Sweden

   
 

Key Challenges

 
Perhaps the biggest challenge the world currently faces is climate change. Sweden has been a forerunner in environmental regulation, but the more permissive attitude of the current center-right minority government is a cause for concern. Radical policy priorities are necessary if Sweden is to reach carbon neutrality by 2045.
 
A pressing domestic challenge in the near future is the grip of gang violence in some urban areas. The Swedish system was not equipped to handle such high levels of violence. Its inability to control the situation has led to a punitive turn, with the debate focusing on retribution, long custodial sentences, and overcrowded prisons, rather than addressing the root causes of such violence. Gang violence has recently started to spread to neighboring countries such as Norway.
 
Politics in Sweden is challenged to protect its consensus-oriented decision-making system. Inter-party collaboration has been precarious and short-lived, and the empowerment of the radical-right populist Sweden Democrats has disrupted collaborative processes. The ability to compromise on divergent interests in contemporary political disputes is being alarmingly challenged. Affective discordance and social changes, such as increasing material inequality, have consequences for the ability of actors to compromise.
 
Further, the loss of neutrality due to NATO membership represents a significant loss of identity for Sweden, even though the narrative of non-alignment has primarily catered to domestic audiences in recent years. With NATO and recent geopolitical shifts, there is an amplified emphasis on preparedness and defense. This is expected, as Sweden is considered capable of affording the increased defense expenditure that accompanies NATO membership.
 
It is important not to lose sight of social policies or infrastructure investment. Healthcare is one sector that has not been generously funded, and the performance of the health and care systems in Sweden is under serious pressure. The performance of the welfare state in Sweden is challenged. The policy of numerous and far-reaching tax cuts, combined with demographic changes, the challenges of integration policy, and security policy obligations, has eroded the financial basis of the welfare state alongside the need to make necessary investments in infrastructure. One challenge for the future will be to achieve a fiscal and budgetary balance against the backdrop of these developments.
 
In terms of inclusion policies, the labor market trend is positive for people who have traditionally faced challenges in finding employment, such as young individuals or those born outside Sweden. However, integrating the high number of migrants and the increasing number of people with low educational qualifications into one of the world’s most agile and innovative societies will remain a challenge for integration policy.
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