Sweden's choice to stay neutral during the World Wars had a big impact on its relationships with other countries and how it developed as a nation.

Sweden's Neutrality in World War I (1914-1918)

1. Economic Impact:

   • Sweden continued to trade, especially with Germany and the Allies. This helped the economy grow.
   • Between 1914 and 1918, Swedish exports went up by around 50%. The country's overall economy grew by about 5% each year.

2. Military Preparedness:

   • The Swedish government worked on improving its military.
   • They doubled their military budget from 35 million kronor in 1914 to 70 million kronor by 1918.
   • This made Sweden better prepared to defend itself and helped in future negotiations with other countries.

3. Humanitarian Efforts:

   • Sweden acted as a helper, providing aid to those in need and taking in over 50,000 war refugees from different countries affected by the wars.

Sweden's Neutrality in World War II (1939-1945)

1. Diplomatic Maneuvering:

   • Sweden stayed neutral by carefully balancing its relationships with Nazi Germany and the Allies.
   • For example, Sweden let German soldiers pass through its land but also helped the Allies, especially by supporting Finland during the Winter War (1939-1940).

2. Economic Strategies:

   • Swedish industries, especially those making iron ore, thrived because both sides needed their products.
   • From 1939 to 1944, iron ore production jumped by 65%, mostly going to Germany.

3. Refugee Policy:

   • Sweden opened its doors to refugees during the Holocaust, giving shelter to about 44,000 Jewish refugees.

Conclusion

In short, Sweden's choice to remain neutral during the World Wars kept it out of direct fighting. At the same time, it helped the economy grow and positioned Sweden as a helpful and caring country in Europe. This unique foreign policy not only affected Sweden during the wars but also shaped how it interacts with other countries for years to come.