Wednesday, October 5, 2011

Welcome to Sweden!

(Why are there so many posts today?  Because I haven't been blogging.  I plan to go back in time to catch up, and blog daily moving forward.)

As the five of us flew into the Bromma Airport, I was struck by the clear skies and green landscapes below me.  From the sky, Stockholm reminded me of the Pacific Northwest--- but once we landed, it seemed as though we were in Boston.


We were greeted at the airport by our incredible city host, Ebba Martensson.  Ebba has been with GMF for nearly a year.  Previously, she interned at the Hague working on war crimes and then worked in India for four years on issues related to the police.  We are the first group Ebba has hosted, but you would never know that based on the schedule she's built for us!

It was a quick trip from the airport to the hotel, and we then quickly changed into clothes for our afternoon appointments.  Ebba escorted us to an amazing food market so that we could pick up some lunch.  The variety of prepared and unprepared dishes, meats, fruits, cheeses and desserts was overwhelming.  So was the Swedish language!  When I look at French, German or Spanish I can usually get a sense of what the words mean--- especially in the context of a menu or a food locker.  However, the Swedish words are completely confusing to me!



Our group settled on Thai, which we enjoyed on park benches in a lovely plaza.  Sheila and I were struck by how much the city resembles Boston, and both remarked that we felt a bit like we were sitting in Copley Square.  Stockholm is considerably cleaner than Brussels, and the people seem much more relaxed. 

Our first meeting today was with Mr. Magnus Henrekson who is the Director of the Research Institute of Industrial Economics.  He planned to speak to us about the Swedish Business Environment--- which he did-- but we quickly sidetracked him with questions about education, health care and family policy.  Sweden's system of public services is much different than what we are used to in the United States, and so is their business history.  For a long time, Swedes were compensated based on a very beaurocratic system that took into account things like education level and age.  Today, tax rates are at what was described as a "low" rate of 50% or 30%, based on income.  Not too long ago, all Swedes payed an 85% marginal tax rate!

Sweden is working to transform its business environment, while retaining its family friendly policies that make the quality of life here so high.  50 hours a week of child care for one child will cost a family about $250/month.  A second child will boost the family rate to $300.  Health care, preschool, grade school, high school and university are all covered by the public system.  Just as in the United States, Sweden is debating about which public services to privatize.  For instance, there are no longer post offices.  You buy stamps at the grocery store.  They are waging the same battles we are over grade inflation and school vouchers, and there is much debate about private health care providers.  

One thing that surprised me was how difficult it has been to start businesses in Sweden.  I was told there is only one IKEA store in Sweden because the regulations are far too difficult to manage opening a second store.

We had only one hour with Mr. Henrekson which wasn't nearly enough.  Fortunately, we have several other meetings this week which will allow us to explore these issues in greater depth.

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