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(last updated May 2003)
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Introduction and Overview
Sweden has an explicit family policy, which, historically,
has been focused on protecting children, redistributing income
so as to assure an adequate standard of living to all, compensating
for the economic costs of rearing children and giving people
the economic resources to have children when they so want,
promoting gender equity and facilitating the reconciliation
of work and family life. Although Swedish family policy emerged
out of concern with a low birthrate and pronatalist goals
in the 1930s, this has not been a characteristic since World
War II (Palme, et al., 2002; Greve, 1999; Palme & Wennemo,
1998;Ditch et al., 1996).
The key elements of Sweden's family policy are extensive
support both for early childhood education and care services
and for an extended paid and job-protected parental leave.
Sweden is among the very few countries that spend about the
same amount on childcare services as on family benefits; and
Sweden's family policy, like its social policy generally,
stresses universalism as a principal rather than targeting
on the poor.
Sweden experienced a major economic crisis in the early/mid
1990s. Economic growth was negative for some years and real
GDP fell. Its unemployment rate "exploded" in the
early 1990s reaching a high of more than 8 percent, four times
the rate during the 1980s. The cost of unemployment benefits
rose dramatically and the budget deficit "boomed."
Sweden leads Europe in population aging and has recently announced
a reform of its generous old age pensions system. During these
years when the economy was under pressure and unemployment
rose, the child poverty rate increased from 6.0 percent in
1990 to 8.5 percent in 1994, using the U.S. absolute poverty
measure and 2.6 percent using the relative poverty measure
(less than 50 percent of median income, the rate rose subsequently).
The poverty rate of lone mothers increased during the mid-1990s,
declining somewhat by the end of the decade, as well. By the
end of the decade, the child poverty rate had declined to
5.3 percent.
The Swedish economy has now recovered. Sweden's official
unemployment rate was 7.3 percent in 1998, slightly higher
than the OECD average, but this counts beneficiaries of its
extensive training and education programs as employed. Its
"real" unemployment rate would be closer to 10-11
percent but it has had a long-standing response to unemployment
that includes a stress on "active' rather than "passive"
labor market policies (education and training programs rather
than unemployment benefits). The Swedes continue to link receipt
of social benefits to work, or preparation for work.
During the period of "hard times" in the mid 1990s,
Sweden reduced its child benefit from about $100 to $80 a
month, the first ever cut in the nominal value of these benefits.
The supplementary benefit provided to larger families with
three or four children was eliminated. Child support (advanced
maintenance) benefits and housing allowances were more constricted.
Of particular importance, Sweden reduced the rate at which
social benefits replaced wages but not the length of time
recipients could receive the benefits. The supply of childcare
was sustained but quality declined somewhat. Parent fees rose
(from 15-20 percent of operating costs to 25 - 30 percent
in some municipalities. About 15 percent of the services were
privatized; about half of those now are for profit, operating
largely through contracts with local government. Privatization,
decentralization, and an increase in user fees for social
services and early childhood education and care services characterized
much of the 1990s.
Despite the cuts, school meals remained free and available
to all chidden during these years, Sweden's universal health
care was sustained; and expenditures on social assistance
and special assistance to refugees were doubled as a share
of GDP. Moreover, family benefits, which had declined from
4.6 percent of GDP in 1993 to 3.7 percent in 1997, began to
rise again in 1998.
According to Swedish policy scholars Joachim Palme and Irene
Wennemo, family benefits were subject to "temporary retrenchment
rather than reform", but the cuts were modest and there
was no restructuring. Sweden experienced a combination of
cuts in transfers (cash benefits), increases in taxes (higher
social security contributions), rising unemployment, and declining
wages. It is this fourfold combination-this quadruple whammy-that
hurt children and their families most, not the cuts in benefits
and services alone, which were really quite modest. Indeed,
policies and programs for children and their families have
clearly been protected.
As of mid-1998 child allowances had returned to their nominal
high of a few years earlier (only slightly below the real
high) and were worth about 7.5 percent of average manufacturing
wages, the supplementary benefit for larger families was re-instated,
benefit replacement rates had been increased to 80 percent
of prior wages, the block grants to municipalities for social
services including child care were close to the high level
of the earlier 1990s, the budget was in surplus and the surplus
was projected to be even larger for next year. By 2001, child
allowances were above their earlier real high; the benefit
was 950 SEK for each of the first two children and still higher
for subsequent children.
In short, the Swedish welfare state may be less generous
today than a decade ago but child-related benefits and service
have been protected. Benefit replacement rates are generous.
Child allowances have returned to their nominal highs and
with very low inflation are close to their earlier real levels.
Single parent families have been protected. In a comparative
sense, the Scandinavian model remains extraordinarily generous,
indeed the most generous of all countries in the OECD, especially
to children and their families.
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Highlights
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Government Agencies
The major government agencies responsible for family policy
are the Ministry of Health and Social Affairs, the National
Board of Health and Welfare, the Ministry of Education and
Science and the National Agency for Education, the National
Social Insurance Board and regional and local offices. The
final governmental responsibility for children rests with
the locality (municipality). The local government is responsible
for early childhood education and care (ECEC), education,
dental care and medical checkups of children, leisure time
activities for children and youth. ECEC services previously
were administered by the National Welfare Board, but in 1996
were transferred to the Education Ministry.
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Demographic and Other Social Trends
Historically, Sweden has been the prototypical Scandinavian
country, following a distinctive and generous pattern of social
policy. The emergence of a Swedish model in the social policy
field is largely a postwar phenomenon. It started with the
introduction of universal old-age pensions and equally universal
child benefits. In the 1950s this was followed by the introduction
of earnings-related benefits in a universal framework. Social
Security benefits were further improved and extended in the
1960s and 1970s. The extension of the maternity leave and
benefit to a parental policy was part of this development,
as was the expansion of the public social services for the
elderly and then for children. These benefits and services
are financed by direct and indirect taxes and by contributions
from employers and employees. In 1997, Sweden spent 34 percent
of GDP on social protection and 32 percent in 2000 (down from
a high of 38.6 percent in 1993 and 1994).
There are several distinctive features of the Swedish model.
One is the strong emphasis on universal rather than targeted
and means-tested social policies. Sweden is one of the two
countries (along with Denmark) with the lowest degree of income
inequality. Social assistance exists in Sweden and is locally
administered, but it is a not a major component of social
protection. A second distinctive feature is the stress on
labor market policy and the strong link between labor market
and social policies. A third is the emphasis on "active"
rather than "passive" labor market policies focusing
on education and training of the unemployed, rather than unemployment
benefits. And a fourth is a stress on gender equity.
In the late 1990s, Sweden's child poverty rate (using the
relative definition of less than 50 percent of median income)
at 2.6 percent was the lowest of 23 countries while Sweden
ranked 12th in per capita GNP. (This was at a time when the
U.S. child poverty rate ranked 22nd in that same list, and
its per capita GNP ranked second (UNICEF, 2000).
For more information on the social security systems, labor
market regulations, collective bargaining, social and family
policies, see the International Reform Monitor.
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Social Protection
Historically, Sweden has been the prototypical Scandinavian
country, following a distinctive and generous pattern of social
policy. The emergence of a Swedish model in the social policy
field is largely a postwar phenomenon. It started with the
introduction of universal old-age pensions and equally universal
child benefits. In the 1950s this was followed by the introduction
of earnings-related benefits in a universal framework. Social
Security benefits were further improved and extended in the
1960s and 1970s. The extension of the maternity leave and
benefit to a parental policy was part of this development,
as was the expansion of the public social services for the
elderly and then for children. These benefits and services
are financed by direct and indirect taxes and by contributions
from employers and employees. In 1997, Sweden spent 34 percent
of GDP on social protection (down from a high of 38.6 percent
in 1993 and '94).
There are several distinctive features of the Swedish model.
One is the strong emphasis on universal rather than targeted
and means-tested social policies. Sweden is one of the two
countries (along with Denmark) with the lowest degree of income
inequality. Social assistance exists in Sweden and is locally
administered, but it is a not a major component of social
protection. A second distinctive feature is the stress on
labor market policy and the strong link between labor market
and social policies. A third is the emphasis on "active"
rather than "passive" labor market policies focusing
on education and training of the unemployed, rather than unemployment
benefits. And a fourth is a stress on gender equity.
In the late 1990s, Sweden's child poverty rate (using the
relative definition of less than 50 percent of median income)
at 2.6 percent was the lowest of 23 countries while Sweden
ranked 12th in per capita GNP. (This was at a time when the
U.S. child poverty rate ranked 22nd in that same list, and
its per capita GNP ranked second.5
For more information on the social security systems, labour
market regulations, collective bargaining, social and family
policies, see the International
Reform Monitor.
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Child, Youth and Family Policy Regimes
Maternity, Paternity, Parental,
and Family Leaves
Paid, job-protected maternity, paternity, and parental, leaves
constitute a significant component of ECEC policy (see below)
and family policy, too (Gunnarsson et al., 1999). This policy
of paid leaves following childbirth (or adoption) has major
consequences for infant and toddler ECEC programs, affecting
the age at which out-of-home care may be needed. The Swedish
Parent Insurance benefit is the international exemplar. It
was established in 1974 and amended several times subsequently.
It is a universal social insurance benefit, to which all parents
are entitled when giving birth or adopting a child. The insurance
covers a right to leave from work with a job guarantee and
a right to financial support during the leave; the benefit
is included in taxable income.
The policy provides for 14 weeks of maternity leave (including
up to 7 weeks before birth) and two weeks of paternity leave
after childbirth. Parental leave follows for up to 18 months,
of which at least two months must be taken by the father (or
lost). The first 13 months of leave is paid at 80 percent
of wages up to a ceiling (and 100 percent for civil servants)
another three months at a low flat rate, and the final three
months are unpaid, but still job-protected. (A non-working
mother is entitled to the minimum flat rate benefit). (Employers
often "top off" the first four months, thus covering
100 percent of salary for these months). The parental leave
can be prorated (to cover 25 percent, 50 percent, or 100 percent
of time off from work) or shared by mother and father. All
eligible mothers take advantage of the leave. About 75 percent
of eligible fathers take some part of the leave but this amounts
to only 15 percent of all parental leave taken in 2001. On
average, fathers were on leave for 44 days (Gunnarsson et
al., 1999 and personal communication). Employers must be given
at least six months notice by employees regarding taking the
leave.
Working parents may take up to 60 days a year paid leave
to care for an ill child, (or the illness of their child's
caregiver) depending on the seriousness of the condition (Family
Leave). Fathers take about 41 percent of this leave. Working
grandparents may do the same. As of January 1, 2002, each
working parent will be entitled to 5 days a year for personal
child needs (e.g. to visit a child's school).
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Early Childhood Education and Care (ECEC)
Early childhood education and care in Sweden has been given
high priority for nearly three decades and is one of the cornerstones
of Swedish family policy (OECD, 2001; Gunnarsson, et al.,
1999; Kamerman, 1998). Sweden is one of the countries included
in the OECD (2001) 12-country study of early childhood education
and care.
Policies extending the supply of care and promoting high
quality have been strongly supported by the Parliament and
by the public at large. According to a recent report, Swedish
childcare has two objectives: (1) to make it possible for
parents to combine employment or studies with family life,
and (2) to support and encourage children's development and
learning and help them grow up under conditions that are conducive
to their well-being (OECD, 2001). Since the early 1970s, when
the dual goals were officially laid down with the launching
of a large-scale public childcare program, the program has
been viewed as including both care and education. In recent
years, the educational policy aspects became increasingly
important and in July 1996 responsibility for public childcare
was transferred from the Ministry of Health and Social Affairs
to the Ministry of Education and Science.
Swedish ECEC programs are designed to meet children's needs
for early education, socialization, and opportunities for
enhanced development as well as care. They cover the normal
work day and year, are publicly funded, delivered through
a free-standing autonomous system of centers and family day
care homes, and serve all children under compulsory school
age who have working mothers or mothers who are full time
students. (The government is increasingly stressing the need
for access to subsidized care regardless of parental employment
status.) The programs were developed initially as a service
for the children of poor, working, single mothers. However,
with the rise in female labor force participation rates in
the 1960s and 1970s, and the high current rates for mothers
of preschool-aged children (75 percent), they are increasingly
serving almost all children. The programs charge income-related
fees usually equal to 1-3 percent of family income and these
fees cover about 17 percent of operating costs. As of January
1, 2002, a maximum fee for ECEC programs went into effect,
reducing the cost of these programs for many families. The
government has established a policy of guaranteeing a place
for any child whose parents wish them enrolled, from the age
of one year. (Sweden's parental leave lasts for 18 months
and infant care is largely parental care.) The government
has announced its intention of establishing a uniform national
maximum ECEC fee. It is up to the municipalities to implement
this.
Swedish (and Danish) ECEC programs constitute the highest
quality of out-of-home care and education available anywhere.
Centers are held to the same standards of quality, and charge
the same fees to parents, regardless of whether they are public,
private non-profit or for-profit. More than 90 percent of
children are in public or publicly funded programs and only
3 percent are in for-profit programs. Standards concerning
group size, staff:child ratios, and caregiver qualifications
are high, rigorously set and enforced, and are based on extensive
research. Staff salaries are comparable to average wages in
other occupations. Staff turnover is low (about 10 percent
a year). Even though staff: child ratios were lowered in the
mid-1990s as a consequence of cuts in public spending on child
care in Sweden, they still remained higher than in other countries.
The programs are universal and serve all children under age
7, with priority for children with working mothers, lone mothers,
from immigrant or low-income families, or who have a disability.
All children aged 1-11 with working parents or parents who
are students, are guaranteed a place in good quality care.
By 2001, it is expected that children of unemployed parents
will be guaranteed a place as well, albeit for part of the
day. Coverage rates for 1-5 year olds in center care or in
supervised family day care are about 75 percent and slightly
lower (68 percent) for school aged children in after-school
(leisure time) care. Forty percent of the under 3s and 82
percent of the 3-6 year olds were enrolled in 1999. By January
1, 2003, all 4 and 5 year olds will be guaranteed a place
in preschool, if only for part of the day, if their parents
wish it.
Family day care (called "child minding" in much
of Europe) is still regarded as secondary to group care programs
in Sweden but seen also as responding to some parents' preferences
and some children's needs. Family day care providers are trained
personnel, who receive good salaries and benefits and are
selected, guided, supervised and made ever more qualified
by assigned and qualified supervision.
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Family Allowances
Child Allowances are a cash benefit provided to families
residing in Sweden based on the presence and age of the child(ren).
The first and current law was enacted in 1947, and applies
to Swedish residents with one or more children under age 16
(or 20 if a student, 23 if attending a special school for
the mentally retarded. Child allowance was payable at the
rate of 950 SEK a month (about $100) in 2001. It is a universal,
non-means-tested benefit. A special benefit for large families
-- with three or more children -- and linked to child allowance,
was eliminated in 1996 but re-instated subsequently. An extended
child allowance is payable for children over 16 still attending
compulsory school. The benefit is excluded from taxable income.
A special child allowance is payable to children of widows,
widowers, and other single parents.
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Child and Family Tax Benefits
Since the tax unit for income tax purposes is the individual,
there are no special tax concessions for families in the Swedish
system. The philosophy grows out of the gender equity policy.
Swedish employees pay substantially less in the way of payroll
taxes than in other countries, but the government and employers
contribute more. Companies pay "employer taxes",
sometimes earmarked for certain social services, and a Swede
working full-time pays an average of 30-40 percent in direct
taxes on income. In addition Sweden has an indirect 23 percent
state sales tax (a VAT or Value Added Tax) on goods and services.
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Child Support
Child maintenance or support is expected to be paid by the
non-custodial parent whether the parents are unmarried, separated,
or divorced. Parents can make an agreement regarding the amount
of the maintenance but in the case of disputes the court decides.
Each child is entitled to a certain minimum amount, which
is guaranteed by the government. In cases where the non-custodial
parent is not able to pay at least the minimum, the government
pays it. Child support/maintenance can be advanced by the
public social insurance office and the amount paid is then
reclaimed from the parent who has to pay maintenance. The
child support benefit (guaranteeing a minimal level of support
to children in single-parent families) was reformed, in the
latter part of the 1990s in an effort at getting non-custodial
parents to provide more in the way of support. The reform
linked the court-ordered support awards more closely to the
non-custodial parent's income and eliminated the indexing
of the minimum support benefit.
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Other Child Conditioned
Income Transfers
A widow or widower is entitled to a universal survivor's
pension payable for 6 months or as long as she/he is living
with a child under age 12. Half-orphans up to the age of 18
(20 if a student) are entitled to 25 percent of the pension
and 50 percent if a full orphan. An orphan is also entitled
to 30 percent of the earnings-related survivor pension.
Care Allowance. Parents of disabled or handicapped children
are entitled to a cash allowance to enable them to take care
of their child. The benefit level is related to the child's
needs.
Social Assistance is a means-tested cash benefit available
to those in need of a safety net. Couples with children constitute
around 15 percent of recipient households and lone mothers
around 25 percent (in 1995). (Single individuals are the largest
group and constitute about 60 percent of the caseload.) About
1/3 of all lone mothers claimed assistance in 1995, primarily
because of unemployment. Social assistance is intended to
be an aid for persons in temporary financial need, but in
recent years the period of dependence on assistance has increased
especially among lone mothers, young unemployed, and refugees,
and there is some discussion in Sweden about this.
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Child and Adolescent Health
The health status of Swedish children is excellent. Infant
mortality rates are low, childhood mortality due to illness
is low, the mortality rates of children due to accidents is
among the lowest in the world, teen out-of-wedlock pregnancy
and abortion rates are very low. Nonetheless, there are some
concerns: About 18 percent of girls and 15 percent of boys
smoke every day and alcohol use appears to be increasing among
youth. There is also concern about rising rates of asthma
and allergies.
There is free health care for pregnant mothers and children
under school age in the municipalities in the form of "maternal
care centers" and "childcare centers." The
care is mostly preventive. One obligatory check-up for all
children is the 4-year examination. The results suggest that
there are significant differences in the health and development
of children by socio-economic status.
Since 1998, families with children, regardless of income,
no longer have to pay fees for health care services. Since
the 1970s the municipalities have established special health
centers for adolescent boys and girls focused on the prevention
of poor health, providing information about sex, and preventing
teenage pregnancies and sexual diseases. Children can use
these centers at any age and can obtain counseling services
as well, especially during times of crises (parents' divorce,
child abuse). All tests are free. Access to contraceptives
is available to all, free of charge. And the general rule
is that children are granted secrecy, even from their parents
or authorities, unless the child is in need of protection.
All children are entitled to school health care free of charge,
again with a stress on preventive health care and to help
with information, advice, and provision of contraceptives.
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School-Aged Children: Policies
and Programs
Sweden is among the few countries with national
data regarding coverage of school-aged children in such programs
in Sweden. About 70 percent of school-aged children are enrolled
in after-school programs ("leisure time centers");
these are often linked with preschool programs, and involve
income-related fees.
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Youth
Sweden is among the few countries with national
data regarding coverage of school-aged children in such programs
in Sweden. About 70 percent of school-aged children are enrolled
in after-school programs ("leisure time centers");
these are often linked with preschool programs, and involve
income-related fees.
Sweden was one of fourteen countries participating
in the OECD Thematic Review, From
Initial Education to Working Life--Making Transitions Work.
For more detail on the transition to working life in Sweden,
see OECD's background
report on Sweden.
Click here to view in pdf format a table on
the Ages at which
children are legally entitled to carry out a series of acts
in the European Union. See Youth Policies
section for definition of terms used.
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Reconciliation of Work and Family
Life
The general culture in Sweden stresses the importance of
maintaining a balance between work and family life. Government
policies support this, in particular the extensive system
of subsidized early childhood education and care, and the
extensive and generous parental leave policies including post
childbirth, post adoption, and sick-child policies. Employers
must adapt to these policies and apparently have done so.
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Housing Benefits
Housing allowance is a means-tested benefit, the only such
benefit apart from social assistance. In contrast to the general
trend towards devolution, in 1994 the national government
took over the responsibility for housing allowance from the
localities. Families with children as well as spouses and
single persons are entitled to housing allowance, if they
are Swedish residents. It exists in two main forms:
§ The income tested housing allowance that varies according
to age, income, housing cost, and the number of children;
§ Rent payments, which are fully covered for social assistance
claimants with a supplement to the housing allowance.
It is a tax-free benefit and plays an important role in the
incomes of modest and low-income families. In the mid-1990s
it was reduced somewhat, eligibility criteria were more sharply
targeted on low-income families, and it was made more restrictive.
There is concern that the reform will have negative consequences
for families with children and thus it is being closely monitored.
Nearly 30 percent of Swedish households with children received
a housing allowance in 2001, largely single mothers (Swedish
Ministry of Health and Social Affairs, 2002).
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References
Ditch, J., Barnes, H., &Bradshaw, J. (Eds.). (1998).
Developments in national family policies in 1996. Brussels:
Commission of the European Communities.
Ditch, J., Barnes, H., &Bradshaw, J. (Eds.). (1996).
Developments in national family policies in 1995. Brussels:
Commission of the European Communities.
Greve, B. (1999). Economic support to families with children:
A comparison of five welfare states. Roskilde, Denmark:
Roskilde University.
Gunnarsson, L., et al. (1999). Early childhood education
and care policy in Sweden. Paris: OECD.
Kamerman, S.B. (1998). Early childhood education and care:
An overview of developments in the OECD Countries. Paris:
OECD.
Liljestrom, R. (1978). Sweden. In S. B. Kamerman & A.
J. Kahn (Eds.), Family policy: Government and families
in fourteen countries. New York: Columbia University Press.
OECD. (2001). Starting strong: Early childhood education
and care. Paris: Author.
OECD. (2000a). From initial education to working life-Making
transitions work. Paris: Author.
OECD. (2000b). Thematic review of the transition from
initial education to working life: Sweden background report.
Paris: Author.
Palme, J. & Wennemo, I. (1998). Swedish social security
in the 1990s: Reform and retrenchment. Stockholm, Sweden:
The Cabinet Office and Ministries.
Palme, J. et al. (2002). Welfare in Sweden: The balance
sheet for the 1990s. Stockholm: Sweden: Ministry of Health
and Social Affairs.
Rostgaard, T. (2002).Care services for children and other
dependents. Copenhagen: Danish National Institute of Social
Research.
Swedish Ministry of Health and Social Affairs. (2002). Swedish
family policy. Fact Sheets on Sweden, No. 5. Stockholm:
Author. http://www.regeringen.se
Swedish Ministry of Health and Social Affairs. (1999). Child
care in Sweden. Fact sheets on Sweden. Stockholm: Author.
http://www.regeringen.se.
UNICEF Innocenti Research Centre. (2000). A league table
of child poverty in rich nations. Innocenti Report Card, 1.
Florence, Italy: UNICEF.
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Contacts
Washington Embassy
Embassy of Sweden
1501 M. St., NW, #900
Washington, DC 20005
Phone: (202) 467-2600
Fax: (202) 467-2699
Ministry
Mr. Soren Kindlund
Deputy Assistant Under-Secretary
Ministry of Health and Social Affairs, Social Department
30-32 Regerinungsgatan
103 33 Stockholm
Phone: 00 46 8 103 633
Fax: 00 46 8 405 33 60
Email: soren.kindlund@social.ministry.se
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