Senior Partner Blog

Swedish social democrats are trying to deal with the crisis. The party leader has resigned (or rather being forced to resign) after an unprecedented short period of time in office, 10 months. They have lost almost half of its voters in just a few years and the bottom may not have been reached. The powerful Executive Committee (Sw Verkställande Utskottet, VU) has five members and eight deputy members – what a fantastic composition! VU’s immediate task is to identify a new party leader or at least the process to find the new leader. Last Thursday and Friday they had meetings discussing if there was a vote of confidence with respect to the party leader Håkan Juholt. The meetings went on for some twenty hours in two days. Then VU announced that there was a vote of confidence in Mr. Juholt only for him resigning the day after – is that not a credible story to be told! Yesterday VU met again for another marathon meeting until midnight without reaching a conclusion. New meetings will take place today.

With all respect that there may be delicate matters to discuss, but how could 10-12 hours and beyond meetings in a group of some dozen people, lead anywhere?! Journalists monitor developments every hour and ask the same questions over and over again about the results and get the same answers over and over again that VU is addressing some difficult and unique issues which have not yet been resolved. None has questioned whether these meetings are actually dysfunctional and in fact a telling illustration of the crisis. Moreover, speculations about names for the job as party leader are endless. As well as reporting about how many of these names that have declared that they are not interested. None has questioned whether all these no’s are a telling illustration of the crisis. To be continued…

World famous company Kodak with a proud 100+ year history, just filed for bankruptcy protection under Chapter 11 in the US bankruptcy laws. The Swedish social democrats with a proud 100+ years of history, are imploding from within. Finland is about to have a conservative president for the first time in half a century. China has become a global economic power in less than three decades. Russian people begin to question icon leader Vladimir Putin. Poland is a top performer in a turbulent Economic environment. Long standing Arabic dictators fall. The list could be made long. Dramatic changes of the seemingly stable. Still we are surprised that we are surprised. How could this happen? It seemed like a rule of nature! As humans, we are inclined to look for predictability and think that it can actually be achieved. And when this does not happen we are all shook up, disappointed or euphoric. Then we move on and continue to make more predictions for the future. This may be an interesting roller coaster for some. As an alternative, we could view changes as the main road, and stability as a side track. Expect the unexpected if you will. Perhaps such an approach will make us better equipped to deal with change and surprise which no doubt will continue to happen.

A 10-year old boy was left behind by his father in Uppsala (some 60 km north of Stockholm) after a tournament of floor hockey (Sw innebandy). The boy had played so poorly that his father thought he should get back home on his own. The story exploded one Sunday afternoon/evening a couple of weeks ago. Soon enough it was all over on local news and national news as well as social media. One coach was interviewed and said that he had talked to the father on the phone confirming the story. There was an outrage. Everybody had harsh comments and strong emotions were in motion. There was not a punishment severe enough for the father. How could anyone do this to his own child? Clearly unsuitable as a parent! A police complaint was filed and social authorities were notified. A prosecutor initiated an investigation.

After a couple of days oddities began to emerge. The boy and the father had not been identified let alone found; circumstances were unclear commented the prosecutor. The other day came the decision from the prosecutor: the investigation is discontinued. The boy had actually not at all been left behind. The father had just asked somebody at the site to look after the boy for a short while while he packed the car. Later he went back home together with his son. Truly a telling story. We were all carried away and jumped to conclusions, not waiting for facts to be confirmed. This is not the first time, and sadly enough probably not the last. We know that Oscar Wilde said that the only thing we learn from history is that it repeats itself. Still, it is never too late to prove Oscar wrong.

This year Raoul Wallenberg would have been a hundred years old. Raoul together with others saved the lives of thousands of Jews in Hungary in 1944/1945. Raoul worked at the Swedish Embassy in Budapest and issued Swedish “protection passports” to Jews which prevented the Nazis to deport them to concentration camps. Raoul was then captured by Soviet troops and his fate has never been established. The Swedish Government and its foreign minister had the chance to make inquiries directly to Stalin shortly after the war but through inexcusable indulgence the opportunity was missed. Later new attempts have been made and even today another investigation has been commissioned but it is highly unlikely that something new will emerge so many years after the event. Raoul is well known and has become an honorary citizen of The United States who also contributed to the funding of Raoul’s activities in Budapest.

Perhaps less known is another Swede who did heroic efforts towards the end of Second World War, namely Raoul Nordling – first name Raoul seems to be a good name for a hero. Raoul Nordling was a Swedish diplomat based in Paris. When Hitler realized that the allies were approaching the French Capital, he ordered his General von Cholitz, to turn Paris into rubbles, including blowing up the Eiffel Tower. Through numerous maneuvers, Raoul Nordling actively and creatively managed to persuade von Cholitz to disobey Hitler’s orders. It should be said though that von Cholitz was skeptical to the proposition from the outset. Still, Raoul Nordling has been portrayed as the man who saved Paris and has been awarded the most distinct of French order, Legion of Honour. Two men put themselves aside and did what they believed had to be done. With no regard for their own safety, they did invaluable contributions for humanity and human dignity. It is easy enough to condemn evil from a distance and after the event. Dietrich Boenhoffer, lutheran pastor, Nazi opponent and martyr said that, “not protest against evil is evil in itself and that not to act is an act in itself”. What is the evil of today that we do not resist and interfere with?

In 1628 the Swedish naval ship Vasa sank on its maiden voyage. The ship was commissioned by the Swedish king Gustav II Adolf. Vasa was intended for cutting edge warfare in Europe – in those days war was rather a constant state for nations. Vasa was an enormous project with considerable national prestige; well some people would say that the Swedish king was obsessed. It took more than two years to build and consumed more than a thousand oak trees. And it required endless manpower. Everything, tree by tree, nail by nail, was made by hand by numerous craftsmen. And financing was short. Sweden could not really afford this project – the undertaking was some 25 percent of the state budget. The best Dutch ship builder was retained but due to Sweden’s (the King’s) inability to finance the project, he ended up arranging for credit facilities himself from Dutch creditors. What a hopeless situation. And withholding services was clearly not an option as death penalty was very much an option for Gustav II Adolf should such disloyalty to the Crown be shown. So the construction went on under the most difficult of circumstances.

Then, just a few months before completion the Dutch shipbuilder took ill and died. His sister, who had been involved with economy and administration, inherited her brother’s responsibilities. Only to see Vasa going down on her maiden voyage before reaching open sea. What an unmitigated disaster! And the population of Sweden was suffering. Most people lived in the most indescribable poverty. Starvation, food often rotten, epidemics and deceases, bitterly cold winters and no heating or light other than wood fires and candles, hardship beyond imagination, filth, child labour and abuse, death penalty for any and all offences or so called offences. Sometimes one wonders how anyone could survive from those times under such dreadful circumstances. No real medical treatments were available – the barber often served as a “doctor” as well – and you could easily die from an ordinary cold. So when we today discuss and complain about threats to the world economy as well as other disasters, we should bear in mind how fortunate we still are. No matter how deep the crisis is or goes, no matter how many catastrophes and wrongdoings we may face, we still have lives and a standard of living that people in the 1600′s could not even imagine.

Swedish Migration authorities have expelled another family. This time it is a family from Armenia. They have spent the last ten (10) years in Sweden. The children know of nothing else but Sweden and the family is socially integrated in Swedish society. Still Swedish beaurocrats have in their enlightened wisdom concluded that the family must go back to Armenia. Why? Well, the official reason is that the decision is in accordance with Swedish law and that there is no room for a different outcome. Is that not just great?! Ticking the box. The individuals making the decision must feel really proud of themselves, reaching such a courageous standpoint just a couple of weeks before Christmas. Making decisions is about complying with the law but it is also about integrity, common sense and human dignity. And analyzing the consequences – are there really any adverse implications of letting the family stay?! Hardly. If such more subtle considerations are not allowed to come into play, we do not need human beings as decision makers but we can leave this with computers. The thoughts no doubt go to the just deceased Vaclav Havel who peacefully started demonstrations which eventually overturned the brutal communist regime in Czechoslovakia. Mr. Havel, who also became president of his country, said that those who passively accept wrongdoings are just as guilty as those who are active. Perhaps some food for thought.

This weekend, on December 10, the annual Nobel event took place in Stockholm. Starting with the Price Ceremony in the Concert Hall followed by the Gala Dinner in the City Hall. It is in every sense a magnificent and spectacular attraction. First and foremost some of the sharpest brains on the planet are awarded for discoveries that bring good to humanity. Then there are the festivities in the City Hall, which by any standard is the party of all parties. Royalties, Nobel Prize winners and other dignitaries, altogether some 1300 guests, enjoy a spectacular meal cooked and served to perfection by 45 cooks and 240 servants. The Nobel Prize comes with money amounting to one million Euros and an immeasurable prestige. Truly a proud moment for Sweden but also for the world.

What is not always remembered is that when Alfred Nobel instituted the Nobel Prize in his will in the late 1800′s the world was very nationalistic and it was considered controversial that the Prize was not reserved exclusively for Swedes. But Alfred Nobel made anyone in the world eligible for the Prize. Nobel was certainly ahead of his time and his insightfulness, tolerance and visions were undoubtedly the foundation for the success and prestige of the Nobel Prize. Nobel saw already then that an international perspective and outlook as the best way for human progress. And we know now that he was right. The unprecedented improvement of human well-fare during the 20th century is largely due to our global, multicultural world, where products and services as well as people can move more freely than ever before. In challenging times like we now are facing there are countries and people who want to take a step back towards a more nationalistic, protectionistic approach. It is therefore of paramount importance to fight any such tendencies and remind ourselves that we need more globalization, international coordination and harmonization with open boarders as well as multicultural influences everywhere. This is always the best way to improve living conditions for all of us. We may be 7 billion people, in some 200 countries, but it is still one planet. Let the Nobel Spirit rule.

I have previously on this blog written about serious wrongdoings in the Swedish elderly care. The focus in the debate was and still is that the poor quality is due to the fact that the provider of the elderly care is a private company driven by greed and profits, and as a result private initiatives and profits in elderly care should be prohibited or at least limited. Now another elderly care scandal has emerged in England. And guess what, it is not private but Council run. The poor quality is appalling. We are talking about elderly people being left unattended for weeks, physically and mentally abused as well as stealing of money. In one case a care taker refused to cook a meal in a microwave oven, referring to safety and health regulations.

In yet another case this elderly person was blind and deaf and therefore did not know that care takers were in the room so he could not ask for assistance but the care takers just left as the man did not speak up.

It has been described as a systematic abuse violating human rights, a catalogue of wrongdoings. And it is not an isolated incident but 250.000 out of 500.000 elderly (relating to care provided in people’s homes) were subject to poor or very poor care. The comments and debate focus on responsibility of the individuals providing the poor care. It is not a question of lack of funding but common sense and respect for other human beings. When politicians are asked if the abuse could be explained by understaffed organizations and lack of training, the answer is without hesitation that this could never be an excuse and that you don’t need training to be a decent compassionate person. Also, the responsibility of children and other relatives is brought up.

The recipe discussed to put a stop to the abuse is more and frequent snap inspections. And to take all necessary actions, including closing down, against those who fail to comply. In other words, what the English are saying is that we can never step down from or delegate or obligations as human beings. And those duties are unrelated to circumstances. History shows us how important this perspective is.

For the past few weeks, there has been a big public debate in Sweden about the quality of eldercare. The background is that one major private elder care company has been subject to scrutiny where appallingly poor treatment of the elderly has been discovered. At the same time the company has made significant profits and avoided Swedish tax through sophisticated tax schemes involving off shore tax heavens. Naturally this has caused a public outcry. Especially since the elderly care is funded with tax money, even if the care is carried out by a private company. So what is then the debate about?

Primarily focusing on the fact that it is a private company and politicians talk about limiting the possibilities for dividends. Some even talk about prohibiting private initiatives in eldercare altogether, despite the fact there have been just as many scandals in eldercare carried out by the public sector. Eldercare is the responsibility of local governments (municipalities). The municipalities fund the eldercare and decide whether they should carry it out themselves or outsource it to a private company. If they choose the private option, there is a public procurement procedure. And the local government is obliged to ensure that they appoint the most qualified candidate according to criteria set up by the local government. So what happens in practice is that the civil servants only go for the lowest price and appoints the lowest bidder and then leaves the eldercare to its destiny. And little efforts are spent on drafting a contract which guarantees the quality and the rights of the elderly. Still, in the public debate nobody points at the responsibility of the municipality and the sloppy, negligent handling. Because for the end user, namely the old person and the relatives, the contracting party is really the municipality.

We pay tax for them to provide certain services. It is the obligation of the municipality to ensure that the elder care meets an acceptable standard. It is for them to make sure that they have a contract with the care provider, which guarantees the quality and that there are effective remedies should this fail. And to achieve this, skilled lawyers are required, negotiating and drafting the contract. And the poisoned debate about whether or not profit may be distributed to the owners of private eldercare companies is not really relevant. If a private company in compliance with a contract with the municipality provides first class care to the satisfaction of the elderly and their relatives, why should they not be allowed to make profits and distribute dividends to the owners?

In the wake of the financial crisis in Europe and elsewhere, we are fed with dooms day prophets on a daily basis. We hear that the collapse of the Euro is near or even the European Union. Urgent meetings everywhere, new governments formed, more emergency meetings, new announcements and so on. The numbers describing state debts and deficits are just mind boggling and impossible for the human imagination to take in. Politicians, economists, analysts, business people and other so called experts are asked to comment on the situation and what should be done. And they are all more than happy to put their own particular view in the lime light. And they never miss the opportunity to announce how serious trouble we are all in and that we may be facing a horrible, devastating world, one worse than the other. Rarely or never do we hear somebody saying that the only thing we know for sure is that we do not know.

Throughout history, there is hardly one example where predictions on economic developments, with or without a recession, have been right. In hindsight we get all kind of explanations why things developed as they did and what could have been made different, eg the depression during the 30′s, the real estate bubble in the 90′s or the IT crash in 2002-2001. Yes, we can see that now but we could not see that then – nothing new under the sun. At the same time, in the midst of these difficult times, life in the small modern world goes on. People get up in the morning, still an overwhelming majority have a job to go to, still an even more overwhelming majority have a home and food on the table, clothes to wear and energy providing electricity. And even in the most exposed countries, there is reasonably functional society on a grass root level. And yes there are big protests and perhaps even riots from time to time but still there is not a civil war and there is some sort of society infrastructure in place. Just compare this with the 30′s or a hundred years ago when the masses were actually starving and you will get a perspective. And even if things are looking bad at the moment, mankind has during the last hundred years taken irreversible steps of improvement of the quality of life. As for the future, may the best prediction be that whatever happens it is not going to happen as predicted. That is all we know.