"In a country like Sweden with a small domestic market, it was very important for our companies to expand internationally at an early stage of the industrial development period," said Bosse Ringholm, the newly appointed Swedish minister of finance. "The challenges in the future consist mainly of maintaining the good position our firms have achieved over the decades and developing new leading firms in expanding sectors of the world economy."

Recently, some of Sweden's big players have participated in the waves of mergers and acquisitions that many industries have undergone, which are said to strengthen global competitiveness. Volvo sold its passenger car division to Ford Motor Co.; Astra merged with the British pharmaceutical company Zeneca Plc; and Stora merged with the Finnish paper and pulp manufacturer Enso Oy. These moves have caused some speculation about the future development of "Sweden Inc."

Boss Ringholm, minister of finance, Sweden

"In the long run, mergers that develop our multinational firms are positive for the Swedish economy," stated Ringholm. "The business environment is being transformed in a positive way. The debate in the media has focused far too much on the potential negative effects of a few recent mergers between Swedish and foreign companies. "Sweden is among the best countries in the world when it comes to resources allocated to research and development as well as infrastructure and management practices. We will continue to promote strong business expansion based on our broad industrial base and on the growth of the highly productive parts of the service sector."

"In order for us to fulfill our ambitions in the fields of employment and welfare, we need to increase the supply of labor in the medium and long-term," asserted Ringholm. "A tax reform should be broad and should aim at stimulating labor force participation, labor supply and education. Priority has to be given to reducing income taxation for the low as middle income groups."

Recognized as one of Europe's most attractive business climates, Sweden has attracted more foreign direct investment than any other European country. It offers access to the European market, a strategic position in the Baltic Sea region, state-of-the-art technology, a highly educated workforce and a highly competitive cost structure.

Global by nature According to Ulf Dinkelspiel, president of the Swedish Trade Council, Sweden is extremely dependent on exports. In Asia, Japan is by far Sweden's most important trading partner despite a 20 percent decrease in exports in 1998, which was primarily due to the recent Asian economic crisis. "There is certainly a bit of hesitancy on the part of Swedish companies to enter the market, but it is remarkably small," said Dinkelspiel.

A grand view of Royal Palace in the capital city of Stockholm

"We have boasted about being one of the few countries to have actually increased its market share in Japan. It is the second-largest economy in the world. A company has to be there if it wishes to compete on a global scale."

A closer look at corporate Sweden

"Sweden is dominated by large international corporations," asserted Per Olofsson, director general of the Federation of Swedish industries, a lobbying group consisting of members of Swedish industry that promotes and observes conditions for growth in different industries. "The largest corporations directly employ approximately 500,000 people in Sweden, and more than that outside Sweden. This trend is continuing," Olofsson said.

"We are the eighth-richest nation in the world, which is entering a serious situation. Sweden will play a strong role in the major merger waves that will take place throughout Europe. This is a threat to our business environment, as more companies are looking to move certain operations outside the country. Right now we are at a turning point, and there is an opportunity to put a stop to this threat."

Most of these companies are concerned about the need for tax reform. Salaries are lower for skilled labor, which puts extra stress on labor that is left to look abroad for more attractive wages.

"The fundamentals for Sweden are good due to its many highly productive industries and strong engineering sector," said Olofsson. "A vibrant telecommunications sector, with Ericsson serving as the industries. If the fundamentals decided by the Swedish government could be adjusted to make it attractive to continue to operate in Sweden, the nation will really benefit. These large companies are the greatest marketing tools the country has to offer."

An advanced nation

Bj�rn Rosengren, minister for industry and commerce of Sweden

World Eye Reports interviewed Sweden's minister for industry and commerce, Bj�rn Rosengren, and asked him to share his perspective on the nation's economic future. WER: How would you assess Sweden's current economic environment? Rosengren: It is very good. The national budget shows a surplus. By setting ambitious objectives for the surplus, the national debt is being successfully reduced. Last year growth was 2.9 percent. The rate of employment in the industrial and business sector is steadily rising and the number of unemployed decreasing. Market interest rates are now the lowest they have been since the mid-1950s. The rate of inflation is in principle zero, and consumption is growing. Since the 1994 elections, industrial production has increased by over 35 percent.

Rosengren: For several years, direct incoming investments in Sweden have been as large as Swedish investments abroad. This is an excellent result for Sweden's investments abroad. This is an excellent result for Sweden's business climate. The Swedish business sector is changing rapidly. The globalization of economies tightens competition and means that companies that want to continue to grow in Sweden must look for customers and qualified staff across national frontiers.

The use of information technology in the production of goods and services is rapidly growing. Demand for higher education and qualifications is increasing. Major companies will continue to be important as internal engines and suppliers in the Swedish economy, although employment is chiefly increasing in small business.

WER: Why is Sweden an attractive location for foreign investment?

Rosengren: Sweden has a good climate for investment and enterprise. Following extensive measures to put public finances on a sound footing, interest rates are now at a historically low level, and there is zero inflation. Through active labor-market and education policies, the industrial and business world has access to well-educated and responsible staff. Today, Sweden is carrying out the most substantial extension of higher education in science and technology in Europe.

Sweden's social welfare system is sound and modern, and it contributes to security and freedom. Membership in the EU is also essential for the industrial and business sectors' opportunities for trade and economic exchanges. Corporate taxes are low. Sweden is a world leader in terms of the level of investment in research and development.

WER: What are the elements of success for Sweden's global enterprises?

Rosengren: Sweden is a small country highly development on trade. We are therefore dependent on a strong and competitive export industry. Not least through our membership in the EU, economic exchanges across national borders have increased dramatically. Sweden also has many major companies such as Volvo, Ericsson and Astra. These companies would never have grown so large and successful if they had not understood the importance of seeking qualified staff and customers beyond this country's borders.

I am convinced that the environment is one of the really crucial issues of the future. If the country takes the lead in step-by-step endeavors to adjust society as a whole to ecological sustainability, this will afford its business sector considerable competitive advantages.

WER: What outlook do you have for Sweden as the nation enters the new millennium?

Rosengren: I want Sweden to take the step into the 21st century with self-confidence and optimism. I want to see a country where all citizens - men and women, young and old - take part in production to the best of their ability. I want Sweden to be a leading country in the work of adjusting to ecological sustainability. I want to see this country characterized by development and equality.

The fastest kid on the block

Sweden host many success stories in information technology, the fastest-growing industry in the world. Dubbed a new Silicon Valley in Europe, Sweden's information industry is built on creativity, food business and personal enthusiasm.

With the highest number of personal computers and internet accounts per household in Europe, this Scandinavian nations is home to many companies that are quickly gaining recognition as world leaders in telecommunications, Internet applications, new media and specialized software.

IFS Industrial & Financial Systems is the fastest-growing company in enterprise resource planning software, in terms of terms of total revenue, licensing revenue and business growth. This Swedish company has achieved tremendous growth and shows great promise for its software, which manages the flow of information, products and resources for a firm's entire operations.

"With 100 percent growth, I guess we have been doing OK," announced Bengt Nilsson, president and CEO of IFS. "Of course, it makes life a little tricky since we have to keep on doing it again and again. People are beginning to expect that from us, and it is becoming harder to do every year."

Founded in 1983 by a group of engineers, IFS did not start developing enterprise resource planning software until 1986. The company's real growth began in 1995, however, when it launched a new product series standardizing applications for component-based solutions that can be applied to many different industries. IFS has seen further success recently by being listed on the Stockholm Stock Exchange since mid 1997.

In the information fast lane: Bengt Nilsson, president and CEO of industrial & Financial Systems

"Looking at the company from a product angle, we have the most mature component-based products in the world," boasted Nilsson. "We are launching the third generation of our product this year, which is equipped with many different features and is recognized as a stronger and more solid product." Component-based technology has distinct advantages for businesses. It is faster, easier to install and allows greater freedom in a range of different applications and industries. As the system is made up of separate components. It is adaptable and can respond to technological advances.

"Most of our competitors are basing their technology on that of the 1970s," said Nilsson. "This is similar to having an airline that cannot afford to buy new planes. To look fresh and attractive, the airplane will be painted; new seats will be installed, and free champagne is given out to everyone. So everyone decides to fly with this airline. That is how some companies are developing their products in the information technology industry.

"While our competitors are fighting to compete with our present-day products, we are already taking the next step to find out what we must do in four years time. So now, as electronic commerce takes off and use of the Internet constantly increases, technological advance is becoming much more important for our future product development."

Built on the idea that companies, like people, want to be free, IFS has incorporated this style of thinking in the way it promotes itself and conducts business. Nilsson emphasized his company's focus on openness and trust: "We are very straightforward at every level of our company. By becoming more decentralized and functioning in separate units, our company is capable of cooperating more efficiently. Our slogan, 'Set your business free,' signifies that we must become very flexible if we are to advise other businesses to do the same."

In Japan and the rest of Asia, IFS has made advances in many different markets. Although they only account for 2 percent of the company's total turnover, these markets have shown enormous potential and growth despite the recent economic woes that have plagued the area.

NEC has become one of the largest distributors and partners of IFS in the Japanese market. Nilsson pointed out that this cooperation has been very lucrative for a number of reasons. From a technological viewpoint, it has led to a design of components that have now become standard features in IFS applications. "Both organizations have gained a lot, which has now given us a competitive edge in Japan. Companies need a strong ally like NEC once a decision has been made to enter the Japanese market."

IFS expects the market for enterprise resource planning applications to continue its strong growth due to a variety of factors. Since many companies have made aggressive moves to prevent damage from the Y2K bug in the last few years, more investments can be made to meet the competitive pressures resulting from an increased demand for enterprise resource planning systems. Obviously, the rapid increase in Internet usage and electronic commerce opens new windows of opportunity as well.

Currently ranked among the top-10 companies in its sector, IFS has a success story rivaling that of any company in the information technology industry today, and there is no sign of it stopping. IFS expects to experience yet another exceptional year and continue to set business free across the globe.

The Stortoget Square and Stockholm Cathedral in the Old Town

In a city like Stockholm, one is presented with many choices, in terms of food, experiences and where to stay. The city is filled with numerous hotels awaiting the arrival of anxious tourists. But only one is a landmark in Sweden, offering an ambiance and tradition that dates back 125 years, The Grand H�tel. As a member of The Leading Hotels of the World, the Grand has been the preferred location for many important functions and gala events in Stockholm, hosting royalty, politicians and artists, whom have stayed at the hotel over the years. Since 1901, the Grand has played an important role in the Nobel Prize ceremonies by hosting the numerous winners. "We are not only running a hotel, but also a tradition," said Peter Wallenberg Jr., president of Grand H�tel Holdings and Grand H�tel Stockholm. "When you walk inside the doors, you will feel the ambiance. You will feel what a real European Grand Hotel stands for. We have also been fortunate that many things have been given to us for free, the view of the palace and a portion of Stockholm's archipelago."

The Grand has been listed among the world's best hotels in the world by leading magazines, such as Institutional Investor, Euromoney and Euroworld. Equipped with the most modern communication systems and business services, makes it the premier business hotel in Stockholm, catering to travelers from across the globe looking to bring their office on the road. Maintaining tradition and moving with the times is what makes the hotel so unique. "The requirements of the modern guest means we have to build for the future and make it as simple as possible for businesses to connect their computers in an old style grand room," noted Wallenberg.

The Grand Hotel, a landmark of Stockholm

Stockholm City Hall boasts stunning architecture along the water.

As the hotel is also located right next to the Silja terminal, which offers cruises to and from Helsinki, it is the perfect hotel for the traveler looking to take the next step further into the Nordic region. If what you are looking for is to become more acquainted with the city and experience Stockholm as a Swede by planning a longer visit to the capital of Sweden, then make an arrangement with SAS Relocation Services. Originally created to assist only SAS employees to find a home as they located to different cities, they have now broadened their scope and help companies find homes for employees staying an extended period of time. With a various selection of apartments in different areas of the city, they can help you find the right apartment for the longer stay. Fax # +46 8 797 1070.

The heart of the Gothenburg is Avenyn, which is short for Kungsportsavenyn, a 60-foot-wide, tree-lined boulevard that bisects the city in a south-north direction. It links the cultural heart of the city, G�taplatsen, with the main commercial area. Along Avenyn, Gothenburg's most renowned and traditional hotel can be found, the Radisson SAS Park Avenue Hotel. Like all Radisson SAS hotels, their is an air distinction and unrivaled levels of service which makes it first class hotel. Since the hotel is in the heart of the city, it makes it very easy for travelers, for those on business or pleasure, to have quick access to the entire city.

Stockholm is built on 14 islands connected by over 50 bridges.

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