The development of Sweden's welfare state in the 20th century was greatly influenced by global events, especially the two World Wars. Let’s take a look at how these wars affected Sweden's social policies and welfare programs.

Economic Impact of the Wars

1. World War I (1914-1918):

   • Sweden stayed neutral during WWI, which helped its economy grow.
   • The country's economy increased by about 25% during the war years because it was able to produce and sell more goods, especially to Germany and the Allies.

2. World War II (1939-1945):

   • Once again, Sweden was neutral but still felt economic pressure.
   • The war led to increased spending on defense, reaching 22% of the economy by 1945.
   • After the war, rebuilding Europe opened new markets for Swedish products.

Social Reforms

After the wars, there was a strong need for better social unity and stability, leading to important reforms:

• In 1932, the Social Democratic Party started to make gradual changes that would eventually build the welfare state.
• Some key measures included:
  • The introduction of unemployment insurance in 1934.
  • Expanding public health services, which led to the creation of the National Health Service in 1947.

The Post-War Consensus

After World War II, several important events helped Sweden's welfare state grow quickly:

1. Reconstruction Time:
   • The Marshall Plan in 1948 provided money to help rebuild European countries, including Sweden, encouraging cooperation.
2. Political Changes:
   • The rise of the Social Democrats shifted the focus to policies that promoted fairness and social welfare, including:
     • Major education reforms, which allowed free education up to the university level by the 1970s.
     • More housing programs resulting in over 1.5 million new homes built between 1945 and 1965.

Conclusion

The mix of economic conditions during the wars and the political commitment to tackle post-war issues led to a strong welfare state in Sweden. This system is known for its high education, healthcare, and social security. By 1970, Sweden was spending about 30% of its economy on social programs, making it one of the best welfare systems in the world. These historical events have shaped a model of social democracy that still defines Sweden today.