Tag Archives: Sweden

Night nurseries: Sweden’s round-the-clock childcare

This is an interesting solution to childcare as we move to a 24 hour society

Sweden has long had a glowing reputation for its generous childcare facilities and is regularly ranked as one of the best places to raise a family.

Each child is guaranteed a place at a public preschool and no parent is charged more than three per cent of their salary, with fees capped at SEK 1260 ($197, £132) a month for the country’s highest earners.

All other costs are covered by the state, which spends SEK 56.6bn ($8.9bn, £5.0bn) a year subsidising preschool services, more than its annual defence budget.

Most public nurseries offer care from around 06:00 to 18:00. But with the numbers of parents working flexible or unconventional hours going up, local councils are increasingly providing overnight and weekend services.

In south-east Sweden, the small, former industrial city of Norrkoping is among those already leading the way in out-of-hours care. There are four council-run nurseries open overnight here, the first of which launched 20 years ago.

“At first it was very hard to take my kids to sleep somewhere else and my heart was aching,” says mother Maria Klytseroff, 39, a part-time care assistant for people with learning difficulties.

Her children spend about two or three nights a week at one of the preschools, which is more like a homely apartment than an education centre.

“I am a single mum and I wanted to go back to my job, which is at night,” explains Maria.

“The children soon got used to it, they have friends and they adore the workers who look after them.”

Eighteen children are registered at the nursery.

The toddlers arrive in time to eat dinner, clean their teeth and then enjoy a bedtime story with a member of staff.

Two-year-old Leon is dressed in blue striped pyjamas and cuddles several teddy bears as he curls up beneath a duvet covered in cartoon characters.

You can argue all you want about whether or not this is right but a change in the economy means more of us work different shifts and not everyone has family they can depend on.  It does allow people who would otherwise be out of the workforce be able to participate.  Time will tell what the impact is going to be on the children.

How Sweden Solved it’s Banking Crisis

From the New York Times

Financial deregulation in the 1980s fed a frenzy of real estate lending by Sweden’s banks, which did not worry enough about whether the value of their collateral might evaporate in tougher times.

Property prices imploded. The bubble deflated fast in 1991 and 1992. A vain effort to defend Sweden’s currency, the krona, caused overnight interest rates to spike at one point to 500 percent. The Swedish economy contracted for two consecutive years after a long expansion, and unemployment, at 3 percent in 1990, quadrupled in three years.

After a series of bank failures and ad hoc solutions, the moment of truth arrived in September 1992, when the government of Prime Minister Carl Bildt decided it was time to clear the decks.

Standing shoulder-to-shoulder with the opposition center-left, Mr. Bildt’s conservative government announced that the Swedish state would guarantee all bank deposits and creditors of the nation’s 114 banks. Sweden formed a new agency to supervise institutions that needed recapitalization, and another that sold off the assets, mainly real estate, that the banks held as collateral.

Sweden told its banks to write down their losses promptly before coming to the state for recapitalization. Facing its own problem later in the decade, Japan made the mistake of dragging this process out, delaying a solution for years.

Then came the imperative to bleed shareholders first. Mr. Lundgren recalls a conversation with Peter Wallenberg, at the time chairman of SEB, Sweden’s largest bank. Mr. Wallenberg, the scion of the country’s most famous family and steward of large chunks of its economy, heard that there would be no sacred cows.

The Wallenbergs turned around and arranged a recapitalization on their own, obviating the need for a bailout. SEB turned a profit the following year, 1993.

“For every krona we put into the bank, we wanted the same influence,” Mr. Lundgren said. “That ensured that we did not have to go into certain banks at all.”