Getting the balance right – the Nordic experience
Tanzania and the Nordic countries enjoy outstanding relations. Over the years many politicians, government officials, scientists, businesspeople, religious leaders and civil society actors from our respective nations have formed close relations and engaged in constructive and lively discussions. The aspirations of the Nordic countries are in many ways similar to those of Tanzania, and we believe that sharing experiences with one another is in our mutual interest.
One area which has been central to the debate on economic policies in the Nordic countries, is the balance between state, market, and community. Nordic countries subscribe to the principle that “Nation-states should not take on tasks which are better left to the market or to communities”. This argument, put forward by leading economist Joseph Stiglitz, recalls that there is a myriad of roles that businesses, communities and governments can play at various levels in society. And these three sets of actors should be supportive of each other and work in complementary ways.
The role of the Government is to make sure that there is a clear set of rules to avoid uncertainty and to provide a conducive environment for all actors to thrive in. This requires strong institutions and a regulatory framework that is stable, transparent, and fully understood by the parties involved. The renewed commitment by the Government of Tanzania to create a predictable business environment is a welcome message for Nordic businesses interested in investing here. Deepening the economic and trade relations between Tanzania and our countries is a priority for us!
The private sector creates value and jobs and drives innovation and investment. Competition in the marketplace contributes to enhanced efficiency and economic growth. The interplay between the state and the market is crucial since they mutually reinforce each other. For example, Denmark’s flexicurity system gives companies the flexibility to manage personnel according to needs, and – in order to balance this flexibility – gives the employee the security of up to two years’ of benefits, if s/he is a member of an unemployment fund. Retraining programmes are also offered to get people back to work as soon as possible.
Inclusiveness, gender equality, and a vibrant civil society bring social and economic benefits. Various non-state organisations and associations have been important to mobilise people’s interest and participation in society at large. The Nordic countries have experienced that freedom of expression and openness foster debate and exchange of different views. Women’s participation in the workforce, as well as their equal representation in democratic institutions, have greatly contributed to our general wellbeing. In Norway, a country famous for its large income from oil and gas, it has been calculated that integrating women in the workforce has contributed more to GDP growth than the income from oil and gas. We strongly believe that everyone should have a voice. The digital transformation and a free, open, and secure internet are vital aspects of development. Three decades ago, Linux was developed by Linus Torvalds in Finland. It is now the most widely used open-source operating system in the world. In a nutshell, it demonstrates the Nordic spirit bringing innovation, creativity, entrepreneurship, inclusiveness, and openness to the world.
Trust is the glue that keeps this all together and it is key for Nordic countries. Trust is built on a system of accountability with checks and balances where state, market and community respect their different roles. Furthermore, there is evidence that trust in fellow citizens and institutions brings significant economic and social gains. People trust that others pay their taxes; and that the government spends the money wisely and provides social services like health and education equally and irrespectively of economic status. People also trust that the systems work the way they should and that the risks for corruption and fraud are minimised. But trust is neither automatically given nor constant – it must be continuously earned.
In order to promote accountability, it has also been vital for the Nordic countries to maintain the balance between the legislative, executive, and judicial branches of government. We have benefitted from each branch of governance understanding its own role and respecting the role of others. Building institutions takes time, but it pays off. The Government of Tanzania and various Nordic institutions have worked closely together to build capacity and we have come a long way. The National Audit Office of Tanzania (NAOT) is a great example of such collaboration and showcases the role of an oversight organ that provides services to improve public sector performance, accountability, and transparency.
The Nordic region is at the cutting-edge of sustainable development and provides numerous examples that sustainability and economic growth reinforce each other. All the Nordic countries have set national goals for carbon neutrality before mid-century. It will require major efforts by all parties involved, but many Nordic companies now realise that there is a strong business case for integrating environmental concerns as a core value. In Sweden, the industry together with the state and research institutes is developing the first fossil-free steel production called HYBRIT. Tanzania has the chance to leapfrog and avoid some of the environmental mistakes that other nations made during their industrialisation processes. The pandemic has disrupted the global economy in many ways and as we now look to the future, we are granted a window of opportunity to build back better and greener.
In the Nordic countries it has been possible to combine welfare and a thriving private-sector; economic growth and ambitious climate goals; and to balance workers’ rights while supporting entrepreneurs. Individual citizens, civil society organisations, businesses, and governments, can use their different capacities, skills, and methods to contribute to the sustainable and inclusive development of our societies.
Balancing the roles of government, private sector and civil society is not easy; it is not possible to get it all right all the time. But with an open dialogue and constant reviewing, it is possible to get it right enough.
To celebrate our excellent relationship with Tanzania, The Nordic Embassies in Tanzania (Denmark, Norway, Finland and Sweden) annually organise the Nordic Week. This year it will take place 20-28 May and includes film screenings, workshops, and the digital exhibition #nordicfootprintstz, showcasing Nordic presence in Tanzania.
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Mette Nørgaard Dissing-Spandet is the Ambassador of Denmark to Tanzania; Riita Swan is the Ambassador of Finland to Tanzania; Elisabeth Jacobsen is the Ambassador of Norway to Tanzania; Anders Sjöberg is the Ambassador of Sweden to Tanzania
