Ollila promotes Nordic model of capitalism

Jorma Ollila

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Jorma Ollila, the chairman of the boards of Nokia and Royal Dutch Shell, says that the world, now suffering painfully from the current economic slowdown, should look to the Nordic model of capitalism.
      In an interview with the Financial Times, Ollila says that the countries could learn a lesson on how the Nordic region rose from the economic crisis of the 1990s.
      Ollila says that Nordic capitalism is typified by an openness to globalisation, which is balanced by government programmes that protect people from the extremes of capitalism and provide equality in education.
      “What is the future of capitalism? In one way or other the answer is to solve these issues that the Nordic model does well. These are the ingredients. The Nordic model has a good bid [to be the best system]”, said Ollila to the FT.
     
In addition to chairing the boards of Nokia and Shell, Ollila is the head of the European Round Table of Industrialists (ERT), which brings nearly 50 of Europe’s leading corporate executives to regular meetings.
      In the interview, Ollila criticised the way that some corporate executives focus exclusively on increasing the market value of their companies’ shares.
      Ollila predicts that the present crisis will lead to new thinking in the corporate world. He sees the issue as being a question of more than a company’s short, medium, and long term profitability. It also involves certain values, and how a company takes its other affinity groups into account.
     
Ollila says that in the 1990s Nordic politicians showed wisdom, and did not fall into the trap of protectionism. Politicians made decisions that included great risks, Ollila said, without going into more detail. At the same time Nordic companies, such as Nokia, restructured themselves heavily and made themselves very competitive.
      Ollila sees a serious danger that the world economy will slide into a depression if politicians fail to resist protectionist pressures. Ollila is also concerned about unrest in several European countries, which he fears might spread.


Previously in HS International Edition:
  “Wow!” said Ollila (10.3.2009)

Links:
  FT: Nordic model is "future of capitalism"

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