The Danish Model towards a Welfare State. Denmark has transformed from an agriculture-based economy in the 1950s to a service sector economy. In the 1960s, public sector employment increased and the 1990s saw the introduction of the flexicurity model. Flexicurity provides security through a generous welfare system while also making the labor market flexible. It imposes high taxes but benefits middle and lower income earners. Denmark has low unemployment, high HDI, and ranks highly on indices of happiness, prosperity, and lack of corruption.

1. The Danish Model :
Towards a Welfare State
Presented By
Mohammad Kawsar Ahammed

2.  Socially and economically developed
 HDI = 0.929
 Happiest (OECD) among 40 countries.
 11th Developed country
 Unemployment rate is around 5%.
 Average GDP growth rate less than 3%
Features of Denmark

3.  Before 1950s : Agriculture based economy
 After 1950s : Transformation to service
sector.
 In 1960s : Increase in public sector
employment
 In 1990s : Flexicurity model in policy
making.
 Flexicurity as a solution to structural
unemployment.
Brief History of Danish
Economy

4. 1.3
2.8
1.8
0
2.1
3.23.2
1.7
-1.2
-4.7
2.1
1.1
-0.6
0.1
1.3
1.9
-6
-5
-4
-3
-2
-1
0
1
2
3
4
1995 2000 2005 2010 2015 2020
GDPGrowthrate
Year 1995-2020
Denmark
GDP growth rate of Denmark

5. 0.78
0.8
0.81
0.82
0.84
0.85
0.86
0.88
0.9
0.9
0.91
0.91
0.920.93
1960
1970
1980
1990
2000
2010
2020
HDI
Year
Human Development Index

6.  Increased in married women’s participation in
public sector. (late 1960s-1990)
 Flexicurity to have security and generous
welfare.
 Flexicurity imposed much tax burden on
higher earnings people.
 Beneficiary was mainly middle and lower
income earning people.
Analyzing the factors

7. 5.867 4.944
3.439 2.945 2.367
3.807
6.36
4.143 3.9
26.4
9.2
Unemployment Rate
Unemployment rate

8. 0.318
0.263 0.293
0.246 0.272
0.62
0.262
0.391
Income Inequality
Gini Coefficient
Income Inequality

9.  Happiness
 Ease of doing business index
 Global competitiveness index
 Corruption perceptions index
 Index of economic freedom
 Press freedom index
 Political rights index
 Civil liberties index
 Property rights index
 Prosperity index
Other indices

10. 75
1 1
23.88
75.01
8.07
72.83
6.89
82.55
5.85
0
10
20
30
40
50
60
70
80
90
Indices of USA
Comparison between USA and Denmark
88
1 1 10.360.93
75.1
8.16
77.06
84.07
5.39
0
10
20
30
40
50
60
70
80
90
100
Indices of Denmark
Index

11.  Lower GDP growth rate
 Much investment in Welfare activities.
 Also focus on environment sustainability.
 Higher level of index Health, Education
and living standard
 Employment opportunities is about 95%.
Conclusion