sou · GWB3105EN · 2009-01-01 00:00:00 — Various studies have shown that very early support – preferably before school age – directed at underprivileged students is effective in countering failure at school. Moreover it is important to improve information for people choosing an education about such matters as average income and risk of unemployment after various programmes of education. It is also worth considering the introduction of economic incentives to shorten the study time leading to a degree. University fees or premiums in the student support system would encourage a more rapid throughput and cause students to choose to major in subjects that were more likely to lead to jobs. A later labour market exit age Average life expectancy has steadily increased without any appreciable rise in the labour market exit age. This means a longer time spent in retirement. A Policy for the Future The Long-Term Survey 2008 The new pension system has strengthened many peoples economic incentives to extend their working life. However, there are still economic incentives and, not least, norms that work in the opposite direction. There are also various supplementary pension schemes via collective agreements and private pension savings. Consideration should be given to how the age limits found in the old age pension system can be better adapted to the change in average life expectancy. This in turn could contribute to changing the norms for the length of working life both on the part of the employer and the employee. Later retirement would require tightening the different available options leading to retirement. At the same time, there is a risk that this will be an indiscriminate instrument, which could hit some individuals relatively hard. The distribution aspects are therefore an important consideration in such changes. As it always is, the practical design of welfare policy is a balancing act between various goals. The systems should both ensure individuals security and encourage people to take responsibility for their own livelihood. 8.2.2Work for good adaptability in the economy and more competition Restructuring in the economy is a natural consequence of change elsewhere and the emergence of new conditions. General measures to maintain adaptability One conclusion of the Long-Term Survey 2008 is that the aim of the policy should be to create the conditions for new job oppor- tunities rather than preventing jobs from disappearing. This means that it is important to facilitate enterprise, investment, innovation and entrepreneurs as well as labour mobility. However, it is impossible to identify in advance the industries that will be successful and have a high value-added in the future. A policy focus on particular industries is therefore inappropriate. Instead the policy should aim at general measures. The Long-Term Survey 2008 A Policy for the Future , particularly in the service sector Competition should generally be promoted as it contributes to new goods and services, lower prices and higher productivity. Competition, not least international competition, in the service sector is currently limited to a considerable extent by regulatory regimes in and other countries. Taking measures to promote competition in the service sector is therefore particularly important. Depending on the nature and current state of the activity, competition can be improved in various ways. In some cases, markets need to be opened up to more actors that did not previously exist. In other cases, there are already a number of actors but in practice competition is still ineffective. Even in the welfare services that are currently publicly produced and financed, more competition should lead to positive change. domestic and international competition may contribute to expanding welfare services and increasing freedom of choice. A clearer demarcation of the role of the public sector as financier and producer would provide the conditions whereby private companies could get established in markets where there is currently un- certainty about the extent of public sector services. by more actors also makes it possible to better meet the increase in consumer demand for freedom of choice and greater diversity. For the positive effects of greater diversity to be realised, it is important for the consumer to be able to obtain relevant information and for there to be a continual follow up of the activity. For certain services such as welfare services, where it may be difficult for the consumer to judge the quality of the service offered, it is particularly important to have well-functioning information and control systems. 8.2.3Exploring possible arrangements for more private financing of welfare services There are many indications that the demand for welfare services will increase more than what is possible to satisfy within the framework of the public welfare and tax systems as they are now designed. It is desirable and possible to improve productivity in the welfare services but productivity improvements in the A Policy for the Future The Long-Term Survey 2008 labour intensive parts of these services, particularly elderly care, are not easy to achieve. One of the main conclusions in this and in the preceding Long- Term Survey is that a greater measure of private financing is necessary to meet the increasing demand for welfare services in the long term. Getting the reform process started now A change in the financing of the welfare systems is a far-reaching reform that is likely to take a long time to implement. The Long- Term Survey recommends the appointment of a parliamentary inquiry with the remiss to propose forms for more private financing of the welfare services. A broadly based inquiry can ensure the construction of a system that is stable in the long term. This inquiry should be conducted in light of rising incomes in Swedish society, more demand for freedom of choice in the area of welfare services, and increased internationalisation. Postponing this issue would lead to uncontrolled development Proposals for a greater measure of fee-based financing for the public services are often met with the objection that they would lead to substantial distribution effects and are dismissed for this reason. However, there are also consequences if no measures are taken. If nothing is done to meet the increased demand, dis- satisfaction with what the public sector services have to offer may increase and the legitimacy of the systems may be undermined. People may thus be less willing to pay taxes. This could, in turn, further undermine the future financing of the public welfare systems. 8.2.4Working towards a global climate policy based on effective policy instruments If an international harmonisation of the cost of reducing greenhouse gas emissions is not realised, there is a risk that the cost to and the rest of the world will be substantial. It may ultimately mean that global emissions reductions will not be as big The Long-Term Survey 2008 A Policy for the Future as what would otherwise have been possible. Measures should be designed in a cost-effective in order to achieve the targets established at the international level, particularly in face of the challenges coming in other areas in the years ahead. The resources freed up by such a climate policy could be used for welfare services, tax reductions, meeting other environmental targets or research and development programmes in the climate area. should press for a global policy with effective instruments of control is responsible for about 0.2 per cent of global greenhouse gas emissions and has (compared with both the EU and the rest of the world) high marginal costs associated with continuing to achieve large cutbacks in emission levels. By using flexible mech- anisms and thereby directly or indirectly taking an part in reducing emissions globally, will be able to proceed with ambitious national undertakings while making a greater contribu- tion to global efforts to stop climate change. The spread of current technology can help limit emissions affecting the climate but new technology also needs to be deve- loped. An international price for carbon dioxide emissions is an effective way of stimulating technological development. Specific targets for energy consumption and renewable energy must be warranted for reasons other than the climate problem The targets for reducing energy consumption and increasing the use of renewable energy often support the climate target, but also to some extent cause measures to be taken other than those that are cost-effective if the target is to reduce emissions of gases having an impact on the climate. Special targets for energy consumption therefore risk increasing the cost of reducing emissions, in which case they must be warranted for other reasons. Generally measures taken that also have positive effects in other areas, such as increase- ing the security of energy supplies, contribute to reduced emissions of local pollutants. However, if fighting climate change is the problem to be tackled, the policy should focus on designing cost- effective policy instruments that as much as possible focus on that particular problem. Aghion, P. & Howitt, P. 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