this social compact have been rattled by immigration, which has seen the proportion of foreign-born people in Sweden increase in the 2000s from just over 11 per cent of the population to 20 per cent.

While immigration has been an economic lifeline for Sweden, given its falling birth rates and labour shortfalls, some perceive that immigrants are milking the welfare system without contributing their fair share. This is because unemployment and poverty rates are significantly higher among immigrants.