Why is the Nordic Region so Happy?
Finland, Norway, Denmark, Sweden, and Iceland. They are among some of the coldest countries in the world, so it is a wonder that these nations host some of the happiest people. Why is this? Is it their healthcare? Their music? The food? Maybe even the culture. One would be surprised to find out that it is in fact none of these factors. Instead, the answer lies in the progressive Nordic democracy and complex social systems that make the Nordic countries a model for citizens’ happiness.
One of the factors that Nordic citizens benefit from is an advanced and accessible healthcare system that is very different from other countries in the Western World. Most Nordic countries have multiple tiers in their healthcare system to ensure accessibility to all citizens no matter where they live. Denmark for example has three tiers in their healthcare system which consists of the State, the regions, and local municipalities. The state serves as legislature and overseer of healthcare services, and federal grants are the main form of financing for Nordic healthcare. Unlike many other nations, specialists are included in these policies and citizens usually do not have to pay out of pocket to see a specialist. (Einhorn, 2019) Along with an advanced healthcare system, the Nordic countries have extensive social systems in place that ensure social and economic security for their citizens. High-quality institutions and welfare systems have resulted in significantly less crime and corruption, boosting citizens’ trust in their federal government. Since the Nordic governments are welfare states, the states have prioritized citizens’ benefits overspending to improve GDP, giving them a greater capacity to provide financial and social security for citizens. (Martela et. al, 2020) According to a study by Pacek and Radcliffe, the amount that a state spends on pensions, income security for those who are ill or disabled, as well as unemployment benefits has a significant impact on the happiness and quality of life of its citizens. (Martela et. al, 2020) According to another study conducted by Shigenhiro Oishi using Gallup World Poll Data, recognized that there is a positive link between the progressive taxation that funds these benefits and the overall satisfaction of citizens in the Nordic region. Since progressive taxation makes public goods such as healthcare, education, and public transportation more accessible and high quality, Nordic citizens tend to be in favor of the systems in a welfare state that improves their overall quality of life.
A progressive taxation system that allows greater access to public goods and services is not the only factor that contributes to the high satisfaction of Nordic citizens. The social attitudes and governmental trust held by the people in these states greatly contribute to happiness in Nordic countries. Finnish citizens tend to have a high level of trust in each other, boosting their overall satisfaction. This social cohesion between Nordic citizens promotes overall health and well-being through connectedness with others, good social relations, and a focus on the common good. (Martela et. al, 2020) It is noteworthy that Finland, Denmark, and Sweden occupy the top three spots in their index for social cohesion. (Yu, 2023) Because of this social cohesion, Nordic citizens tend to put less emphasis on social status, since the government reinforces egalitarian policies, and does not support the gain of one citizen at the expense of another. Due to these policies, Nordic countries have much lower levels of income inequality and a significantly smaller wage gap between classes. (Martela et. al, 2020) Studies have shown that there is no inherent link between income inequality and overall satisfaction of citizens. However, there is a link between the effects of income inequality, such as lower levels of trust, lack of social or economic opportunity, or high-status anxiety, and a decreased sense of happiness in Nordic citizens. Due to the progressive policies and high-quality institutions preventing high levels of inequality, most Nordic people have a positive view of their economic situation and their governments’ policies.
Lastly, and arguably the most important factors affecting Nordic citizens’ happiness, is the quality of their government and democracy, as well as the number of political rights given to citizens. Hellwell et. Al. conducted a study in which they examined changes in the quality of government in more than 157 countries between 2005 and 2012. Their findings concluded that high-quality governmental institutions led to direct improvement in citizens’ overall satisfaction and political participation. The quality of government is typically judged by the state of its democracy, which includes the ability of citizens to participate politically, freedom of expression, and the political stability of the country. Other factors that judge the quality of a democracy measure the exercise of power such as rule of law, control of corruption, or government effectiveness. Nordic governments have traditionally strived to establish high-quality institutional practices regarding these different factors to establish trust and consistency with their citizens. Since the public has a stable and positive view of their democracy, Nordic citizens have greater life satisfaction and an overall sense of social cohesion.
Along with a highly functional democracy, Nordic governments implement greater political rights for citizens in their governmental institutions and practices. Citizens have a high level of autonomy and freedom. Factors such as material prosperity, liberty from social and political oppression, and a progressive culture have a direct link to citizens' happiness, all of which are present in Nordic institutions. (Martela et. al, 2020) Research has shown that the more freedom citizens have to make life choices, the more social cohesion and governmental trust are increased, leading to high life satisfaction for citizens.
With these many factors in mind, it is evident that governmental institutions in other countries could benefit from Nordic strategies. States with a weaker welfare system and less accessible democracy tend to have more discontent citizens, a higher crime rate, and increased poverty. Low-income citizens in countries with a large wealth gap and low social cohesion will face much greater hardship than low-income citizens in countries where there are preventive policies and economic safety nets that the government has put in place. (Yu, 2023)
Although other countries can look to Nordic governments as examples of successful democracy, it may prove much more difficult for governments to implement similar policies due to the history of Nordic countries. For example, Nordic history is not plagued with institutional inequalities resulting from colonialism and economic elitism. (Martela et. al, 2020) Nordic institutions and policies are a positive result of the working class holding significant political power and the spirit of fraternity and trust held between the working class and the elite. (Martela et. al, 2020) This sense of trust and decreased class divide shows a State that is concerned with the welfare of its people that other countries can take examples from. The reality is, that many countries are trapped in a cycle that promotes low social cohesion, institutional trust, and inequality that traps its citizens along with it. Therefore, Nordic policies demonstrate that most countries have a lot of work to do to make their institutions compatible with trustworthiness, representation, and equity for all citizens.
References
Einhorn , E. S. (2020, March 17). Healthcare in the Nordics. Aarhus University. Retrieved March 5, 2023, from https://nordics.info/show/artikel/healthcare-in-the-nordic-region/
Martela, F., Greve, B., Rothstein, B., & Saari, J. (2020). The Nordic Exceptionalism: What Explains Why the Nordic Countries are Constantly Among the Happiest in the World in
J.F. Helliwell, R. Layard, J.D. Sachs, J.E. De Neve, L.B. Aknin, H. Huang, & S. Wang. World Happiness Report 2020. Sustainable Development Network. Retrieved March 4, 2023 from http://www.jstor.org/stable/resrep25851.10
Yu , J. (2023, March 7). Why are Nordic Countries So Happy? Business Review at Berkeley. Retrieved March 9, 2023, from https://businessreview.berkeley.edu/why-are-nordic-countries-so-happy/
