Globalization needs to be flanked by social safety net: Swedish PM

[Stockholm]

STOCKHOLM (AFP) - Swedish Prime Minister Goeran Persson hailed globalization and free trade as beneficial for all but insisted that national policies were needed to ensure social safeguards.

"Being able to combine free trade with a competitive industry and at the same time maintaining and developing a secure safety net and a good education system, that is I think a challenge," Persson said.

"If we manage to do so, then I think there are opportunities for everyone in globalization," he told reporters in Stockholm after a meeting with the OECD's Canadian Secretary-General Donald Johnston.

The two men discussed the program for the annual OECD ministerial meeting in Paris next week, to be led by Persson under the heading "Enabling Globalization".

more http://news.yahoo.com/s/afp/20050427/bs_afp/swedeneueconomysocial_050427184735%3b_ylt=A0LaS8sAAAAAhlMBIgOmOrgF%3b_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

[idlisambar]

1. We'll see how that works out

"we've had structural changes that have been painful for individuals. In the broader pictures it has been advantageous for the economy, but there are always individuals who risk to be left behind,"

This is the same cant we hear in the States. Sweden appears to have gone neoliberal.

[Stockholm]

2. I know - its a bit weird

I never expected him to champion the issue, but then maybe he feels the genie is out the bottle for good and he is trying to position himself for the 2006 election.

He is in a fix really, no matter where he turns on this issue he will be getting flak. Maybe the only way is to get "everyone" aboard with this "mixed message" of globalisation and strong social policies.

Stricter regulations for companies or using taxation as a steering mechanism will only accelerate the process and in the end punish his voters and alienate industry.

Removing company regulation/taxes or maybe water down Swedish labour laws will punish his voting base directly and won´t make Sweden better equipped to compete with the development countries.

The "mixture framing" have worked here before with socialistic capitalism...