Yumoto Kenji and Sato Yoshihiro; translated from Japanese to Korean by Park Sun-young: 284pp., 12,000 won
Sweden has always been regarded as the epitome of a welfare state. Policy makers worldwide consider the Swedish welfare system as an unattainable socialist model based exclusively on high tax rates. “Swedish Paradox,” written by two Japanese scholars Yumoto Kenji and Sato Yoshihiro, busts the myths and offers valuable insights for Korean readers.
In six chapters, the book unravels Sweden’s success story by exploring its pension, education, and wage systems. Readers may be surprised to learn that Sweden funds its welfare policies with foreign investment and that the country experienced debilitating financial crises in the 1970s. Non-economists need not fear. The authors recap basic economic concepts such as comparative advantages and moral hazards throughout the book.
Most importantly, the writers use ample examples from Japan and Korea. Both have been experiencing a sharp decline in birth rate which threatens the stability of the welfare system. Participation of women in the economy is relatively low for the two nations. Also, the aging population has caused a decrease of domestic market size. Thus, the Korean readers can closely relate to the analysis.
Upon finishing the book, the readers will realize that the Swedish model works not on high taxes but on trust: trust between the state and its people.
— NOH HYUN-GI