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Courtesy
of Handelshøjskolen
Aarhus School of Buisness |
If you want to learn about Denmark’s magnificence,
don’t ask a Dane. Denmark is a land of modest
people, a carry-over from Jante law, a concept created
by the Norwegian/Danish author Aksel Sandemose in
his novel A Fugitive Crosses His Tracks, published
in 1933. The Jante law stresses social equality
and emphasizes fairness for all. There are ten different
rules in the law, but they are all variations on
a single theme: "Don’t think of yourself
as being special or better than the community."
Speak to a Dane and they will assure you that the
Jante law is old fashioned, but the law permeates
the social code of Denmark that still values modesty
and social equality.
Geographically, Denmark is small country, 27,000
square miles, excluding Greenland and the Faeroe
Islands, about twice the size of Maryland, and half
the size of Virginia. However, size can be misleading.
Although Denmark is small and its citizens modest,
they are having a significant impact on the world’s
economy and the way we think about welfare, the
government, the war on terrorism, and the place
of women in both the workforce and in political
life.
A collection of accolades
Denmark was ranked first in Europe by the World
Competitiveness Yearbook for its labor regulations
and in the top five of its class in skilled labor
availability. The Economist and IBM recently positioned
Denmark as best in the world in E-readiness. The
World Economic Forum cited Denmark as second best
in the world in terms of its infrastructure environment.
Denmark has also been cited as the top test market,
best producer of medical devices, and inhabited
by the world’s happiest people. Denmark is
no longer just a small Nordic country that belongs
to the EU, it is instead a country surpassing the
rest of Western Europe in innovation, biotechnology,
IT and business excellence causing a country of
slightly more than 5 million people to become one
of the world’s biggest economic players.
The frequent global praise of Denmark as a business
environment caused the Economist Intelligent Unit
to state in 2006 that, "Denmark will be the
best place in the world to conduct business over
the next five years." This is no fluke, as
the same award was granted by the EIU last year
and the World Bank has determined that Denmark is
the "World Champion in Foreign Business."
Economy
The gross domestic product per capita is the second
highest in the EU, preceded only by Luxembourg.
In addition to having their school, healthcare,
and security paid for by the state, Danes are materially
well off. Almost 60% of Danes own their own homes,
11% also have a holiday home and 73% have access
to the Internet.
Even though 65% of Denmark’s total area is
used for agricultural purposes, the Danish industrial
export is four times as great as the agricultural
export. Only 3.4% of the Danish workforce is employed
in the agriculture sector.
The economy is highly open, with Danish exports
and imports accounting for 49% and 44% of GDP respectively.
Denmark’s prosperity, like that of many small
nations, depends on foreign trade, and Denmark ranks
among the world’s leading nations in total
value of trade per inhabitant. Trade with other
countries, such as the US and China, has increased,
however the EU remains the most important trading
zone, accounting for 70% of exports and 72% of imports
in 2005. Germany and the United Kingdom are Denmark’s
most important trading partners. The United States
is Denmark’s largest non- European trading
partner, and trade between the U.S. and Denmark
is growing rapidly, currently at 25% a year pace.
Denmark is a net exporter of food and energy. The
Danes, who during the 1970’s were 99% dependent
on foreign oil, are now completely energy self-sufficient.
Thirty years of strict energy policy, and focus
on producing renewable sources of energy has catapulted
Denmark ahead of most other nations in the use of
renewable energy technology. In fact, Denmark is
now a major exporter of energy.
The Welfare State
Denmark takes care of its kind. As a Dane you are
provided free education, medical treatment, hospitalization,
early retirement pension for those with a reduced
capacity to work and, from the age of 65 on, a national
pension large enough to live comfortably. The principle
behind the welfare model is that benefits should
be given to all citizens who fulfill the conditions
of citizenship, without regard to employment or
family situation. In Denmark, public expenditure
for social welfare programs accounts for 26% of
total GDP.
All this comes at a price. The Danish welfare model
is subsidized by the state, and as a result Denmark
has one of the highest taxation levels in the world.
There is also a high general value added tax of
25% on goods and services.
While the welfare system in many ways has made
Denmark an attractive country with a strong infrastructure,
high general level of education and no poverty,
some experts claim that welfare causes brain drain,
limits the level of entrepreneurship and creates
disincentives to work. All practical arguments but
apparently not true in the case of Denmark, in fact,
Denmark has one of the highest employment rates
in the EU and because basic needs are taken care
of in Denmark, innovation is a fact of life.
Government
The political system of Denmark is multi-party,
where several parties are represented in the parliament.
Danish governments are most often minority administrations,
governing with the aid of one or more supporting
parties. This means that Danish politics are characterized
by inter-party compromising. Since 1909 no single
party has had the majority of parliamentary seats.
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| Courtesy of
Morten Bjarnhof |
Denmark is a constitutional monarchy headed by
Margaret II, who became queen in 1972. The revised
constitution of 1953 provides for a female’s
succession to the throne and for a unicameral legislature,
the Folketing (parliament). Legislative and executive
authority is vested in the monarch who acts through
a cabinet of ministers, headed by a prime minister,
and who is responsible to the Folketing. The Folketing
has 179 members, elected by a system of proportional
representation; two are from Greenland and two are
from the Faeroes. The Faeroes have been self-governing
since 1948, and in 1979 Greenland attained similar
status. The members of the Folketing have a maximum
term of 4 years, but elections are generally called
more frequently. The principal political parties
are the Social Democratic Party, the Conservative
People’s Party, the Liberal Party, and the
Socialist People’s Party. The 2005 election
confirmed the shift to the right in Danish politics,
a shift that began taking place during the 2001
election, returning the incumbent minority coalition
government of the Liberal Party and the Conservative
People’s Party for another term. The current
government depends on the populist, far-right Danish
People’s Party to legislate. The main opposition
Social Democratic Party will now struggle to exert
influence at the national level.
Women
Denmark still has not appointed a female Prime Minister
but does have a history of being ahead of the world
in terms of gender equality. Women were given the
right to vote in local elections in 1908 and in
general elections in 1915.
In 2006 37% of the members of the Danish parliament
are women; the average percentage of women in parliament
(Congress in the U.S.) in 187 countries is 16.3%.
Danish women have one of the highest employment
rates in the world, almost 70%.
Peacekeepers
As a percentage of the population, Denmark has sent
more soldiers and policemen than any other country
in the world to undertake peacekeeping tasks for
the UN, NATO, and OSCE (the Organization for Security
and Cooperation in Europe). More than 68,000 soldiers
have been sent from Denmark on peacekeeping missions
during the past 50 years.
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Courtesy of
Terma
F-16, Terma. |
Since September 11, 2001, Denmark has been highly
proactive in endorsing and implementing United States,
UN, and EU-initiated counter-terrorism measures.
Denmark is a close NATO ally, active in Iraq, Afghanistan
and Kosovo, as well as a leader in the Baltic region.
Although Denmark is one of the smallest countries
in the EU, it is also one of the most active coalition
partners in the global war on terrorism. The United
States has relied heavily on Danish efforts both
behind the scenes and on the frontline. For example,
the United States has an U.S. Air Force (USAF) base
and early warning radar system located at Thule,
Greenland, a Danish self-governing territory. This
base serves as a vital link in Western defenses.
In 2004 the Danish and Greenland Home Rule governments
gave permission for the early warning radar to be
updated in connection with a role in the U.S. ballistic
missile defense system. At the same time, agreements
were signed to enhance economic, technical, and
environmental cooperation between the United States
and Greenland.
In 2005 the U.S. Secretary of Defense, Donald Rumsfeld,
and Denmark’s Minister of Defense, Søren
Gade, signed the Declaration of Principles (DOP)
that serves as a concrete recognition that the two
governments are "allies of long standing"
and "share cooperative relationships"
in "defense activities." The DOP also
underscores the importance of the easy transfer
of information and technology between Denmark and
the United States, the harmonizing of military requirements
of their armed forces, and the value of research,
and development for maintaining an effective defense
industrial base.
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DENMARK
