The Danish Economy, 1973–2009: From National Welfare State to International Market Economy

A number of long-term trends in the Danish economy changed around 1973. The decades before were characterized by the establishment of a welfare state with a high level of social security and an optimistic attitude to public planning. Many periods during the subsequent decades have witnessed a struggle against different specific economic problems, including how to pay for the welfare state. But the whole period since 1973 has been characterized by an overall movement from a national welfare state to a more international and market-oriented economy. The development can be divided into four separate phases based on changes in government and different policies: 1973–1982 is characterized by escalating economic problems, 1982–93 with an improvement in the macroeconomic balance except in employment, and 1993–2001 with a highly successful improvement, including in employment. During the period 2001–2009 the government did not show the same willingness to make reforms, but this period’s liberal-conservative government is the symbol of the transformation to a market economy.