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==20th century== With a broader voting franchise, the nation saw the emergence of three major party groups – [[Socialdemokratiska arbetarpartiet|Social Democrat]], [[Liberal People's Party (Sweden)|Liberal]], and [[Moderate Party|Conservative]]. The parties debated further expansion of the voting franchise. The Liberal Party, based on the middle class, put forth in 1907 a program for local voting rights later accepted in the Riksdag. The majority of Liberals wanted to require some property ownership before a man could vote, while the Social Democrats called for total male suffrage without property limitations. The strong farmer representation in the Second Chamber of the Riksdag maintained a conservative view, but their decline after 1900 gradually ended opposition to full suffrage. Religion maintained a major role but public school religious education changed from the drill in the Lutheran catechism to biblical-ethical studies. [[Image:Sweden Main Line Railways.png|right|thumb|200px|Main line railways built 1860–1930]] ===Sweden in World War I=== {{main|Sweden in World War I}} Sweden was neutral in [[World War I]], although the Swedish government was sympathetic to both sides at different times during the conflict, even briefly occupying the Åland islands jointly with the Germans. At first, the Swedish government flirted with the possibility of changing their neutral stance to side with the [[Central Powers]], and made concessions to them including mining the Öresund straits to close them to Allied warships wishing to enter the Baltic. Later the Swedish signed agreements allowing trade with the Allied powers and limiting trade with Central Powers, though this brought about the fall of the government of [[Hjalmar Hammarskjöld]]. === Industrialization: 1910–1939 === {{main|Industrialization of Sweden}} During the First World War and the 1920s, its industries expanded to meet the European demand for Swedish steel, [[ball bearing]]s, wood pulp, and matches. Post-war prosperity provided the foundations for the [[social welfare]] policies characteristic of modern Sweden. === Welfare state === {{See also|Swedish Social Democratic Party|Welfare in Sweden#History}} Sweden created a successful model of social democracy because of the unique way in which Sweden's labor leaders, politicians, and classes cooperated during the early development of Swedish democracy. Sweden's socialist leaders chose a moderate, reformist political course with broad-based public support. This helped Sweden avoid the severe extremist challenges and political and class divisions that plagued many European countries that attempted to develop social democratic systems after 1911. By dealing early, cooperatively, and effectively with the challenges of industrialization and its impact on Swedish social, political, and economic structures, Swedish social democrats were able to create one of the most successful social democratic systems in the world, including both a welfare state and extensive protections of civil liberties.<ref>Jae-Hung Ahn, "Ideology and Interest: The Case of Swedish Social Democracy, 1886–1911." ''Politics & Society'' 1996 24(2): 153–87.</ref> When the Social Democratic Party came into power in 1932, its leaders introduced a new political decision-making process, which later became known as "the Swedish model" or the ''[[Folkhemmet]]'' (''The People's Home'').<ref>{{cite web| url = https://www.academia.edu/8718837| title = Norbert Götz. "The Modern Home Sweet Home." The Swedish Success Story? Kurt Almqvist and Kay Glans (eds). Stockholm: Axel and Margaret Ax:son Johnson Foundation, 2004. 97–107, 300–302.| last1 = Götz| first1 = Prof Dr Norbert| access-date = 26 April 2018| archive-date = 17 February 2022| archive-url = https://web.archive.org/web/20220217102128/https://www.academia.edu/8718837| url-status = live}}</ref> The party took a central role, but tried as far as possible to base its policy on mutual understanding and compromise.{{citation needed|date=April 2018}} Different interest groups were always involved in official committees that preceded government decisions. ===Foreign policy 1920–1939=== [[File:Gustaf Adolfs torg 1934.jpg|thumb|250px|The Royal Swedish Opera in Stockholm ([[Autochrome Lumière]] 1934)]] [[Foreign relations of Sweden|Foreign policy]] concerns in the 1930s centered on Soviet and German expansionism, which pursuing abortive efforts at [[Nordic countries|Nordic]] defense co-operation. === Sweden during World War II === [[File:HMS Gustav V.jpg|thumb|250px|Coastal defence ship of the Swedish Navy HM Pansarskepp Gustaf V (Agfacolor photo until 1957)]] {{main|Sweden during World War II}} Sweden followed a [[Swedish neutrality during World War II|policy of armed neutrality]] during [[World War II]], although thousands of Swedish volunteers fought in the [[Winter War]] with Finland against the Soviets. Sweden did permit German troops to pass through its territory to and from occupation duties in Norway,<ref>N. Vukolov, "In Sweden at the time of World War II," ''International Affairs: A Russian Journal of World Politics, Diplomacy & International Relations'' (2010) 56#4 pp. 247–61.</ref> and supplied the Nazi regime with steel and ball-bearings. The dominant historiography for decades after the war ignored the [[Holocaust]] and used what it called the "small state realist" argument. It held that that neutrality and co-operation with Germany were necessary for survival since Germany was vastly more powerful, concessions were limited and were only made when the threat was too great. Neutrality was bent but not broken; national unity was paramount; and in any case, Sweden had the neutral right to trade with Germany. Germany needed Swedish iron, and Sweden had nothing to gain and much to lose from an invasion.<ref>John Gilmour, ''Sweden, the Swastika, and Stalin: The Swedish Experience in the Second World War'' (2011) pp. 270–81 [https://www.questia.com/library/120075612/sweden-the-swastika-and-stalin-the-swedish-experience online] {{Webarchive|url=https://web.archive.org/web/20190527124551/https://www.questia.com/library/120075612/sweden-the-swastika-and-stalin-the-swedish-experience |date=27 May 2019 }}</ref> The nation was run by a national unity government, which included all major parties in the Riksdag except the communist party. Its key leaders included Prime Minister [[Per Albin Hansson]], [[Gustaf V of Sweden|King Gustav V]], and Foreign Minister [[Christian Günther]]. Humanitarian aid to Jews facing the Holocaust was the mission of Swedish diplomat [[Raoul Wallenberg]]. As the secretary of the 1944 Swedish delegation to Hungary, to co-ordinate humanitarian relief for the Jews of Europe during the Jewish Holocaust. He helped to rescue tens of thousands of Jews in Nazi-occupied Hungary in late 1944. He disappeared in January 1945, and probably died in a Soviet prison in 1947.<ref>Johan Matz, "Sweden, the United States, and Raoul Wallenberg's Mission to Hungary in 1944," ''Journal of Cold War Studies'' (2012) 14#3 pp. 97–148 [http://muse.jhu.edu/journals/journal_of_cold_war_studies/v014/14.3.matz.html in Project MUSE]</ref> === Post-war Sweden === {{main|History of Sweden (1945–1967)|History of Sweden (1967–1991)|History of Sweden (1991–present)}} Sweden was one of the first non-participants of [[World War II]] to join the [[United Nations]] (in 1946).<ref>{{cite web| url = https://www.researchgate.net/publication/290481487| title = Götz, "From Neutrality to Membership" .| access-date = 26 April 2018| archive-date = 27 April 2018| archive-url = https://web.archive.org/web/20180427044827/https://www.researchgate.net/publication/290481487| url-status = live}}</ref> Apart from this, the country's leaders tried to stay out of alliances and remained officially neutral during the entire [[Cold War]], not joining [[NATO]] until 2024. The social democratic party held government for 44 years (1932–1976). They spent much of the 1950s and 1960s building ''[[Folkhemmet]]'' (''The People's Home''), the Swedish [[welfare state]].<ref>{{cite web| url = https://www.academia.edu/8718837| title = Götz, "The Modern Home Sweet Home."| last1 = Götz| first1 = Prof Dr Norbert| access-date = 26 April 2018| archive-date = 17 February 2022| archive-url = https://web.archive.org/web/20220217102128/https://www.academia.edu/8718837| url-status = live}}</ref> Sweden's industry had not been damaged by the war and it was in a position to help re-build Northern Europe in the decades following 1945. This led to an economic upswing in the post-war era that made the welfare system feasible.<ref>Albert Harold Rosenthal, ''The social programs of Sweden: a search for security in a free society'' (1967) ch. 7–8</ref> However, by the 1970s, the economies of the rest of Western Europe were prosperous and growing rapidly, while the Swedish economy stagnated. Many economists blamed its large tax funded [[public sector]].<ref>{{cite book|author1=Dezsö Horváth|author2=Donald James Daly|author3=Institute for Research on Public Policy|title=Small Countries in the World Economy: The Case of Sweden : what Canada Can Learn from the Swedish Experience|url=https://books.google.com/books?id=U7uRY3FvdC4C&pg=PA32|year=1989|publisher=IRPP|isbn=978-0-88645-063-2|pages=30–35|access-date=13 December 2015|archive-date=23 April 2023|archive-url=https://web.archive.org/web/20230423120141/https://books.google.com/books?id=U7uRY3FvdC4C&pg=PA32|url-status=live}}</ref> In 1976, the social democrats lost their majority. The 1976 parliamentary elections brought a liberal/right-wing coalition to power. Over the next six years, four governments ruled and fell, composed by all or some of the parties that had won in 1976. The fourth liberal government in these years came under fire by Social Democrats and trade unions and the Moderate Party, culminating in the Social Democrats regaining power in 1982. During the Cold War Sweden maintained a dual approach; publicly the strict [[Neutral country|neutrality]] policy was forcefully maintained, but unofficially strong ties were kept with the U.S., Norway, Denmark, West Germany, and other NATO countries. Swedes hoped that the U.S. would use conventional and nuclear weapons in case of a Soviet attack on Sweden. A strong ability to defend against an amphibious invasion was maintained, complete with Swedish-built warplanes, but there was no long-range bombing capability.<ref>Askelin, Jan-Ivar, [http://www.foi.se/FOI/templates/Page____3726.aspx "Lifeless lifeline to the west"] {{Webarchive|url=https://web.archive.org/web/20110607145055/http://www.foi.se/FOI/templates/Page____3726.aspx |date=7 June 2011 }}, ''Framsyn Magazine'', [[Swedish Defence Research Agency]], 2004, Issue 1, Retrieved 24 February 2010</ref> In the early 1960s, U.S. [[nuclear submarine]]s armed with mid-range [[UGM-27 Polaris|Polaris]] A-1 nuclear missiles were deployed not far from the Swedish west coast. Range and safety considerations made this a good area from which to launch a retaliatory nuclear strike on Moscow. The U.S. secretly provided Sweden with a military security guarantee, promising to provide military force in aid of Sweden in case of Soviet aggression. As part of the military cooperation, the U.S. provided much help in the development of the [[Saab 37 Viggen]], as a strong Swedish air force was seen as necessary to keep Soviet anti-submarine aircraft from operating in the missile launch area. In return, Swedish scientists at the [[Royal Institute of Technology]] made considerable contributions to enhancing the targeting performance of the [[UGM-27 Polaris|Polaris]] missiles.<ref>Bruzelius, Nils, [http://www.foi.se/FOI/templates/Page____4065.aspx "Secret nuclear submarines guaranteed Swedish security"] {{Webarchive|url=https://web.archive.org/web/20110607145108/http://www.foi.se/FOI/templates/Page____4065.aspx |date=7 June 2011 }}, ''Framsyn Magazine'', Swedish Defence Research Agency, 2005, Issue 1, Retrieved 24 February 2010</ref> On 28 February 1986, the Social Democratic leader Prime Minister [[Olof Palme]] was [[Assassination of Olof Palme|assassinated]]. The murderer was never found. Shocked Swedes worried whether the nation had lost its innocence.<ref>Jan Bondeson, ''Blood on the Snow: The Killing of Olof Palme'' (2005)</ref> On 28 September 1994, the [[Sinking of the MS Estonia|MS Estonia sank]] as the ship was crossing the Baltic Sea, en route from Tallinn, Estonia, to Stockholm, Sweden. The disaster claimed the lives of 852 people (501 of them were Swedes<ref>{{cite web |title=Sweden pays tribute |url=https://www.thelocal.se/20140928/sweden-pays-tribute-to-estonia-disaster-victims |website=www.thelocal.se}}</ref>), being one of the worst maritime disasters of the 20th century.<ref>{{cite news |last1=Henley |first1=Jon |last2=correspondent |first2=Jon Henley Europe |title=Estonia ferry disaster inquiry backs finding bow door was to blame |url=https://www.theguardian.com/world/2023/jan/23/estonia-ferry-disaster-inquiry-backs-finding-bow-door-was-to-blame |work=The Guardian |date=23 January 2023}}</ref> In 1995, a few years after the end of the Cold War, Sweden became a member of the [[European Union]] and the old term "policy of neutrality" fell out of use.<ref>{{cite book|editor1=Erich Reiter|editor2=Heinz Gärtner|title=Small States and Alliances|url=https://books.google.com/books?id=NjN6fJSLbggC&pg=PA103|year=2001|publisher=Springer Science & Business Media|isbn=978-3-7908-1403-3|page=103|access-date=13 December 2015|archive-date=23 April 2023|archive-url=https://web.archive.org/web/20230423120141/https://books.google.com/books?id=NjN6fJSLbggC&pg=PA103|url-status=live}}</ref><ref>Christine Agius, ''The Social Construction of Swedish Neutrality: Challenges to Swedish Identity and Sovereignty'' (2006) p. 207</ref> In a [[Referendums in Sweden|referendum]] held in [[2003 Swedish euro referendum|2003]], the majority voted not to adopt the [[Euro]] as the country's official currency. Foreign Minister [[Anna Lindh]] was murdered just before the referendum.<ref>{{cite news |title=Sweden says No to euro |url=http://news.bbc.co.uk/2/hi/europe/3108292.stm |date=15 September 2003 |access-date=2 February 2022 |archive-date=17 December 2020 |archive-url=https://web.archive.org/web/20201217161101/http://news.bbc.co.uk/2/hi/europe/3108292.stm |url-status=live }}</ref> During the 1980s, Sweden attempted to preserve its model of capitalism plus a generous welfare state through what it called a "bridging policy." Unintended consequences became apparent in the 1990s. There was an economic crisis with high unemployment and several banks and companies going bankrupt. There was high inflation as well as overheated real estate and financial markets and a negative real rate of interest. After 1991, these factors caused a recession with high unemployment. There were political reverberations and businesses called for [[Neoliberalism|neoliberal]] government policies.{{Page needed|date=November 2022}} By 2000, however, the positive trends dominated. Compared to the rest of Europe, unemployment in Sweden was low, while economic growth has been high, inflation low, the budget in balance, and the balance of payments positive.<ref>Lars Magnusson, "Do the Nordic Lights Shine Bright Again?–Sweden's Response to the 1970s and 1980s Crisis." ''Journal of Modern European History'' 9.2 (2011): 195–214.</ref><ref>Sofia Murhem, "Security and change: The Swedish model and employment protection 1995–2010." ''Economic and Industrial Democracy'' 34.4 (2013): 621–636.</ref>
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