Sweden has a highly developed social democratic welfare state and constitutional monarchy. It has transitioned from an agricultural to a knowledge economy focused on biotechnology, telecommunications, medical technology, banking, and pharmaceuticals. Sweden has a very high human development index and ranks highly on measures of quality of life, education, health, and gender equality. It has a skilled workforce and strong economic institutions that have supported steady economic growth and rising living standards in recent decades.

1. 1
Sweden
Econ 4310
Professor Vivian Kirby
Andrew Rapson
Rachel Roy
John Michael Croft
Tyler Phillips

2. 2
Section 1: About the Country & its Government
Initial inhabitants of Scandinavia (Norway, Sweden, and Denmark) appeared after the Ice Age, and
were known as hunters, fishers, and gatherers. They built settlements and excelled in agriculture. Although
there are no formal records from this era, there were supposed kings and “heroes” like Beowulf who
established power within the settlements. These tales, also referred to as Norse mythology, were handed down
from generations by word-of-mouth or illustrated pictures. They spoke a German dialect called Proto-Norse.
Due to the seasonal weather changes they often migrated from areas of farm land to land near waters.
The Vikings are the most notable part of Scandinavian history. Seasonal weather changes forced them to
explore more areas around them, especially the waters, which opened up opportunities for trades. This caused
influence from Russia, British, French, German, Middle East, and the Byzantium Empire (Greek). Erick the
Victorious was the first known King of Sweden. After the fall of the Vikings from the 8th
– 11th
century due to
continental Europe economic rise, the Vikings or Swedes became prosperous farmers. This economic stability
allowed outside trade, monarchs, and religious influence of paganism to Christianity.
St. Ansgar introduced Christianity in 829 AD which was a culture shock to original religion of
paganism. The Swedish Empire expanded into Finland creating conflict with the Rus beginning to formally
establish the nation’s line between Finland and Sweden. In the 14th century, Europe was hit by the bubonic
plague. Around the 13th
– 15th century, Sweden was ruled by King Magnus Eriksson who united Sweden,
Denmark and Norway by the Kalmar Union. After time, the ruler of this union rotated among various
countries within the region. Another example of a ruler of the Kalmar Union was King Christian II of
Denmark.
Gustavus Adolphus led Sweden to be a powerful country after wars with Norway, Denmark, Holy
Roman Empire, Russia and Poland in the Thirty Year’s War. He reformed the nation’s religion to
Protestantism and gained lands from Poland-Lithuania and Russia. The main conflict was Protestantism with
the Holy Roman Empire (Catholicism). In the 17th century, Russia, Poland, and Norway united against
Sweden to get back their lands and were successful. Sweden fought in the Napoleon Wars, and gained
Norway, and Denmark. Sweden was neutral in both World Wars but helped refugees such as Danish Jews.
They also made various other humanitarian efforts including the support of the Norwegian resistance. In the
Cold War, Sweden was politically neutral but had strong ties with the United States.
Sweden’s current form of Government is a Constitutional monarchy with a parliamentary system.
Sweden economic system is comprised of high-tech capitalism and extensive welfare benefits. It has a modern
distribution system, excellent internal and external communications, and a skilled labor force. The current
government came to power in 14th century with the declaration of Sweden’s King. The government evolved
into a Legislative Branch, Executive Branch, and Judicial Branch, and currently operates as Social
Democracy. The government has been stable since their declaration of independence.
In 2009, Sweden declared the year, “nature year”, inspired by the United States to go green.
Prescription free drugs will soon be sold in regular supermarkets– but not without a strict set of rules. Saab,
based in Sweden, is restructuring to avoid bankruptcy after being abandoned by General Motors. Swedish
Parliament is aiming to resolve major environmental problems like reducing climate impact, clean air, protect

3. 3
ozone layer, safe radiation, good-quality groundwater, balanced marine environment and sustainable forests.
Sustainable development can only be achieved within the context of global and regional co-operations.
Sustainable development policies, measures and concerns must be mainstreamed, i.e. integrated into all
existing policy areas. Further action at national level will be needed to ensure long-term protection of the
critical resources that constitute the basis for sustainable development. These include natural resources,
people’s health, skills and expertise, infrastructure and the built environment. Sweden participates in a
combination of both Import-substitution and export led commerce. Due to the growing demand in
pharmaceuticals, high-tech jobs, and engineering, the private sector is evolving into a more export related
growth model. This growth model is due to an increased domestic demand. The fundamentals underlying this
growth model is the solid financial sector which is being rescued by the government. The Plan is being
implemented across all fields of women, child, elderly, and sexuality rights. Since this government is
socialistic in nature, they choose not to be in favor of any groups because of democracy and because they are
socially democratic.
http://www.sweden.gov.se – (prime minister, minister of finance, education, higher
education/research, environment, culture, justice, health/social affairs, foreign affairs, local
government markets, energy/communications, social security, agriculture, defense, gender equality,
employment)
Sweden’s legal institutions, financial and banking institutions and political institutions are all very well
developed. In Sweden, they do not have any underdevelopment, but rather too many laws. Since this country
is all about socialism, they have many regulations around the workplace such as better vacations, less work
(i.e. you can’t work more than 6 days a week) and restrictions on weekly hours and overnight hours.
Employers must also notify the public if they are firing 25 workers as well as other workplace restrictions that
complicate things. Although it only takes 8 procedures to employ someone in Sweden, it takes 116 days to go
through the bureaucracy to employ these workers. Not to mention, the cost of employing these workers is
extremely high.

4. 4
All of the following data from Index Mundi1
Land Mass:
total: 449,964 sq km
land: 410,934 sq km
water: 39,030 sq km
Length of coastline: 3,218 km
arable land: 5.93%
permanent crops: 0.01%
other: 94.06% (2005)
Water 8.7%
Lands under cultivation:7%
Wild pasture lands: 1%
Forests: 67%
Natural Resources: iron ore, copper, lead, zinc, gold, silver, tungsten, uranium, arsenic, feldspar, timber,
hydropower
Average rainfall: 535 mm (about 21 in).
Temperature: temperate in south with cold, cloudy winters and cool, partly cloudy summers; subarctic in
north
Major National Holidays:
January 1 New Year Public Holiday in Sweden
May 1 May Day Public Holiday in Sweden
August 15 Assumption Public Holiday in Sweden
November 1 All Saints’ Day Public Holiday in Sweden
December 25 Christmas Public Holiday in Sweden
National Day, 6 June (1983)
1 Index Mundi. 2009. “Sweden”.

5. 5
Section 2 Culture and Population Demographics
Sweden’s ethnicities include Armenians, Assyrians, Danes, Chilean, Finns, Greeks, Norwegians, Iraqis,
Kurds, Moroccans, Serbs, Tornedalians, Turks, Yugoslavs to name a few. Sweden’s religious groups include
Lutheran, Protestant, Eastern Orthodox Christians, Judaism, Roman Catholicism, Evangelistic (non-
denominational), Muslim, and Church of Sweden (Lutheran Majority 80%). The major languages of Sweden
are Swedish (official language), Scanian, Jamtlandic and Dalecarlian. Some minority languages include Finnish,
Meänkieli, Saami, Romani and Yiddish. Although the major religion is Lutheran, the Church of Sweden who
has almost 7 million people largest globally only 2% actually attend church services. The indigenous population
of Sweden is comprised of Swedes with Finnish and Sami minorities. Immigrants of first-born/ first-generation
are Finnish, Danish, Norwegian, Greek, and Turkish ethnicity.1
Sweden’s population percentages are as follows
(2005):
• Rural- 16.6%
• Urban- 83.4%
Like many modern societies, Women have equal rights in Sweden. Sweden, surprisingly, has been top 3
for women equality for the last couple years. In the labor market, Sweden women comprise of 47%.
Households have a mean of 2.4 kids per family. They are obviously equal in aspect and the size is
standardized pretty much across the board. They are a lot like Americans in respect to standard of
living/quality of living.
Sweden’s life expectancy is as follows:
Total population: 80.74 years
Male: 78.49 years
Female: 83.13 years (2008 est.)
Sweden’s Population
2003 8878085
2004 8986400
2005 9001774
2006 9016596
2007 9031088
2008 9045389
1 Index Mundi. 2009. “Sweden”.

6. 6
Section 3 Social Development Indicators
The HDI for Sweden is 0.958, ranking them 7th
out of 179 countries (table 1).
Sweden HDI/Life Expectancy – table 1
HDI value
2006
Life expectancy at birth
(years)
2006
1. Iceland (0.968) 1. Japan (82.4)
5. Ireland (0.960) 5. Australia (81.0)
6. Netherlands (0.958) 6. Spain (80.7)
7. Sweden (0.958) 7. Sweden (80.7)
8. Japan (0.956) 8. Israel (80.5)
9. Luxembourg (0.956) 9. Canada (80.4)
179. Sierra Leone (0.329) 179. Swaziland (40.2)
To measure the impact of gender inequalities on human development achievement, Sweden's GDI value, 0.958
can be compared to its HDI value of 0.958. Its GDI value is 100.0% of its HDI value. Out of the 157 countries
with both HDI and GDI values, Sweden has the best ratio.
Table 2: The GDI compared to the HDI – a measure of gender disparity
GDI as % of HDI Life expectancy at birth
(years)
2006
Combined primary, secondary and tertiary
gross enrolment ratio
2006
Female as % male Female as % male
1. Sweden (99.9%) 1. Russia Fed. (123.1%) 1. United Arab Emirates (120.2%)
2. Romania (99.9%) 104. Greece (105.7%) 17. Russian Federation (110.4%)
3. Lithuania (99.9%) 105. Vanuatu (105.6%) 18. Jamaica (110.3%)
4. Vanuatu (99.9%) 106. Sweden (105.6%) 19. Sweden (110.2%)
5. Bahamas (99.9%) 107. Chad (105.6%) 20. United States (110.0%)
6. Kenya (99.9%) 108. United Arab
Emirates (105.5%)
21. Honduras (109.9%)
157. Occupied Palestinian
Territories (92.8%)
157. Niger (96.9%) 157. Chad (60.4%)

7. 7
Distribution of family income - Gini index: 23 (2005)
Infant mortality rate:
total: 2.75 deaths/1,000 live births
male: 2.91 deaths/1,000 live births
female: 2.58 deaths/1,000 live births (2008 est.)
Life expectancy at birth:
total population: 80.74 years
male: 78.49 years
female: 83.13 years (2008 est.)
Literacy:
definition: age 15 and over can read and write
total population: 99%
male: 99%
female: 99% (2003 est.)
Year Average Annual Income
1995 20990
1996 21718
1997 22468
1998 23404
1999 25079
2000 26948
2001 27322
2002 28277
2003 29965
2004 31007
2005 32025

8. 8
In summary, Sweden’s Social Development has a constant increase in average income per household
and human development index. They rank 1st
in the gender development index. However, these social
developments cause a lower Gini coefficient. The longevity, adult literacy rate, level of education for women
vs. men also increases. They don’t have sanitation problems and there are few diseases such as HIV/AIDS that
is running wild. The only minor setback for this country is that over 16 percent of the entire country smokes.
Section 4 Economic Development
Sweden 2008
GDP (PPP) $358.4 Billion
GDP (per capita) $39,600

9. 9
Real GDP over past 10 years
Year GDP
2008 358,400,000,000,000
2007 402,441,492,200,000
2006 $384,927,300,000.00
2005 $357,682,600,000.00
2004 $350,144,400,000.00
2003 $304,145,700,000.00
2002 $243,563,900,000.00
2001 $221,544,100,000.00
Per capita GDP Year
$24,524.63 per capita 1994
$28,381.81 per capita 1995
$30,849.80 per capita 1996
$28,190.17 per capita 1997
$28,239.53 per capita 1998
$28,645.34 per capita 1999
$27,286.51 per capita 2000
$34,627.03 per capita 2001
$27,293.13 per capita 2002
$33,959.99 per capita 2003
$38,939.57 per capita 2004
$39,636.64 per capita 2005
$42,553.49 per capita 2006
$37,526.00 per capita 2007
$39,600.00 per capita 2008

10. 10
2000 $242,004,100,000.00
1999 $253,723,200,000.00
1998 $249,970,700,000.00
Year Population Growth Rate Rank
2008 0.157 #186
2007 0.159 #187
2006 0.16 #189
2005 0.17 #190
2004 0.18 #190
2003 0.01 #206
2002 0.34 #159
2001 0.28 #160
2000 0.13 #169
1999 0.06 #171
1998 0.03 #170
External Debt % of GDP $ in Billions
External Debt 176.72 $598.2
Inflation rate: 1.6% in 2008
Gross Capital Formation: 624,678,776,00
0

11. 11
Major Imports Major Exports Major Trading
Partners
Major sources of
capital
Machinery Machinery Germany Biotechnology
Petroleum Motor Vehicles Norway Telecommunications
Petroleum products Paper products United States Medical Technology
Chemicals Pulp & Wood Denmark Banking
Motor vehicles Iron United Kingdom Pharmaceuticals
Iron Steel Finland
Steel Chemicals Netherlands
Clothing France
Food products China
Belgium
Total Trade Volume: $351,700,000,000
Net Exports: $18,500,000,000
Section 5 Growth Competitive Index and Index of Freedom
Most recent GCI rankings for Sweden
• 4th in 2008-2009
• 4th in 2007-2008
• 9th in 2006-2007
National rank in terms of:
Quality (rankings):
Institutions - 4th
, Policies - 3rd
Sub index on Macro economy stability - 15th
Sub index on:
• Business efficiencies: 7th
• Goods market - 7th
Employment: 98.3% in 2008
type
Industrial: 24%
Agriculture: 2%
Service: 74%
Rural Unemployment: 62%
Urban Unemployment: 38%

12. 12
• Labor market - 26th
• Financial market - 8th
• Ability to innovate – 5th
• Absorb advanced technology
Index of Freedom
In terms of economic freedom Sweden ranks 26th in the world with a score of 70.5.1
From last year's
score Sweden has declined in trade, monetary and labor freedoms but it still ranked above the world average.
Sweden has some of the lowest scores worldwide in fiscal freedom and government size. The wealth tax has
been abolished, but taxes are still a huge burden. The top income tax rate of 57 percent is one of the highest in
the world. Total government spending is still more than half of GDP. The labor market's inflexible regulations
have caused the labor freedom score to dip below the world average.
Informal Sector
Sweden is a highly developed economy and is not affected on a development level by informality.
Informality is said to exist in education training and all types of employees are said to be looking for tax
breaks by finding jobs in the informal sector “Even in highly developed Sweden, informal employment is
growing, because Sweden has the second-highest labor taxes in the world.”2
Donor Projects
Sweden contributes greatly to struggling countries, and their primary objective is “to create conditions
to allow poor countries to improve their standard of living.” They focus on three main areas: Democracy and
human rights, environment and climate, and gender equality. Sweden will hold the European Union (EU)
presidency near the end of 2009, and will oversee negotiations on the new climate agreement.
Sweden holds .94% of World Bank votes, and is represented by their Minister for Finance on the Board of
Governors, with the alternate being their Minister for International Development Cooperation. The table
below shows dates Sweden joined each organization.3
The 5 organizations of the World Bank Group Founded Sweden became
member in
The International Bank for Reconstruction and
Development (IBRD)
1945 August 31, 1951
The International Development Association (IDA) 1960 September 24, 1960
The International Finance Corporation (IFC) 1956 July 20, 1956
The Multilateral Investment Guarantee Agency 1988 April 12, 1988
1 Index of Economic Freedom. 2009. The Heritage Foundation.
2 Farrell, Diana. Tackling the Informal Economy. 2006. McKinsey & Company. 8 May 2006
3 The World Bank. “Sweden and the World Bank”. 2009

13. 13
(MIGA)
The International Centre for the Settlement of
Investment Disputes (ICSID)
1966 January 28, 1967
In 2008, Sweden decided to contribute SEK 6.1 Billion to the International Development Association (IDA)
between 2008 and 2017. They are the 10th
largest contributor to the IDA. In 2009, Sweden granted debt relief
to Liberia, writing off approximately 20.4 Million USD in interest and repayment obligations, and plans to
contribute SEK 40 Billion to stimulate the global economy.
Sweden works in cooperation with the USAID to provide relief to struggling countries. They top the HRI
index with a score of 7.9 out of 10 The GHD co-chairs of Sweden and USAID wrote a joint letter to DARA
expressing concerns about humanitarianism.
Sweden’s contributions to the World Bank and African Development Fund (ADF) from 2008 to 2010 will
total SEK 8 Billion. Over the next 2 years, Sweden will contribute SEK 2 Billion to the Global Fund to Fight
Aids, Tuberculosis, and Malaria.
Sweden is involved in several ongoing projects world wide. They signed a five year extension with China in
2007 to extend the “memorandum of understanding on environmental cooperation”. They established a Centre
for Environmental Technology, in 2007, in Beijing. The Swedish Energy Agency (SEA) is partially financing
two Clean Development Projects in China. In 2007, Sweden played a role in a three year project advancing
progress of development in China.
The tables / charts below summarize Sweden’s position and projected payments with regards to the
International Monetary Fund (IMF).1
Year Payments (in SDR)
2009 342,371
2010 294,751
2011 294,751
2012 294,877
2013 294,624
2014 294,751
2015 294,751
2016 294,877
2017 294,624
2018 294,751
2019 294,751
1 . International Monetary Fund. “Sweden and the IMF”. December 15, 2008.

14. 14
2020 294,877
2021 294,624
2022 294,751
2023 294,751
2024 69,816
Total 4538698
In 2007, Sweden contributed 30 Million USD to the African Development Fund (ADF). Described in the
table below, Sweden is the 10th
largest donors to the ADF (see Fig 7.2 above).
ADF State Participants
Argentina
Austria
Belgium
Brazil
Canada
China
Denmark
Finland
France
Germany
India
Italy
Japan
Korea
Kuwait
The Netherlands
Norway
Portugal
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
U.A.E
United Kingdom
United States of America
Sweden is the 30th
largest share holder of the Asian Development Bank (ADB). Since 1966, they have
contributed approximately 540.78 Million USD to the ADB. The table below summarized Sweden’s
involvement with the ADB.
Number of shares held: 12,040 (0.34% of total shares)
Votes: 25, 272 (0.57% of total membership, 1.63% of total non-regional membership)
Overall capital subscription: $190.05 million*
Paid-in capital subscription: $13.31 million*
As of 2003, Sweden’s contributions totaled 1.3 Million USD to the Poverty and Environment Fund,
which has financed two projects totaling 6.27 Million USD. In 2005, they contributed 14.17 Million USD to
the Cooperation Fund to Fight HIV / AIDS in Asia and the Pacific. In 2007, they contributed 15 Million USD
to the Asian Pacific Carbon Fund. In 2005, Sweden contributed 14.3 Million USD to assist in the fight against
HIV and AIDS.
10 largest pledges to ADF-11 Fig 7.2
United Kingdom
France
Germany
United States of America
Japan
The Netherlands
Italy
Canada
Norway
Sweden
14.8
10.9
10.8
8.3
7.1
5.4
5.3
5.0
4.5
4.4

15. 15
Section 8 Foreign Investment Inflows and Major Sources of Foreign Investments
The Swedish Government heavily promotes active investment to attract foreign direct investment. The
Invest in Sweden Agency (ISA) is in charge of this task. Foreign direct investment helps to increase
employment and economic growth. The ISA is represented in approximately ten countries.
Section 9 The Business Environment - The Relative Ease of Doing Business in this Country
Starting a business in Sweden is relatively easy. Limited companies can be purchased and ready for
trading with in few days. Limitations differ depending on whether the company is publicly or privately traded.
Obtaining a business license requires eight procedures over 116 days with a cost of 115.3% of income per
capita. Employing workers involves paying a competitive wage in comparison to the rest of Europe. However
the Social Security contribution is towards the higher end at 33% plus an additional 8% for pension costs.
Registering property requires two procedures in one day with a cost of 3% of property value. Employees are
eligible for five weeks paid vacation throughout the year and three weeks of sick leave in which employers
must pay employees 80% of typical wages throughout this time. Trade unions are very strong in Sweden.
Obtaining credit is fairly easy with a legal rights index o six and a credit information index of four. Corporate
taxes are typically 28%, but may be as low as 21%. Typical tax withholdings rate is 30% but inside the
European Union, there are no withholding taxes. Trading across borders is fairly easy as Sweden welcomes
trade with most countries across the world.
Sweden is very open to business be conducted in their country, whether domestic or international. It has very
few limitations for international countries doing business within their borders. It is the 5th
largest country in
Europe with a population of approximately 9 Million. Citizens enjoy a fairly decent standard of living with
GDP per capita reaching approximately $28,000 USD in 2004.
Trade with South Africa:
South African exports to Sweden totaled R2.9bn in both 2006 and 2007 and reached R785.3 million in
the year-to-March 2008. SA’s main exports to Sweden consist of industrial products, food (especially fruit,
vegetables and wine) and various semi-manufactured products. Imports from Sweden totaled R5.9bn in 2006,
R8.1bn in 2007 and R3.2bn in the year-to-March 2008 and they consist mainly of industrial products, vehicles
and various semi-manufactured products. The number of Swedish companies based in South Africa has grown
steadily since 1993 and was estimated at 80 in 2007, “among them major multinational export companies such
as ABB, Atlas Copco, Electrolux, Ericsson, Volvo, Scania, Svedala, Tetra Pak and Sandvik.”1
Sweden is very open to foreign owned firms and foreign direct investment. Swedes employed by
foreign owned companies totaled 22% in 2001. The number of foreign owned companies surpassed 7,800 by
the end of 2001, employing over 500,000 workers. Sweden tries to be fair for all companies within their
borders as well as abroad. However regulations may vary slightly between foreign and domestic firms.
Foreign firms appear to be permitted to own 100% of the equity in their firms if they choose.
Domestic content requirements appear to be minimal, allowing companies to shop around for the lowest
1 International Trade: Kingdom of Sweden. Best SA Exporters. 2008

16. 16
prices, operating within the natural supply and demand of products. The Swedish government offers
incentives for foreign companies to invest in Sweden. These incentives vary depending on the industry each
company is a part of. They have a very efficiently and effectively operating economy and tweak laws on an as
needed basis.
Section 10 Corruption
According to the CPI on the Transparency International website the country of “Sweden ranks
in the top 2% of highly clean countries in regards to corruption”1
with less than 2% of respondents reporting
they ever paid a bribe to obtain any type of service.
Sweden has had a high CPI (Corruption Perception Index) in the top 10 for a couple of years. Example:
In the “Boat Certificate-case” investigation started in 2002 by the Oslo police district. Charges were brought
against several Norwegian citizens for active bribery of a Swedish official (Swedish maritime inspector). The
suspects, including the renowned businessman Kjell Inge Røkke, who was sentenced to 120 days in jail, were
convicted of corruption on 1 July 2005. The sentenced is under appeal.2
The strongest areas to be experience corruption in Sweden are the media, political parties, the business or
private sector, and the religious bodies - this can be seen in the chart below3
:
1 Report on the Transparency International Global Corruption Barometer 2007. Dec. 6, 2007.
2 Report by Jan Borgen on “Foreign Bribery Prosecutions”, 6 December 2005
3 Report on the Transparency International Global Corruption Barometer 2007 (pg 22)

17. 17
An example of corruption occurring in Sweden is at a college on the island of Gotland where a professor
received a large donation from a company called Nord Stream believed to be in relation with the company’s
efforts to push installment of a gas line installed in the Baltic Sea.1
According to Transparency International
some corruption measures include: public officers doing things for private gain such as, taking money to
overlook laws being broken or wrongful conduct, kickbacks in public procurement, dishonest use of public
funds, wrongful use of power to control the acts of others. The Herald Tribune, a global edition of the New
York Times, discusses another major measurement with corruption in Sweden do to its large exporting
industry and the difference in the standards it holds for its self than those abroad.2
Section 11 International Finance
The currency of Sweden is the Swedish Krona (SEK). The exchange rate value for the Swedish krona
(SEK) per US dollar - 6.7629 (2007), 7.3731 (2006), 7.4731 (2005), 7.3489 (2004), 8.0863 (2003).3
Exchange Rate System adopted by Sweden since November 1992 is:
- A managed floating system – when the Government or central bank or Sweden intervenes with a
floating exchange rate and allows the currency price to float freely between an upper and lower bound, price
“ceiling” and “floor”.4
The Swedish government is very open to foreign investment inflows. They are very liberal with their
foreign investment laws and are open to almost all foreign investments, excluding only their air, and maritime
transportation, and arms manufacturing. They also have very low corporate income tax rates making it very
attractive to other countries - encouraging foreign investment.5
1 The Local. February. 9,2009. “Nord Stream gift prompts bribery probe”.
2 Herald Tribune. May 11, 2007. “Sweden's squeaky-clean image sullied by scandals”
3 Index Mundi. 2009. “Sweden Exchange Rates”.
4 Currency UK. No date. “The Swedish Krona in The Market - Broker View”.
5 Nations Encyclopedia. 2009. “Sweden – Foreign Investment”.

18. 18
Because of Sweden’s openness to world trading and their lack of laws in this area, the government does
not control “payments and transfers or repatriation of profits”.1
Sweden’s’ external debt as a fraction of GDP in 20082
Sweden’s:
- External debt is $598.2 billion
- Total exports $170.1 billion
- External debt as a fraction of total exports = 170.1/ 598.2 = .28 or 28%3
Sweden's debt comes from and is owed to a combination of:
Private Banks, public bond issues, the World Bank, trade credits, IMF, and HIPC eligible. Despite the
many debtors listed these are only a handful of who Sweden actual owes which is to be expected for any
country that is $598.2 billion in debt.4
Sweden plans to sell billions in state assets during the next three years expand growth and raise revenue
to pay down their debt. In addition to this they are also planning to finance the debt long-term at a fixed
1 Index of Economic Freedom. 2009. The Heritage Foundation
2 Central Intelligence Agency. March 19, 2009. “The World Fact Book”.
3 Index Mundi. 2009. “Sweden Exchange Rates”.
4 Riskbank. March 31, 2009 "Economic And Financial Data For Sweden"

19. 19
interest rate to lower a risk associated with this debt, and looking at the possibility of assuming a new long-
term nominal government bond.1
Section 12 Concluding Comments
Based on the information we have gathered and the research done on the Country of Sweden, though it
is not a perfect country, we are optimistic in both the short – and medium-term future of the country. One
strong indicator of the “healthiness” of an economy/country is the amount of corruption within that
environment. As we have discussed in this paper Sweden has a very small amount of corruption in the society
and they continue to push for honesty and cleanliness in the actions of public officers. Sweden is also well
developed with strong foundations in their legal, financial, banking, and political institutions and has very few
institutions that are underdeveloped or lacking in strength. In addition to these things they are also a strong
country in women’s equal rights, they have excellent internal and external communications, they have a very
high employment rate, and the average life expectancy is high with most living till the age of 80. With the
strong way the Swedish economy is now operating it supports our optimism of the short-term future of the
country, and with its strive to only improve and become even stronger it lends to our belief that their medium-
term future will also be strong.
If I were the political leader to the country of Sweden this first reform I would purpose to remove
obstacles to growth and development would be to allow more access to own property, open businesses or
register land; I would strive to shrink the number of hoops needed to jump through and the time it would take
to obtain documentation for any one of these things. I would also push for the importance of education
starting at a young age; this would include school education, health education, and social education. Another
reform I would propose would be to have complete equal rights among those in the lower class brackets with
those of the upper, with more ease to move from one to the other.
From the perspective of a decision-maker in a US-owned firm, though Sweden would have its risk - as
does any country when it comes to investing across borders, it is definitely a country that holds attractiveness
as an investment location. Following the FDI environmental analysis framework there are many reasons
Sweden is an attractive location for investing:
• It is a country with low political risk in part due to a stable government through the
establishment of their declaration of independence as mentioned above.
• Sweden has strong political institutions with little corruption and constant improvement in
citizens’ right, as well as very strong financial markets and high infrastructure and reliability of
utilities especially the water supply.
• They have strong economic resources in labor capital and land – specializing in production of
iron, paper products, processed foods and more.
• They are major exporters of, but not excluding, machinery and motor vehicles, and importers of
items like petroleum and petroleum products, as well as many chemicals.
1 U.S. Department of State. August 2008. “Bureau of European and Eurasian Affairs” – “Economy”

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• Sweden has strong connections with their trading partners including China, Germany, and
France, in which they not only trade with but also lend large amounts of money to each year.
• They have a strong demographic structures with high population growth, average life expectancy
around age 80, average household income around $35,000, good literacy with most over the age
of 15 able to read and write, and low disease and health issues.
Though this is not all the FDI looks for, these are the major issues of the FDI environmental analysis
framework that determines whether a country is risky or attractive in terms of an investment location. Because
Sweden excels and is so stable in so many of these areas, from the perspective of a decision maker in a US-
owned firm it holds strong attractiveness as an investment location.
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