Mundus International Monthly Policy Review

June 2013

June 2013 Policy Review

The Almedalen Week: casual style - serious intent On June 30, politicians, companies and Mundus International calendar organizations will gather once again in , on • • • the Baltic island of , for the Almedalen June: Week. For one week a year, the normally rather rd quiet park of Almedalen is at the absolute centre of 2-3 : Barents Regional Committee Meeting, Kirkenes Swedish politics and media coverage. The annual 6th: Sweden’s National Day Almedalen Week is the focal point of Swedish 8th: Royal wedding: H.R.H. Princess Madeleine and Mr politics and the park turns into a gigantic open-air Christopher O’Neill – traffic restrictions in Stockholm lobby-fair, which includes politicians, journalists, 12th: Party leader debate, the activists, lobbyists and NGO workers, to name a few. 13-14th: G8 Summit, UK

It wasn’t always that way. In the summer of 1968, 13-15th; Tällberg Forum, Tällberg

Gotland’s local Social Democratic chapter asked 14th: Foreign Affairs Council, Brussels the then Prime Minister to make a 19th: The Riksdag spring session ends speech in Almedalen. Mr Palme and his family had spent their summer holidays on Fårö (an 19th: NIER Economic Tendency Survey island just north of Gotland) for several years. In 19-21st: International Economic Forum, St Petersburg that first year, the stage was a lorry platform at th: Kruttornet and there was an audience of a few 25-28 Council of Europe Parliamentary Assembly, Strasbourg hundred. Still, it was a beginning of one of the biggest political events in the world. 27-28th: European Council, Brussels

July: Every summer from 1968 onwards, Mr Palme used the Almedalen Park to give speeches on the island. 30 th June-7th July: Almedalsveckan 2013, Gotland In 1982, the Social Democrats organized the first 1st: Lithuania takes up Presidency of the Council of the EU official Almedalen Week where renowned st speakers held seminars on political and economic 1 : Croatia joins the EU issues. The event proved so popular that it became 2nd: Meeting of the Nordic Ministers for Cooperation, Visby an annual affair, with other political parties 22nd: Foreign Affairs Council, Brussels eventually joining in. Soon the lobbyists started turning up because all the country’s most 29th: Stockholm Pride powerful politicians were there. From the mid- August: 1990s, players other than the political parties have 19th Schools start also chosen to hold seminars during Almedalen

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Week. The number of seminars has multiplied in recent years from 6 in 1998 to around 1,800 events in 2012. Last year, an estimated 17,000 persons took part – audiences at speeches not included!

For Visby, the Almedalen Week has given an important boost to an economy already geared towards tourism. It has been reported that Visby now lives off of trade, education…and the Almedalen Week. In addition, the media coverage is of significant value, as it includes not only political coverage but also peripheral reporting on Gotland as a whole.

The political events this year The Municipality of Gotland hosts the Almedalen Week, but the Swedish parliamentary parties are the main organizers and are at the heart of the week. Each political party represented in the Riksdag is allotted its own day according to a rolling timetable. 2011 was the first year with an 8-day Almedalen Week. This was due to the inauguration of Sweden’s eighth Riksdag party, the Swedish Democrats.

Typically, the parties’ days start with participation in the TV morning shows and various breakfast meetings. The parties organize different types of seminars and events during the day, or in connection with the speech, which is usually held at 7 pm in the evening. This year, the schedule for the party leaders’ speeches is:

• Sunday, 30 June, 7 pm: Kristdemokraterna (Christian Democrats) Göran Hägglund

• Monday, 1 July, 7 pm: Sverigedemokraterna () Jimmie Åkesson

• Tuesday, 2 July, 7 pm: Miljöpartiet ()

• Wednesday, 3 July, 7 pm: Moderaterna ()

• Thursday, 4 July, 7 pm: Vänsterpartiet () Jonas Sjöstedt

• Friday, 5 July, 7 pm: Folkpartiet (Liberal Party) Jan Björklund

• Saturday, 6 July, 3 pm: Centerpartiet () Annie Lööf

• Sunday, 7 July, 11 am: Socialdemokraterna (Social Democratic Party) Stefan Löfven

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July 2 will be the Nordic Day in Almedalen this year. The Minister for Nordic Cooperation, Dr Ewa Björling, will meet her Nordic ministerial colleagues and talk about the future of Nordic cooperation. There will be a Nordic defence debate and seminars on issues such as young entrepreneurship, youth unemployment, and sustainable fashion.

Comment: Politicos speak of “the Almedalen spirit”. And indeed, the political week on Gotland certainly has a special atmosphere, which anyone interested in Swedish and Nordic politics should experience at least once. Sweden’s accessibility and openness are at the heart of the concept of Almedalen, and is present in the myriad of speeches, seminars, breakfasts, networking get-togethers and political stunts that take place here. The week is associated with an informal ambiance: a combination of vacation, festivities and serious political business. In fact, the social aspects of networking are as important as the official Almedalen agenda, with politicians and journalists mingling together.

Sweden’s growing income inequality Each month the Mundus Policy Report looks as different aspects of economic performance. This month we turn our focus to income inequality.

Since being elected in 2006, the right-of-centre Alliance government has declared jobs the top priority, guiding Sweden to full employment, thus reducing exclusion. In doing so it has made a concerted effort to transform Sweden’s welfare state, via tax cuts for low and middle-income groups and reducing unemployment, sickness and disability benefits to create an incentive for individuals to return to work.

An explicit, but perhaps undesired, outcome of this policy has been the incentives. In May, the OECD issued a report, which highlighted the long-term trend of increasing inequality across the majority of countries as a consequence of globalisation and other factors. 1 As the chart below2 shows, most countries experienced widening inequality over a 25 year period of about 10 per cent as measured by the Gini coefficient3, and in the past three years this trend has been accentuated by the effects of the Financial Crisis. However, the report showed that income inequality in Sweden was growing at a faster rate than any other country within the 34 member OECD club. Between 1983 and 2008 the incomes of the wealthiest 10 per cent of Swedes rose by 2,4 per cent p.a. while those of the poorest 10 per cent went up by only 0,4 per cent p.a. (the OECD averages were 1,9 per cent and 1,3 per cent respectively). Thus, the pro- growth government policies that have been lauded internationally for their positive macro-economic

1 http://www.oecd.org/els/soc/OECD2013-Inequality-and-Poverty-8p.pdf 2 http://www.oecd.org/els/soc/49499779.pdf 3 Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. http://data.worldbank.org/indicator/SI.POV.GINI

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outcomes, have also been direct contributors to rising income inequality in Sweden, alongside globalisation, youth unemployment and Sweden’s high immigration intake.

To put the issue into perspective, it should be noted that the incomes of the bottom decile are still increasing, and that Sweden’s starting point was as the most equal OECD country in the early 1990s, and even now it remains a leader in this regard.

Equality is a key factor in social harmony – a key concern given Stockholm’s recent riots. The government has stated that “the ultimate aim of policy is full employment. Having a job of one’s own gives an individual a sense of security and community, as well as freedom to shape his or her everyday life. A weak foothold in the labour market risks leading to long-term exclusion”.4 The policy direction is to create “stronger incentives to work and lower thresholds for labour market entry … effective means to increase employment.” Judged by this measure the government appears to be having some success, with the proportion of the population in long-term unemployment or on long-term sick leave falling.5

4 http://www.government.se/content/1/c6/21/43/77/5d506e58.pdf 5 http://ec.europa.eu/europe2020/pdf/nd/nrp2013_sweden_en.pdf

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Comment: This reshaping of Swedish society is an important political issue, and is likely to be a major theme at the election next year. While sticking to his governments’ policies, Prime Minister Fredrik Reinfeldt is keen to lay the blame at the feet of the Social Democrats, pointing out that “a large portion of these growing divisions took place during Göran Persson's time in power”. Meanwhile, politicians from the Swedish Left, which ruled the country for most of the post-war period, blamed the trouble on social spending cuts introduced by Mr Reinfeldt.

Defence Advisory Committee presents its security policy report On May 31, the cross-party Defence Advisory Committee presented its detailed security policy analysis to the Government.6 The Defence Advisory Committee includes representatives of the parliamentary parties and experts from the government and from government agencies. The Council's mission is to continuously monitor the security policy developments abroad and assess threats and risks with the objective of reaching a broad consensus on Sweden's security and defence policy.

As expected, the Committee, chaired by conservative Moderate party parliamentarian Cecilia Widegren, considers it highly unlikely that Sweden would be attacked in the foreseeable future. However, at a press conference on Friday afternoon, Ms Widegren said that Russia is a clear regional concern: “the political developments in Russia have taken an ever more authoritarian turn, with restraints put on the independent civil society together with an increased nationalism, increasing instability compared to 2007." (Note: 2007 was the last time the Defence Advisory Committee delivered a security assessment).

Some of the main points of the report include:

o Sweden’s cooperation with NATO should continue to be developed within the framework of Swedish partnership. But Allan Widman, the Liberal party representative on the Council, writing a dissenting commentary, said that boosting cooperation with NATO is not enough, arguing that Sweden should join the defence alliance.

o The EU’s role as a security policy actor should be strengthened by developing the ability to conduct civil-military crisis management operations.

o Sweden should deepen and strengthen the UN's capacity through increased Swedish participation in the UN-led peace support operations.

o The Committee sees great potential for an even closer Nordic cooperation - both civilian and military. On the defence side, there are, from a Swedish perspective, really no restrictions other than that the

6 http://regeringen.se/content/1/c6/21/84/24/5773a795.pdf

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cooperation does not involve mutual defence obligations. A closer Nordic cooperation strengthens both the national defence as well as the ability to conduct operations within and beyond the immediate area. The Committee underscores that Nordic cooperation is a complement to, not a replacement for, the existing cooperation within the EU and NATO.

o It is in Sweden's interest that co-operation with the Baltic States is developed also in the defence area. Closer co-operation between the Nordic countries and the Baltic States, as well as with other key players in the region, will help strengthen the regional security. The Committee suggests that possibilities for deeper and broader defence cooperation with Estonia, Latvia and Lithuania are explored.

o Swedish security is increased through European integration and expansion, but Sweden must consider that any attack would target more countries in the region than solely Sweden. Sweden will not remain passive if a disaster or an attack would hit another EU member country or a Nordic country. Sweden expects these countries to act in the same way if Sweden were affected. Sweden should be able to give and receive civilian- and military support.

o To create a better ability to resist intrusions and attacks on the key functions of society, the Committee considers that the handling of threats and risks within information- and cyber security should be reviewed.

o The Committee suggests that the existing Nordic air exercise is further developed to also include joint incident preparedness.

After the security policy analysis, the Defence Advisory Committee will look at the implications for defence and its economy. The report is due in the spring of 2014 and is a critical piece of the puzzle for the next defence, which is supposed to come into force in 2015.

Mundus International will provide further comment on the report by the Defence Advisory Committee in its July edition of the Policy Review.

Sami parliament elections raises institutional questions once again On May 19, Sweden’s indigenous Sami people voted for the Sami Parliament (Sametinget), a body representing all people of Sami heritage in Sweden. The Parliament holds elections every four years, on the third Sunday in May, where 31 seats for the Plenary Assembly are filled. The most successful party of

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the 2013 election was the Hunting and Fishing Party, which got two new mandates, making it the biggest party in the Sami Parliament with nine seats. 7

Those on the Sami electoral register – open to those who speak Sami and feel part of Sami society – are eligible to vote. This election, over 8,000 people had registered to vote. Never before had so many people registered, and it is a large increase since the first Sami Parliament election in 1993, when just over 5,000 people were registered. The numbers registering to vote have increased in recent years, not least because of a growing interest in political issues among young Sami and a growing willingness among older Sami to accept their ethnicity. According to Mr Peter Sköld, professor in Sami history at Umeå University, there are several reasons for the increase. "Partly more Sami have been born and turned 18 in 2013. But the Sami Parliament has also been around for twenty years so people trust it more politically. Also, more Sami have learned to speak Sami.”8 In addition, more parties are trying to get people onto the voter rolls.

Over the years, the political parties have changed, both in policy and number. The eight parties elected to the Sami Parliament cannot be classified as left or right or centre on a traditional political spectrum; the parties rather differ on their stance on specific issues. Land and water rights, as well as the environment and questions around what it means to be a Sami, were important issues in this year’s election. Nevertheless, among the various Sami issues there is one objective that unites all the political parties: greater autonomy. 9

The Sami Parliament: the result of a political struggle The Sami political struggle for increased influence and autonomy began in the 1950s with the establishment of Sami associations. Today, the Sami are largely represented through stakeholder organizations, which focus on different areas of interests and could best be described as lobby organisations.10 At a regional level, the Sami parliaments in Finland, Norway and Sweden have drawn up a joint Nordic convention to strengthen their position as a people and influence decisions on Sami-related matters.

In 1989, the official Sami Rights Investigation recommended the establishment of a publicly elected Sami body in Sweden. At the time, Finland had already had a Sami institution since 1973, and Norway inaugurated their Sami Parliament in 1989. The Swedish Sami Parliament was established in 1993 and is based in Kiruna in the Norrbotten County. It is financed by grants from the Swedish Government. The Parliament’s task is to safeguard, develop and coordinate all matters concerning Sami areas of interest.11

7 http://www.lansstyrelsen.se/norrbotten/Sv/manniska-och-samhalle/val/Pages/valet-till-sametinget.aspx 8 www.sverigesradio.se 9 The Swedish Riksdag recognized the Sami as an indigenous people in 1977. In 2007, the UN’s Declaration on the Rights of Indigenous Peoples was adopted by the UN’s general assembly http://www.sametinget.se/2836 10 E.g. http://www.sapmi.se/index.html , http://www.landsforbundetsvenskasamer.se , http://rsa-samf.se 11 http://www.sametinget.se/9865

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However, the Sami Parliament’s power is limited – it is only empowered to deal with matters concerning e.g. hunting and fishing, reindeer herding, compensation for damage caused by predators, and the Sami language and culture.12

While the Sami Parliament is a publicly elected body, it is also a government authority within the Ministry for Rural Affairs. As a government authority, the Sami Parliament is obliged follow the guidelines in the official appropriations documents that the Government adopts for each year, and which describes various targets for different business sectors. Since its establishment in 1993, this construction of being a representative elected body and government authority has been criticised by the Sami people and Swedish governmental commissions alike because the Sami Parliaments dual roles are seen to be in fundamental conflict with one another.

Comment: The recent elections mark the end of four turbulent years - four boards having resigned since the last election. The split among the parties in the Sami Parliament has been extensive, where people breaking out of existing parties have formed new ones. The fact that the parties in the Sami Parliament focus on interest areas rather than ideology makes it difficult to make political compromises. In Norway, by contrast, several of the Sami parties have a more ideological basis, making it possible to form coalitions that can govern.

In contrast, the Sami Parliament in Norway has a stronger position than its Swedish counterpart, with the focus of the Norwegian Sami Parliament's mandate being on the political representative role and not the management. This has contributed to the Norwegian Sami Parliament having greater influence and more autonomy in relation to the Swedish counterpart, for example, having a formal constitutional order ensuring that the Norwegian Sami Parliament is always involved in issues relating to the Sami. While there is research being undertaken into the pros and cons of the Norwegian system, many Swedish Sami glance enviously at the Norwegian model and its clearer mandate. The current design of the Swedish Sami Parliament evokes the question of what it actually is: a government authority, an authority and a parliament, or a parliament exercising public authority?

The recent Husby riots Comment: The international media reported on ”Stockholm burning” and travel warnings were issued for visitors to the capital. Meanwhile, the Stockholm Academic Cricket Club conducted its weekly evening training at the Husby sports field. While the club had organised get-togethers at night to keep a watch on things, the training went underway without any interruptions.

12 For further information about the Sami http://www.government.se/content/1/c6/03/97/05/6dcc5f9c.pdf

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While this publication does not dispute the underlying problems sparking the unrest of last week - and the need for a national debate on sensitive issues such as immigration and integration - there is a need for putting the issue into its right context. A very small part of Husby actually participated in the riots, the police estimated that about sixty young men took part in throwing stones and burned cars. In fact, there are many reports of residents of Husby and surrounding suburbs standing up against the violence and helping to calm the situation. According to some media reports, the Husby riots were carried out by a combination of angry local youths, hardened criminals, and radical left-wing activists, who travelled from other parts of Stockholm to join the violence.

The events in Husby, and debate about why we are seeing violence in areas such as Husby, are not a new phenomenon. Riots have occurred in both Stockholm and other parts of Sweden over decades - both the 2008-2009 riots in Rosengård in Malmö and the burning cars in Backa in Gothenburg were high profile in media – and the riots are in many ways similar to each other. First and foremost the phenomenon is confined to segregated areas where unemployment is high and school results are well below the national average.

Some say anger over the fatal police shooting in May of a 69-year old Husby resident triggered the unrest, while others claim the rioters are hooligans looking for an excuse to fight. A 2011 research study by the Swedish Civil Contingencies Agency, MSB, examined violent riots in Sweden. The study noted that frustrated young people in segregated neighbourhoods have very low respect for representatives of public authorities such as the police and the fire department. Driven by anti-societal anger, they often seek confrontations with representatives from these branches of the public sector.13 Interestingly, the report noted numerous similarities between the causes for the riots in, e.g., the 1960s and the riots in the segregated areas over the past decade: alienation, rootlessness, unemployment, distrust and resentment against society, and in turn increased isolation.

The Husby unrest has prompted a debate about what should be done to prevent similar incidents in the future. On one side are those who argue that the most important explanation is found in the socio- economic factors, on the other hand pointed at the individual's responsibility. A survey by Demoskop conducted in the last week (23-27 May) shows that a majority (69%) believes that investing in education and training is the most important measure for preventing events such as those in Husby. This is followed by dialogue with the residents (60%) and investment in youth activities (57%). Significantly fewer calls for increased penalties (30%), that the police should have more resources (30%) and increased powers (27%).

13 https://www.msb.se/RibData/Filer/pdf/26016.pdf

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The riots are likely to make immigration and integration a main issue of debate in Swedish political discourse. But the debate should be wider than that; the debate should also be about building a strong Swedish civil society.

News in brief: • According to new figures from Statistics Sweden, the GDP grew by 0.6 per cent in the first quarter of 2013, surprising most economists who expected an increase of 0.1 per cent. The main cause of the increase was higher household consumption, which rose by 1.5 per cent and large investments in industrial storage facilities. Meanwhile, the Economic Tendency Indicator dropped almost two points from 93.8 in April to 91.9 in May and indicates that growth in the Swedish economy is much weaker than normal," the May report from the National Institute of Economic Research (NIIER) stated. The tendency indicator is a method used to measure how people from different segments of the economy feel about the current economic climate.

During the same period Swedish exports and imports decreased by 2.9 and 4.7 per cent respectively. Sweden's exports to the EU-27 decreased 8 per cent and imports from there by 11 per cent. Among the EU countries, exports decreased to Germany by 9 per cent, to the UK by 14 per cent and to Denmark 7 per cent. Imports from Germany decreased by 16 per cent, from the UK by 19 per cent and from Denmark by 8 per cent. Exports to Asia decreased 12 per cent and imports from that region decreased 4 per cent. Exports to the US increased 1 per cent while US imports fell by 27 per cent.14

• The government is proposing that Sweden joins the UN peacekeeping mission MINUSMA in Mali.15 Following a resolution from France, the UN will send its own peacekeeping force to Mali on July 1. according to Foreign Minister Carl Bildt the UN mission needs 11,200 soldiers and 1,440 police officers. Sweden's contribution could rise to a maximum strength of 160, if passed by the Riksdag. Sweden would contribute with airborne transport, flight safety support and a national support unit. The Government's intention is that the Swedish contribution will be coordinated with other Nordic countries under the Nordic cooperation. The Government proposes that the Swedish participation in the operation shall start no earlier than July 2013 and last for up to twelve months. The mission is expected to cost SEK 80 million in 2013 and 2014. Sweden is already involved in the EU mission in Mali with fifteen military instructors in the country aiding the EU's effort to educate and advise Mali's armed forces. On May 30, the Government appointed Eva

14 http://www.scb.se/Pages/PressRelease____357476.aspx 15 http://www.regeringen.se/content/1/c6/21/82/55/b8a31984.pdf

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Emnéus as Ambassador to Mali. Ambassador Emnéus is currently Ambassador to Algeria and will assume her new position in the fall 2013.

• The Swedish Government and the Green Party propose that municipalities around the country should be forced to receive unaccompanied asylum seeking children and young people, as of 1 January 2014. The Social Democratic Party and the Left Party support the proposal, leaving the Sweden Democrats as the only party opposing the proposal.

• The Green Party the announced it will be prioritizing the EU parliamentary elections in one year’s time, partly as a launching pad for the Swedish national elections in September 2014, but also to keep the anti-immigration Sweden Democrats from becoming Sweden’s third largest party in Brussels.

• The Swedish government announced this week that 15 per cent of EU regional funds would be earmarked for environmental investments. Normally, the government decides who gets what, not how the money will be used. According to Sweden’s Enterprise Minister, Ms Annie Lööf, the government wants to see more green investments, including investments in renewable energy, or for example investments in energy efficiency in housing. The government expects to receive SEK 8 billion from the EU during a seven-year period starting in 2014. The exact amount will be announced later this year after negotiations are completed between the European Parliament and the EU Council of Ministers.

• Sweden's Armed Forces has appointed its first female general. Lena Hallin, a former defence attaché in London, will to take up a position of management chief, leading strategic development in armed forces management in the autumn.

All information in this report is verified to the best of the authors’ and the editor's ability. If you would like further information on any of the topics covered in this report, please contact us.

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