The labour movement – both trade unions and political parties – was an important political presence throughout the Nordic Region in the 20th century.

In the beginning, the workers' organisations encountered opposition from the authorities and conservative forces, but had fully established themselves as a force in society by the end of World War One.

Most of the Nordic labour movement opted for a reformist path. The big social democratic parties became dominant, especially in Denmark, Norway and Sweden. Along with the Liberals, the Social Democrats were responsible for pushing through democratisation.

However, in Finland, the divisions between right and left led to the civil war of 1918, when the right-wing “Whites” defeated the “Reds”.

The Finnish civil war was an exception to the peaceful trend of the Nordic Region, and it is significant that the conflict's wounds quickly began to heal. As early as 1926, the Social Democrats, who had been “Reds”, formed a government.

From weak democracy to stable welfare states

Democracy was under threat throughout Europe during the interwar period, as Communist, fascist and Nazi dictatorships were established in many countries.

However, both the Communist and Nazi movements made limited inroads in the Nordic Region. The biggest threats to democracy came later, from dissatisfaction with the complicated parliamentary system that had resulted in a succession of short-lived minority governments, and from the social unrest that followed the Depression in the early 1930s.

In 1933, the Danish Social Democrats and the right-wing liberal party Venstre signed the Kanslergade Agreement, which guaranteed parliamentary stability and state support for the economy.

All of the Nordic countries reached similar crisis settlements between the Social Democrats and, especially, the rural part of the Right within the next few years.

Co-operation on the labour market was improved through a series of historic agreements between the trade unions and employers' associations. The most famous of these was the Saltsjöbad Agreement in Sweden in 1938.

This new climate of co-operation also proved fertile for the development of the welfare state.

The foundations were laid during the 1930s, with state pension schemes, disability pensions, unemployment insurance, maternity and child-care measures, etc.

After World War Two, the scope of welfare provision was extended significantly, and the Nordic countries began to serve as a model for the welfare state – one that extracted high taxes, but took care of its citizens from cradle to grave.

The Social Democrats were the driving force behind this initiative, but even though right-wing parties often recommended private funding, there was broad agreement about the objectives.

Finland and Iceland, where the Social Democrats were significantly weaker, also developed similar welfare models.

The Nordic model also prized peace and promoted co-operation on the labour market, which ensured uninterrupted growth during the positive international economic climate of the 1950s and 1960s.

The agricultural model had been definitively left behind; instead, the Nordic countries had become highly industrialised and urbanised societies.

World War and Cold War

The Nordic states had been neutral during World War One, but during World War Two they could no longer stand apart from world politics.

The Soviet Union attacked Finland in 1939, and Finland ceded territory following the Winter War. In 1941 Finland launched a retaliatory strike in conjunction with the German attack on the Soviet Union.

However, more territory was lost, and for many years to come Finnish foreign policy was based on appeasing the Soviet Union, even though Finland was able to retain its democratic form of government.

Denmark and Norway were occupied by Germany in 1940. The Allies responded by occupying Iceland, the Faroe Islands and Greenland.

Sweden managed to avoid direct hostilities and formally maintained its neutrality, but in practice it adapted to the wishes of the dominant power – first Germany, later the Allies.

Compared with large parts of Europe, the Nordic Region got off lightly during the war, which partially explains its strong post-war economic development.

However, new divisions in global politics during the Cold War forced the Region to take sides.

The Nordic states were more dependent than ever on orienting themselves towards stronger powers in order to preserve their sovereignty.

An attempt to form a Nordic defence union failed, after which Denmark, Iceland and Norway joined NATO when it was founded in 1949.

In theory, Sweden and Finland remained neutral – however, in practice Finland had limited room to manoeuvre due to its ties with the Soviet Union, and Sweden co-operated closely with the Western alliance.

The co-operation established through the Nordic Council and the Nordic Council of Ministers promoted freedom of movement and closer ties within the Nordic Region, but it never covered foreign policy.

The economy and European integration

Economically, the five Nordic countries were strongly dependent on foreign trade, and so were forced to position themselves alongside the big trading blocks.

In the beginning, the Nordic states all participated in EFTA rather than in the more binding co-operation in the EEC. However, the divisions between the countries became clear when the United Kingdom joined the EEC (later the EU) in 1972, and the Nordic Region split.

Denmark was the only Nordic country to join in 1972, after a referendum in Norway rejected the EEC.

The pros and cons of issues of national sovereignty and the economic benefits of membership have been discussed intensively for decades.

Finland and Sweden joined the EU in 1995, while the Norwegians again voted against.

Since 1948 and 1979 respectively, Iceland, the Faroe Islands and Greenland have enjoyed substantial autonomy within the Danish state, and have chosen to remain outside the EU.

Organs exist for the Saami people in Finland, Norway and Sweden, although they do not have enjoy territorial autonomy.

Finland was able to join the EU, contrary to the previous policy of neutrality, due to the new international situation following the end of the Cold War.

The collapse of Soviet Communism and the Warsaw Pact finally made it possible to build bridges between countries all over Europe.

The Nordic countries were heavily committed to independence for the Baltic States, and have now established close links with them.

The Nordic Region has both been strengthened and weakened in the new Europe. The co-operation in the Nordic Council and the Council of Ministers has been more cultural and less political since the countries opted for various solutions in relation to the EU.

In terms of foreign policy, all five countries have closely followed the rest of Europe, and have taken part in humanitarian and, in certain cases, military actions far from home. For example, all have sent troops or civilian personnel (Iceland does not have armed soldiers) to Afghanistan as part of the NATO-led alliance.

A European region in a global world

Another effect of increased globalisation is large-scale immigration. After World War Two, all of the Nordic countries, but especially Sweden, accepted substantial numbers of immigrant workers. Among those emigrating to the economically strong Sweden were other Nordic citizens, especially Finns.

Since approx. 1970, the number of refugees has increased, and all of the countries are now more or less multicultural. In recent decades, immigration and the influx of refugees from Muslim areas has been a source of debate.

The differences on this issue are considerable, with Denmark in particular adopting a highly restrictive policy on foreigners. The others, especially Sweden, have continued to accept relatively large numbers of refugees.

All over the Nordic Region, a lively debate is taking place about the more or less successful integration of these new citizens – some fear threats to their own nationality, others warn against xenophobia and nationalism.

At the start of the 21st century, plenty of common ground still exists between the five Nordic states and the Faroe Islands, Greenland and Åland.

All are welfare states with large public sectors, and are characterised by stable parliamentary democracy, low levels of violence, widespread gender equality and organised labour markets.

As a region in Europe, their common features are perhaps most clearly evident in such everyday phenomena as the comprehensive child-care system and the high proportion of women on the labour market.

As a political region, the Nordic Region is today less prominent. It might even be claimed that in today's shrinking world the whole of Europe constitutes a region.

Nevertheless, all of the Nordic countries are finding their feet in the new globalised world, and it will be interesting to see whether they opt for joint or separate solutions.