NATIONAL INTELLIGENCE SURVEY 11; SWEDEN; THE ECONOMY

• Document Type: CREST
• Collection: NIS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP01-00707R000200090018-7
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 44
• Document Creation Date: October 25, 2016
• Sequence Number: 18
• Content Type: REPORTS

SECRET
ll /GS /E
Sweden
M: y 1973
NATIONAL INTELLIGENCE SURVEY
SECRET
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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
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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
gore 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
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FIGURES
ii.
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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.
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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.
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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
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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
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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
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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