DENMARK GLOBLIZATION AND WELFARE STATE

Denmark Globalization and welfare State



Table of Contents

Executive Summary2

Introduction4

Literature Review4

Globalization4

Denmark and Rasmussen's Planning for Globalization5

Critical Analysis6

Internal and External Influence of Globalization on Denmark6

Influence of Globalization on Policies and Decision Making8

Effectiveness of Denmark's Response11

The Globalization Strategy: Comprehensive and Sweeping Reforms12

Areas of Improvement13

Conclusion13

References14

Executive Summary

Danish society has a shared faith in the democracy, which is open to diversity and believes in the personal right to liberty and the duty to accept tar responsibility. Globalization has brought Greenland out of geographical isolation through global economy, communication, human mobility, and the media. In recent decades, the indigenous cultural and religious practices have been revitalized to counterbalance the social influence of the Danish culture and language. Up to the present, Greenland has remained largely unaffected by the transnational flows of global migration due to its geographical remoteness and harsh arctic or subarctic climatic conditions. Through intensified flows of people, material objects, and ideas between different parts of the world, globalization has prompted the dispersion of cultural forms and created new senses of community and loyalty. Given its strong democratic traditions, regulatory quality, and governmental effectiveness, the political system of Denmark is a well-respected model. Denmark has a history of consensus-based policies, which means that legislation is enacted only after extensive negotiations and compromise with non-government or even opposition parties. This helps create a stable political environment for businesses, as policies reflect a wide range of interests, and are rarely reversed even after a change in government. Although there was an administration change in 2001 when the Social Democrats surrendered control to a coalition between Venstre, Liberal Party of Denmark and the Conservative People's Party, the new government maintained the existing welfare system and persisted with reform measures pertaining to the labour force and taxation; as a result, Denmark did not experience any drastic policy shifts. Nevertheless, the political landscape of the country has been changing in recent years due to increasing support for right-wing parties. The share held by the Danish People's Party has been constantly increasing in parliament; in the 2007 elections, it gained 25 seats and is currently a partner in the coalition government. Despite a satisfactory response to globalization, there are various challenges that Denmark needs to address. Denmark would fare poorly as globalization intensified. With China and India emerging as international manufacturing centres and the United States leading science-based industries, media, and entertainment, a heavily unionized but lightly populated country with high taxes and extensive welfare benefits looked fundamentally uncompetitive. Yet Denmark had proven its critics wrong. Its unique combination of probusiness, prounion, and proeducation policies had brought unemployment to record lows, sustained real GDP growth, and fostered a “creative class” that appeared well positioned for the future. The aim should be to ensure that the globalization process is beneficial to all. When specifying globalization as a process of transnationalization, denationalization, and deterritorialization, it has to be acknowledged that such processes are not new phenomena but have many historical roots.

Denmark Globalization and Welfare State

Introduction

Some identify globalization with ...