The SWEDISH Economic Model For years, Sweden has combined
prosperity with an extensive social welfare system. But today
the Swedish model seems destined for change. At home, the
economy is in trouble. Taxes are high, inflation is rampant, the
work ethic lax. Abroad, the demise of communism in Eastern
Europe has challenged the concept of a cradle-to-grave social
safety net. A long debate is just beginning. THE ``Swedish
model'' - an advanced market economy combined with a far-
reaching social welfare system - is being questioned here as
never before. With signs of a deteriorating work ethic,
decreasing voter participation, and an ever rising cost of
living, Sweden is searching for a new plan. This search has been
given further impetus by the collapse of communism in Eastern
Europe and the end of the cold war. With possible new security
arrangements in Europe and with the approach of a truly common
European market in 1992, Swedes say their country must change to
keep up with the times. ``There is a confidence cr