Dynamics of Destructive Polarisation in Mainstream and Social Media: The Case...
Danish
1. Danish Capitalism and the Global Challenges - Seminar on Danish Welfare and Economy, April 11 th , 2011 Martin Jes Iversen Associate professor Centre for Business History Copenhagen Business School
2. Point # 1: We have just experienced the largest upswing in modern Danish history – 1993-2008 Point # 2: The short heritage: The largest Danish corporations are in better shape than ever Questions Point # 4: Three Danish competences to built on Point # 3: The long heritage: Danish capitalism and the journey
3. Growing foreign demand = Export companies’ growth Growing public demand Problem: State budget deficit 302 billion. DKK. / 18 % of BNP (2009) Growing domestic private demand Problem: Private debt: 2001 239 billion DKK. 2005 351 billion DKK. 2008 566 billion DKK. The Danish upswing – 1993-2008 (long) Approx. 400.000 new jobs (deep) The three large demand factors (broad) Public sector jobs: 1993 796.000 2008 838.000 2010 860.000 Private sector jobs: 1993 1.77 mil. 2008 2.12 mil. 2010 1.94 mil.
4. New record balance of payment surplus: 93.6 billion DKK. in 2010 (only Maersk Line contributed with approx. 20%) Point # 2: The short heritage: The largest Danish corporations are in better shape than ever Top 10 Danish Companies in 2009 (by revenue, billion DKK) Sector: Company: 1994 2006 2009 2010 Foundation Year Shipping A.P. Moller - Maersk 72,5 264,6 260,0 313,0 1904 Office Services ISS Holding 17,6 55,8 69,0 73,0 1901 Brewery Carlsberg 20,9 41,1 59,4 62,2 1847 Pharmaceutical Novo Nordisk 16,8 38,7 51,1 60,8 1923 Windmills Vestas Wind Systems 1,2 31,3 38,1 51,9 1898 Top 5 Total Revenue 128,95 431,54 477,61 560,97 DK GDP 1242 1631,66 1656,11 1740,8 Top 5 Companies in 2009 in % of GDP 10,4 26,4 28,8 32,2
5. Point # 3: The long heritage: Danish capitalism and its historical roots Creating Nordic Capitalism Pan-Scandinavian textbook project Editors: Susanna Fellman (Helsinki University) Martin Jes Iversen (CBS) Hans Sjögren (Stockholm School of Economics) Lars Thue (BI Oslo)
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7. The Danish princess Margrethe in 1962 “ Archeologist” metaphor: Defining layers of the past Cases Cases Cases Cases
8. Four phases of capitalism in Nordic region 1850s-1880s: Early liberal capitalism 1890s-1920s: Organized capitalism 1930s-1970s: Welfare capitalism 1980s- Market based capitalism Weak states, liberal markets SMEs, economic periphery More active states, organized labour markets cartelization and export Triangle of welfare states, org. labour and industries, “mixed economies” Economic integration, strong state emphasize on markets capitalism
9. Two fundamental problems with this conclusion: These phases do not explain change These four phases reflect changes in most West European economies
10. 1980s- Market based capitalism 1930s-1970s: Welfare capitalism 1890s-1920s: Organized capitalism 1850s-1880s: Early liberal capitalism Formative periods: “ ... internal and external pressures acting on the established economic structure”
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12. Formative phases in Scandinavian capitalism Focus on State-company relations in terms of changing market formation The State The Financial System Education and Training The Labour Market The Company
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14. Market Formation: Competition & Regulation Plan economy Public regulation Common market Restricted Private regulation Competitive Cartel economy Bazaar economy
15. Market Formation: Competition & regulation Plan economy Public regulation Common market Restricted Private regulation Competitive Cartel economy Bazaar economy 1850s 1890s 1930s 1980s
16. 1850s 1890s 1930s 1980s The changing market structure, Denmark 1850-2000 Competition Laws 1857 Free Trade Act Prohibition of the guild system pure negative econom. integration 1912 1st competition regulation proposal 1937 1st law against price agreements including registrat. and publication of price agreements 1955 Monopoly Law Monopoly Council which registered all monopolies and approved prices 1989 Law on competition based on the control of efficient markets 1997 - EU changes 1847-1890s Expanding on the Danish beer market. 1st industrial brewer Loosing market shares but also early export 1903-1970 Trust agreement with the competitor “ Tuborg”. Constant + 70 % of Danish market = monopoly-investigations Export breakthrough 1970-2000 Sales international: 1970: 24% 1980: 60% 2000: 90% 1988 Danish beer cartel abolished (1899-1988)
17. Market Formation: Competition & regulation Plan economy Public regulation Common market Restricted Private regulation Competitive Cartel economy Bazaar economy 1857 Free Trade Act 1989 Competition Law/1997 EU Law 1937 1st Law on Price ageements 1955 Monopoly Law 1903-Trust Agreement 1880s “Manchester Like” 1950s Trust investigation 1970 Merger with Tuborg 1980s- International brewer 1910s-1960s, +70% marketshare Founded, 1847
18. New record balance of payment surplus: 93.6 billion DKK. in 2010 (only Maersk Line contributed with approx. 20%) Point # 2: The short heritage: The largest Danish corporations are in better shape than ever Top 10 Danish Companies in 2009 (by revenue, billion DKK) Sector: Company: 1994 2006 2009 2010 Foundation Year Shipping A.P. Moller - Maersk 72,5 264,6 260,0 313,0 1904 Office Services ISS Holding 17,6 55,8 69,0 73,0 1901 Brewery Carlsberg 20,9 41,1 59,4 62,2 1847 Pharmaceutical Novo Nordisk 16,8 38,7 51,1 60,8 1923 Windmills Vestas Wind Systems 1,2 31,3 38,1 51,9 1898 Top 5 Total Revenue 128,95 431,54 477,61 560,97 DK GDP 1242 1631,66 1656,11 1740,8 Top 5 Companies in 2009 in % of GDP 10,4 26,4 28,8 32,2
