Denmark : Globalization and the Welfare State

Topics: Unemployment, Tax, Denmark Pages: 3 (905 words) Published: May 2, 2012
DENMARK : Globalization and the Welfare State

Today Denmark is one of the most prosperous countries in the world. Unemployment rates are low. Denmark also has low inflation and a surplus on both balance of payments and public expenditure. The World Economic Forum’s 2008 competitiveness index ranks Denmark in its Top Three world-wide. And the World Transparency Index ranks it as the world champion in non-corruption. Furthermore it should be noted that other international comparisons nominate the Danes as the happiest people in the world! Denmark’s success is so impressive.

However, in the 80s and 90s, as the globalization intensified, some economists were skeptical of the ability of small states like Denmark to navigate world markets because a heavily unionized but lightly populated country with high taxes and extensive welfare benefits looked fundamentally uncompetitive. So, in order to facing with the challenge of tremendous and unyielding international competition, Danish government has decided to put forward The Danish Growth Strategy which looks to the creation of more jobs and boosted productivity, as well as encourage more Danes onto the labour market, equip the economy to generate added value through work and ensure more value for each invested Krone. The globalisation opens up new opportunities for Denmark and Danish business and industry. Considering as one of the easiest country in the world in which to start a new business, together with its progressive taxes, redistributive policy and flexible labour market have effectively attracted foreign firms to Denmark.

Prioritisation of good service for all citizens, for instance within health care, has at an early stage created a domestic market which offered Danish industry the possibility of becoming market leader in valuable niches on the global market. This accounts for NOVO’s leading role when it comes to insulin and similar global positions for other Danish medical products. Lego Group is...
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