page_title: Sweden
section_title: Post-war era
hierarchical_section_title: Sweden / History / Post-war era
caption_attribution_description: Svenska: Tage Erlander vid en tv-debatt 1967. Intervjuare är de tre O:na, Gustaf Olivecrona, Åke Ortmark och Lars Orup.
context_page_description: Sweden, officially the Kingdom of Sweden, is a Nordic country in Northern Europe. It borders Norway to the west and north, Finland to the east, and is connected to Denmark in the southwest by a bridge-tunnel across the Öresund Strait. At 450,295 square kilometres, Sweden is the largest country in Northern Europe, the third-largest country in the European Union and the fifth largest country in Europe by area. The capital city is Stockholm. Sweden has a total population of 10.3 million of which 2.6 million have a foreign background. Persons with foreign backgrounds are defined as persons who are foreign born, or born in Sweden with foreign born parents. It has a low population density of 25 inhabitants per square kilometre, with 1 437 persons per km² in localities. 87% of Swedes live in urban areas, which cover 1.5% of the entire land area. The highest concentration is in the central and southern half of the country.
  Sweden is part of the geographical area of Fennoscandia. The climate is in general mild for its northerly latitude due to significant maritime influence.
context_section_description: Sweden was officially a neutral country and remained outside NATO and Warsaw Pact membership during the Cold War, but privately Sweden's leadership had strong ties with the United States and other western governments. Following the war, Sweden took advantage of an intact industrial base, social stability and its natural resources to expand its industry to supply the rebuilding of Europe. Sweden received aid under the Marshall Plan and participated in the OECD. During most of the post-war era, the country was governed by the Swedish Social Democratic Party largely in co-operation with trade unions and industry. The government actively pursued an internationally competitive manufacturing sector of primarily large corporations.
  Sweden was one of the founding states of the European Free Trade Area (EFTA). During the 1960s the EFTA countries were often referred to as the Outer Seven, as opposed to the Inner Six of the then-European Economic Community (EEC).
  Sweden, like many industrialised countries, entered a period of economic decline and upheaval following the oil embargoes of 1973–74 and 1978–79. In the 1980s several key Swedish industries were significantly restructured. Shipbuilding was discontinued, wood pulp was integrated into modernised paper production, the steel industry was concentrated and specialised, and mechanical engineering was robotised.
  Between 1970 and 1990, the overall tax burden rose by over 10%, and the growth was low compared with other countries in Western Europe. Eventually the government began to spend over half of the country's gross domestic product. Swedish GDP per capita ranking declined during this time.
caption: Tage Erlander (left), Prime Minister under the ruling Swedish Social Democratic Party from 1946 to 1969.
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