Restoring Sweden's lead role as aid country

In Dagens Nyheter's issue of April 3, 2010 two former heads of the Swedish Development Aid Agency (SIDA)criticised Aid Minister Gunilla Carlsson's direction vis-a-vis the country's development aid policy as being nonchalant and lacking in genuine commitment.

Former SIDA heads Go Göransson and Carl Tham of the Social Democratic government stated that " it requires more - not less -of international responsibility-taking, cooperation and solidarity" and that Sweden must retake it leading position in international discussions on development aid. Accordingly, Carlsson along with the Moderate party secretary suggested a cutdown of development aid to 0.7 percent of the GNP.

Carlsson is promoting an "epoch-making reforms" - meaning, going from "passive payment policy" to "active developmental aid policy". She also wants results and auditing with reference to previous policies which she says were without requirements. Göransson and Tham stated that Swedish aid was never without requirements and auditing. But measuring results posed a greater challenge especially if several donors are involved in the same project, not to mention the contributions by the receiving countries themselves.

The basic problem accordingly, lies in the societies that need the most help and it is in this area where Carlsson ought to begin her analysis and discussion. She presumably considers development aid as a political area where the main issue is not what underdeveloped countries need and what form of aid is appropriate but rather what the Moderates can win approval for at home with Swedish voters. Development aid money is being cut down without deeper analyses and discussion with aid donors. In Ms. Carlsson's counting, the recipients should come down from 70 to 33 countries.

Göransson and Tham also stated that SIDA today has around 200 regular employees as a result of its cutdown and that Carlsson was critical of this, discounting the fact that there are around 250 well-qualified local employees who deliver a better performance and expertise in the field.

The issue on Swedish development aid policy needs greater discussion especially in defining what "developmental aid policy" means in actuality, with reference to the impact of the economic and financial crises that affected many poor countries, as well as the current environmental problems that plague both poor and rich nations. The discussion, according to the writers should be based on facts and experiences and not on ideological solutions and media bluffs.#

Saving SAAB...Saving SAS

It has been a tiring start of the year for many involved parties in the gigantic task of saving first SAAB automobile and now saving SAS. For many small investors, the moments of anguish is even greater. It is not the intention just now to analyse what went wrong in the management of these blue chip companies and who did the worst damage that has led to the financial bleeding of both.

Today, Dagens Nyheter's editorial gave a pretty good analyses on the situation of SAS - the airline owned by the three Scandinavian countries. If one looks at the economies of these three owner-countries, one can only say that all three have handled well the financial crisis that nearly bankrupted the world economy. According to DN, the main problem of SAS lies in the composition of its major owners, the 30-plus unions sitting in the negotiation table and the difficulty of understanding just what, how and why decisions are made by whom among the major decisionmakers.

SAS has become a dinosaur that can hardly move in the tightly competitive aviation business. The service is bad if not lousy and for ordinary passengers expecting a modicum of comfort during travel time, SAS stands way back the other airlines in terms of service and competitive air ticket prices. Why is it so difficult to set standards of good service? What does it mean to be a Scandinavian airline as against an Asian airline?

SAS need saving, but how does one restructure an organisation that moves sluggishly? Where should the changes begin? What does the unions want? Until then, when such crucial management questions are answered then SAS is already doomed before it gets a new shot of billions in its arms#

Is Malmströms chance Sweden's?

Sweden's European Union presidency is nearing its end this December and it appears that Prime Minister Fredrik Reinfeldt has done his best to work on the priority issues during the last five months. The most important was to secure the cooperation of major countries like the United States, China and India in the forthcoming Summit Meeting on Climate Changes in Copenhagen. Although no iron-clad assurances were made by these countries during the prime minister's recent state visits, Reinfeldt has stated that he was hopeful the meeting will result in an agreement that meets the economic and environmental considerations of countries concerned.

The European Union has now entered a new phase whereby an EU president and a foreign minister have been chosen. The choice, when the names were announced created a ripple of surprises because they were unknown personalities in the EU galaxy of politicians. For months now, there were popular choices speculated for the presidency and the foreign minister posts. The final vote came as a total surprise.

Sweden will have a new EU commissioner, Cecilia Malmström, who is coming from the Liberal Party but who in her own right is an EU veteran. She will handle one of the toughest questions confronting the EU, that of asylum and migration as well as crime prevention. Dagens Nyheter stressed that tough policies are required today in the form of laws to curtail trafficking, organised crime and sexual exploitation of children as well as illegal immigration.

The asylum and migration issues continue to be a main thorn in the European Union's effort to accommodate refugees and asylum-seekers from countries in conflict. It is common knowledge that Sweden has taken more asylum-seekers than its economy can sustain, while other EU countries have turned a blind eye and a deaf ear to pleas for greater humanity and solidarity in the burden-sharing of refugee intakes.

Sweden is a small country with a big heart. It is a welcome development that the next Swedish commisioner after Margot Wallström is a woman, who will hopefully deal with all these tough issues with both heart and mind. Europe is far from being a united union with common purposes and interests. The national interests of many EU member-states remain strong even if the national borders have become more porous.#

Truth missing in party leaders' talks

Shortly after the Eu parliamentary elections last Sunday, June 7 this year - the leaders of Sweden's two biggest parties gave glowing views on the result of the elections. Mona Sahlin, leader of the opposition Social Democratic Party stated that "it was blowing red-green winds" while Moderate Party leader and current Prime Minister Fredrik Reinfeldt spoke of "success" made in the elections.

DN Columnist Peter Wolodarski questioned such statements as lacking truth and pointed out that both parties were losers as they lost supporters to the Liberal and Green Parties. Such lack of candidness contributes to falsity in the public debate, and if both party leaders cannot admit the truth of losing, then who else would?

Those who made big inroad into the EU elections were smaller parties, even one new upstart whose pro-EU views were better understood by voters. For one, the Social Democratic Party prominently placed as its first candidate a known anti-EU politician. The Green Party which made a dramatic switch towards EU membership drew strong votes and went up from 6 to 11 percent. For most Swedes, membership in the EU is a certainty which makes anti-EU politicians less palatable to the voters.

The Swedish EU election had a low electoral turnout which indicated a lack of interest among voters, if not a lack of good knowledge on how exactly the politics in Brussels affect the individual lives of every Swedish citizen. The success of the newly-started Pirat Party and the Sverigedemokraterna is an indication of discontent among a majority of the Swedish electorate, creating a state of apprehension not just for the forthcoming national elections in 2010, but in how Sweden will cope with a deepening economic crisis.#

Swedish Moderate Party leaders criticise EU's growth strategy

Sweden's Prime Minister Fredrik Reinfeldt and Minister of Finance Anders Borg presented today in Dagens Nyheter's Debate, the Moderate Party's job manifesto five days before the EU parliamentary elections on Sunday, June 7th. A sustainable public sector finance should be the cornerstone in a new EU strategy for growth, they stated. The Lisbon strategy should have made the EU the world's most competitive economy in 2010, but even if some progress were made the strategy was a failure, they said. An overhaul and re-start is necessary already by autumn 2009 when Sweden takes over the EU Presidency, thus making the issue a priority question in the coming 5-year period, Reinfeldt and Borg wrote.

The two Moderate Party leaders claim that the strong measures adopted to cushion the impact of the financial crises lead to stable state finances, in comparison to those taken by countries like Great Britain, Ireland and Lithuania which resulted in severe cutbacks in state welfare budgets and increased public debts. " We want Sweden to be an example in the work against the crisis and a driving force for EU's becoming a strong force for common traffic rules in the finance markets, responsibility and long-sightedness when it comes to economic policies, as well as correct response for recovery. "It is for this reason that we in Sweden and in EU will look closely at short-term policies that risk making economic recovery harder and enabling unemployment to get deep-seated", they stated.

"It is important to remember that EU, even before the crisis already battled with bad growth conditions, a serious situation of immigrants standing outside the labour market and several member-countries inability to show sustainable public finances. Along with an aging population and the growing needs for welfare services which are old unsolved issues, there are new ones that need to be addressed. It is therefore necessary to have a long-term reform policy for more jobs and economic growth", Reinfeldt and Borg wrote.# (Translations made from DN, Debate June 2, 2009)

Carl Bildt on challenges facing the Swedish EU Presidency

Sweden's most important agenda for 2009 is the European Union Presidency in the second half of this year. Foreign Minister Carl Bildt outlined the tasks, challenges and problems facing the Swedish presidency in an article he wrote for Dagens Nyheter's Debatt page, in the beginning of this month.

Bildt wrote that, the climate issue - which is closest to the heart of the Swedish agenda, will face difficulties because of the economic crisis. "Weak states and destroyed areas will need bigger support from EU than what Iceland and Lithuania got," he stated. " During 2009, the various consequences of the crisis must be dealt with in Sweden and in our own sorrounding. Not in the least, the global warming crisis must be prevented, which is more difficult as a result of the recessionary downtrend and the financial crisis. Populistic driven protectionism risks making the economic crisis doubly worse, in particular if the negotiations on world trade is not successfully done."

Sweden has now entered the "European year" - participating as member of the EU troika in the first half year; the EU parliamentary elections this coming June and later, the EU presidency. Bildt said that, "we live in a world that is less safe and stable than what we thought a year ago." After a long period of exceptional economic growth, world trade will contract and global growth will go down to a zero level as more advanced countries sink into a recession. The situation could get even worse if the world trade negotiation fails.

Outside of the worst economic scenario, the urgent challenge is the global warming crisis that must be prevented from rapidly deteriorating. The decision made in 2008 has made Europe the main green force in the global dialogue. This task is facing dramatic dialogues between major actors like the USA, China, India, Brazil among others.

Bildt stressed that, a major partnership between USA - under newly-elected President Barack Obama, and the EU is of utmost importance, "if we will have the possibility to tackle the major global challenges as well as engaging other countries in the undertakings."#

Swedish car rescue plan in a dilemma

Swedish Industry Minister Maud Olofsson will be facing a tough parliamentary question session on Tuesday, Dec. 16, when the opposition Socialist Party demands to hear a clearer verdict on the bailout of SEK28 billion earlier promised to the car manufacturing industry. It is a question of whether the coalition government is going to pursue said bailout or is simply misleading the industry and the Swedish people.

"If it shows that the government's crisis package is not actually SEK28 billion as promised, then it is serious", says Tomas Eneroth, spokesman for the Socialist Party Industry Committee. He wants to see the bailout papers on Olofsson's table.

Last Thursday, Dec. 11 the coalition government through Finance Minister Anders Borg and Industry Minister Olofsson, presented the rescue package for the car industry which consists of a SEK28 billion financial injection.
The billions from the European Investment Bank (EIB) can not be loaned directly to either SaaB or Volvo since they are both owned by the American company Ford or GM, and not either to Opel in Germany. The problem is that they are under a common financial system with their respective US owners.

"It would mean that if (these car companies) were given the rescue money at this time and GM or Ford declares bankruptcy, the money would simply disappear into a black hole, without a cent left. This is a huge amount for Europe and even if both US companies were to survive, they could announce that they will develop new car technologies in Detroit, for which European taxpayers will not be too happy to get involved in, much less pay for," said Lars Holmquist, European car sub-contractor.

Holmquist believes that the Swedish government would want to build a new company, something of a Swedish car development type, with the state as primary owner and thereafter place the multi-billion rescue money into this new organisation designed to develop new technologies such as petrol-saving engines and hybrids. Then later, Saab and Volvo could be allowed to use these technologies to meet the present demand for environment-friendly vehicles. In this way, the Americans could not lay hands on the rescue money but could later avail of the results of the research.

As far as the EIB rescue money is concerned, the SEK20 billion is earmarked for the European car industry for 2009. The money will not be paid during a one year term but within a period of four years up to 2012. It is hoped that with several car manufacturers needing financial help, the amount promised by EIB will be increased accordingly.
(Translated and edited from Dagens Nyheter, 14 Dec. 2008)

Reduced aid can lead to war and terrorism, Ahtisaari warns

Nobel Peace Prize winner for 2008 Martti Ahtisaari of Finland reminded aid donors not to reduce or hold back on their commitment to development assistance because of the current economic crisis because this could lead to war and terrorism. He had a clear message to say after he received his peace award: "All conflicts can be resolved."

"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.

He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."

To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."

Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)

No to clusterbombs, the Swedish dilemma

Over 100 countries - among them Sweden have signed in Oslo yesterday, an international agreement which forbids the use of clusterbombs. The so-called bombs contain minor bombs which explode close to the ground and covers a much larger area.

The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.

Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.

However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.

The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.

For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.

In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)

EU's stimulant package hard to implement

A stimulant package of two thousand billion euro is recommended by the EU Commisssion to be able to get Europe out of the economic crisis. It includes among others the lowering of Vat for certain services and tax reduction for low-income earners.

"We find ourselves in an exceptional crisis period," says EU Commission Chairman Jose Manuel Barroso when he presented the economic package of 200 billion euro to help Europe out of the economic stagnation. But it is not the EU Commission sittting at the driver's seat responsible for the EU member state's economic recovery.

A large part of the package which consists of 1.5 percent of EU's BNP rests on the 27 EU member-countries. They are the ones, through different types of financial measures, that will inject the necessary adrenalin in the economy with 170 billion euro, while EU's common budget stands for 30 billion euro is earmarked for different loans, previously-assigned payment of fund and investments in common EU projects.

The EU Commission presented some kind of a la carte menu of suggestions that the member states can use to get their economies moving. They include both tax reduction and increased fees. Some countries could decrease tax for low-income earners, lower Vat to 15 percent ( in Sweden it is 25%) and added support for the production of environment-friendly cars as well as incentives to the construction and infrastructure sector.

The decisions of the EU-member countries will be taken up on Dec. 11-12 when they meet in Brussels. Several countries already set in motion several financial measures in their respective budgets as well as other urgent measures immediately after the crisis outbreak. Sweden says that it has done its own homework in the new budget. "It is in line with what we do and are prepared for more should the need arises," says Swedish Labour Minister Sven Otto Littorin.# (Translated and edited from DN, 27 Nov. 2008)

No to Jas Gripen, Yes to Nordic defense cooperation

Norway's response to the Swedish defense minister's debate article published in Dagens Nyheter Thursday, Nov. 20th where it was alluded that the former would buy SAAB's Jas Gripen came a day after. The Norwegian government prefers the American Joint Strike Fighter, a decision that instantly raised eyebrows among Swedish politicians and airplane experts.

The four Nordic countries that have agreed to strengthen border security cooperation have chosen separate ways when it came to fighting planes: Finland has the heavy US F-18; Sweden, its light Jas Gripen; Denmark the older version of US F-16 and now Norway will buy the new American Joint Strike Fighter.

What has caused the eyebrow raising among Swedish experts is the fact that the price Norway has to pay for the US fighter planes is not commercially reasonable, reports said. According to the Defense Security Cooperation Agency, DSCA in its September account, the 48 JSF planes would have cost around 58 billion Norwegian crowns and not NOK18 billion as now reported. It can only be deduced that the current state of US economy has plunged the price of its JSF.

Swedish experts say that the total cost for life maintenance of JSF planes, or what is referred to as life cycle cost, is three times the cost of Jas Gripen. Even Norwegian military experts in its cost analysis say that, " the cost picture for all identifiable cost elements is 20 to 30 billion higher for JSF (compared to Jas Gripen) over a 30-period life perspective"."

Sweden drops third in world gender equality rank

The World Economic Forum recently released its Gender Gap Index report where it shows that Sweden has dropped its predominant lead position to third place after Norway and Finland. The investigative reporting started in 2006 and Sweden had been at the top of then list as the most gender equal in the world until this year.

However, Sweden still rates high in several areas such as the number of women in the parliament, literacy and education. That it fell to third place has been attributed to the number of women ministers and the estimated income of women. "Equal wage for equal work" finds Sweden on the 35th rank, and especially the fact that there has never been any female head of government. Some 39 countries have or has women presidents/prime ministers and rank better than Sweden.

The following countries rank high in the Gender Gap Index: Iceland (4th); New Zealand (5th); Philippines(6th); Denmark (8th); Netherlands(12th); and Lithuania(13th).

Swedish gender Equality Minister Nyamko Sabuni-who refused to be interviewed by Dagens Nyheter, stated that " exactly as it was last year, the Nordic countries rank at the top with small variations, indicating that Sweden's gender equality work is stable. She alluded to gender quotas being used in companies in Norway.
" Here in Sweden, we have used another way through reforms in order to create better conditions for women instead of legislation." In the case of Finland, the improvement in its gender equalisation is credited to the positive development in education and health, and that it has a woman president, Tarja Halonen.# (Edited and translated from Dagens Nyheter.)

OECD sees economic recovery by 2010

The Western world's economy is heading for the worst recession since the oil crisis of 1970s, according to OECD's latest forecasts. The leading economies are definitely in a state of recession. The situation was already bad in summer with high raw material prices, a correction of the property market and financial turbulence. When the Lehman Brothers declared bankruptcy, the real financial crisis broke out. It is the reason behind the prevailing recession, said Jörgen Elmeskov who is responsible for the report " Economic Outlook" released Thursday.

According to "Economic Outlook" the growth forecast for next year remains down. In June, OECD predicted that USA's economy will grow by 1.1 percent in 2009, and the Euro area by 1.4 percent. The growth figures as they stand now are on minus with USA shrinking close to 1 percent and the Euro area by half percent.

Earlier in the week, OECD presented a summary of important recession indicators for the world's leading economies, which are all on a downturn direction. OECD economist Ronny Nilsson said: " Now the recession in certain countries is so weak that one must go back 30 years in time to find the same level. There is no upward turn in sight." Unemployment among OECD member- states is around 6.9 percent next year and 7.2 percent in 2010. The Euro area will be worst affected with 7.4 percent this year and 8.6 percent next year.

However prices will decline and inflation could be lower than feared. The OECD economists urged more measures needed to stabilise the financial markets, and that such measures should be done through international cooperation.# (Translated and edited from Dagens Nyheter, Nov. 14, 2008)

Sweden reinforces troops in Afghanistan

Sweden is sending an additional 100 soldiers to northern Afghanistan as well as increasing its development aid, the government decided Thursday. But the Swedish troop lacks heavy fighting vehicles.

At present there are 400 Swedish soldiers in the NATO-led Isaf forces. Together with Finland, they are respon- sible for the security of a large portion of northern Afghanistan. The number of Swedish soldiers will increase to 500 in 2009 and a transport plane will be moved from Dubai to Afghanistan. Swedish military advisers will be put at the disposal of the Afghan army. There will also be ambulance helicopters even if the delivery is delayed.

The Swedish International Development Authority (SIDA) has received a new mandate to implement a new aid strategy and the assistance to Afghanistan which stands at 365 million SEK in 2008 will be raised to 500 million SEK yearly.

Swedish Foreign Minister Carl Bildt described the international community's huge undertaking in the country in order to insure the democratic election, strengthen the police force and anti-corruption work as well as improve the regional dialogue with neighbouring countries such as Pakistan and Iran. There are critics in Sweden, who pointed out that the Americans have not done much to help the civilian population's development. "Afghanistan is one of the world's poorest countries and has gone through three decades of war. The seven-years of state-building is not enough," said Carl Bildt.# (Edited and translated from Dagens Nyheter, Nov. 14, 2008)

Sweden agrees to re-open talks with Russia

The European Union (EU) will resume negotiations for a partnership agreement with Russia and Sweden has agreed to the move. This is despite the fact that the latter has not fulfilled all the conditions in the peace agreement that came after the war in Georgia. EU believes it could achieve better influence, although Georgia is not happy with EU's decision. All the EU member-states except Lithuania said yes to the resumption of talks. Georgia says this is a mistake and that history will vindicate who is right and wrong.

Sweden and Great Britain, both of whom were earlier sceptical, agreed to open the doors to new talks, as long as it was made clear that relations with Russia is no longer as it was before. "Russia's disproportionate actions in summer against Georgia - a clear violation of international right - continues to cast a shadow over EU's relationship with Russia," writes Swedish and British foreign ministers Carl Bildt and David Milliband in a joint letter.

Both pointed out that Russian troops have not returned to the positions they had before the invasion and that there are still Russian soldiers in the strategic areas in Akhalgori and Kodoridal in Abchazien. Carl Bildt had been one of the strongest critic against Russia but he had gone along with the re-opening of talks. He defended his position by saying that the mandate for re-negotiation has become tougher. The initiators for the resumption of talks were the French EU presidency and the EU Commission.

Carl Bildt remains sceptical that any changes can come any time soon. " I have no illusions that the Russians will change in the shortest time perspective. This will stay in the agenda for a long time." The partnership agreement involves among other things trade, politics, economy and energy questions. The resumption of talks is expected to begin at the end of this month.# (Edited and translated from Dagens Nyheter, 11 Nov.)

USA and Europe meet to face economic crises

Amidst the euphoria of Barack Obama's election as new president of United States comes a sobering call for immediate transition in the White House, to institute measures needed to stabilise the economy and for the European Union leaders to formulate a common position.

The economic crisis characterised Barack Obama's presidential campaign and will determine his manoeuvrings room during a greater part of his presidential mandate, wrote Dagens Nyheter(http://www.dn.se/) in its editorial today. In order to cope with the acute economic crises, he will have to allow the budget deficit to swell. The new stimulant package could be the biggest in modern times and possibilities for reform limited.

Obama will have to caution the Americans not to consume beyond their means and sanitise the budget. There is the danger that he might not be able to control expenditures in the light of expectations for "change" which had become his campaign slogan. Her may succumb to populist demands by a Democratic majority in the US Congress, such as trade protection to shield the US domestic economy.

On the other side of the Atlantic, the European Union heads -of -state are meeting to try to formulate a common position before the international economic meeting in Washington on Nov. 15 this year. The objective of the Washington meeting is to create guidelines for a new formulation of regulation and supervision of the financial markets and watch over institutions like the International Monetary Fund and the World Bank. It is popularly known as the Bretton Woods II, named after the big conference in Bretton Woods , USA in July 1944 after the World War II when international economic cooperation took form.

French President Nicolas Sarkozy is one of the initiators and host of the meeting, in competition with Britain's Prime Minister Gordon Brown on who can best save Europe and the rest of the world from a financial meltdown. The French wants to see better regulation of the finance markets, although obviously not over-regulated to prevent efficiency. When the finance ministers met earlier, countries like the United Kingdom, Sweden and Finland criticised the French proposal for being too detailed and centralised.# (Edited translation made from DN's editorial)

Barack Obama is new President of United States

United States has made history today with the election of African-American Senator Barack Obama to the highest office, the Presidency. The voter turnout was unprecedented, the election process was smooth and the result was uncontested. Republican candidate John McCain conceded and urged the Americans to work together to support the new president-elect.

At no other time in America's history, will a new president face tremendous problems as will Barack Obama. United States' economy has plunged to the bottom and it will take tremendous efforts to create stability and confidence not only domestically, but more importantly abroad with countries that are closely dependent on the US economy. In his maiden speech as newly elected president, Obama told the Americans that it will take time, maybe not a year or two, or even one mandate to bring America back to a position of economic dominance.

Even more urgent on the new president's agenda will be measures taken in the security field as it faces two unresolved wars : Afghanistan and Iraq. The situation in Afghanistan has become untenable and volatile with the escalating violence claiming civilian lives everyday. In Iraq, it will be a fulfillment of an agreement with the Iraq leadership for a military retreat without jeopardising USA's own interest in the region. There are other urgent issues to focus on, as in the case of Iran and North Korea's nuclear programs.

In the field of energy, USA felt the cost impact of imported oil that has severely affected the American consumers. It has also shown how vulnerable and dependent the US economy has been on oil coming especially from unfriendly country-sources. Even high on the agenda is the need to tackle the threat of global warming. Domestic production of oil must be seen in the light of environmental balance and caution.

The last, but not least on the top agenda of the new Democratic presidency is health care reforms. It is reported that around 47 million Americans have not health care security. Health care security is often tied to one's employment and today when many Americans are jobless, the problem assumes a greater urgency. Companies forced to tighten the belt are passing on the health care problem to the employees themselves.

The world will watch with great anticipation how President-elect Barack Obama will tackle these major issues and whether America can become great again.#

The urgency of a diplomatic presence

Sweden opens an embassy in beleaguered Afghanistan, a positive move towards support for the democratisation and peace-creation initiatives in that country. This symbolises the Swedish commitment in peacekeeping operations far away from its Nordic borders, writes Dagens Nyheter today. Sweden is one of forty countries that contributed soldiers to the peacekeeping effort.

The NATO-led initiative consists of 52,000 men and women working under the Isaf or International Security Assistance Force, under a direct mandate from the UN, to help Afghanistan President Hamid Karzais' western-friendly government to uphold and maintain security in the country. At present, there are 375 Swedish soldiers participating in the peacekeeping operations based in Camp Northern Lights in Mazar-i-Sharif in northern Afghanistan.

Last Thursday, Swedish Foreign Minister Carl Bildt visited Afghanistan and the Camp Northern Light to see the actual condition of the Swedish soldiers and mostly to meet with the Afghan leaders. He said that "the Swedish soldiers are making an importance contribution for security in the area, and that they are very professional."

The Swedish aid to Afghanistan is around 400 million Swedish crowns, channeled mainly through international organs and help organisations. One-third is reserved for the northern part of the country. The aid money is earmarked for education, improvement of women's position and infrastructure work.

Seven years after the United States put a stop to the Islamic tyrannical leadership, the number of Taliban-directed attacks have increased, claiming the lives of hundreds of civilians. Foreign aid workers have been kidnapped and murdered in what appears to be a well-designed attempt to terrorise humanitarian workers and help organisations. The Talibans have succeeded to take over the southern and eastern parts of the country. At the same time that the peacekeeping soldiers protect the local population, they must also work to reduce the local support for the Talibans. It raises a question on why some local people still support the Islamic extremists.

The opening of a Swedish Embassy in Kabul is a positive development even if the security situation is far from satisfactory. The diplomatic move has sent the right signal to the world, that an international community investing both economically and emotionally in Afghanistan's young democracy is not giving up. (With translations from Dagens Nyheter, 2 Nov. 2008)

Sweden braces for deep recession

The financial crisis is hitting the Swedish economy with full force as the credit squeeze tightens the belt of almost all types of business enterprise, reports Dagens Nyheter today. The recession is the worst yet since the 1990s, and it is predicted that 100,000 jobs will disappear from the Swedish market.

In a report by the Institute of Economic Research (KI), not only will 100,000 jobs leave Sweden but unemployment will rise from 6 to 8 percent. When the Lehman Brothers- one of the world's biggest investment banks hit the rocks in mid-September this year, the KI was forced to revise its recession forecast. The widespread loss of confidence in the banking system made it impossible for the credit system to function. KI revised its August analysis- and the economic forecast is worst than expected.

The GNP or Gross National Product - which measures the value of all production and services of a country, will grow by only 1.2 percent. Even in the forthcoming last quarter of the year and the 1st quarter of 2009, the GNP growth will contract to 0.1 percent. In 2010, the economy is expected to improve although not enough to create more jobs. "We see no recovery before 2010," says Urban Hansson of KI.

As the Swedish economy dives into unprecedented recession, the parliament approved on Wednesday a stability package presented by the Alliance government. It takes effect today, Thursday. "The objective is not to support the banks but the households with loans and companies that need credit for their orders," says Finance Market Minister Mats Odell. The stability package consists partly of a guarantee for the banks' borrowings, and partly on the rules on how banks in crisis could be saved. The guarantee amounts to 1500 billion SEK. The state will take in from banks and other participants a total of 2.64 billion SEK yearly.#

Where does Swedish aid money go?

Swedish development aid is an issue that generates controversy, especially if the reasons for its existence which is basically the reduction of poverty among the poorest in the world, is not achieved. In a special report today in Dagens Nyheter, the utilisation of Swedish aid money is once again under close scrutiny.

It appears according to the report, that no other previous Swedish government have had so much money to give to the poorest countries than the current Alliance government. From the level of SEK14 billion in 2000, development aid has risen to SEK34 billion today, although the recession may eat up some of this amount. But the controversy is not on how huge the aid money is but rather where and how it is used that bothers many.

One important reason why the Swedish aid money has grown enormously is the 1 percent of the gross national product (BNP) target that is expected to go to development assistance. With the looming recession, this one percent is a huge amount to pay. Swedish development assistance Minister Gunilla Carlsson is quoted as saying:"An economic brake means low demand in the world market, reduced export from developing countries, low national incomes because att the prices of raw materials have gone down and foreign investments are also down.There is also the risk that developed countries become more protectionist and less generous with their aid money as well as less enthusiasm to fulfill earlier commitments," Carlsson says.

SIDA, the Swedish development aid authority was earlier criticised for irregularities in the accounting and auditing of several projects. Bengt Nilsson's book "Sweden's African War," pointed out that in principle all development aid to countries should be abolished because it often ends up supporting wars and corrupt regimes.

As far as Gunilla Carlsson is concerned, the current recession is a good argument against the 1 percent aid target. At present, Swedish aid money goes to supporting diplomatic presence, as in Kabul; asylum and refugee reception and debt writeoffs. The biggest aid receiver is still Africa with SEK6.2 billion; Asia with SEK2.8 billion; Oceania with SEK2.4 billion and South-Central America with SEK1.4 billion. The rest of Europe and the Central and Eastern Europe gets SEK1.4 billion and SEK319 million, respectively.

How the future of the Swedish development aid will look like depends upon the outcome of the ongoing debate among the different political parties and the global economic meltdown.#