'Nordic model' does not fit Ireland

Madam, - Sheelagh Drudy's suggestion that Ireland should imitate Finland as a way out of our current crisis is timely, apt but…

Madam, - Sheelagh Drudy's suggestion that Ireland should imitate Finland as a way out of our current crisis is timely, apt but partially inappropriate (Opinion Analysis, October 30th).

It is unrealistic to believe the so-called "Nordic model" (social justice, gender and income equality, comprehensive welfare) can simply be cut and pasted into an Irish context. This is because most of the factors that support the Nordic model are specific to the region and are deeply embedded in its culture, society and politics.

For instance, the foundations of Denmark's flexible labour market were laid almost a hundred years ago (in the 1899 " Septemberforliget"). Sweden's concept of "the people's home" (or " Folkhemmet") arose during early 20th-century social democratic politics. Likewise, Finland has a long social democratic tradition since its foundation as a sovereign state in 1917.

Thus, investment in education and RD ("input") generates innovation, knowledge and growth ("output") because it is set up for success within a broader political philosophy and social framework.

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Simply demanding more money for education and RD in Ireland misses the point about the need for holistic thinking and understanding of the broader context. For example, the Nordic model comes with a hefty price tag - eg, the average tax burden on workers in the Nordic region is close to 50 per cent. Is this tax burden really palatable to the average Irish worker? I think not. In addition, a large proportion of employment is in the public sector, and the rate of growth of job creation in the private sector (entrepreneurship, new business formation) is low by comparison with other European countries. Again, this is not compatible with current aspirations in Ireland.

The Nordic model works because it is rooted in a collectivist culture and social democratic historical context. There is an implicit contract and strong understanding between citizen and state. What each expects from the other is clear. This helps buffer the citizen from the more difficult aspects of globalisation and change.

In Ireland, we are not anchored to any well-thought-out model: we are Boston, Berlin and everything in between depending on the topic. Sadly, much of our political and electoral debate of recent times has been superficial and sanitised, based on short-term consumer economics and not on long-term citizen well-being. We are now left floundering and insecure in the current crisis as many illusions start to shatter in post-Celtic Tiger Ireland.

The Nordic model has enviable track records in education, equality, innovation, and environmental policies. We can and should learn from this success. But equally, we need to have the courage and self-confidence to build our own Irish model based on who we are and what we value. That would be a political and social dialogue worth listening to. - Yours, etc,

TOM FARRELL, Director, Nokia Corporation, Espoo, Finland.