Future Watch, October 2006: Flexicurity-Denmark-Style

Denmark is an island in a sea of economic uncertainty.  With an unemployment rate of only 4.4% compared to Europe [Euro area] at 7.8%, and with a quarterly GDP growth rate booming at 7.8% while the Euro average sits at 3.6%, Denmark’s economy is demonstrating remarkable vitality despite an aging population, high levels of social welfare, and the pressures of globalization.

What explains this situation?  Is it sustainable?  And is it applicable to other economies?

Recently, the Global Strategy Institute, along with the Embassy of Denmark, the Danish-American Business Council, and the Council on Competitiveness, hosted Denmark’s Minister for Employment, Claus Hjort Frederiksen, for a forum discussing Denmark’s recent welfare compromise and its long-term strategy for keeping Denmark competitive in the face of globalization.

Please see this month's Future Watch for highlights and insight from this event.