Danish Capitalism in the 20th Century

This book outlines the origins of Danish Capitalism and prosperity, from a poor and devastated minor state in the 19th century to a consolidated universal mixed economy welfare state at the end of the 20th century. The book argues that firm-based innovation drove Danish prosperity and redistributive capacity. It is a comprehensive but manageable examination of the institutions and choices that shaped a highly innovative and wealthy nation. The book relies on history and economic theory, presents commonly accepted narratives and theories, and contributes new explanations. Therefore, the book also traces both antecedents and the current state of 20th-century capitalism in Denmark and particular outcomes and critical institutions such as firm age, the labor market, and pension schemes. The book will be of interest to academics in business history and economic policy, as well as policymakers and all those interested in mixed economy studies.

“Sløk-Madsen’s rich historical narrative is a significant addition to our understanding of the many varieties of capitalism, and a true case study of ‘innovism’. The account of Danish firm-based capitalism explores four key and “uncontested” pillars of Denmark’s success: freedom of speech, free markets generate wealth, small nation, and socialist compromise. The extensive references, including many Danish language-only sources, dispel the misguided notion held by many non-Danes that Denmark’s remarkable success is somehow due to a socialist welfare state. This text is a must-read for any student of Danish economic history, as well as for practitioners and policymakers who will need to understand the historical context and many experiments in order to develop and implement change.” (--Siri Terjesen, Professor of Entrepreneurship & Associate Dean for Research and External Relations at Florida Atlantic University College of Business)

“If a colleague had asked me about an interesting topic that has not been researched, I would have recommended writing a book about Danish Capitalism. The reason is that Denmark is always held up as an example of a highly successful society that everyone wants to emulate, including Americans. Stefan Kirkegaard Sløk-Madsen has produced a masterpiece on Danish Capitalism, and it is written for a non-Danish audience. This is a must-read for all those interested in lessons for the 21st Century from the 20th Century. A great read and an important one.” (— Zoltan Acs, Professor at the Schar School of Policy and Government and Director of the Center for Entrepreneurship and Public Policy at George Mason University)

“How does a small country of only six million compete in the global economy? Stefan K. Sløk-Madsen expertly answers that question in his compelling new book, Danish Capitalism in the 20thCentury, A Business History of an Innovistic Mixed Economy. Many incorrectly believe Denmark is a socialist state. After reading this book, they will understand that Denmark's economy is clearly capitalistic but implements a high tax rate with comprehensive welfare benefits. 

Sløk-Madsen masterfully provides an economic history of Denmark and explains how a small country with no large natural resources was able to create such large globally diverse companies as Maersk, Lego, Bang & Olufsen, and Carlsberg. The Danish penchant for citizen trust in each other, in institutions, property rights and the rule of law coupled with minimal corruption make ideal grounds for an "innovistic" economy or one that focuses on the interaction of traditional institutions and the consensus driven freedom to try novel approaches. While there are many types of capitalism the Danish variant has flourished by using the country's location, size and demographics to its full economic benefit.” (--David Iglesias, J. D. Jean and E. Floyd Kvamme Associate Professor of Politics and Law and Director of WheatonCenter For Faith, Politics and Economics at Wheaton College.)

 

“Sløk-Madsen traces the institutional changes that accompanied the transition of Denmark from a liberal market economy to a full-blown welfare state. For readers who, like myself, know little about this story, th is is the book for you.” (--Bruce J. Caldwell Research Professor of Economics and Director of Center for the History of Political Economy, Duke University.)

 

 

”This book is a tour-de-force in the history of Danish capitalism, and the author possess the courage to provide a liberalistic argument. The author promotes the importance of private innovation in contrast to the well-known understanding of Danish capitalism as a state-driven development of a welfare society. The importance of public institutions and welfare is recognized by the author but the point is that economic progress is to be understood in a market economic context driven by individual privateentrepreneurs rather than in a welfare context driven by a large public sector. It is a thought-provoking and recommendable read for the domestic as well as the international audience. “Danish Capitalism in the 20^th Century – a Business History of an Innovistic Mixed Economy” is based on a solid theoretic understanding of the concept of capitalism and an in-depth analysis of the historical development.” (--Martin Jes Iversen, Associate Professor of Business History and Vice Dean of International Education, Copenhagen Business School)

“This book is a very timely and insightful corrective to the stories often told by media and politicians about Denmark. Stefan K. Sløk-Madsen not only documents how Denmark grew rich before the welfare state, but also how the current welfare state rests on a highly capitalist private sector, and how that sector developed. His book is a must-read to anyone with an interest in the quirks and special features of the Scandinavian societies and their thoroughly individualist market institutions.” (--Christian Bjørnskov, Professor of Economics at Aarhus University)

“American critics of socialism frequently hear people say ‘well, socialism works in Denmark!’ Danish Capitalism in the 20^th Century: A Business History of an Innovistic Mixed Economy is an important corrective to a simplistic narrative. By adopting a business history approach, Stefan K. Slok-Madsen explains the real source of Danish economic success: economic growth driven by innovism, not redistribution. If you’re looking for a brief but comprehensive introduction to Danish economic history, this is the book to read.” (--Art Carden is a professor of economics at Samford University’s Brock School of Business.)

 

 

Dr. Stefan Kirkegaard Sløk-Madsen holds a Ph.D. in economics from Copenhagen Business School (CBS). He has been a visiting researcher at UBC Sauder School of Business and is an external lecturer at CBS and Aalborg University. He has published in peer-reviewed journals and presented his academic work at several international conferences. He has an industry background as a tech entrepreneur and in operational private equity and has consulted for many companies on issues such as M&A, pricing, and sales. He is currently Head of Education at the economic think tank CEPOS and hosts a popular podcast series on the history of economic thought, EconRoots.