An increasing number of economists
agree that inequality was one of the main drivers behind the economic
crisis. Reducing inequalities has been crucial in the work to get
Iceland back on its feet after the 2008 collapse. In Portrait the
Icelandic Minster for Welfare Gudbjartur Hannesson says his first
priority is to ease inequalities which arose during the economic boom
years. Both the OECD and the International Monetary Fund (IMF) say
Iceland is about to solve its problems in the wake of the financial
crisis.
Reducing inequality is a core value of the Nordic welfare model. In
our Theme professor Björn Hvinden says the model keeps what it
promises, but that the Nordic region is not unique and that the
countries are facing large challenges exactly when it comes to
promoting equality.
Denmark is the one European country where inequality has grown the
most over the past few years. As Danes go to the polls in parliamentary
elections on 15 September, the economy and employment are the main
issues. More and more Danes fear economic bankruptcy and unemployment,
and voters will of course be asking which politicians are best suited
to govern Denmark through the crisis.
When the Finnish people went to the polls in early summer the True
Finns won a surprising 19 percent of votes and became Finland’s third
largest political party. Polls have shown a rise in their support ever
since. There too people say they want social policies which support
people who need it the most. Established politicians have forgotten to
listen to those less fortunate in society, say political
analysts.
Icelanders took to the streets when the collapse was a fact, and the
prime minister had to step down. In England we have been witnessing
riots. From Manchester we hear our correspondent describe how those
riots have highlighted the large and growing gap between rich and
poor.
Rory O’Farrel, researcher at the European Trade Union Institute,
ETUI, thinks it is logical that promoting equality is a prerequisite
for sustainable progress. Many Icelanders have suffered the effects of
budget cuts made to rebalance the economy, but the aim of equality and
welfare for all could, as experiences from other Nordic welfare systems
show, be the deciding factor for the country’s future social
sustainability.
But the strongest evidence of the strength of Nordic welfare
societies came when society’s safety was tested to its very limits and
the terror was greeted with 200,000 people carrying roses for
democracy.
