1. Governor Erkki Liikanen Bank of Finland
Is there a Finnish or Nordic Model? Can the Nordic Model rescue European values? Brussels, Belgian Financial Forum, 15 February 2008
Governor
Erkki Liikanen
Bank of Finland

2. Can the Nordic Model rescue European values?
Are there common European social values?
Variety of European social models
The challenges to all social models:
Globalisation and ageing of population:
The Nordic Model and Finnish experiences
Conclusions:
Is a social model based on European values
an asset or a liability in the modern world?
Can the Nordic model offer some solutions to the challenges?

3. European social models by André Sapir
The Mediterranean Model: low equity and low efficiency
Rather low coverage of unemployment benefits
Very strict employment protection regulations
The Continental Model: high equity and low efficiency
Generous unemployment benefits
Relatively strict employment protection legislation
The Anglo-Saxon Model: low equity and high efficiency
Relatively good unemployment insurance
Very low strictness of employment protection legislation
The Nordic Model: high equity and high efficiency
Generous and comprehensive unemployment benefits
Quite low strictness of employment protection legislation

6. Demographic change: Ageing of the baby-boomers

7. Demographic change: Ageing of the baby-boomers7 7

8. Demographic change: Ageing of the baby-boomers8 8

9. Demographic change: Ageing of the baby-boomers9 9

10. Demographic change: Ageing of the baby-boomers10 10

11. Demographic change: Ageing of the baby-boomers11 11

12. Demographic change: Ageing of the baby-boomers12 12

13. Demographic change: Ageing of the baby-boomers13 13

14. Demographic change: Ageing of the baby-boomers14 14

15. Demographic change: Ageing of the baby-boomers15 15

16. Demographic change: Ageing of the baby-boomers16 16

17. Demographic change: Ageing of the baby-boomers17 17

18. Demographic change: Ageing of the baby-boomers18 18

19. Demographic change: Ageing of the baby-boomers19 19

20. Demographic change: Ageing of the baby-boomers20 20

21. Demographic change: Ageing of the baby-boomers21 21

22. Demographic change: Ageing of the baby-boomers22 22

23. Demographic change: Ageing of the baby-boomers23 23

24. Demographic change: Ageing of the baby-boomers24 24

25. Demographic change: Ageing of the baby-boomers25 25

26. Demographic change: Ageing of the baby-boomers26 26

27. Demographic change is here!
20829

28. The social contract Net contributions to the public sector over the life cycle or as a function of age

30. The Nordic “cluster”
Similarities in the systemic interrelations between the key institutions and policies
labour market institutions
the design of welfare state
policies with regard to new technologies, research and development, environment
Combination of collective risk sharing and openness to globalisation
Comprehensive and mostly mandatory systems for pooling and sharing labour market and other risks
Social contract: net contribution to the public sector over the lifetime of a representative citizen.

32. Results of OECD PISA studies in years 2000, 2003 and 2006

33. Need for reform in the Nordic model
Work careers could usefully start earlier
Labour force participation were to be raised and unemployment reduced
The effective retirement age should be increased further
Pension costs must not be allowed to become an excessive burden for young age cohorts
We must strive for higher productivity also in public services

34. Thank you