Essay from the year 2002 in the subject Leadership and Human Resources – Miscellaneous, grade: 1.0 (A), University of Canterbury (Department of Business Administration), course: International Industrial Relations and Human Resource Management, language: English, abstract: The Swedish Model (SM) was made famous because of its special character relating to industrial relations. The reasons for the failures of the system are complex. In the following some points about its failure are mentioned, however there are several other aspects, which can be discussed. The theme of this essay will be the changes in environment and their impact on the SM that can be seen as symptoms of the failures in the SM. The main reasons for the problems in terms of the SM are the static assumptions or framework of the system without covering dynamic effects and necessary reactions to changes. The main assumption of the class compromise between capital and labour cause many problems, however, it also made SM very unique and was the reason for the admired welfare system and economic growth. The problems and the interdependences between developments in respect of changes in environment will be analysed below.