Nordic welfare states are world renowned for providing high quality public services. Nordic municipal and regional authorities, in particular, play a central role in the delivery of key public services in areas, such as, health, education, and social care. However, in recent years, public authorities have faced several challenges which have reduced capacity and resources, including long periods of austerity following the 2008 financial crash, rapid demographic changes caused by an ageing population, and the COVID-19 health crisis. In response to these challenges many public authorities have looked to inter-regional, inter-municipal and cross-border collaborations to improve the quality and effectiveness of public service delivery (OECD 2017; ESPON 2019). Indeed, collaborative public service delivery is becoming increasingly prominent in the Nordic Region due to a highly decentralized systems of governance (Nordregio 20015; Eythorsson 2018).

The Nordic welfare sector is facing significant challenges when it comes to providing effective social care services. While the demand for services for a rapidly growing elderly population is constantly increasing, the workforce delivering social care services is shrinking, with many workers reaching retirement age. Tackling the challenges related to recruitment and retention of qualified staff – and developing innovative approaches to the delivery of social care services – is becoming increasingly urgent, particularly in rural and sparsely populated areas (SPAs). This policy brief gives an overview of examples across the Nordic Region aimed at tackling these resource challenges and exploring innovative ways of organising and delivering social care services in rural areas and SPAs. It is based on a desk study funded by the Nordic Welfare Centre (see more about this on the last page).