“New Start Zones” to attack unemployment
The Swedish government is studying how low-tax economic free zones may be set up to battle poverty and social exclusion.
Writing in the daily Svenska Dagbladet Thursday, three cabinet ministers say the government has started an investigation into why pockets of the country are afflicted by a cycle of poverty, unemployment and resignation. Alongside existing training and welfare programs, the ministers advocate a system of low-tax “new start zones” to encourage formation of new businesses, primarily in big-city suburbs and rural areas with high joblessness.
The three take a swipe at what they call the “passivity policies” of earlier governments, saying that entrepreneurship and job-creating new companies offer the greatest promise for increasing economic opportunities in blighted areas.