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Monday, December 21, 2020

Why Are Finland, Denmark, Norway, And Iceland So Rich?

 

  1. Lutheran religion, which leads into…
  • Very high degree of honesty = low corruption and crime
  • Very high degree of societal trust = smooth transactions and little corruption
  • 100% literacy attained already in the 17th century
  • High appreciation of education and civilization
  • Seeing earthly wealth as mandate of God to be taken care of and cultivated, discouraging waste, frittering it away and conspicuous consumption
  • Seeing working and labour as service of God, not as a curse nor an onus to be avoided
  • Reasonable relation to sexuality, preventing both lechery and hang-ups
  • High degree of trust and sense of responsibility between the rulers and the people.

2. Romano-German civil law, which leads into…

  • Predictable jurisprudence
  • Justice state: no punishment without law, no arbitrary chapters
  • Together with Lutheranism, the concept of Rule of Law, not that of the strongmen or the despots. Law is even above the will of the King. Land skall med lag byggas.
  • Powerholders and justice system separated from each other - the judicial system is independent on ruler’s whim and desires
  • Law is used to resolve the conflicts and disputes, not as powerholder’s tool to oppress and subjugate his subjects and seize their assets
  • Relative vote, which leads into multipartite democracy and parliamentarism

3. Capitalism and free trade, which leads into…

  • Accumulation of wealth with exponential growth
  • Efficient use of resources and resource allocation
  • Together with Lutheran religion, into welfare state
  • Together with Romano-German civil law, into individual freedoms
  • High degree of industrialization
  • High dependence of foreign trade, which together with Lutheran religion leads into high degree of professionalism

4. Welfare state

  • Everyone is taken care of. Nobody is left behind.
  • Free education and vocational training, leading into high degree of professionalism
  • Free universal health care, contributing to health and preventing personal bankruptcies. This contributes to strong middle class.
  • Free library and community college system. Together with Lutheran religion and capitalism, this leads into high degree of education and professionalism.
  • Low cost kindergartens and nursing homes, preventing personal bankruptcies and contributing to strong middle class
  • Low cost sports and hobby facilities
  • Low cost cultural facilities
  • Universal pensions for the disabled and elderly
  • High taxation. Together with Romano-German civil law leads subjects demand a lot from their rulers and that they get what they pay for.
  • Distrust on various “schools” of economy. This leads into pragmatism.
  • Avoidance of crony capitalism. This leads into low Gini coefficient
  • Together with high degree of education and low Gini coefficient, it leads into extremely strong middle class
  • Together with Capitalism and Romano-German civil law, resistence on deindustrialization and quick reindustrialization

5. Individual freedoms

  • Freedom of speech and information distribution, which together with capitalism and free trade leads into efficient economy
  • Judicial safety of ownership which together with Romano-German judicial system protects private and corporate property be expropriated by ruler at will. Together with capitalism leads into high degree of entrepreneurship
  • Freedom of religion and political expression. Together with Romano-German judicial system and Lutheranism leads into democracy and citizen society.
  • Freedom of movement, both people and commodities (i.e. no internal passports needed, no restrictions of moving). Together with Capitalism leads into efficient distribution of resources.

6. Hostile climate

  • Hostile climate means high IQ is needed to survive alive which together with Lutheran religion and holding education in high esteem leads into high degree of education and professionalism
  • Together with Lutheran religion means planning ahead and thinking long term, encouraging investment and discouraging living in the moment and conspicuous consumption
  • Together with Lutheran religion and need of co-operation, adoption of efficient means of agriculture, fishing and cattle raising, contributing to nutrition and improving average IQ
  • Need of co-operation to survive alive, which together with Lutheran religion and Romano-German civil law leads into high degree of trust, low corruption and high degree of mutual trust between rulers and population
  • Crops are poor, which leads into need to industrialize. It means high degree of industrialization and dependence on foreign trade
  • Hostile climate contributes to need of technology, which leads into inventivinesshigh degree of industrialization and high degree of entrepreneurship

7. Lack of natural resources

  • No domestic resources leads into dependence on foreign trade
  • The only asset the Nordic countries have is their labour. Together with Capitalism and free trade, this leads into as efficient use of human resources as possible.
  • Need to import the resources leads into high degree of refinement and processing of the products
  • Need to import resources from abroad and export the end products abroad leads into high knowledge of foreign languages and awareness of foreign cultures
  • No domestic resources leads avoidance of the resource curse and diverse distribution of industries and no dependence of one single industry. This leads into resistance on effects of economic booms and slumps
  • Norway discovered the oil resources only after it had already industrialized. This means resistance on resource curse and setting incomes into foundations instead of letting them to poison the economy. It means redundance on economic fluctuations.

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