About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (April 28, 2023)

handle is hein.crs/govelll0001 and id is 1 raw text is: Congressional Research Service Informing Ih Kegilative d tbt sin 'e 114 The Nordic Countries and U.S. Relations Updated April 28, 2023 Political and Economic Overview The five Nordic countries-Denmark, Finland, Iceland, Norway, and Sweden-share deep historical, linguistic, and cultural ties and many political and economic similarities. They are all stable democracies with parliamentary systems of government and prosperous market economies with relatively high standards of living. With a total population of over 27 million people (see Figure 1), the Nordic countries collectively form the world's 1 th-largest economy. They have extensive social welfare systems and relatively high tax rates but are considered to be innovative, business-friendly countries. The Nordics generally rank high on global competitiveness indexes. Foreign trade plays a key role in their economies. They also enjoy substantial natural resources. Norway in particular benefits from vast North Sea oil and natural gas deposits. Like most other countries, the Coronavirus Disease 2019 (COVID-19) pandemic posed public health and economic challenges for Nordic governments. Gross domestic product (GDP) contracted in all five Nordic countries in 2020 due to the pandemic, but rebounded in 2021. Growth was lower than initially predicted in 2022, however, partly due to the economic impact of Russia's war against Ukraine (launched in February 2022). Like other European countries, most Nordic governments are grappling with high energy prices and inflation (between 6% to 8%). Growth is expected to slow in all five Nordic countries in 2023 (to between 0% and 2%). Aging populations and fertility rates below replacement rates raise questions about the long-term sustainability of the Nordics' social welfare systems. In recent years, migration policy has become a key political issue in the Nordics. The 2015-2016 spike in refugees and migrants in Denmark, Finland, Norway, and Sweden- mostly from the Middle East, Afghanistan, and Africa- strained education, housing, and welfare systems. Most Nordic governments introduced tougher asylum policies and curtailed some welfare benefits. The refugee and migrant waves also stirred debates about identity, integration, and security (in relation to both terrorism and crime). Refugees from Ukraine, however, generally have been welcomed by Nordic governments and societies. Over the past decade, economic and immigration concerns have generated voter distrust of established center-right and center-left political parties throughout the Nordics, fueling the rise of populist parties and upending some traditional political alliances. Most anti-establishment, populist parties in the Nordics are on the right or far right and hold nationalist and anti-immigrant views. In Sweden, a far-right party has provided parliamentary support for a center-right government since October 2022 (in exchange for tightening immigration, asylum, and criminal justice policies). Following Finland's April 2023 election, a far-right party with nationalist, anti-immigrant views may join a coalition government led by a center-right party. Figure 1. The Nordic Countries: Key Facts Membership(s)* M NATO European Union (EU) Bth *Sweden applied to join NATO in May 2022; its accession remains pending. A Population S GDP (nominal, 2022) Icelan d A 376,000 $28 billion Norway £A millionh- $576 billion DAJenmark .~even 5.8 milion=10.5 illion1 $41 bilion Source: Graphic by CRS, based on Economist Intelligence Unit data. Foreign and Security Policies The Nordic countries generally share an international outlook that prioritizes cooperation, both among themselves and with the international community. The Nordics work together on regional issues in the interparliamentary Nordic Council and the intergovernmental Nordic Council of Ministers. They promote Nordic defense cooperation through NORDEFCO, a forum that brings Nordic military officials together. Since the 1950s, the Nordic Passport Convention has allowed Nordic citizens to travel freely and reside in any Nordic country. The Nordics also are strong proponents of the United Nations and multilateral solutions to global challenges. They are frequent contributors to international peacekeeping missions, major providers of development and humanitarian assistance, and supporters of U.N. efforts to address climate change. As shown in Figure 1, the five Nordic countries are either NATO members or aspire to join NATO. Although traditionally militarily nonaligned, Finland and Sweden applied for NATO membership in May 2022 given growing security concerns about Russia. Finland joined NATO in April 2023, but Sweden's accession has faced a delay (see below). Nordic membership in the European Union (EU) varies. Finland is the only Nordic country that uses the euro, the EU's common currency. Although not in the EU, Iceland and Norway participate in the EU's single market and Schengen area of free movement. Nordic Secunty, NATO, and Russia Since 2014, Russia's aggression in Ukraine and increased military activity near Nordic borders have alarmed Nordic officials. Nordic countries responded by enhancing defense

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most