How And Why Are Scandinavian Welfare Systems Different From Other West European Welfare States?

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The Scandinavian welfare model is often used as a general term for the way in which Denmark, Sweden and Norway have chosen to organise and finance their social security systems, health services and education. The Scandinavian countries are clearly distinguished from other European countries in these areas.
Germany was the first country in the world in which the State engaged in the social insurance of its citizens. This took place in 1883 with the introduction of a public health insurance. The other countries in Europe - including the Scandinavian countries - were not unaware when the German initiative forced the question of the State and social insurance higher up on the political agenda. In the succeeding years many countries in Europe set up arrangements for insuring their citizens in cases of accidents, illness, old age and unemployment - what we know as the essential welfare state benefits.
Although the development of welfare arrangements took place in the individual countries, certain countries may have common features in their systems justifying our talking of an actual welfare model. The European countries can be divided up according to four welfare models: The Scandinavian model, in which social benefits are the same for everyone. This model is also referred to as the Nordic model, the Social Democratic model or the institutional model. According to Rhodes, “this model ‘crowds out the market’ and creates a cross class solidarity in favour of an extensive system of welfare support.” (M Rhodes, P Heywood and V Wright (eds) (1997) Developments in West European Politics, St Martin’s Press).
The Beveridge model, thus, called after the British civil servant who led the work of devising the principle on which this model is based. The Beveridge model offers social benefits only to those in greatest need. It is also called the Anglo-Saxon model, the liberal model or the residual welfare model. The Bismarck model is call...