Swedish ball-bearings and The German war economy

Abstract

Sweden's export of ball-bearings to Germany during the Second World War attracted remarkably intensive international attention even at the time. Historians have also shown a great deal of interest in these transactions: the export of ball-bearings has rightly been regarded as a kind of barometer of Swedish wartime commercial policy. ¹     

Big business in Sweden: The golden age of the great Swedish shipyards, 1945–1974

Abstract

This article examines the great Swedish shipyards during the long period of expansion and transformation which lasted from the end of the Second World War to the beginning of the shipping crisis in 1974. It aims to try to explain the successes achieved during this period of growth. Swedish shipbuilding's character as an export industry was linked to the rapidly growing international oil economy and the building of tankers which created enormous opportunities for development. The tanker vessel's simple hull, along with the requirement of tightness, brought an early orientation towards welding and sectional building. The demand for ever-larger vessels resulted in the alignment of production systems towards such construction. The consequences of this are studied in terms of markets, financing problems, investment. production technology and the role ofthe state.     

Endogenous and exogenous variables in trade agreement policy:

Abstract

Trade agreement negotiations are the forum in which a state tries to synchronise its trade policies with other countries. This article examines the effects of endogenous and exogenous variables in trade agreement decision-making. The study concentrates on Finland's most important trade agreement negotiations with the Soviet Union, Germany, Great Britain, and EFT A from the 1930s to the 1960s. Finland was a small, open economy that was dependent on foreign trade. In the 1930s Finland had to adapt to international protectionism, which came to dominate international trade until the late 1950s. During the Second World War Finland had to regulate her foreign trade as a part of rationing systems. After the war protectionist ideas continued to dominate international trade policy decision-making. Accordingly, many regulative policies survived into the post-war period too. Finally, deregulation in Finnish foreign trade policy started in the late 1950s, the FINN-EFTA-negotiations being the final turning point to a more liberal era in foreign trade. The essential question in the article is, what kind of influence did the endogenous interests have on Finnish trade policy decision-making considering the various situations in international politics, for example, protectionist and deregulative tendencies.     

Nations,clusters and culture: Nycomed and world leadership in the field of x-ray contrast media

Abstract

The topic of the article is to offer a new interpretation of the history of Norway's agricultural protectionism in a West-European context. Agricultural protectionism was not deeply rooted economically, politically or institutionally prior to the Second World War. Before the First World War the most commercially oriented part of Norwegian agriculture – milk production and the dairy industry – was export-oriented. Norway was the last country to join the protectionist wave in the late nineteenth century and in practice it followed the most liberal trade policies in agricultural products next to Britain, Denmark and the Netherlands. It is argued that the 1920s were generally relatively more important and the 1930s relatively less important for later developments than assumed in the most of the literature on agricultural protectionism.     

A Tale of Two Peripheries: Real Wages in Denmark and New Zealand 1875–1939.

Abstract

Denmark achieved dramatic real wage growth after 1870, compared to other European economies and to those of the New World. The ingredients of Denmark's success are gauged by comparison with one its major competitors in the British food-products markets, New Zealand. Faster Danish productivity growth explains only part of Denmark's faster real wage growth. Open economy forces, chiefly international capital flows before 1913, and especially Danish trade union militancy around the end of World War I, influenced income distribution and especially favoured wages over property income in Denmark. Denmark's GDP per capita equalled New Zealand levels between the world wars but her real wages surged past those of New Zealand as distributional shifts favoured Denmark's wage earners.     

Silent spring and the nordic agricultural maqazines

Abstract

The connection between mad cow disease (BSE) and humans, and the outbreak of foot-and-mouth disease (FMD) in Great Britain in February 2001, have shaken the principles of the commercial farming business. The great leap from mixed organic farming to commercial farming took place in the industrialised countries soon after the Second World War. Important preconditions for commercial farming were the new innovations made in the agricultural chemistry. The principles of commercial farming were for the first time called into question at the beginning of the 1960s by the late American biologist, Rachel Carson, in her book, Silent Spring (1962). The book was a ‘declaration of war’ on the chemical companies and researchers working with chemical crop-protection all over the world. Silent Spring was soon translated into the Nordic languages. This article focuses on the reactions of the leading Finnish and Swedish agricultural magazines to Carson's provocative claims. Among Swedish agricultural experts, Carson's book inspired a critical debate about the safety of chemical crop-protection, whereas in Finland the agricultural magazines wanted to skate over Carson's disagreeable accusations. The attitudes of the agricultural, magazines to Silent Spring are approached from agricultural political and ethical aspects.     

The Swedish Salt Market during the Great Northern War

Abstract

The purpose of this article is to examine the effects of the great naval blockade on the Swedish salt market during the Great Northern War (1700–1721). Whether or not salt can be perceived as a strategic good subject of wartime shortage is important in interpreting the reasons behind the famous Swedish Navigation Act of 1724. New research claims that the Navigation Act was a welfare enhancing institution, as it helped to secure salt imports. This essay shows that although Sweden was at war with most European Great Powers and the subject of sea blockades during the Great Northern War, the salt market still worked remarkably well. Neither supply nor salt movements show any signs of a great crisis. Thus, there was no need to secure salt imports during the period of peace that followed. Consequently, the Swedish Navigation Act had little to do with welfare but more with rent seeking and monopolies on the freight market.     

Dutch and Danish agricultural exports during the First World War

Abstract

The Danish agricultural sector continued to maintain agricultural exports to Great Britain during the First World War, even when higher prices ruled on the German market. Dutch agricultural exporters, 011 the other hand. continued to sell to the highest bidder; until, in 1916, British pressure forced them to do otherwise. It was not the Danish government but the Danish cooperatives who were responsible for Danish agricultural export policy, especially in the first years of the war. More than was the case with the Dutch exporters, the Danes were highly dependent on the British market. The strong Danish cooperatives (in contrast to the weaker Dutch agricultural organizations) forced the Danish government to support their strategy in order not to lose their suppliers to the newly establishedfirms who were exporting to Germany.     

Reviews

Abstract

Professor Hugo E. Pipping's work on the vicissitudes of the Bank of Finland (the central bank of the country) is one of the weightiest contributions that has yet been made to Finnish economic history. With the completion of volume lIt he has brought the story up to the beginning of World War I.     

A 1735 Danish tract on economic policy

Abstract

About 1720 nearly all Western European countries experienced a monetary expansion which manifested itself most strongly in John Law's banking in France and the English ‘South Sea Bubble’. The same trend was in evidence in the Danish Monarchy; during the last years of the Northern War bank notes (‘kurantsedler’) equivalent to about one million rix-dollars were issued to meet the substantial military expenses.     

From growth studies to microhistory: Finnish economic and social history in the 1990s and early 2000s

Abstract

Economic and social history was already being practised in Finland before the Second World War, although it became established as an independent academic discipline only after the war. The terms social history or economic history were not used then; what we now recognise for instance as social history was then called “cultural history” or “history of the culture”. This approach was often characterised the collective approach to distinguish it from the individualistic approach of more historicist study. Nearly all economics research was historical before the 1950s, and practically all professors of economics were actually historians by training and had defended their dissertations in history, usually after having studied some economic problem of the past. But our discipline has also other roots. In Finnish universities the discipline called social policy, usually included in faculties of social science, has always had strong ties with social history.     

Taiwan's Yacht Industry: A Tale of Two Entrepreneurial Firms

Abstract

This paper studies the evolution of Taiwan's yacht industry in general, and in particular we focus on two entrepreneurial firms, the Horizon Yacht Company and the Jade Yacht Company. Our purposes are two-fold. First, most research studies on Taiwan's economic success are based on the neoclassical economic model, which uses a proportional input-output production function, and emphasizes aggregate data to explain economic growth. We instead emphasize the role of entrepreneurship, which allows us to investigate closely how each individual firm discovers opportunities, exploits profits, and accumulates its capabilities to create perpetual wealth. Second, Taiwan is a very entrepreneurial society and its entrepreneurial spirit permeates into every corner with successful stories not just confined to some champion industries, such as integrated circuits (ICs), personal computers (PCs), etc. Taiwan's yacht industry, though it sailed through stormy periods in the late 1980s, has learned to grow to be a much more competitive player on the world stage. We show two cases of yacht corporations, Horizon and Jade, to shed light on how the firms use variant strategies to build their continuous competitive advantages, to meet challenges, and to galvanize their capabilities on their pathway to growth.     

Engineer training in Sweden during the postwar period in the context of technical and structural change

Abstract

A predilection for far-reaching social planning has been the norm in Sweden for most of the postwar period. During the Second World War, for example, planning ideas were developed by Swedish economists and officials (most of them associated with Social Democratic circles) serving on the Myrdal Commission, as it was called.1 Many of these ideas turned up subsequently in the labour movement's postwar programme and were implemented to some extent during the 1950s and 1960s. In this way a kind of supply economy came into operation. Many prominent Swedish economists became heavily involved in the work of forecasting and planning, in which oneimportant planning aim was the avoidance of structural problems. The end in view, in other words, was to plan in such a way that mutually complementary combinations of productive resources were to hand at every given point in time. Manpower forecasts and socio-economic ‘long-term planning commissions’ were some of the instruments that came to.be employed.     

Joseph Schumpeter in Sweden

Abstract

Different aspects of Schumpeter's relationship with Sweden are explored in this article. Schumpeter visited Sweden a few times in the inter-war period in his capacity of well-known economist. During World War I he also wished to go to Sweden to gather information that would be of assistance to the Austro-Hungarian Empire. Schumpeter refered occasionally to Sweden in his writings, usually as a symbol for socialism and as a threat to capitalism. However, he failed to recognise that Sweden also had a vigorous tradition of entrepreneurship, as exemplified by the Wallenberg family and the Rausings. Schumpeter's view of Swedish economists is also discussed, as is the extent to which Swedish economists have been influenced by Schumpeter.     

Books and publications received

ABSTRACT

Economic theory predicts that regional wages will converge as transport and communication technologies bring labour markets together. An exploration of this transition from labour market segmentation to unification requires long-term evidence of nominal wages and cost of living by region. This paper presents new evidence of wages for male manufacturing workers and cost-of-living indices across 24 Swedish counties between 1860 and 2009. Our findings indicate that the Swedish regional wage differentials were a great deal larger in the 1860s than in the 2000s. Most of the compression took place between the 1860s and World War I, as well as in the 1930s and during World War II. Differences in expenditures on housing impact on our assessment of convergence in the post-World War II decades: the nominal measure declines, while the real one stays constant. Our concluding discussion engages with the assumption that before World War I, regional wage convergence was associated with labour mobility, spurred by improved communication and transportation technologies as well as by the implementation of modern employment contracts. In the 1930s and 1940s, in contrast, regional wage convergence can be traced to high unionisation and centralised collective bargaining in the labour market, two distinguishing features of the Swedish Model.     

‘Armament in depth’ or ‘armament in breadth’? German investment pattern and rearmament during the Nazi period1

Today, most scholars agree that Nazi Germany did not follow a premeditated Blitzkrieg strategy in the late 1930s and at the beginning of the Second World War. However, the question of the extent to which Germany's economy had been prepared for a longer war is still debated because statistical information on Germany's investment pattern is fragmentary and data on the structure of prewar German military expenditure are not available. Relying on newly discovered sources, this article closes these gaps. The Nazi regime clearly shifted its investment towards preparation for war from the mid‐1930s on, and though armaments purchases stagnated during the period from 1937 to 1939, investment in munitions industries grew considerably. Consequently, during the late 1930s the Nazis pursued a ‘sustainable’ rearmament strategy necessary for fighting a longer war. Yet, despite massive capacity enlargements in the munitions industries, total German investment was not unusually high by today's definition because contemporary figures included a significant amount of armaments purchases.     

Birgit Karlsson,Egenintresse eller samhällsintresse,Nazityskland och svensk skogsindustri 1933–1945

Abstract

In Vol. XV (1967) of this journal, Alan S. Milward and Jorg-Jöhannes Jäger published criticisms of my article on Swedish iron are exports to Nazi Germany.¹ Turning first to Milward's contribution, this is based on the assumption that the German economy was a ‘blitzkrieg war economy’ in the period preceding the attack upon the Soviet Union. This view, which has been expressed before by B. H. Klein, undoubtedly brings a number of valuable refinements into the hitherto exaggerated estimates of the level of German armaments at the outbreak of the Second World War.² But when he goes on to say that ‘in such a war economy all considerations of potential armaments-producing capacity were rejected in favour of present armaments-producing capacity’,³ Milward palpably oversimplifies a complex problem. In fact, the demand for an armaments programme ‘in depth’, to quote General Thomas, did make itself heard long before the autumn of 1941.     

Machine tools and mass production in the armaments boom: Germany and the United States, 1929–44

This article anatomizes the ‘productivity race’ between Nazi Germany and the US over the period from the Great Depression to the Second World War in the metalworking industry. We present novel data that allow us to account for both the quantity of installed machine tools and their technological type. Hitherto, comparison of productive technologies has been limited to case studies and well‐worn narratives about US mass production and European‐style flexible specialization. Our data show that the two countries in fact employed similar types of machines combined in different ratios. Furthermore, neither country was locked in a rigid technological paradigm. By 1945 Germany had converged on the US both in terms of capital‐intensity and the specific technologies employed. Capital investment made a greater contribution to output growth in Germany, whereas US growth was capital‐saving. Total factor productivity growth made a substantial contribution to the armaments boom in both countries. But it was US industry, spared the war's most disruptive effects, that was in a position to take fullest advantage of the opportunities for wartime productivity growth. This adds a new element to familiar explanations for Germany's rapid catch‐up after 1945.     

The political economy of post-war Finland, 1945–19521

Abstract

The paper is primarily concerned with the Finnish government's management of the Finnish economic situation after the Second World War. Overall, post-war policies were dominated by three main goals, first, how to deal with the war reparation payments required under the harsh political terms of the 1944 Armistice Treaty; secondly, to ensure the settlement of the Karelian refugees and demobilised veterans; and thirdly, the raising of production and the standard of living, including the easing of the rationing system. The focus is especially in analysing how this was financed externally and by the state economy without hyperinflation and considerable indebtedness of the state. From the point of view of the government finances, the financing of the war was transformed to the financing of the war reparations, the compensations due to the war and the settlement of the homeless people. The paper has drawn on the findings of the Studies of the Economic Growth of Finland and other sources and can be seen as a sequel to a previous article on the Finnish war economy between 1939-1945.²