The “Swedish model” – in its renewed and modernised form – is en vogue. Last week I particpated in a debate at the Legatum Institute in London, about lessons learned from the model’s renewal and the financial crisis. I claim the relative success of Sweden today is due to 1) a series of wide-reaching reforms in the 1990s and 2) the universalism of the Swedish system, which helps create trust. However, globalisation and high unemployment are challenges to the cohesion. The debate can be seen here, on Youtube.