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11. Beyond the RMA: Survival Strategies for Small Defense Economies

Author:
Ron Matthews and Curie Maharani
Publication Date:
06-2008
Content Type:
Journal Article
Journal:
Connections
Institution:
Partnership for Peace Consortium of Defense Academies and Security Studies Institutes
Abstract:
Life was straightforward during the Cold War. There were the big guys in the bi-polar strategic stand-off—the United States and the Soviet Union—and there were the little guys: the Eastern European countries, such as Poland, Hungary, and Yugoslavia; Chile in Latin America; Spain in Southern Europe; Sweden in Scandinavia; Israel in the Middle East; and Singapore in the Far East. All these countries, big or small, capitalist or communist, possessed comprehensive and diversified defense industrial bases. However, times have changed, and in some senses they have changed dramatically. More than anything else, economics does not favor small countries. Previously, Cold War doctrine was premised on mass formations of artillery, main battle groups of tanks and combat aircraft located on the Central European front. In the twenty-first century, these formations have disappeared. Militaries have been transformed by the need to respond to new, emerging, asymmetrical threats arising anywhere across the globe, a shift that is captured under the umbrella term of the “Revolution in Military Affairs” (RMA). Contemporary doctrine focuses on high-intensity warfare, characterized by sophisticated defense systems, such as telemetry and cruise missiles, fiber optic technologies, sensors, modern telecommunication systems, “stealth” coatings of modern weapon platforms, light-weight composite materials, and the miniaturization of technologies in, for instance, unmanned aerial vehicles (UAVs).
Political Geography:
United States, Middle East, Israel, Poland, Soviet Union, Yugoslavia, Hungary, Latin America, Spain, Sweden, Singapore, Chile, and Scandinavia

12. Norway's Wealth Fund Answers to Voters

Author:
Jarle Bergo
Publication Date:
09-2008
Content Type:
Journal Article
Journal:
European Affairs
Institution:
The European Institute
Abstract:
Norway is a democracy that has a “wealth fund” thanks to hydro-carbon exports. To maintain voter support for saving and investing instead of spending the revenue now, the fund has strict and open rules about its policies. The author outlines Norway's system as an example to be studied by others – including the IMF, which is working on a code of best practices.
Topic:
Economics
Political Geography:
Norway and Scandinavia

13. The Role and Development of Technology-Intensive Suppliers in Resource-Based Economies: A Literature Review

Author:
Carlos Torres Fuchslocher
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Although primary industries are important to developing countries, they have been largely unable to contribute to rapid growth. Systematically strengthening the development of local technology-intensive suppliers (t-suppliers), however, may contribute to both reinforcing the industrial base and supporting the competitiveness of primary production. Indeed, the development of t-suppliers has been common in those resource-based economies which achieved a high level of development (Scandinavia, Canada, Australia). This paper explores the role of t-suppliers in natural resource-based economies. It outlines a theoretical framework for the analysis of the factors which foster or constrain their development and defines areas for an effective promotion of t-suppliers. The proposed model of analysis distinguishes between factors influencing the development of t-suppliers on the level of the main industry (MI), the level of supplier firms or firm-level and the level of external determinants with special reference to industrial policy factors.
Topic:
Development, Economics, Emerging Markets, and Third World
Political Geography:
Canada, Australia, and Scandinavia

14. Why has Swedish Inflation been Persistently Low?

Author:
Felix Hufner
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Average inflation in Sweden has been one of the lowest among European countries since the mid- 1990s. Three supply-side factors help to explain this phenomenon, all related in some sense to increased global integration. First, a shift towards imports from low-cost producing countries has resulted in falling import prices. Second, deregulation and increased product market competition with foreign companies entering the market has led to price falls in some sectors, notably in retailing. Third, wage growth has lagged productivity and kept unit labour costs down. This paper reviews these factors and analyzes the policy options for the central bank.
Topic:
Economics, Labor Issues, Monetary Policy, and Inflation
Political Geography:
Europe, Sweden, and Scandinavia

15. The Swedish Housing Market Better Allocation via Less Regulation

Author:
Felix Hufner and Jens Lundsgard
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
While several sectors in the economy have been deregulated, the Swedish housing market remains distorted, hindering an optimal matching of supply and demand. In the rental market the rent setting framework with its focus on cost-based rents in the public sector prevents a price response, leading to long queues in some regions and vacancies in others. Many Swedes that would have preferred otherwise are driven into the owner-occupied segment, where prices are increasing strongly, and rising above an estimated fundamental value. The supply of new dwellings is made more difficult by an uncompetitive construction industry, coupled with cumbersome planning regulations and few incentives for municipalities to issue more land. On the fiscal side, real estate taxes are below neutral levels, implying an indirect subsidy to housing. This paper presents a review of the recent steps to abolish real estate taxes and also proposes comprehensive reform of regulations in the rental housing sector.
Topic:
Reform, Regulation, Public Sector, and Housing
Political Geography:
Europe, Sweden, and Scandinavia

16. How Regulatory Reforms in Sweden have boosted Productivity

Author:
Espen Erlandsen and Jens Lundsgaard
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The economic crisis in the early 1990s prompted action on reforming the Swedish welfare state and its institutions, including deregulation of a wide range of product markets. In that way, Sweden took early action compared to other OECD countries currently struggling with how to make public finances more robust in an ageing context. The reforms that were implemented during the 1990s are now paying off in terms of productivity and GDP growth. Empirical evidence suggests that deregulation has delivered a considerable “productivity dividend”. Although significant progress therefore has been made, renewed regulatory reform is needed to safeguard Sweden’s ambitious public policy goals. Efforts should focus on improving enterprise formation and labour utilisation, as well as on providing better value for money in the public sector by raising its efficiency and delivering high quality services.
Topic:
Financial Crisis, Reform, Regulation, and Public Policy
Political Geography:
Europe, Sweden, and Scandinavia

17. Universities, the State and the Market: Changing Patterns of University Governance in Sweden and Beyond

Author:
Lars Engwall
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper analyses changes in the governance of universities as a result of growing demands from society as well as of a strong penetration of management ideology into all kinds of institutions. For this purpose the paper uses a theoretical framework focusing on two governance mechanisms in social systems: entry control and performance control. These belong to a larger set of homogenising forces, which the new institutionalists label as (1) coercive, (2) normative and (3) mimetic. Using this theoretical framework to analyse the development of Swedish universities, the author concludes that their governance has undergone a considerable change. Coercive forces that were previously exercised through detailed budgeting have, in recent years, been operating through representation in leading bodies and through the selection of university leaders. This has occurred through a crowding out of normative forces. At the same time there have been strong mimetic forces based on modern management ideas.
Topic:
Education, Governance, Higher Education, and Management
Political Geography:
Europe, Sweden, and Scandinavia