with Denmark via the O
¨
resund Bridge that opened in mid-2000.) Overall,
85 percent of Swedes now live in cities.
The third great transformation was the shift from a predominately agrarian
economy to an industrial one. The roots of this change lay far back in the
eighteenth century and even beyond, and the nineteenth centur y witnessed
important breakthroughs, especially in sectors such as mining, metal produc-
tion, paper, chemicals (explosives), energy, engineering, transportation, a nd
banking. A grand celebration of these changes was staged at the 1897 Stock-
holm Exposition, where dozens of manufacturers displayed their latest wares.
Economic growth accelerated in the twentieth century and expanded upon
these beginnings. Sweden became a major producer of hig h grade steel, ball
bearings, paper, ships, automobiles, domestic and military aircraft, weapons,
chemicals, pharmaceuticals, household appliances, communication electronics,
housewares, and fine furniture. Many Swedish companies became familiar
names worldwide: SKF, SAAB, Volvo, Nobel, L. M. Ericsson, Tetrapak, Elec-
trolux, Pharmacia, and IKEA.
It was in the context of these changes that the modern Swedish welfare state
was created. The “peoples’ home” (folkhemmet) that the Social Democrats
began to build in the 1930s had both contemporary and older roots. To some
extent, its origins lay in the rural societies that shaped the lives of their
members because they educated the young, had a hand in marriage partner
selection, provided employment for all, entertained, and cared for the sick
and the elderly. These tradition s reinforced some of the fundamental beliefs
of the Social Democrats, a moderate or reformist Marxist group whose leaders
believed in the possibility of transforming society through peaceful, parlia-
mentary means. Its leaders were also attracted to the ideas of social engineering
that became popular in the years between the World Wars and remained in
vogue for several decades after 1945.
Between 1933 and 1965, when the Social Democrats were able to build
working majorities in the parliament, the Swedish Model took form in a sys-
tem of programs intended to provide education, health care, housing, old-age
security and pensions, a strong infrastructure, quality in the arts, greater
leisure time, and employment for all. These programs were to be efficiently
delivered by an honest bureaucracy and paid for by taxes on incomes, property,
consumer goods, businesses, and inheritances. Adopting a system Marquis
Childs labeled “the middle way” (a compromise between communism
and capitalism, between state planned economies and the unfettered free
market) in the 1930s, capitalism was r etained as the norm in terms of busi-
ness ownership, manufacturing, sales, and most other economic activities.
Sweden never embarked on a wholesale program of nationalization, and the
state owned and operated relatively little within the context of Sweden’s
LAND, PEOPLE, AND A BRIEF HISTORY 15