Denmark Ranks 1st in Global National Competitiveness for 2 Consecutive Years
'Dialogue and Cooperation' in Denmark's Deliberative Democracy
Multiparty System and Nearly 90% Voter Turnout... The Secret to Cooperation
Ranked No. 1 in National Competitiveness Worldwide. Denmark, the 'political powerhouse' of Northern Europe, has as many as 16 parties in its parliament. The diverse political voices witnessed at Denmark's political festival 'Folkemødet' last month were echoed in the Danish parliament, the 'Folketinge.' In Denmark's multi-party system under the parliamentary cabinet system, where the majority party in parliament forms the executive branch, dialogue and persuasion are essential 'political skills' to form coalition governments. Additionally, a voter turnout approaching 90% has been the driving force behind the Danish parliament becoming a political stage for voters. This is why the National Assembly of the Republic of Korea, which has embarked on 'political reform' by prioritizing electoral system reform since early this year, should pay attention to Danish politics.
According to the Swiss International Institute for Management Development (IMD) on the 14th, Denmark ranked first in the world in national competitiveness this year. This is the second consecutive year it has held the top spot. It also received high marks in government efficiency (6th → 5th). In the same survey, South Korea ranked 28th among 64 countries, dropping one place from last year.
Denmark's national competitiveness is largely credited to politics based on dialogue and compromise. Svend Oling, the Danish Ambassador to Korea, said, "Denmark's competitiveness is influenced not only by innovation capabilities and social stability but also by a political culture that transcends parties and ideologies to engage in dialogue and seek compromise," adding, "Denmark's political culture, developed over many years, favors political decisions that pursue long-term and rational solutions encompassing multiple administrations."
How Does Danish Politics Achieve Cooperative Governance?
At the end of January this year, the Danish government submitted a bill to reduce the Christian holiday 'Great Prayer Day' by one day to increase the defense budget. At that time, a crowd of about 50,000 gathered in the capital, Copenhagen, to protest the reduction of a 330-year-old public holiday. However, as the war between Russia and Ukraine prolonged, the Danish government, which urgently needed to strengthen its military, pushed the bill to reduce the holiday. Consideration was also given to Denmark's annual working hours being 1,363 hours (South Korea 1,928 hours), one of the lowest levels worldwide after Germany (1,349 hours).
The ruling Social Democrats engaged in dialogue with opposition parties along with coalition partners and persuaded the centrist-progressive Radical Left Party to pass the bill. Anne Paulin (35), a Social Democrat lawmaker, told Asia Economy in an interview, "The government's reason for excluding Great Prayer Day from public holidays was to fulfill its pledge to increase military spending and secure finances for welfare and climate initiatives," adding, "The bill was passed after very heated debates."
Anne Paulin (35), a Social Democratic Party member, is being interviewed by Asia Economy at Christiansborg in Copenhagen, Denmark.
There are more examples where Danish politics overcame opposition through compromise. In the late 1990s, pension reform was inevitable in Denmark. At that time, the ruling Social Democrats pushed for pension reform but withdrew due to opposition. However, after winning the subsequent general election, the Social Democrats passed the pension reform bill with support from opposition parties. Professor Choi Hee-kyung of the Department of Public Administration at Kyungpook National University explained, "Although the Social Democrats suffered a crushing defeat in the election four years later, the reformed Danish pension system is now regarded as one of the best pension systems."
In Denmark, when political positions sharply conflict, it is customary to meet more frequently for dialogue. Christian Friis Bach (57), a Radical Left Party lawmaker and former Minister for Development Cooperation, said, "During my time as minister, I invited lawmakers who disagreed with me to my office for many negotiations and discussions," adding, "While discussing a proposed bill, the other party suggested a slightly different idea, and by including it and slightly modifying the bill, all parties agreed, which was a very gratifying experience."
Christian Friis Bach (57), a member of the Radical Liberal Party, is giving an interview to Asia Economy.
Christian Friis Bach (57), a member of the Radical Liberal Party, is working with an intern secretary in his office.
Multi-Party Coalition Government... Cooperation Is Essential
Since 1920, Denmark has had coalition governments as no party has secured a majority of seats. Currently, the Social Democrats (49 seats), holding the largest number of seats, formed a government in coalition with the center-right Liberal Party (23 seats) and the centrist Moderate Party (16 seats). Among the 23 ministries, seats were distributed reflecting vote shares: 11 to the Social Democrats, 7 to the Liberal Party, and 5 to the Moderate Party. In such a multi-party system, cooperation is essential. The culture of compromise and consensus with opposition parties has naturally developed in parliament.
This cooperative spirit is also reflected in Denmark's legislative process. Bills proposed in the Danish parliament go through three stages before passage. First, they are submitted to a plenary session where all lawmakers debate the bill, then referred to relevant standing committees. In the committees, only bills reviewed up to three times within 30 days can be adopted. Public hearings and debates continue during this process. The more contentious the bill, the more time is devoted to discussion. As a result, the Danish parliament passes about 200 bills annually on average. In comparison, South Korea's 20th National Assembly processed 3,195 bills, averaging about 600 bills passed annually.
A significant factor behind the Danish parliament's emphasis on dialogue and compromise is the high voter turnout. Denmark's general election turnout has averaged 85% over the last four elections. The turnout for the early general election held in 2022 due to the COVID-19 pandemic was 84.2%. In 2011, turnout reached as high as 87.7%. Although it is difficult to directly compare with South Korea's National Assembly elections, which elect members under a different system, South Korea's 21st general election turnout was 66.2%, and the 20th presidential election turnout was 77.1%. Compared to the most recent local elections last year, which had a turnout of only 50.9%, Denmark's turnout is significantly higher.
The Electoral System Behind Denmark's Magic Number 90%
The secret to the high turnout lies in citizens' willingness to participate in politics and the electoral system. Denmark elects members of parliament through a multi-member district system based on a party-list proportional representation system. In contrast, South Korea uses a single-member district system where one lawmaker is elected per district, whereas the multi-member district system elects multiple lawmakers from one district. Denmark elects representatives from 10 constituencies, with 175 of the total 179 seats elected from regional constituencies, excluding 4 seats from the autonomous territories of Greenland and the Faroe Islands. Of these, 135 seats are elected from constituencies, and 40 are compensatory seats. This proportion of compensatory seats is relatively high compared to other Nordic countries. Sweden has 39 compensatory seats out of 349 (11.2%), and Norway has 19 out of 169 (11.25%).
These compensatory seats provide high proportionality depending on voter turnout. For example, a party that receives 5% of the vote in a region may not be allocated seats directly but can receive 8 seats (5% of 175) through compensatory seats.
The party-list proportional representation system is broadly divided into closed and open types. Unlike South Korea's closed system, where parties pre-select candidate rankings and voters can only choose parties, Denmark uses an open-list proportional representation system. Voters can select both parties and candidates, and the order of election depends on voter choice. Candidates with higher votes are elected. Independent candidates can run if they receive recommendations from 150 to 200 eligible voters in the district, but running as independents is rare.
Candidate nomination methods vary by party but are generally decided by votes from local party members. However, the central party's influence is reflected as the national committee approves candidate lists. New parties, which often lack local bases, have candidates nominated at the central party level. Generally, there is no legal quota for female or minority candidates. Parties themselves consider gender, age, education, and region diversely to gain more votes when nominating candidates.
Professor Kasper Møller Hansen of the Department of Political Science at the University of Copenhagen is engaged in a discussion at Folkemøde. (Second from the left among the stage speakers)
This electoral system shows high proportionality. A party can gain seats in parliament with just 2% of the vote, enabling a multi-party system. Kasper Møller Hansen, a professor of political science at the University of Copenhagen, said in a video interview, "Various surveys and papers have shown that voter turnout is higher under proportional representation than in single-member district systems," adding, "In districts where only one candidate will be elected, the importance of voting is less."
Professor Hansen explained, "Having many parties does not necessarily mean confusion. It also means voters can choose a party very close to what they want," adding, "If there were only two parties, voters might not get what they want, but with 14 parties to choose from, it becomes easier to find a party close to one's preferences."
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