Scandanavian countries GDP fell by 5% and hundreds of thousands of public sector jobs vanished in the 90's. This caused an austerity policy and privatization of formerly government run (inefficently) hospitals and bureaucracies. Sweeden even let their state run car maker, SAAB file bankruptcy. Pension funds were rewritten, in Finland they adopted new policies such as a flexible retirement age between 63-68, basing benefits on life-time earning, restricting access to early retirement and linking benefits to life-expectancy. They also adopten a business friendly atmosphere and lowered corporate taxes. Their real salvation was their refusal to join the EURO currency, so Scandanavia is far from true socialism - more capitalism light.