international relations and strategies

8/20/2019 International Relations and Strategies

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INTERNATIONAL RELATIONS AND STRATEGIES

ASSIGNMENT

Title: A comparative study betwee !ilad ad Swede

Presented By

Shiva Badola

VaradVatsalArjunBrar

RoshniVinod


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INDEX

Sr. No Title Pg. No1. !je"tives 1#. $ountry Ba"%ground #&. $o'(arative Study

) *istory) +eogra(hy) De'ogra(hi"s) +overn'ent) E"ono'y ,"o'(arative gra(hs in"luded-) ilitary) Transnational Issues

&

/. $o'(arison o0 an e'erging se"tor

) I$T

##

. Relations !et2een 3inland and S2eden #4. $urrent Issues #55. 3uture Trends &67. 8inning Trends 9 Su''ary and vervie2 :. T8S &116. International Issue &11. Re0eren"es and Bi!liogra(hy &5


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O"#E$TI%ES

&' To do a detailed compariso o( two competi) coutries * S+EDEN ad

!INLAND

)to understand their (resent s"enario

)to evaluate their ne2 (er"e(tions ;

)individual gro2th

,' $omparative researc- or aalysis o( !INLAND ad S+EDEN icludi) bot-.uatitative ad .ualitative compariso o0<

) So"ial entities !ased on 'any lines su"h as geogra(hi"al= e"ono'i"al= 'ilitary=te"hnologi"al and (oliti"al.

/' Also aaly0e t-e competitive advata)es ad disadvata)es o( bot- coutries

wit-:

) The to2s 'atri>?an alternative to (orter@s 'odel.

1' To tar)et a importat issue coceri) bot- t-e coutries c-ose t-at -as

bee i t-e ews i t-e recet past'


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$O2NTR3"A$4GRO2ND

!INLAND

3inland= o00i"ially the Re(u!li" o0 3inland= is a Nordi" "ountry in Northern Euro(e !ordered

!y S2eden to the 2est= Nor2ay to the north= and Russia to the east Estonia lies to the southa"ross the +ul0 o0 3inland. 3inland is (art o0 the geogra(hi" region o0 3ennos"andia= 2hi"h

also in"ludes S"andinavia and (arts o0 Russia.

"rie( 5istory

3ro' the late 1#th "entury until 176:= 3inland 2as (art o0 S2eden= a lega"y re0le"ted in the

(revalen"e o0 the S2edish language and its o00i"ial status. It 2as then in"or(orated into the

Russian E'(ire as the autono'ous +rand Du"hy o0 3inland= until the Russian Revolution o0

1:15 (ro'(ted the 3innish De"laration o0 Inde(enden"e. This 2as 0ollo2ed !y the 3innish

$ivil 8ar in 2hi"h the (ro)Bolshevi% 3innish So"ialist 8or%ers@ Re(u!li" 2as de0eated !y

the (ro)"onservative 8hites 2ith su((ort 0ro' the +er'an E'(ire. A0ter a !rie0 atte'(t to

esta!lish a %ingdo'= the "ountry !e"a'e a re(u!li". In 8orld 8ar II= 3innish 0or"es 0ought inthree se(arate "on0li"ts< the 8inter 8ar ,1:&:91:/6- and $ontinuation 8ar ,1:/191://-

against the Soviet Cnion= and the a(land 8ar ,1://91:/- against Nai +er'any. 3inland

joined the Cnited Nations in 1: and esta!lished an o00i"ial (oli"y o0 neutrality. It joined the

rganisation 0or E"ono'i" $o)o(eration and Develo('ent ,E$D- in 1:4:= the Euro(ean

Cnion in 1::= and the Euroone at its in"e(tion in 1:::.

In #61&= 3inland@s (o(ulation 2as around . 'illion= 2ith the 'ajority living in its southern

regions. In ter's o0 area= it is the eighth largest "ountry in Euro(e and the 'ost s(arsely

(o(ulated "ountry in the Euro(ean Cnion. 3inland is a (arlia'entary re(u!li" 2ith a "entral

govern'ent !ased in the "a(ital *elsin%i= lo"al govern'ents in &15 'uni"i(alities= and anautono'ous region= the Fland Islands. ver 1./ 'illion (eo(le live in the +reater *elsin%i

'etro(olitan area= 2hi"h (rodu"es a third o0 the "ountry@s +DP.

Recet -istory

i%e other Nordi" "ountries= 3inland has de"entralised its e"ono'y sin"e the late 1:76s.

3inan"ial and (rodu"t 'ar%et regulation 2ere loosened. So'e state enter(rises have !een

(rivatied and there have !een so'e 'odest ta> "uts. 3inland joined the Euro(ean Cnion in

1::= and the Euroone in 1:::.


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The 3innish 'ar%%a 2as re(la"ed !y the euro in #66#. In #665= in order to ado(t the ne2

"o''on 'a( li%e the rest o0 the Euroone "ountries= 3inland "hanged the "o''on side o0 its

"oins.

S+EDEN

S2eden= o00i"ially the Gingdo' o0 S2eden= is a S"andinavian "ountry in Northern Euro(e. It

!orders Nor2ay to the 2est and 3inland to the east= and is "onne"ted to Den'ar% in the

south2est !y a !ridge)tunnel a"ross the Hresund. S2eden is the third)largest "ountry in the

Euro(ean Cnion !y area= 2ith a total (o(ulation o0 over :.7 'illion. S2eden is (art o0 thegeogra(hi"al area o0 3ennos"andia.

"rie( 5istory

+er'ani" (eo(le have inha!ited S2eden sin"e (rehistori" ti'es= e'erging into history as the

+eats and S2edes and "onstituting the sea (eo(les %no2n as the Norse'en. S2eden e'erged

as an inde(endent and uni0ied "ountry during the iddle Ages. In the 15th "entury= it

e>(anded its territories to 0or' the S2edish E'(ire= 2hi"h !e"a'e one o0 the great (o2erso0 Euro(e until the early 17th "entury. S2edish territories outside the S"andinavian Peninsula

2ere gradually lost during the 17th and 1:th "enturies= !eginning 2ith the anne>ation o0 (resent)day 3inland !y Russia in 176:. The last 2ar in 2hi"h S2eden 2as dire"tly involved

2as in 171/= 2hen Nor2ay 2as 'ilitarily 0or"ed into (ersonal union.

Sin"e then= S2eden has !een at (ea"e= 'aintaining an o00i"ial (oli"y o0 neutrality in 0oreign

a00airs.The union 2ith Nor2ay 2as (ea"e0ully dissolved in 1:6= leading to S2eden@s "urrent

!orders. Though it 2as 0or'ally neutral through !oth 2orld 2ars= S2eden engaged in

hu'anitarian e00orts= su"h as ta%ing in re0ugees 0ro' +er'an)o""u(ied Euro(e. A0ter the endo0 the $old 8ar= S2eden joined the Euro(ean Cnion on 1 anuary 1::= !ut de"lined NAT

'e'!ershi(.

Today= S2eden is a "onstitutional 'onar"hy and a (arlia'entary de'o"ra"y= 2ith the

onar"h as the head o0 state. The "a(ital "ity is Sto"%hol'= 2hi"h is also the 'ost (o(ulous

"ity in the "ountry. egislative (o2er is vested in the &/:)'e'!er uni"a'eral Ri%sdag.

E>e"utive (o2er is e>er"ised !y the +overn'ent= "haired !y the Pri'e inister.

S2eden 'aintains a Nordi" so"ial 2el0are syste' that (rovides universal health "are and

tertiary edu"ation 0or its "itiens. It has the 2orld@s eighth)highest (er "a(ita in"o'e and

ran%s highly in nu'erous 'etri"s o0 national (er0or'an"e= in"luding Juality o0 li0e= health=

edu"ation= (rote"tion o0 "ivil li!erties= e"ono'i" "o'(etitiveness= eJuality= (ros(erity and

hu'an develo('ent. S2eden has !een a 'e'!er o0 the Euro(ean Cnion sin"e 1 anuary1::= !ut de"lined Euroone 'e'!ershi( 0ollo2ing a re0erendu'. It is also a 'e'!er o0 the


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Cnited Nations= the Nordi" $oun"il= $oun"il o0 Euro(e= the 8orld Trade rganiation and

the rganisation 0or E"ono'i" $o)o(eration and Develo('ent ,E$D-.

$OM6ARATI%E ST2D3

A7 5istory !ilad Swede

3inland 2as a (rovin"e and then agrand du"hy under S2eden 0ro'the 1#th to the 1:th "enturies= andan autono'ous grand du"hy o0 Russia a0ter 176:. It gained"o'(lete inde(enden"e in 1:15.

During 8orld 8ar II= it

su""ess0ully de0ended itsinde(enden"e through "oo(eration2ith +er'any and resistedsu!seJuent invasions !y the SovietCnion ) al!eit 2ith so'e loss o0 territory. In the su!seJuent hal0 "entury= 3inland trans0or'ed 0ro'a 0ar'K0orest e"ono'y to adiversi0ied 'odern industriale"ono'y (er "a(ita in"o'e isa'ong the highest in 8esternEuro(e.

A 'e'!er o0 the Euro(ean Cnionsin"e 1::= 3inland 2as the only

Nordi" state to join the euro single"urren"y at its initiation in anuary1:::.

In the #1st "entury= the %ey 0eatureso0 3inland@s 'odern 2el0are state

are high Juality edu"ation= (ro'otion o0 eJuality= and anational so"ial 2el0are syste' )"urrently "hallenged !y an aging

(o(ulation and the 0lu"tuations o0 an e>(ort)driven e"ono'y.

A 'ilitary (o2er during the 15th"entury= S2eden has not

(arti"i(ated in any 2ar 0or al'ostt2o "enturies. An ar'ed neutrality2as (reserved in !oth 2orld 2ars.

S2eden@s long)su""ess0ule"ono'i" 0or'ula o0 a "a(italist

syste' inter'i>ed 2ithsu!stantial 2el0are ele'ents 2as"hallenged in the 1::6s !y highune'(loy'ent and in #666)6#and #66: !y the glo!al e"ono'i"do2nturns= !ut 0is"al dis"i(lineover the (ast several years hasallo2ed the "ountry to 2eather e"ono'i" vagaries.

S2eden joined the EC in 1::= !ut the (u!li" reje"ted theintrodu"tion o0 the euro in a #66&re0erendu'.

S2eden 'aintains a Nordi" so"ial2el0are syste' that (rovidesuniversal health "are and tertiaryedu"ation 0or its "itiens. It hasthe 2orld@s eighth)highest (er

"a(ita in"o'e and ran%s highly innu'erous 'etri"s o0 national (er0or'an"e= in"luding Juality o0 li0e= health= edu"ation= (rote"tion


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"7 Geo)rap-y

Locatio Northern Euro(e= !ordering the Balti" Sea=+ul0 o0 Bothnia= and +ul0 o0 3inland= !et2eenS2eden and Russia

Northern Euro(e= !ordering the Balti" Sea=+ul0 o0 Bothnia=Gattegat= and S%agerra%=

!et2een 3inland and Nor2ay

Area total: &&7=1/ sJ %' total: /6=#: sJ %'

$limate "old te'(erate (otentiallysu!ar"ti" !ut"o'(aratively 'ild

!e"ause o0 'oderatingin0luen"e o0 the NorthAtlanti" $urrent= Balti"Sea= and 'ore than 46=666

la%es

te'(erate in south 2ith"old= "loudy 2inters and"ool= (artly "loudysu''ers su!ar"ti" innorth

Natural resources ti'!er= iron ore= "o((er=lead= in"= "hro'ite=ni"%el= gold= silver=li'estone

iron ore= "o((er= lead=in"= gold= silver=tungsten= uraniu'=arseni"= 0elds(ar= ti'!er=hydro(o2er

Natural -a0ards NA i"e 0loes in thesurrounding 2aters=es(e"ially in the +ul0 o0 Bothnia= "an inter0ere2ith 'ariti'e tra00i"

Eviromet * curret

issues

air (ollution 0ro''anu0a"turing and (o2er

(lants lead to a"id rain2ater (ollution 0ro'industrial 2astes=agri"ultural "he'i"alsha!itat loss threatens

a"id rain da'age to soilsand la%es (ollution o0 the North Sea and theBalti" Sea


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2ildli0e (o(ulations

Eviromet *iteratioal

a)reemets

party to: Air Pollution=Air Pollution)Nitrogen>ides= Air Pollution)Persistent rgani"Pollutants= Air Pollution)Sul0ur 7= Air Pollution)Sul0ur :/= Air Pollution)Volatile rgani"$o'(ounds= Antar"ti")Environ'ental Proto"ol=Antar"ti")arine iving

Resour"es= Antar"ti"Treaty= Biodiversity=$li'ate $hange= $li'ate$hange)Gyoto Proto"ol=Deserti0i"ation=Endangered S(e"ies=Environ'entalodi0i"ation= *aardous8astes= a2 o0 the Sea=arine Du'(ing= arinei0e $onservation= one

ayer Prote"tion= Shi(Pollution= Tro(i"al Ti'!er 7&= Tro(i"al Ti'!er :/=8etlands= 8halingsi)ed8 but ot

rati(ied: none o0 thesele"ted agree'ents

party to: Air Pollution=Air Pollution)Nitrogen>ides= Air Pollution)Persistent rgani"Pollutants= Air Pollution)Sul0ur 7= Air Pollution)Sul0ur :/= Air Pollution)Volatile rgani"$o'(ounds= Antar"ti")Environ'ental Proto"ol=Antar"ti")arine iving

Resour"es= Antar"ti"Treaty= Biodiversity=$li'ate $hange= $li'ate$hange)Gyoto Proto"ol=Deserti0i"ation=Endangered S(e"ies=Environ'entalodi0i"ation= *aardous8astes= a2 o0 the Sea=arine Du'(ing= oneayer Prote"tion= Shi(

Pollution= Tro(i"alTi'!er 7&= Tro(i"alTi'!er :/= 8etlands=8halingsi)ed8 but ot

rati(ied: none o0 thesele"ted agree'ents


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$7 Demo)rap-ics

!ilad Swede

6opulatio =#47=5:: ,uly #61/ est.- :=5#&=76: ,uly #61/ est.-

6opulatio)rowt- rate 6.6L ,#61/ est.- 6.5:L ,#61/ est.-

"irt- rate 16.& !irthsK1=666 (o(ulation,#61/ est.-

11.:# !irthsK1=666 (o(ulation,#61/ est.-

Deat- rate 16.1 deathsK1=666 (o(ulation,#61/ est.-

:./ deathsK1=666 (o(ulation,#61/ est.-

Net mi)ratiorate

6.4# 'igrant,s-K1=666 (o(ulation ,#61/ est.-

./4 'igrant,s-K1=666 (o(ulation ,#61/ est.-

Se9 ratio total populatio: 6.:4'ale,s-K0e'ale ,#61/ est.-

total populatio: 6.:7'ale,s-K0e'ale ,#61/ est.-

I(at

mortality rate

total: &.&4 deathsK1=666 live !irthsmale: &.4 deathsK1=666 live

!irths

total: #.4 deathsK1=666 live !irthsmale: #.77 deathsK1=666 live

!irths


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!ilad Swede

(emale: &.64 deathsK1=666 live !irths ,#61/ est.-

(emale: #.& deathsK1=666 live !irths ,#61/ est.-

Li(e

e9pectacy at

birt-

total populatio: 5:.4: yearsmale: 54.#/ years(emale: 7&.#: years ,#61/est.-

total populatio: 71.7: yearsmale: 76.6& years(emale: 7&.75 years ,#61/est.-

Literacy de(iitio: age 1 and over"an read and 2ritetotal populatio: 166Lmale: 166L

(emale: 166L ,#61 est.-

de(iitio: age 1 and over"an read and 2ritetotal populatio: ::Lmale: ::L

(emale: ::L ,#61& est.-

Educatio

e9peditures

4.7L o0 +DP ,#616- 5L o0 +DP ,#616-

2rbai0atio urba populatio: 7&.5L o0total (o(ulation ,#611-rate o( urbai0atio: 6./5Lannual rate o0 "hange ,#616)

1 est.-

urba populatio: 7.#L o0total (o(ulation ,#611-rate o( urbai0atio: 6.5/Lannual rate o0 "hange ,#616)

1 est.-

Drii) water

source

total< 166L o0 (o(ulation total< 166L o0 (o(ulation

Saitatio

(acility access

total< 166L o0 (o(ulation total< 166L o0 (o(ulation

5ealt-

e9peditures

7.:L o0 +DP ,#611- :./L o0 +DP ,#611-

D7 Govermet

!ilad Swede

$outry ame Re(u!li" o0 3inlandSuo'iK3inland

Gingdo' o0 S2edenS2eden KSverige


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!ilad Swede

Govermet

type

re(u!li" "onstitutional 'onar"hy

$apital *elsin%i Sto"%hol'

Admiistrative

divisios

1: regions #1 "ounties

Idepedece 4 De"e'!er 1:15 ,0ro'Russia-

4 une 1#& ,+ustav VASAele"ted %ing-

$ostitutio (revious 1:64= 1:1: latestdra0ted 15 une 1::5=a((roved !y Parlia'ent 11une 1:::= entered into 0or"e1 ar"h #666 a'endedseveral ti'es= last in #611,#611-

several (revious latest ado(ted1 anuary 1:5 a'endedseveral ti'es= last in #611,#611-

Le)al system "ivil la2 syste' !ased on theS2edish 'odel

"ivil la2 syste' in0luen"ed !yRo'an)+er'ani" la2 and"usto'ary la2

Su((ra)e 17 years o0 age universal 17 years o0 age universal

E9ecutive

brac-

c-ie( o( state: PresidentSauliNiinistro ,sin"e 1 ar"h#61#--ead o( )overmet: Pri'e

inister yr%iGatainen ,sin"e## une #611-cabiet: $oun"il o0 State or Valtioneuvosto a((ointed !ythe (resident= res(onsi!le to

(arlia'entelectios: (resident ele"ted

!y (o(ular vote 0or a si>)year ter' ,eligi!le 0or a se"ondter'- ele"tion last held on 3e!ruary #61# ,ne>t to !eheld in 3e!ruary #617- the

c-ie( o( state: Ging $arl XVI+usta0 ,sin"e 1: Se(te'!er 1:5&- *eir A((arent Prin"essVi"toria Ingrid Ali"e Desiree=

daughter o0 the 'onar"h ,!orn1/ uly 1:55--ead o( )overmet: Pri'einister 3redri% Rein0ldt,sin"e "to!er #664-De(uty Pri'e inister anBjor%lund ,sin"e "to!er #616-cabiet: $a!inet a((ointed !ythe (ri'e 'inisterelectios: the 'onar"hy ishereditary 0ollo2ing


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!ilad Swede

(arlia'ent ele"ts a (ri'e'inister 2ho is thena((ointed to o00i"e !y the

(resident

legislative ele"tions= the leader o0 the 'ajority (arty or theleader o0 the 'ajority "oalition

usually !e"o'es the (ri'e'inister

Le)islative

brac-

uni"a'eral Parlia'ent or Edus%unta ,#66 seats'e'!ers ele"ted !y (o(ular vote on a (ro(ortional !asisto serve 0our)year ter's-electios: last held on 15A(ril #611 ,ne>t to !e held in

A(ril #61-

uni"a'eral Parlia'ent or Ri%sdag ,&/: seats 'e'!ersare ele"ted !y (o(ular vote ona (ro(ortional re(resentation

!asis to serve 0our)year ter's-electios: last held on 1:Se(te'!er #616 ,ne>t to !e

held in Se(te'!er #61/-

#udicial brac- -i)-est court;s7: Su(re'e$ourt or Gor%eini%eus,"onsists o0 the "ourt

(resident and 17 judges-Su(re'e Ad'inistrative$ourt ,"onsists o0 #1 judgesin"luding the "ourt (resident

and organied into &"ha'!ers-note ) 3inland has a dual

judi"ial syste' ) "ourts 2ith"ivil and "ri'inal

jurisdi"tion= andad'inistrative "ourts 2ith

jurisdi"tion 0or litigation !et2een individuals andad'inistrative organs o0 thestate and "o''unities


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!ilad Swede

la!or= insuran"e=i'(ea"h'ent= land= tenan"y=and 2ater rights

!la)

descriptio

2hite 2ith a !lue "rosse>tending to the edges o0 the0lag the verti"al (art o0 the"ross is shi0ted to the hoistside in the style o0 theDanne!rog ,Danish 0lag- the

!lue re(resents the thousandso0 la%es s"attered a"ross the"ountry= 2hile the 2hite is 0or

the sno2 that "overs the landin 2inter

!lue 2ith a golden yello2"ross e>tending to the edges o0 the 0lag the verti"al (art o0 the"ross is shi0ted to the hoist sidein the style o0 the Danne!rog,Danish 0lag- the "olors re0le"tthose o0 the S2edish "oat o0 ar's ) three gold "ro2ns on a

!lue 0ield

Natioal

at-em

ame: aa''e ,ur and-ote: in use sin"e 17/7although never o00i"iallyado(ted !y la2= the anthe'has !een (o(ular sin"e it 2as0irst sung !y a student grou(

in 17/7 Estonia@s anthe'uses the sa'e 'elody as thato0 3inland

ame: Du +a'la= Du 3ria,Thou An"ient= Thou 3ree-ote: in use sin"e 17// theanthe'= also %no2n as Sangtill Norden ,Song o0 the

North-= is !ased on a S2edish0ol% tune it has never !een

o00i"ially ado(ted !y thegovern'ent Gungssangen,The Ging@s Song- serves asthe royal anthe'.

Iteratioal

law

or)ai0atio

participatio

a""e(ts "o'(ulsory I$ jurisdi"tion 2ith reservationsa""e(ts I$$t jurisdi"tion.3ollo2s 8T nor's.

a""e(ts "o'(ulsory I$ jurisdi"tion 2ith reservationsa""e(ts I$$t jurisdi"tion.3ollo2s 8T nor's

E7 Ecoomy

!ilad Swede

Ecoomy *

overview

3inland has a highlyindustrialied= largely 0ree)'ar%ete"ono'y 2ith (er "a(ita out(utal'ost as high as that o0 Austria=Belgiu'= the Netherlands= or

Aided !y (ea"e and neutrality0or the 2hole o0 the #6th"entury= S2eden has a"hievedan envia!le standard o0 livingunder a 'i>ed syste' o0 high)


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!ilad Swede

S2eden.

Trade is i'(ortant= 2ith e>(ortsa""ounting 0or over one)third o0 +DP in re"ent years. 3inland ishistori"ally "o'(etitive in'anu0a"turing ) (rin"i(ally the2ood= 'etals= engineering=tele"o''uni"ations= andele"troni"s industries. 3inlande>"els in e>(ort o0 te"hnology 0or 'o!ile (hones as 2ell as

(ro'otion o0 startu(s in the I$T=

ga'ing= "leante"h= and !iote"hnology se"tors.

E>"e(t 0or ti'!er and several'inerals= 3inland de(ends oni'(orts o0 ra2 'aterials= energy=and so'e "o'(onents 0or 'anu0a"tured goods.

Be"ause o0 the "li'ate=agri"ultural develo('ent isli'ited to 'aintaining sel0)su00i"ien"y in !asi" (rodu"ts.3orestry= an i'(ortant e>(ortearner= (rovides a se"ondaryo""u(ation 0or the rural

(o(ulation.

3inland had !een one o0 the !est (er0or'ing e"ono'ies 2ithin theEC in re"ent years and its !an%sand 0inan"ial 'ar%ets avoided the2orst o0 glo!al 0inan"ial "risis.

te"h "a(italis' and e>tensive2el0are !ene0its.

It has a 'odern distri!utionsyste'= e>"ellent internal ande>ternal "o''uni"ations= and ahighly s%illed la!or 0or"e. InSe(te'!er #66&= S2edishvoters turned do2n entry intothe euro syste' "on"erneda!out the i'(a"t on thee"ono'y and sovereignty.

Ti'!er= hydro(o2er= and ironore "onstitute the resour"e !aseo0 an e"ono'y heavily orientedto2ard 0oreign trade. Privatelyo2ned 0ir's a""ount 0or vast'ajority o0 industrial out(ut= o0 2hi"h the engineering se"tor a""ounts 0or a!out 6L o0 out(ut and e>(orts.

Agri"ulture a""ounts 0or little'ore than 1L o0 +DP and o0 e'(loy'ent.

Cntil #667= S2eden 2as in the'idst o0 a sustained e"ono'i"u(s2ing= !oosted !y in"reaseddo'esti" de'and and stronge>(orts. This= and ro!ust0inan"es= o00ered the "enter)right govern'ent "onsidera!les"o(e to i'(le'ent its re0or'

(rogra' ai'ed at in"reasinge'(loy'ent= redu"ing 2el0are

de(enden"e= and strea'lining


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!ilad Swede

*o2ever= the 2orld slo2do2n hit

e>(orts and do'esti" de'and hardin #66:= 2ith 3inlande>(erien"ing one o0 the dee(est"ontra"tions in the euro one. Are"overy o0 e>(orts= do'esti"trade= and household "onsu'(tionsti'ulated e"ono'i" gro2th in#616)11= ho2ever= "ontinuedre"ession 2ithin the EC da'(enedthe e"ono'y in #61#)1&. There"ession a00e"ted general

govern'ent 0inan"es and the de!tratio= turning (reviously strong

!udget sur(luses into de0i"its= !ut3inland too% a"tion to ensure itthat it 'et the EC de0i"it targets in#61& and retained its tri(le)A"redit rating. 3inland@s 'ain"hallenge 2ill !e to sti'ulategro2th 2hile 0a"ed 2ith 2ea% e>(ort de'and in the EC and itso2n govern'ent austerity'easures.

onger)ter'= 3inland 'ustaddress a ra(idly aging (o(ulationand de"reasing (rodu"tivity intraditional industries that threaten"o'(etitiveness= 0is"alsustaina!ility= and e"ono'i"gro2th.

the state@s role in the e"ono'y.

Des(ite strong 0inan"es and

underlying 0unda'entals= theS2edish e"ono'y slid intore"ession in the third Juarter o0 #667 and the "ontra"tion"ontinued in #66: asdeteriorating glo!al "onditionsredu"ed e>(ort de'and and"onsu'(tion.

Strong e>(orts o0 "o''oditiesand a return to (ro0ita!ility !y

S2eden@s !an%ing se"tor drovea re!ound in #616= !ut gro2thsli((ed in #61&= as a result o0 "ontinued e"ono'i" 2ea%nessin the EC ) S2edenMs 'aine>(ort 'ar%et.

GD6

;purc-asi)

power

parity7

1:. !illion ,#61& est.-1:4.7 !illion ,#61# est.-1:7./ !illion ,#611 est.-ote: data are in #61& CS dollars

&:&.7 !illion ,#61& est.-&:6./ !illion ,#61# est.-&74.5 !illion ,#611 est.-ote: data are in #61& CSdollars

GD6 * real

)rowt- rate

)6.4L ,#61& est.-)6.7L ,#61# est.-#.5L ,#611 est.-

6.:L ,#61& est.-1L ,#61# est.-#.:L ,#611 est.-


16/40

!ilad Swede

GD6 * per

capita ;6667

&=:66 ,#61& est.-&4=&66 ,#61# est.-&4=566 ,#611 est.-

ote: data are in #61& CS dollars

/6=:66 ,#61& est.-/6=:66 ,#61# est.-/6=766 ,#611 est.-

ote: data are in #61& CSdollars

GD6 *

compositio

by sector

a)riculture: #.:Lidustry: #.1Lservices: 51.:L ,#61& est.-

a)riculture: #Lidustry: &1.&Lservices: 44.7L ,#61& est.-

6opulatio

below

poverty lie

NAL NAL

I(latio rate

;cosumer

prices7

#.#L ,#61& est.-&.#L ,#61# est.-

6L ,#61& est.-6.:L ,#61# est.-

Labor (orce #.47 'illion ,#61& est.- .165 'illion ,#61& est.-

Labor (orce *

by

occupatio

a)riculture ad (orestry: /./Lidustry: 1.Lcostructio: 5.1Lcommerce: #1.&L(iace8 isurace8 ad busiess

services: 1&.&Ltrasport ad

commuicatios: :.:Lpublic services: #7.L ,#611-

a)riculture: 1.1Lidustry: #7.#Lservices: 56.5L ,#667 est.-

2employ*

met rate

7.1L ,#61& est.-5.7L ,#61# est.-

7.1L ,#61& est.-7L ,#61# est.-

Idustries 'etals and 'etal (rodu"ts=ele"troni"s= 'a"hinery ands"ienti0i" instru'ents=shi(!uilding= (ul( and (a(er=0oodstu00s= "he'i"als= te>tiles="lothing

iron and steel= (re"isioneJui('ent ,!earings= radio andtele(hone (arts= ar'a'ents-=2ood (ul( and (a(er (rodu"ts=

(ro"essed 0oods= 'otorvehi"les

Idustrial )/.#L ,#61& est.- )1L ,#61& est.-


17/40

!ilad Swede

productio

)rowt- rate

A)riculture *

products

!arley= 2heat= sugar !eets= (otatoes dairy "attle 0ish

!arley= 2heat= sugar !eets'eat= 'il%

E9ports 5.5 !illion ,#61& est.-54./4 !illion ,#61# est.-

171. !illion ,#61& est.-17/.7 !illion ,#61# est.-

E9ports *

commodities

ele"tri"al and o(ti"al eJui('ent='a"hinery= trans(ort eJui('ent=

(a(er and (ul(= "he'i"als= !asi"'etals ti'!er

'a"hinery &L= 'otorvehi"les= (a(er (rodu"ts= (ul(

and 2ood= iron and steel (rodu"ts= "he'i"als

E9ports *

parters

S2eden 11.1L= Russia :.:L=+er'any :.&L= Netherlands4.&L= CS 4.#L= CG .1L= $hina/.4L ,#61#-

Nor2ay 16./L= +er'any16.&L= CG 7.1L= 3inland4.7L= Den'ar% 4.5L=

Netherlands .L= CS .L=Belgiu' L= 3ran"e /.7L,#61#-

Imports 56.45 !illion ,#61& est.-5#.1& !illion ,#61# est.-

17 !illion ,#61& est.-14&.& !illion ,#61# est.-

Imports *

commodities

0oodstu00s= (etroleu' and (etroleu' (rodu"ts= "he'i"als=trans(ort eJui('ent= iron andsteel= 'a"hinery= "o'(uters=ele"troni" industry (rodu"ts=te>tile yarn and 0a!ri"s= grains

'a"hinery= (etroleu' and (etroleu' (rodu"ts= "he'i"als='otor vehi"les= iron and steel0oodstu00s= "lothing

Imports *

parters

Russia 15.5L= S2eden 1/.7L=+er'any 1&.:L= Netherlands7.1L= $hina /./L ,#61#-

+er'any 15./L= Den'ar%7.L= Nor2ay 7./L= CG 4.L=

Netherlands 4./L= Russia.4L= 3inland .1L= $hina/.:L= 3ran"e /.#L ,#61#-

Debt *

e9teral

74.: !illion ,&1 De"e'!er #61#est.-

1.6&: trillion ,&1 De"e'!er#61# est.-


18/40

!ilad Swede

Reserves o(

(orei)

e9c-a)e

ad )old

16.4 !illion ,&1 De"e'!er #61&est.-

#.#& !illion ,&1 De"e'!er#61# est.-

GD6 *

compositio8

by ed use

-ouse-old cosumptio: 4.&L)overmet

cosumptio: #/.&Livestmet i (i9ed

capital: 17.&Livestmet i ivetories: 6.&Le9ports o( )oods ad

services: &7L

imports o( )oods ad services: )&5.&L,#61& est.-

-ouse-old

cosumptio: /7.4L)overmet

cosumptio: #4.7Livestmet i (i9ed

capital: 17.&Livestmet i

ivetories: 6./L

e9ports o( )oods adservices: /.7Limports o( )oods ad

services: )&:.:L,#61& est.-


19/40


20/40


21/40

Grap-s :* Source: -ttp:==www'ide9mudi'com=(actboo=compare=(ilad'swede

Govt' debt8 $urrecy E9c-a)e rate8 Trade> as per GD68 I(latio8

2employmet Rate8 GD6 per capita'

)

!7 Military

!ilad Swede

ilitary !ran"hes

3innish De0ense 3or"es ,3D3-<Ar'y= Navy , in"ludes $oastalDe0ense 3or"es-= Air 3or"e,#61&-

S2edish Ar'ed 3or"es,Ar'y= Royal S2edish Navy=S2edish Air 3or"e ,#616-

ilitaryservi"e age ando!ligation

17 years o0 age 17 years o0 age

ilitarye>(enditures )

(er"ent o0+DP

1./5L o0 +DP ,#61#-1./#L o0 +DP ,#611-1./5L o0 +DP ,#616-

1.17L o0 +DP ,#61#-1.15L o0 +DP ,#611-1.17L o0 +DP ,#616-


22/40

G7 Trasatioal Issues

!ilad Swede

Dis(utes )

international

various grou(s in 3inland

advo"ate restoration o0 Gareliaand other areas "eded to theSoviet Cnion= !ut the 3innish+overn'ent asserts no territorialde'ands

none

Re0ugees andinternallydis(la"ed

(ersons

stateless persos: #=615 ,#61#- re(u)ees ;coutry o(ori)i7: #/=664 ,IraJ-#6=41& ,So'alia- 15=:7/,Syria- 16=/::

,A0ghanistan- 7=:/,Eritrea- ,#61&-stateless persos: :=:4,#61#- note ) the 'ajority o0 stateless (eo(le "o'e 0ro'the iddle East and So'alia

$OM6ARISON O! AN EMERGING SE$TOR IN "OT5 $O2NTRIES'

&7 I$T ? So(tware Tec-olo)ies8 Electroic Networi)8 Telecom @ Gami)

In !oth 3inland and S2eden= the I$T se"tor a""ounts 0or 94L o0 +DP and &9/L o0 total2or%ing hours. Sin"e S2eden is a !igger e"ono'y than 3inland= its I$T se"tor hasa!outt2i"e as 2or%ers. So0t2are is the !iggest I$T su!)se"tor in !oth "ountries. The'osta((arent stru"tural di00eren"e relates to I$T "onsulting= 2hi"h in S2eden isoverone0ourthand in 3inland under one)tenth o0 I$T e'(loy'ent. The S2edish I$Tse"tora((ears 'ore diverse and 'ore dyna'i" than its 3innish "ounter(art.

8orld E"ono'i" 3oru' ,8E3-= !est)%no2n 0or its annual Davos 'eetingsgathering the2orldMs (oliti"al and !usiness elite to a S2iss s%i resort= (u!lishes The Net2or%edReadiness

Inde> ,NRI- as a (art o0 its annual +lo!al In0or'ation Te"hnology Re(ort.Singa(ore=

3inland= and S2eden are the to( three a'ong the 1/& "ountries ran%ed in the #61edition o0

NRI. In international "o'(arison= 3inland and S2eden are undenia!ly a'ong the 'ost

intense andadvan"ed I$T)using "ountries in the 2orld.

3inland and S2eden have !een= and "ontinue to !e= "onsidera!le I$T (roviders= even i0 their

glo!al 0oot(rints are naturally so'e2hat li'ited !y their relatively s'all sies.


23/40

T-e below (i)ure is a outcome o( a comple9 calculatio attempti) to capture a

coutrys value added s-are o( (ial I$T )oods ad services demad abroad i ,BBC ad

i ,B&/

Idustry Treds

Cntil the 'id)1::6s= The I$T se"tor 2as o0 si'ilar e"ono'i" i'(ortan"e in 3inland and

S2eden and it a""ounted 0or &9L o0 the "ountriesM +DP and e'(loy'ent. Sin"e then=

3inland e>(erien"ed a No%ia)led !oo')!ust "y"le. In #66#= the se"torMs +DP share 2as t2i"e

as high as in 3inland "o'(ared to 2hat it 2as in S2eden. In ter's o0 e'(loy'ent= ho2ever=

the di00eren"e 2as less drasti" 9 the se"torMs e'(loy'ent in 3inland 2as a!out one)0i0th

larger than 2hat it 2as in S2eden. Clti'ately in #61/= the I$T se"torMs +DP share 2as again

a!out the sa'e= 94L= in !oth "ountries and the I$T se"tor a""ounts 0or a!out /L o0 totalla!or hours in 3inland and a!out &L in S2eden.

No%iaMs share o0 3innish +DP 2as the highest= 0our (er "ent= in year #666= at 2hi"h ti'e itdire"tly ,e>"luding its do'esti" (artner and su((lier net2or%= 2hi"h "onsisted o0 several

hundred "o'(anies at the ti'e- a""ounted 0or over 0orty (er "ent o0 the se"torMs value added

in 3inland ,3igure &.&-. In year #666= Eri"ssonMs share o0 S2edish +DP 2as a!out t2o (er

"ent. and its share o0 the se"torMs value added in S2eden 2as a!out thirty (er "ent. Eri"sson

too 2as !oth dire"tly and indire"tly a Onational "ha'(ion and leader o0 the I$T se"tor= !ut it

2as never as do'inating as No%ia 2as in 3inland. Sin"e year #666= No%iaMs dire"t role

started to shrin% !ut re'ained large until #667.


24/40

$urrently= !oth No%ia in 3inland and Eri"sson in S2eden re'ain nationally i'(ortant

"o'(anies= !ut not over2hel'ingly so.The 3innish I$T se"torMs No%ia)led !oo')!ust "y"le

is 'ost evident u(on "onsidering the share o0 I$T in total goods e>(orts In 1::4= I$T goods

"o'(rised o0 1&L o0 total e>(orts in !oth 3inland and S2eden. The shares (ea%ed in !oth

"ountries in year #666< the share 2as 2as #/L in 3inland and 17L in S2eden. Sin"e then the (ro(ortions have gradually de"lined in !oth "ountries. In #61&= the share 2as #L in 3inland

and 5L in S2eden.

!i)ure: S-are o( I$T i total )oods e9ported

Mai observatios

The sie o0 the S2edish I$T se"tor is giganti" "o'(ared to the 3innish I$T se"tor in a!solute

ter's 9 it has si> ti'es 'ore 0ir's and e'(loys t2i"e 'ore 2or%ers. In "o'(arison to the

total e"ono'i" a"tivity !y "ountry= the di00eren"es= ho2ever= 'ainly vanish. The share o0 I$T

in total value added is in the !oth "ountries= 0or instan"e= at the level o0 94L. In relative

ter's the I$T se"torMs role in regard to e'(loy'ent= e>(orts and R;D has !een de"lining in

!oth e"ono'ies during the last de"ade. Regarding the e'(loy'ent o0 su!)se"tors o0 I$T=stri%ing di00eren"es !et2een the "ountries are the high share o0 I$T "onsulting 0ir's inS2eden and I$T 'aintenan"e 0ir's in 3inland=res(e"tively. In !oth "ountries= in"u'!ent

0ir's are do'inant e'(loyers. As e'(loyers the relative role o0 younger 0ir's is larger in

3inland and the relative role o0 'i"ro) and s'all)sied 0ir's in S2eden= res(e"tively. During

the years #6679#61# the 3innish I$T se"tor lost over 16=666 jo!s= 'ostly due to No%ia=

2hereas in the S2edish I$T se"tor "reated a!out /=666 jo!s. The 'ain la!or 'ar%et e00e"ts

have !een o""urring in the "ontinuing 0ir's the e'(loy'ent e00e"t o0 e>iting and entering0ir's has !een in range o0 16)1/L in !oth "ountries. By su!se"tor= dyna'i" la!or 'ar%et

e00e"ts have !een the 'ost signi0i"ant in I$T "onsulting and so0t2are in S2eden and in I$

'anu0a"turing and so0t2are in 3inland.


25/40

S2eden and 3inland are the 'ain video ga'e e>(orters in S"andinavia.The !alan"e 2as

originally that the S2edish industry 2as a!out t2i"e the sie o0 the 3inish in ter's o0

aggregated revenues. *o2ever= re"ently tre'endous gro2th in 3inland has led to a shi0t in

leadershi(= 2here 3inland is no2 the !igger (layer. The 3innish industryMs revenue is

e>tre'ely do'inated !y Su(er"ell 2ith 'o!ile ga'e hit titles li%e O$lash o0 $lans and O*ayDay. The S2edish industry is also Juite "on"entrated= !ut there are 'ore large 0ir's and a

'u"h greater share o0 revenues "o'ing 0ro' "onsole and P$ ga'es.

8hile the data and analysis s(e"i0i"ally "on"erns S2eden= 'any o0 the "ir"u'stan"es and

industry 0or'ation (ro"ess are si'ilar to the other S"andinavian "ountries. A 'ajor sour"e o0

"o'(etitive advantage a((ears to !e the "o'(eten"e and net2or%s in the industry= resulting0ro' (revious su""ess. These !e"o'e a general asset= es(e"ially 0or start)u(s= !e"ause o0 the

(ronoun"ed tradition o0 sharing and hel(ing that "hara"terie the industry "ulture. n the

negative side= ha'(ering the esta!lish'ent and gro2th in the industry= are !ureau"ra"y= ta>es=

and la"% o0 govern'ent su((ort= es(e"ially "o'(ared to "o'(eting nations li%e 3inland and$anada. It is also di00i"ult 0or ga'e develo(ers to attra"t signi0i"ant "a(ital 0ro' other

sour"es than the (u!lishers.

!INLAND ? S+EDEN RELATIONS

3inland and S2eden share a long history= religion= legal syste' and e"ono'i" and so"ial

'odel together. 3inland 2as (art o0 S2eden 0or al'ost 566 years 0ro' around 116 until the

3innish 8ar o0 176: that sa2 3inland !e"o'ing an autono'ous (art o0 Russia as the +rand

Du"hy o0 3inland. Sin"e 3inland gained its 0ull inde(enden"e 0ro' Russia in 1:15 the t2o"ountries have !een "lose (artners enjoying a S(e"ial Relationshi(. The nu'!er o0 3innish)

S2edish "onne"tions and the Juality o0 "oo(eration in 'ost areas o0 the govern'ent is

uniJue 2hen "o'(ared to other international relations in !oth "ountries. S2edish language

has an o00i"ial status in 3inland 2hilst 3inns 0or' the largest ethni" 'inority in S2eden=

esti'ated to !e a!out 45 666.

Sin"e !oth 3inland and S2eden joined Euro(ean Cnion in 1:: the EC 'e'!ershi( has

!rought 'any 'ore issues to 0urther intervals. Relationshi(s are 'aintained at the highest

(oliti"al level on a regular !asis= 2hile intera"tion !et2een (u!li" authorities and "ivil so"iety

is also very strong. Ne2 ele'ents o0 the S(e"ial Relationshi( are the o00i"ial 'inority

language status that 3innish language re"eived in S2eden= as 2ell as the !usiness integration

!et2een the t2o "ountries. Both "ountries are also united !y the 0a"t= that neither 3inland or


26/40

S2eden have de"ided to join NAT= 2hereas all the other Nordi" $ountries as 2ell as the

Balti" States are 'e'!ers o0 NAT.

%ii) 6eriod ad Swedis- $rusades

$onta"t !et2een S2eden and 2hat is no2 3inland 2as "onsidera!le even during (re)$hristian ti'es?the Vi%ings 2ere %no2n to 3inns !oth due to their (arti"i(ation in

"o''er"e and (lundering.

Middle A)es

3inland gradually !e"a'e an integrated and i'(ortant (art o0 S2eden. 3inland !e"a'e

%no2n as Hsterland In 1&4#= re(resentatives 0ro' 3inland 2ere "alled to (arti"i(ate in the

ele"tions 0or %ing o0 S2eden.

+orld +ar II

During 8orld 8ar II S2eden de"lared its neutrality= !ut in the 8inter 2ar it su((orted

3inland@s "ause to a "ertain= !ut li'ited= e>tent. This in"luded over 7=666 S2edish ar'y and

air 0or"e volunteers. S2eden also a""e(ted and "ared 0or a host o0 3innish 2ar)"hildren

during 8orld 8ar II. A0ter the 2ar S2eden had a "lear head)start in the (ost)2ar e"ono'i"al

develo('ent= 'u"h due to its neutrality in the 2ar= 'a%ing the 3innish)S2edish relationshi(si'ilar to that o0 3inland and Estonia o0 today sin"e the 1::6s. Sin"e the 'id)1::6s= the

ineJualities !et2een 3inland and S2eden "an !e seen as !alan"ed= and the relations !et2een

the t2o "ountries !e seen as eJual and good.

I ,B&18 t-e two coutries aouced a special de(ese parters-ip betwee t-em'


27/40

T5E !2T2RE

!ilad

3inlandMs e"ono'y has had a torrid ti'e sin"e the onset o0 the 0inan"ial "risis and the euro

"risis that 0ollo2ed it.#61 loo%s set to !e the 0ourth "onse"utive year that the e"ono'y has

either "ontra"ted or stagnated= even as the re"overy in the rest o0 the euro area ,e>"luding

+ree"e- see's to !e (i"%ing u( (a"e.

*ere is ho2 3inlandMs +DP has 0ared "o'(ared 2ith other advan"ed e"ono'ies<

ne 0a"tor that hel(s e>(lain this is the de"line o0 one o0 the "ountryMs 'ajor e>(orting

"o'(anies< No%ia. In #666= the "o'(any a""ounted 0or so'e /L o0 3inlandMs +DP= !ut its

0ortunes reversed dra'ati"ally 0ollo2ing the introdu"tion o0 the A((le iPhone and Android

devi"es into the 'ar%et. By #61& it a""ounted 0or less than 6.L o0 the "ountryMs out(ut.The

dee(er (ro!le's are in the "o'(osition o0 3inlandMs e>(ort 'ar%et. Al'ost hal0 o0 the

"ountryMs e>(orts are ra2 'aterials and (rodu"tion su((lies used in 'anu0a"turing and a0urther third are invest'ent goods.

Des(ite the !road u(ti"% in gro2th a"ross the Euroone= neither 'anu0a"turing nor the (a"e

o0 "or(orate invest'ent is gro2ing at a su00i"ient (a"e to !oost 3innish trade (ros(e"ts. This

is having s(illover e00e"ts on do'esti" "o'(any e>(ansion (lans= 2ith (rivate)se"tor

invest'ent at its lo2est (oint 0or 1 years= a""ording to Nordea Ban% .


28/40

In the short ter'= it loo%s li%e itMs going to !e a di00i"ult (eriod 0or 3innish 2or%ers. n ##

uly= 3innish Pri'e inister uhaSi(ila announ"ed (lans to "ut the "ountryMs 2age "osts !y

L !y #61:. In other 2ords= there are going to !e signi0i"ant (ay "uts.

$urrently 3inland has the seventh)highest la!our "osts in the Euroone= joint 2ith +er'any.*o2ever= its la!our (rodu"tivity ,+DP (er hour 2or%ed- is signi0i"antly !elo2 the Euroone

average.

As a "onseJuen"e o0 this= unit la!our "osts are so'e #6L higher in 3inland than they are in

S2eden.8ithout a 0ree)0loating "urren"y to hel( !oost "o'(etitiveness 2ith its 0ello2 euro

'e'!er states through devaluation= the adjust'ent has to !e "arried out through internal

devaluation ,lo2er 2ages andKor higher une'(loy'ent-. The signs o0 this "an already !e

seen 2ith une'(loy'ent at :./L and li%ely to stay a!ove :L through #614.

ne 2ay o0 a"hieving this adjust'ent 2ithout signi0i"antly in"reasing jo! losses or 0or"ing

(eo(le to a""e(t no'inal (ay "uts is to in"rease the a'ount o0 hours 2or%ed 2ithout raising

2ages a""ordingly. Qet there 2ill have to !e so'e di00i"ult negotiations 2ith the "ountryMs

unions i0 they are to a"hieve this.

The ho(e is that the (ain0ul adjust'ent 2ill allo2 3inland to !ene0it= on"e "or(orate

invest'ent starts (i"%ing u( a"ross the Euroone= as survey data has !een suggesting it 2ill=

and the 'anu0a"turing se"tor !egins to in"rease a"tivity.

Swede

The S2edish e"ono'y is in an u(turn. +radually stronger international gro2th in in"reasing

the de'and 0or S2edish e>(orts= 2hi"h in turn is e>(e"ted to "ontri!ute to in"reasedinvest'ents= lo2er une'(loy'ent and rising resour"e utiliation. *o2ever= the 0ore"ast is

un"ertain and there is a great ris% o0 2ea%er gro2th.

Recovery abroad

A "ontinued re"overy a!road "reates the "onditions 0or i'(roved e"ono'i" develo('ent in

the S2edish e"ono'y. The re"overy in the euro area a((ears to !e slo2= although (ros(e"ts

0or e"ono'i" develo('ent have !e"o'e !righter in #61. The Euro(ean $entral Ban%Ms

e>(ansionary 'onetary (oli"y has sti'ulated e>(orts and "on0iden"e in the e"ono'i" outloo%

has in"reased a'ong !usinesses and households. +ood gro2th "ontinues in the Cnited States=

2here there is a (ositive trend in

Relatively -i)- GD6 )rowt- i t-e (uture

S2edenMs +DP is e>(e"ted to gro2 at a relatively ra(id rate in #61 and #614. This is due toseveral 0a"tors= in"luding the e>(e"tation that the de'and 0or S2edish e>(orts 2ill a""elerate


29/40

2hen international gro2th i'(roves. In the years ahead= "onsu'(tion and invest'ent gro2th

2ill also "ontinue to "ontri!ute to gro2th. This a((lies to household as 2ell as (u!li" se"tor

"onsu'(tion and invest'ents in housing and the servi"e se"tor. As a result o0 the re"overy in

the e"ono'y= resour"e utiliation 2ill in"rease in #61 and #614'

T-e labour maret is recoveri)

The S2edish e"ono'y has !een in a (rotra"ted re"ession and une'(loy'ent has !een at a

high level 0or a long ti'e= at around 7 (er "ent. As the la!our 0or"e has gro2n ra(idly=

e'(loy'ent gro2th has not !een su00i"iently high to (ush do2n the une'(loy'ent rate. As

e"ono'i" a"tivity 2ill i'(rove this year and ne>t year= la!our de'and is e>(e"ted to

in"rease= thus also in"reasing e'(loy'ent. E'(loy'ent is e>(e"ted to in"rease 'ainly in the

lo"al govern'ent se"tor= !ut is also e>(e"ted to gro2 at a good rate in !usiness servi"es and

the "onstru"tion se"tor. verall= a((ro>i'ately #6 666 'ore (eo(le are e>(e"ted to !e

e'(loyed in #617 "o'(ared 2ith #61/. It is esti'ated that in #617= the une'(loy'ent rate

2ill !e "lose to 4 (er "ent.

Reduced de(icit i public (iaces

Net lending re(orted !y the general govern'ent se"tor in #61/ "a'e to SEG )5 !illion= or

)1.: (er "ent o0 +DP. The de0i"it is e>(e"ted to de"rease 0ro' #61 on2ards. Net lending is

esti'ated to !e )6.: (er "ent o0 +DP in #61 and is e>(e"ted to !e turned into sur(lus in

#61:.

E)ieeri) idustries

S2eden is engineering)driven "ountry= 2hi"h (rodu"es thousands o0 high)te"h (rodu"ts and

servi"es 0or all o0 the (eo(le in the 2orld. The advan"ed 'anu0a"turing industry "overs 0ro'

ro!oti"s to aeros(a"e and 'edi"al i'aging. Engineering (lays an essential role not only in

'anu0a"turing !ut also in servi"es su"h as S(oti0y or Glarna.

!orestry

S2edenMs 0orest and (ul( and (a(er resear"h is e>tensive !oth on a national level and under the Euro(ean 0ra'e2or% (rogra'. In re"ent years= 2ood (rodu"ts= the (ul()and)(a(er

industry and the (u!lishing and (rinting industry a""ount 0or around one tenth o0 the total

'anu0a"turing out(ut.

In0or'ation and "o''uni"ation te"hnology

Nu'erous studies and ne2s(a(ers arti"les have al2ays listed S2eden as one o0 the !est IT

"ountries in the 2orld. A'ong the areas 2here S2eden o00ers "o'(etitive advantages in

in0or'ation and "o''uni"ation te"hnologies area= you "an "ount Internet (ro"ure'ent

solutions= 'o!ile 2ireless solutions ; servi"es= Internet= e)"o''er"e= IP Tele(hony= 2ireless

in0rastru"ture eJui('ent= e)!ased learning= vehi"le tele'ati"s= ro!oti"s and the online and

'o!ile ga'es industry.


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"iotec- ad li(e sciece idustries

8ith 'ore than #66 !iote"hnology "o'(anies= S2eden has Euro(eMs 0ourth)largest !iote"h

industry= and the largest in relation to !oth (o(ulation and +DP. ost o0 the "o'(anies area"tive in the health"are area= either (rodu"ing ne2 (har'a"euti"al drugs or develo(ing tools

0or drug resear"h and develo('ent. The dee( tradition in !iote"h resear"h= strong

"onsolidation in the (har'a"euti"al se"tor= !oo'ing entre(reneurial a"tivity= e>"ellent

resear"h= !iote"h 0riendly legislative environ'ent and a""ess to venture "a(ital all "ontri!ute

to the S2edish !iote"h industryMs vitality.

Evirometal idustries ad reewable eer)y

Environ'ental te"hnologies ,2ater= 2aste= air (ollution "ontrol- and rene2a!le energy

,!io'ass and 2aste)to)energy- are areas in 2hi"h S2eden holds a signi0i"ant "o'(etitive

advantage "o'(ared to other "ountries. S2eden re"y"les al'ost hal0 o0 their 2aste and uses

# (er"ent to generate heat= less than 1 (er"ent o0 gar!age no2 ends u( in the du'(. Csing

gar!age 0or energy e00ortlessly solves the issue o0 e>"essive relian"e on land0ills 2hile at thesa'e ti'e hel(ing to residentsM energy and heating needs.


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+INNING STRATEGIES O! "OT5 $O2NTRIES

It is i'(ortant to !uild sound national innovation syste's in order to in"rease e>(orts=

!roaden the national industrial !ase= generate ne2 jo!s and e>(and "o''unity2ell!eing.high (er0or'an"e innovation syste's are"hara"terised !y<

high levels o0 resear"h and develo('ent e>(enditure that is 2ell"oordinated!y !usiness

and govern'ent

strong e'(hasis in universities and (u!li" edu"ation on engineering ands"ien"es

intensive lin%ages and "oo(eration !et2een "o'(anies and (u!li"se"tor organisations and

a 0o"us on national innovation and te"hnology (oli"y that is ai'ed at!uilding and sustaining

long ter' 2orld "lass "a(a!ilities in lo"al"o'(anies.

All o0 this o""urs against a !a"%dro( o0 an e"ono'y 2hi"h is 0le>i!le and ada(ta!le= 2ith!oth

a glo!al 0o"us and a "o''it'ent to re0or'. The end goal is innovation as a driver

o0e"ono'i" gro2th and (ros(erity= tailored to the (arti"ular attri!utes and "ir"u'stan"es o0

the nation.

3ollo2ingre"o''endations are seen as li%ely to strengthen the innovation syste' in !oth"ountries in the 0uture.

$5AM6ION A NE+ A66ROA$5 TO INNO%ATION 6OLI$3

A %ey o!servation 0ro' the su""ess o0 the national innovation syste's o03inland and S2edenis the role (layed !y govern'ent. +overn'ent o(erates as anin0or'ed and de'anding"ha'(ion o0 (oli"ies and (rogra's designed to drive !oth 'oreinnovative !ehaviour in 0ir'sand 'ore long)lasting e"ono'i" "a(a!ilities and out"o'es0or the nation.8ith suita!le

(oli"ies and invest'ents in hu'an and (hysi"al "a(ital= !oth "ountries have the "a(a"ity to0urther u(grade its industry 0ro' ra2 'aterial)intensive and la!ourintensivea"tivities to%no2ledge and te"hnology)intensive se"tors. The S2edishe>(erien"es also highlight the greati'(ortan"e o0 (oliti"al 2ill and "o''it'ent in(roviding a suita!le environ'ent 0or gro2thand develo('ent.

+5EN RESO2R$ES ARE S$AR$E8 !O$2S ON S6E$I!I$ IND2STR3

$L2STERS

3innish develo('ent suggests that s'all "ountries 2ith li'ited(u!li" resour"es 0or invest'ent 'ay need to 0o"us on s(e"i0i" industry "lusters. To0a"ilitate s(e"ialiation and

(ositive e>ternalities= it is ne"essary to (ro'ote lin%ages=%no2ledge 0lo2s= and te"hnologydi00usion 2ithin the "luster.

DE%ELO6 REGIONAL INNO%ATION S3STEMS


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The (ositive e>(erien"e 3inland has had 2ith 0o"ussing on (arti"ular "lusters alsohighlightsthe gro2ing i'(ortan"e o0 the innovation syste' a((roa"h 2ithin regionaldevelo('entM.The 3innish net2or% o0 higher edu"ation institutions= te"hnology "entres= "entres o0 e>(ertiseand other si'ilar o(erational (layers has (ro'oted innovation in theregions to the e>tent thatthey are no2 re0erred to as regional innovation syste's.These s(atial "lustering o((ortunities

0or !oostinginnovation "a(a!ilities should !e 0ostered.

TA4E A STA4E5OLDER A66ROA$5

3inland 'ade 'ajor advan"es in develo(ing a "oordinated nationalinnovation syste' 2ith0reJuent "onsultation and highly develo(ed lin%ages !et2eenindustry and govern'ent. It isnot su00i"ient to delegate res(onsi!ility to any individual'inistry= agen"y or de(art'ent allthe 'ain a"tors= in"luding industry= universities= la!our'ar%et organiations and other "entral

(layers 'ust !e re(resented in the (oli"ydis"ussion. 3inland also has a syste' o0 evaluationo0 govern'ent (rogra's 2hi"hdeter'ines their i'(a"t on jo!s= turnover and e>(orts= and so

i'(roves the (er0or'an"e!oth o0 the (rogra's and the "o'(anies involved.

REMAIN !LEI"LE

Dis"ussion o0 S2edish e>(erien"es (oints in (arti"ular to the need 0or 0le>i!ility. Re0or' o0 the S2edish 'odel did not "o''en"e until the 0inan"ial "risis o0 1::1):& 2hen it 0or"edtheS2edish +overn'ent to redu"e the ta> !urden and to in"rease "autiously thee'(hasis ongro2th rather than distri!ution in its overall (oli"ies.

ADO6T AN INTERNATIONAL 6ERS6E$TI%E

To re'ain "o'(etitive= it is ne"essary 0or !oth "ountries to ado(t an international (ers(e"tiveon its !usiness environ'ent. There is no o(ti'al 'odel that 2ill 0it in s(ite o0 "hanginginternational "onditions= !ut instead a need 0or "ontinuous re0or' as de'and=te"hnology=and "o'(etition "hange. The e>(li"it 'onitoring o0 "o'(eting e"ono'ies and"o'(arisonagainst the !est (er0or'ers in various (oli"y areas 9 !en"h'ar%ing 9 is (ro!a!lythe only2ay to 'easure the strength o0 the national innovation syste'.

S266ORT LO$AL %ENT2RES

ne %ey 0a"tor 2hi"h is "o''on in !oth "ountries is the 2ay in 2hi"h their "o'(anies andtheir govern'ents su((ort lo"al ventures= resulting in the su""ess0ul develo('ent o0 a rangeo0!iote"h= tele"o''uni"ations and hi)te"h 'anu0a"turing "o'(anies. o"al su((liers are"onsidered not only in light o0 the value they re(resent= !ut 0or thelonger ter' e"ono'i"

!ene0its that derive 0ro' their "ontra"ts.3inland a((lies a highly "o)o(erative (artneringa((roa"h to industry develo('ent= 2ith arrange o0 (rivateK(u!li" allian"es driving gro2th.This is (arti"ularly noti"ea!le in 3innish(u!li" se"tor de"ision)'a%ing= in 2hi"h the Pri'einister heads a S"ien"e andTe"hnology Poli"y $oun"il that is res(onsi!le 0or setting thenational agenda. 8ithre(resentation 0ro' !oth the govern'ent and (rivate enter(rises= this$oun"il is 'orethan just a !ureau"rati" thin% tan% or "o''ittee. It is a 'ajor 0or"e inde"isions a!out ho2to !est gro2 the industry and the e"ono'y.


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35/40

S+EDEN

Stre)t-s:

Natural Resources

S2eden has a very large a'ount o0 natural resour"es su"h asiron ore= "o((er= lead= gold= in"= silver=

uraniu'= tungsten= 0elds(ar= 2ood= arseni"= and hydro(o2er.

E9port "ased Ecoomy

An e>(ort !ased e"ono'y is a good e"ono'y to have !e"ause everyone needs goods= and not

everyone "an (rodu"e these goods. $ountries li%e S2eden 2ith a!undant resour"es are (er0e"t 0or

e>(ort !ased e"ono'ies. As long as there are (eo(le on the earth 2ho are 2illing to !uy things= e>(ort !ased e"ono'ies 2ill e>ist.

A Strate)ic Locatio

S2eden is lo"ated along the Danish Straits= 2hi"h lin% the Balti" Sea to the North Sea. Shi(s 'ust

(ass through these straits= 'eaning S2eden gets a lot o0 'arine tra00i". Also= in ti'es o0 2ar this

"ould !e a great 2ay to "ut o00 su((lies to 0ar northern Euro(e that arrive !y !oat.

+eaesses

"irt- Rate Declie

In S2eden= 0or every 1666 (eo(le in the (o(ulation there are a!out 16 !a!ies !orn. That is (retty

s'all "o'(ared to 'ost o0 the 2orld= and that 'eans in ti'es o0 2ar the soldiers 2ould 'ostly !e

older (eo(le. This "ould !e due to the re"essions that have ha((ened re"ently= and 'ay!e no2 that

they are "o'ing to an end the !irth rate 2ill in"rease.

Older=3ou)er 6opulatio

Due to the re"ent !irth rate de"lines and sin"e the average S2ede lives 71 years= a large a'ount o0

their (o(ulation is olderKyounger. This is a disadvantage in !oth 2arti'e and (ea"eti'e= !e"ause

olderKyounger (eo(le "an@t 2or% as 'any %inds o0 jo!s as younger (eo(le= and old soldiers are not

e00e"tive.


36/40

Opportuities

$osultacy

8ith one o0 the highest resear"hers (er "a(ita S2eden "an (rovide the !est solutions to "ross (lat0or' (ro!le's to "lients a"ross the 2orld. There are lots o0 avenues 0or su"h an a"tivity

and the de'and 0or the sa'e 2ould !e never ending.

Eviromet Model

S2eden is one o0 the 0astest ado(ters o0 rene2a!le energy 2ith ai's to redu"e !y 76L !y the

year #6#. The "an (ioneer this 0ield and (rovide valid solutions trying to i'(le'ent the

sa'e.

T-reats

Ne)ative iterest rates

In#61 the !an% rates have 0allen to an all ti'e lo2 "osting (eo(le to re'ove their "ash

reserves. This has !een done in e00orts to get rid o0 "urren"y entirely ho2ever (u!li" !a"%lash

has "reated tensions !et2een the t2o.


37/40

!ilad

Stre)t-s

Stro) educatio sector

The 3inland (heno'enon as it is %no2n has gra!!ed attention around the 2orld 0or its

"o'(rehensive edu"ation 'odel. 3innish s"hools are ran%ed a'ong the !est in the 2orld and

"ontinue to (rovide individuals 2ith e>"ellent "a(a!ility.

$urrecy

3inland uses the Euro the "o''on "urren"y o0 the EC.

+eaess

A)ei) populatio

The (o(ulation "urve due to stagnated !irth rates is "o'(osed 'ore to2ards the older side

2hi"h needs 'edi"al attention and the !urden 0alls on the younger generation.

Slowi) Nordic Maret

In re"ent years= the role o0 the Nordi" "ountries as trading nations has gradually !een de"lining and

the "o'(osition "hanging to2ards the servi"e se"tor as 2ell.

Opportuities

5ealt-care (or t-e elderly

The ageing (o(ulation o0 these "ountries has e>(osed a ne2 avenue 0or the 0uture 2here the !ul% o0

the (o(ulation 2ould "o'(rise o0 elderly "itiens= their health"are 2ould reJuire e>(ert attention and

(lanning and that@s 2here there is in"redi!le (otential 0or 3inland@s e>(ertise.

T-reats

Istability o( ei)-bori) coutries


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3inland is surrounded !y hostile neigh!ors= and although it has good relations 2ith these "ountries

any insta!ility "ould (rovo%e and e>odus o0 'igrants to "ross the !orders 0or re0uge.

Importat Iteratioal Issue

Mi)rat crisis

By no2= the 'igrantKre0ugee "risis in Euro(e is hardly ne2s= !ut the i'(a"t o0 ongoing 2aves

o0 (eo(le is only starting to sin% in. 8hile (oliti"al leaders o0 the EC gra((le 2ith issues

"on"erning a 0easi!le allo"ative s"he'e= digesti!le to all= 'igrants %ee( arriving= o0ten 2ith adestination in 'ind. S2eden is to( a'ong those.

S2eden= 0ollo2ing +er'any and *ungary= is a rather (o(ular destination 0or several reasons.

The three 'ain reasons are 0irst that it already has a large 0oreign)!orn (o(ulation ,14L-=

2hi"h attra"ts re0ugees and 'igrants ho(ing to 0ind 0riends and 0a'ily already settled there.

Se"ondly= a very high (ro(ortion o0 asylu' see%ersM a((li"ations are a""e(ted 9 the 0igure

"urrently is 55L against a Euro(ean average o0 /&L. 3inally= on a (oliti"al= o00i"ial level=

S2eden 2el"o'es re0ugees and "ultivates a hu'anist i'age. This is %no2n a'ong s'ugglers

and asylu' see%ers ali%e in the in0or'ation age= ne2s travel 0ast.

At (resent= re0ugees and 'igrants arriving to S2eden have rea"hed a level that has s(urred

!order "ontrols. As o0 last 2ee%= the "he"%(oints are not tas%ed 2ith turning !a"% re0ugees=

rather they are o00ered a "hoi"e< a((ly 0or asylu' or turn !a"%. The la"% o0 "ontrol and order

2ith re0ugees entering S2eden has !een a 'ajor 2orry= and the 0a"t that even S2eden is

rea"hing 'a> "a(a"ity is hardly sur(rising= given the nu'!ers.

eading u( to i'(osition o0 !order "ontrols= :=#66 (eo(le 2ere arriving 2ee%ly. There is a

seasonal e00e"t in this= !ut e>tra(olating 0ro' (resent "onditions it 2ould 'ean al'ost

/76=666 in a year ,assu'ing # 2ee%s to a year- roughly dou!le that o0 the esti'ated inta%e

0or #61. I0 55L are granted asylu'= the annual in0lu> into a "ountry o0 16' is al'ost

&56=666.

In addition= it !ears 'entioning that 0or ea"h a""e(ted asylu' see%er= another is added on

average due to 0a'ily reuni0i"ation. It is e>(e"ted that harsher 2eather as 2inter a((roa"hes

2ill "ur! 'igration. *o2ever= so 0ar there is little to suggest that the (ressure 2ill di'inishre(orts 0ro' Euro(eMs !order sho2 the sa'e i'(ossi!ly long trails o0 (eo(le= grou(s

"ra''ing into s(a"es 'u"h too s'all and "ro2ding !ottlene"%s and %ey rail2ay stations and

roads.

)Sour"e BB$

Three)0ourths o0 OSyrian re0ugees entering 3inland are young 'ales= and 'ost are 0ro' IraJ=

So'alia= and A0ghanistan= a""ording to 3inlandMs Interior inistry. Nearly 11=666 asylu'

see%ers entered 3inland during the 'onth o0 Se(te'!er= the 3innish ne2s agen"y Qle

re(orted on "to!er = Juoting o00i"ials 0ro' the Interior inistry and I''igration Servi"es.

https://data.oecd.org/migration/foreign-born-population.htmhttps://data.oecd.org/migration/foreign-born-population.htm


39/40

8hile 'u"h o0 the C.S. 'edia "overage o0 the Euro(ean CnionMs 'igration "risis has 0o"used

on the 'assive 2aves o0 'igrants 0lo2ing into Austria= *ungary= Italy= and +er'any= all the

'e'!er states o0 the Euro(ean Cnion are !eing a00e"ted. 3inland is no e>"e(tion !y "to!er

/ so'e 1:=4 re0ugees had arrived in the Nordi" state this year ? and 'any thousands 'ore

2ant to get in.OC( to "to!er /= the nu'!er o0 re0ugees entering 3inland 0ro' IraJ 2as 1&=7/7= 2hile 1=716

"a'e 0ro' So'alia= 1=646 0ro' A0ghanistan= 454 0ro' Al!ania and /6: 0ro' Syria= Qle

re(orted.

A""ording to *anna Gautto= I''igration Servi"es "o''uni"ations "hie0= the vast 'ajority

o0 the asylu' see%ers ? roughly 1=666 ? are 'ale. 8o'en a""ount 0or #=714. There are

"lose to #=666 "hildren traveling 2ith adults= 2hile una""o'(anied 'inors nu'!er around

1=666.

The "osts are 'ounting dra'ati"ally. Earlier this year 3inland had #6 re"e(tion "enters ande'ergen"y shelters 0or re0ugees. That has no2 !allooned to 'ore than 76 "enters and

shelters= 2ith still 'ore needed to a""o''odate the in"reasing 0lo2. A""ording to 3innish

o00i"ials= it "osts U/6 ,//.:7- (er day to (ro"ess an asylu' see%er= and a""o''odating ea"h

asylu' see%er at a re"e(tion "enter 0or one year 2ould "ost U1=666 ,14=744.5-.

Due to the ongoing 'igration "rush= the 3innish Interior inistry is "alling 0or the

govern'ent to 'ore than dou!le their asylu' 0unding to U11/ 'illion ,1#7 'illion-= u(

0ro' the "urrent U/ 'illion. Those nu'!ers= ho2ever= deal 2ith only so'e o0 the 'ore

i''ediate= o!vious e"ono'i" "osts= and do not= o0 "ourse= in"lude the so"ial "osts. o"al

govern'ents are !earing 'u"h o0 the !runt o0 the 'igration overload. The 'igrant nu'!ers

3inland is e>(erien"ing 2ould !e a desta!iliing in0luen"e in any "ountry= !ut !e"ause it is a

s'all nation o0 only . 'illion (eo(le= 2ith a struggling e"ono'y= the in0lu> into this Nordi"

state is es(e"ially (ro!le'ati". Qoung 3innish nationals have !een leaving 3inland 0or years=

see%ing e'(loy'ent in the EC and the Cnited States. The in0lu> o0 large nu'!ers o0

unedu"ated= non)native)s(ea%ing usli's 2ill e>ert (ro0ound (ressures on une'(loy'ent

and 2el0are !ene0its= not to 'ention tensions !et2een native 3inns ,2ho are !earing there0ugee "osts- and the ne2 arrivals= 2ho are "o'(eting 2ith the 3inns 0or jo!s and !ene0its

) Sour"e The Ne2 A'eri"an


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RE!EREN$ES @ "I"LIOGRA653

1. S"ien"e= te"hnology and industry s"ore!oard 1::: ) Ben"h'ar%ing %no2ledge)

!asede"ono'ies= E$D= Paris= 1:::.

#. O3oreign dire"t invest'ent and s(illovers o0 te"hnology= . Blo'str' and A.

Go%%o

&. International ournal o0 Te"hnology anage'ent= Vol. ##= Nos. K4= #661.

/. OA Study o0 Business Su((ort Servi"es and ar%et 3ailure= Euro(ean

$o''ission=#661.

. Andersen= T.= B. *ol'str'= S. *on%a(ohja= S. Gor%'an= *. TsonSderstr' and .Vartiainen ,#665-= The Nordi"

4. odel ) E'!ra"ing +lo!aliation and Sharing Ris%s= The Resear"h Institute o0 the

3innish E"ono'y ,ETA-.

5. Bordes= $.= D. $urrie= *. TsonSderstr' ,1::&-= Three Assess'ents o0 3inland@s

E"ono'i" $risis and E"ono'i" Poli"y=

7. Ban% o0 3inland Pu!li"ations $

international relations and strategies

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