The Nordic Countries' Trade Liberalisation in the 1950s: An introduction

Abstract

The fall of the Soviet Union re-awoke the interest in economic regime transformation. ¹ See for instance Dornbusch, R. et al (eds.), Postwar Economic Reconstruction and the Lessons for the East Today, Cambridge, Mass.: MIT Press 1993. How should liberated states navigate the complex and difficult transition from state controlled bilateralism to a market-oriented multilateralism? Liberalisation and structural adjustment could happen faster than the social institutions were capable of absorbing. Transnational economic integration brings returns and efficiency, but at the same time challenges the social and political institutions on which the economic transactions are based. Liberalisation of trade, capital and payments impose considerable constraints on the democracies' governments in their pursuit of national consensus, stability and prosperity. This topic is at the core of the globalisation debate, and formulated as a trilemma between economic integration, proper public economic management and national sovereignty. ² Lawrence, S.H., Reflections on managing Global Integration, Journal of Economic Perspectives, vol. 23, 1999, 3–18.