Biology of Business

Denmark

By Alex Denne

Denmark's flexicurity model combines one of the world's most flexible labour markets (easy hiring and firing) with generous unemployment insurance (up to 90% of previous salary for two years) and active retraining programmes — a system that protects workers rather than jobs. The result is low unemployment, high labour mobility, and minimal political resistance to economic restructuring, because individuals bear less transition risk. The Folketing operates through minority governments supported by parliamentary agreements, producing policy stability through negotiation. Denmark's autonomous territories — Greenland and the Faroe Islands — create a governance structure spanning from the Arctic to the North Atlantic, with increasing autonomy movements in both territories driven by natural resource potential (Greenland's rare earth minerals, Faroe fishing rights). The economy combines advanced manufacturing, pharmaceuticals (Novo Nordisk), renewable energy (Vestas, Orsted), and agriculture — a diversified metabolic base that reduces dependency on any single sector.

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