Advantages Of The Nordic Model

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The Nordic model quintessentially is a mix of socialism and capitalism. Although the Scandinavian markets work like regular capitalistic markets, the government most fundamentally tries to work in a socialist form even while protecting the open economy. The most important issue that is being flagged is the long term viability of the Nordic model. The crux of the issue is that the Scandinavian countries are ageing rapidly and the no. of taxpayers is falling day by day. It is a double edged sword for the Scandinavian governments because their inflows due to tax collections is falling and at the same time number of people dependent on the public pension plans and social security nets. Moreover, it is highly excruciating on the poor as the taxation…show more content…
Another threat to the Nordic model is its over dependence on trade unions for the smooth functioning of the society and the possible loopholes to discriminate against foreign workers. Moreover, the model becomes especially susceptible to failure during economic cyclic processes such as the 2008 recession. Overall the Nordic model is a very good model but it has some long term shortcomings which have the ability to cripple the model severely. Can the Nordic Model Be Replicated In India? India has unsuccessfully tried to replicate some parts of the Nordic model. However, these basic parts of the Nordic model are adopted by governments around the world as standard practices. However, where the major difference comes between the Scandinavian countries and the rest of the world is the implementation part. The Nordic model cannot be replicated in India due to a wide variety of problems like lack of funds due to abysmally low rates of tax collections which stands at 7% of the GDP at market prices. Indian government has some schemes which even surpass that of the Scandinavian countries in theory, however the lack of an efficient public services delivery mechanism, they end up being inefficient drain on the limited resources.…show more content…
This is another tricky aspect as the labour unions are backed by a group of certain political parties while the industrialists are backed by another group of political parties, this leads to an atmosphere of mistrust and tensions. Moreover, this hyper inflated by the social stereotype of the businessmen as evil profit driven maniacs. All this when combined together would prove to be too big a hurdle for the Nordic model to be successful in India. What India essentially requires is a truly unique and out of the box approach to tackle these insurmountable problems. India has taken a positive step in this direction with Right to Education, Right to Food Grains, Right to employment, public service delivery system in the form of Aadhaar, GST and simplification of taxations procedures. Several International agencies such as UBS in its Three Arrows Report is significantly upbeat on the back of these measures specially AADHAAR and GST. India on paper has some policies that are far better than those existent in the Scandinavian countries. One such example is the Right to Employment which is a one of a kind policy more commonly called as the NREGA, which guarantees 100 days of

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