Sweden Travel Guide - Sweden Tourist Attractions, Sweden Transportation, Sweden Hotels and Accommodations


Sweden Travel Guide
Sweden History - World Wars

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Sweden publicly claimed to be a neutral country and the image was forcefully maintained, but unofficially Sweden's leadership had strong ties with the United States. In the early 1960s Sweden and the United States agreed to deploy nuclear submarines off the Swedish west coast. In the same year Sweden made a defense pact with the United States. Knowledge of this alliance was kept secret from the Swedish public until 1994.

Following the war, Sweden took advantage of an intact industrial base, social stability and its natural resources to expand its industry to supply the rebuilding of Europe. Sweden was part of the Marshall Plan and participated in the Organisation of Economic Co-operation and Development (OECD). During most of the post-war era, the country was governed by the Swedish Social Democratic Party . Social democrats imposed corporatist policies: favoring big capitalist corporations and big unions, especially Swedish Trade Union Confederation, affiliated with Social Democrats. The amount of bureaucrats rose from normal levels in the 1960s to very high levels by the 1980s. Sweden was open to trade and pursued internationally competitive manufacturing sector. Growth was good until 1970s.

Sweden, like countries around the globe, entered a period of economic decline and upheaval, following the oil embargoes of 1973–74 and 1978–79. In the 1980s pillars of Swedish industry were massively restructured. Shipbuilding was discontinued, wood pulp was integrated into modernized paper production, the steel industry was concentrated and specialized, and mechanical engineering was robotized.

Between 1970 and 1990 the overall tax burden rose by over ten percentage points and the growth was very low compared to most other countries in Western Europe. The marginal income tax for workers reached over 80%. Eventually government spent over half of the country's gross domestic product. Sweden steadily declined from its perennial top five GDP per capita ranking. Since the late 1970s, Sweden's economic policies were increasingly questioned by economists and Ministry of Finance officials.

Carl XVI Gustaf has been Sweden's king and head of state since 1973.

Source: Wikipedia Encyclopedia

 



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