Russian-Danish Students Conference in Copenhagen. November – December 2018. Bjørnø Irina
property, free market and free trade;
– the welfare state (the so-called Welfare State);
– collective bargaining agreement;
– absolute autonomy of the individual;
– social mobility;
– free education and universal medicine;
– public pension funds;
– minimal market regulation; all-powerful trade unions;
– a very high level of social payments from the budget (Sweden – 56.6%, Denmark – 51.7%, Finland 38.6%); very high level of taxes (Sweden – 51.1%, Denmark – 46%, Finland – 43.3%); the enormous amount of unemployment benefits (Denmark – 90% of the latest wage, Norway – 87.6%, Finland – 85.1%, Sweden – 80%, for comparison, Germany – 60%, in some US states – 27%).
As we have already said, the Danish version of NE is characterized, first of all, by a marginal decrease in the state intervention in the regulation of labor and economic relations. If, say, in Norway, the main burden of providing social benefits lies with the state, in Denmark these functions are delegated to private business by voluntary consent of all parties.
As a result in Denmark a completely insignificant public sector – 30%! However at the same time – here it is a Hellenic measure in action! – Danish pension funds are the responsibility and responsibility of the state since the private form of ownership and control in this area is fraught with a conflict of interest.
Scandinavian countries are characterized by high liberalism in the spheres of public life, the forms of self-expression of personality, culture and art. However, Denmark not only advanced further than others, but always acted as a “trendsetter”: in 1989 it was the first to legislate the notion of marriage without gender. Even tensions in the relations of Western Europe with Islamic fundamentalism, and that arose after the cartoons of the Prophet Mohammed appeared in the Danish press.
Today you can incorporate your own business in Denmark in a couple of hours, and the almost complete absence of customs restrictions and duties on international trade allows the country to firmly hold, as we have already said, the leading place in the Ease of Doing Business rating.
Flexicurity
Flexicurity is a combination of Flexibility (Security, Elasticity) and Security (Well-Being, Security). Such “flexibility” allows Denmark to maintain a balance between a high degree of freedom in the labor market and guarantees of social security for workers.
The condition of “flexibility” (Flexibility) is realized through the right of the employer in the shortest possible time and without a long notice to dismiss any employee who isn’t good for that job. As a result, the Danish business, which is not bound hand and foot by labor obligations, demonstrates the unique ability to quickly restructure the staff, quickly join new projects and at least quickly roll out unpromising initiatives.
Another condition of “flexibility”: the employer has no obligation for the minimum wage. This greatly facilitates the development of a business at the start, when an entrepreneur does not have enough funds to pay salaries, but he can motivate an employee, for example, a share of profits in the future.
Obviously, the “flexibility” that brings so much joy to employers must be compensated for by employees, moreover, it should be done energetically and otherwise the Danish state would have long fallen for the revolution.
Such compensation within the framework of Flexicurity is provided by the second component of the concept – Security (well-being, security).
The Danish state guarantees its citizens for the period of temporary unemployment payment of benefits in the amount of up to 90% of wages. In addition, the state undertakes to provide all the conditions for advanced training or complete retraining of workers.
The synergy of all components of Flexicurity in Denmark was the highest employment rate for women in the world (73%), which, combined with the employment rate of men (80%), created a situation where in almost all Danish families both spouses work full time.
Denmark’s spheres of influence
Recently more and more often doubts have been expressed about the ability of the Danish state to withstand the competitive struggle that has become aggravated to the limit in the era of globalization, and at the same time to preserve its unique system of social security.
In fact, how can you compete in the world market, say, with Chinese products, paying gigantic unemployment benefits?
I suppose the inconsistency of such doubts arises from the erroneous posing of the question itself. The fact is that Denmark is not going to compete with China at all, much less unleash price wars. Denmark has completely different priorities and trumps in the modern world system of labor distribution.
There are at least three such priorities:
– a unique niche for elite products;
– giants of national business, controlling entire sectors of the global economy;
– technological leadership in a number of medical and industrial equipment sectors.
Just as Italy sets global trends in the production of men’s clothing, luxury sports cars and industrial design, France in perfumery, haute couture and nuclear energy, Denmark stands as a benchmark in at least two directions: dairy products (the world’s best milk Ostedmejeri, Lurpak oil, which has enjoyed for 110 years the reputation of the most delicious natural butter of the “premium” category, etc.) and luxury home appliances (Bang &Olufsen).
In addition to elite niches, the competitiveness of the Danish business is ensured by the activity of a number of giant national enterprises:
– A.P. Moller-Maersk, the world’s largest shipping merchant;
– Carslberg Group, the world’s fifth largest brewing company;
– Lego, a manufacturer of children’s toys, deprived Ferrari of the title of “the most influential brand of the planet” in 2015;
– Ecco, a shoe company with a turnover of one and a half billion euros, whose products are sold in 14 thousand retail outlets in 88 countries of the world;
– Arla Foods, the sixth largest dairy concern in the world.
Leo Pharma, which specializes in dermatitis medications, and Novo Nordisk, which set the tone in the treatment of diabetes and related diseases, provide leading positions in medicine.
Finally, the final touch, designed to calm everyone who doubts the prospects of Denmark to endure the globalization. In the world market the country is represented by:
– Grundfos, one of the world’s largest manufacturers of industrial pumps;
– Danfoss, one of the world’s largest manufacturers of equipment for automatic control, hydraulic and compressor equipment, as well as thermal control systems; MAN Diesel & Turbo, the world’s leading developer and manufacturer of diesel engines used on ships and onshore installations;
– Rockwool, one of the world’s largest producers of environmentally friendly refractory, waterproof, vibration and noise absorbing insulation materials based on mineral water.
THE ISSUES OF SOCIAL POLICY IN DENMARK AGAINST A BACKGROUND OF ECONOMIC SUCCESS
Adrian Dragin, 3rd year student of the faculty of International relations and geopolitics, Institute of World Civilizations, Moscow
Abstract: This article analyses economic problems in the sector of social policy in Denmark and actions to resolve these problems. One of the methods for solving these problems