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==20th century==
==20th century==
During and after World War I, in which Sweden remained neutral, the country benefited from the worldwide demand for Swedish steel, ball bearings, wood pulp, and matches. Postwar prosperity provided the foundations for the social welfare policies characteristic of modern Sweden. Foreign policy concerns in the 1930s centered on Soviet and German expansionism, which stimulated abortive efforts at Nordic defense cooperation. Sweden followed a policy of armed neutrality during World War II (although thousands of Swedish volunteers fought in the [[Winter War]] against the Soviets); however, it did permit German troops to pass through its territory to and from occupation duties in its neighbour, [[Norway]], and it supplied the Nazi regime with steel and much needed ball-bearings.
During and after World War I, in which Sweden remained neutral, the country benefited from the worldwide demand for Swedish steel, ball bearings, wood pulp, and matches.
Postwar prosperity provided the foundations for the social welfare policies characteristic of modern Sweden. When the Social Democratic Party came into power in 1932, its leaders introduced a new political decision-making process, which later became known as "the Swedish model." The party took a central role, but tried as far as possible to base its policy on mutual understanding and compromise. Different interest groups were always involved in official committees that preceded government decisions.
Foreign policy concerns in the 1930s centered on Soviet and German expansionism, which stimulated abortive efforts at Nordic defense cooperation. Sweden followed a policy of armed neutrality during World War II (although thousands of Swedish volunteers fought in the [[Winter War]] against the Soviets); however, it did permit German troops to pass through its territory to and from occupation duties in its neighbour, [[Norway]], and it supplied the Nazi regime with steel and much needed ball-bearings.
==Recent history==
==Recent history==