NATIONAL INTELLIGENCE SURVEY 11; SWEDEN; THE ECONOMY

SECRET ll /GS /E Sweden M: y 1973 NATIONAL INTELLIGENCE SURVEY SECRET APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 NATIONAL INTELLIGENCE SURVEY PUBLICATIONS The basic unit of the NIS is the General Survey, which is now published in a bound -ky chapter format so that topics of greater per- ishability can be updated on an individual basis. These chapters Country Profile, The Society, Government and Politics, The Economy, Military Geog- raphy, Transportation and Telecommunications, Armed Forces, Science, and Intelligence and Security, provide the primary NIS coverage. Some chapters, particularly Science and Intelligence and Security, that are not pertinent to all countries, are produced selectively. For small countries requiring only i minimal NIS treatment, the General Survey coverage may be bound into )ne volume. 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Research was sub stantially completed by November 1972. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 S WEDEN CONTENTS This Cr neral Survey mprrccrlry ,'l r one slated Srl' lembrr 1967, copies of n�hich shoalcl hr (h.strollcu A. Characteristics of dev 1 1'opul ;ction W)d rronomic arlivity conccntratcd in the south; world's srcood- highest prr capita (:NF; heavy dependence� on foreign nc;u�kels; basic economic gods of the goverruu�ot; wide ec�ononcic� fluctuations in the late 1960's; pnblie sector us prim� mover of the c cunomv. B. Structure of the economy 4 1. Ovcry c w 4 Private enterprise .system with strong govern- ment influence; contribution of major sectors to GDF; strong international orientmion of cconomy. 2. Agriculture, forestry, and fishing; 5 a. Agriculture 5 Development pattern; small farm..; undc hressure to consolidate into larger units; labor; government support of farm in. comes; inwortance of animal husbandry; principal crops; increased productivity. SLClils r APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 Page b. Forestry 8 Extcnsive forests, a major national re- source., largely privately owned and effi- ciently manuged; woodpulp the mnior forest product; much of pulp and paper output exported. c. Fisheries 9 Relative unimportance of fishing; dec;in- ing catches; higher per capita fish con- sumption; large imprrts; government sup- port of the industry. .3. Fuels and power 11 a. Petroleum and natural Ras 11 No petroleum or natural gas resources; heavy dependence on oil imports; small refining industry; oil exploration; minimal consumption of natural gas. h. Electric power 12 Heavy dependence on hydroelectric power; shift to greater dependence on thermal (nuclear) power anticipated; ex- tensive north -souih transmission system. c. Coal 13 Small known reserves of low -grade bitu- minous; output low, imports high. d. Nuclear power 14 To supply half of electric power by 1985; rmh�..tus of development. 4. Minerals and metals 14 High -grade imo on for in- d.1.tr>- anti a tnae "t .1txwt. lead, zinc, white am-nix, %oho a. ..t'.,, t1mg 0en, pmchus metal., urns major ore- north; metal prexv-1m: asu Mvx est tlw- umth; extent of ***** minrnt fv%rxr4llj; of mines. a. Inn, steel. and le m)alloys '5 A ninittr world i)nxlucer of iron �e; ores from large northern mines iargely ex- ported; efficient, mechanized mining; steel industry small but well developed; im- portance of ferroalloy industry. b. Nonferrous metals 17 Resources aad production; '..nportance of imports. 5. Manufacturing 18 Highly sophisticated sector based on domestic iron ore, forest resources, and electric power; orientation toward foreign markeh. a. Machinery and equipment 19 High quality; broad range of snecia'cy products; major export items. ii b. Transportation rquipment Diversified output; major producv!r of motor vehicles; second ranking shipbuild- ing nation; production of railroad motive power and rolling stock; military trans- port equipment. c. Chemicals Deficiencies in production; rapid expan- sion in production of organic chemicals. d. Food processing Self- sufficiency; exports of selected items; ment and dairy products; prominent role of cooperative, increased industrializa- tion. c. Textiles Domestic orientation; rationalization to counter foreign competition. 6. Constniction Position in the economy; rationalization; hous- ing. C. Economic policy Strong government influence on the economy; close cooperation between government and labor; government support of private enterprise; liberal attitude toward foreign capital. 1. Planning Flexibility; setting of broad national goal:,. 2. Implementation of policy Use of monetary policy to promote stability; the goal of equalizing income distribution; social welfare and rising taxes. 3. The hudget Deficits; fiscal restraint; role of taxes. D. Banking and commerce 1. Banking and monetary policy Banking system; role of commercial hanks; Scandinnvian banking cooperation; central bank and specialized financial institutions; monetary policy. 2. Domestic trade Well- developed trade channels, pr :,oc owner- ship. C. International economic relations Foreign markets and Swedish economic develop- ment. 1. Foreign trade Composition; geographic distribution; re- gional trade groupings; trade with Commu- nist countries; liberal commercial policy. 2. Balance of payments General weakening in late 1960's; effects of transitory conditions. 3. Foreign aid Generous goals; rising level of aid; changing direction. Page 21 22 22 23 23 24 26 26 27 31 31 '51 34 35 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 FIGURES ii. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 Page Fig. 1 Centers of industrial activity map) 1 Fig. 2 GI3P at market prices table) 3 Fig, 3 Private consumer expenditures (chart) 3 Fig. 4 Land use patterns map) 6 Fig. 5 Use of arable land chart) 7 Fig. 6 Underground machine halls, Stor- 25 Fig. norrfors powcrplant (photo) 1.1 Fig. 7 Luossavaara iron mine photo) 16 Fig. 8 Selected manufactured products (table) 1S Fig. 9 Value ridded in manufacturing Deposits in selected credit insti- (chart) 18 Fig. 10 Major industrial corporations table) 19 Fi 11 Printing machinery (photo) 21 ii. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 Page Fig. 12 Automated spindles in cottcm textile Blunt (photo) 23 Fig. 13 Government ownership of enter prises (table) 25 Fig. 14 Central government budget table) 27 Fig. 15 Sources of central governm,nt tax revenue (chart) 28 Fig. 16 Deposits in selected credit insti- tutions chart) 28 Fig, 17 Foreign trade, by commodity groups table) 32 Fig. 18 Geographic distribution of foreign trade= (r.nart 33 Fig. 19 Balance of payments table) 35 ii. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 The Economy M��I.rI -n IV .md Ir.I r. Pin! iiiili nr (.,hr�n`. 11..11 r��r 1. L Ir�nlhrr Inf r ,n!hnil W W ,,1 r .m1 .rlr r,r, "�rr,.. I r ..rfrr 1111 fry rLrr 1 �t" 1 i j Gotland MaIM6 111 !;014 FIGURE 1. Centers of industrial activity (U;OU) IM };erurrlrA II I;iPA l l r NuA(f rAl' �I (;Ar111A 11111 I SAnllr ern 1 1 Ie n Ir.11lr s Stocichalm ;nAriYa Are51 a,' Nn;lmetianur' l, Orenry hnl:hatl,n 1 !I ilrrAl S4orAe A(el Ala r Im4aPr:p Jnn4npny r611obor'fa B�Martri r,rr NAUnstad (IloWrom KAIMAI /bland HAI, ghnnl S 1 SAY �aril rai!,w ,.a f itlrAn':I AI! nA Characteristics of development (Ij /O S\\(r(I('11, (Irsllit(� it n'I ;tli\('I\ Mail Im1lnlitio11, has u11(r of the tn(1\t highly (Ievvio pee ecoll n!i(�s in the wwrl d.:\Ithuu(;h illc (�ountr\ is Lin-re in ;tr(;t. ntu(�It ()1 5\\vdvn is slr,lru�I) Iu1lullah.d, .111(1 uoll(Irrric ;((�li\it\. ;Hung \\ilh the ilupukitio11, is h(a\il\ (�(In(�(�ntr;tled ill the suttlh and to a less(�r eN,t(�nt in Ihfr cenl(�r 'igur(� I I. 'I'll( (�onlltr\ n;(l1tr;(I resources tn(�lu(Ie ah1111(Lu1t linther, iron we, mid h0ro(�I(�(�tri(� 1 (mer. ;tnd th(� lallor 1or(�(� is lil(�rtty ;tnd hiLdik skilled. ith thi r('suurcc II ;Ise S\\vd'.11 has Itliill a su1111istif�;1Ir(I indttslri ;II u n pluN, t Ito I prod(wes high- (IIt;llit\. speciitIi /vd nt ;111 111itcI111re�, 11(�In(li11g ;1(1\;111(�(�(1 nut(Itin( a11(I c(plilinu�rtt. Willi ;t pvl (�alpha ttr)ss national 1 r(du(�t l( \I'I 111,11 ranks secu11(I ()11l\ to th;tt o1 Ih(� l'tlit(�(I Buttes, S\\(dc" Ir,ts oar o1 Ih( \\orl(I Itit;h;�sl I(.\(Is o1 li\itlg. In 14). 1 Ilic rem- li(�(I billion in (�urnr11t ah(rltl $1.700 Iu'r (a11iLt. (�mnpt ,trv] \6111 85.100 pet APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 capita in lilt� l'nited Stilt( Mid ;(hunt 53,2(1!) pvr capita in hrative t Sweden is second l4-, fill. Visited Stat('s in telephones and ivieslsion sets percapila, and third Iwbi!id I'll' I'ltite0 States and %mada in per capita ownership of autonurhjles. During nwsl of the 1960 's. Swe(len led Europe, lilt it per capita h;nis, il cmistnic�lioii of dwelling I:ltits. Gimpreheilsivc welfar(' programs itic�In(Ic� all r 0- 11sive social s(wilrit system. Medical services um(! sickness henefjt, umenI Ic, mu�nt comipen'.ation and w(rtining allowances, will subsidies, ;Ilid family alloswances. Sswed('n's jndustrial developriu�nt has intensified its d(Tvildencc� on fomign markets and soirees of suppIN It imports essemlial rim nalc�rials, fuels, s(�miiulauuLit- lures, and cumlponeril.., fur its industries, ;Is w(�il is finished nu llid'actums nut prodcice('. 1"4 163 Direct investment.......... 11I 50 336 22 10 Other private long -term capital 6-t 88 93 97 110 Private short -term capital� `,ti 13 10 5 171 Central government borrowing. -18 3 -15 7 78 3e} 6 Allocations of SIM'. 11 to 4(i -:13 Net errors and omissions 114 I i ;3e INlonet.ary sector accounts 1 t Sr;i 42 41 Central institutions lneO It; 1 8 3'il 310 Of which: 1 17 1 5 5 1 1 1 I ua lllonetary gold SD'R holdings l -"t nu 1,\IF General Account position... ell 11 38 Foreign exchange........... 1 7 78 27 rue 2 Private institutions (net 169 tit 30 eta 1 199 84 era era Data not available. Not pertinent. *Estimated. .\lost short-term trade credits and changes in certain liabilities are included in "Net other private short -term assets +t+ut errors art] omissions." �"'Net iuct�oast's in Rank of Swcdrt and ronimercial hank are crv.dits roreign assets are� dchits d rrrascs Substantial utitututts Of ntediun terul ;md lung term credits are usually extended itt cu11nectiOn yitit the financing of S\yeden's greening exports of capital goods. 3, Foreign aid (S) In 19611, the ('.N. Confereuc(' On Trine cull 1)(welownent rveonunentle(I that deyelOpe(I ('uunlries extend deyeluptlent aid (uffit'ial and priva(e) to Ivss dMVIOp(`(I countries ill Ill amount that, 1)\ 194 %\Mold be ettual to I r; Of each donor country's (:NI'. Sweden, lmweyer, adopted a mom alnbitious goal, ill that it agre(YI to exciude privatt. aid front the eO1111lutatitill 111 tO extettd Official aid equal to I r;. Of its (;NP- It is tOt likt'l%', ho\%vvvr, that Sweden Will achieve this goal until the late 1970 s, By virtue Of successive increases in aid appropriations, the Swedish Official aid budget has grown front about 0.2 "1' Of the� (:NP in FY(i,5 t Oji in FY72 and is estinrlted at O.1 r,i. in F1' 7 3, The 2?-)( increase in total aid budgeted for 1`17:1 is l;lrg( coneviRrated in bilateral aid, as shO\yn behm% in tuillions of 1 S. dollars: Since 1965 the genend tendency has beeu to\\artl more nonprOjeet bilateral aid for specifie(I ecununlic sectors, Nl tilt ilalera) aid, ;dthO(tgh rising, hats beell gr duall, declining as a share of the tot,11 sintY the slid 1960 's 111(1 IMW lecotilits for about 40' Of the total. Official Official bilateral credits are exte11tle(1 without heing tied to imports front Swe(Ien. Standard terns are 25 -year maturity, 10 -year grace period, and 2c' i5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 FY72 171 proposed )llultilnternl aid 88.-1 101,9 Bilateral aid 1.'27.8 166.5 Grants 7.2.9 1a Credits 54.9 rue Administration, reenlitntent, anti information 7,1 1 1.0 Total 2.23.3 2,9.4 na Data not available. Since 1965 the genend tendency has beeu to\\artl more nonprOjeet bilateral aid for specifie(I ecununlic sectors, Nl tilt ilalera) aid, ;dthO(tgh rising, hats beell gr duall, declining as a share of the tot,11 sintY the slid 1960 's 111(1 IMW lecotilits for about 40' Of the total. Official Official bilateral credits are exte11tle(1 without heing tied to imports front Swe(Ien. Standard terns are 25 -year maturity, 10 -year grace period, and 2c' i5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200090018 -7 Ti' S i:t:li E interest rate, but an increasing share of the bilateral credits is being extended oa terns of 50 years and 0.75'C' interest rate. Bilateral aid is provided primarily for education, health, clothing, fanlilN planning, and refugee assistance. Some shifts have occurred in the geographic distribution of bilateral aid. In the post, Swedish aid polie% concentrated strictly on those countries with low per capita incomes, and the largest aid appropriations went to India, Ethiopia, and Pakistan. There bus been an intensified effort I,x the Social Democras, howeyrr, to Ivit(l Milli- aid to countries %%itll leftist, "progre�sm%v regimes �such as "Tanzania. North Vietnam, and Cuba �that are considered sympathetic With SwedeiCs current political orit�utation. Moreover, aid is being channeled to :African liberation movements primarily in Angola, Portuguese Guinea, and \loruiibityue.:k small suns is Places and features referred to in this chapter (U /0U) also being given as "humanitarian" aid to the national liberation movements in Indochina, the Pathet Lao and Viet Cong. At the same time. Sweden has chosen not to replenish its share in the Asian Development bank because the Swedes consider it to have aided rightist militar% regimes. Sweden offers several additional kinds of economic support to the developing countries. A system of governmental guarantees of priyMe investments and suppliers* credits bas been in effect for some time. In June 1971 Sweden exempted from custonis dub almost all imports of industrial goods and processed raw materials from the developing countries. Raw niaterial imports from those areas are also genet lk dub free. A reserve fund of apprt) imately USSIO. -I million for catastrophe aid is also being considered by the Swedish International Development :Authority. :ill ti I