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Sweden is much held around here, the so-called swedish model of social-democracy and all. So in fact the whole scandinavian region, from Finland (the finnish scholar system was discussed much those days as well), to Denmark and Norway.

But according from here and old tales, it was not the case until WWII's end and efforts to rebuild the economies and all. In the old days, I have been told the clichés on the scandinavians was roughly a poor chummer, derided as 'alcoholic hicks' of northern europe kinda, conservative and all... Backwater, poor nations sort of.

So, challenge. How to block, screw and such the 'scandinavian miracles' from happening, and keep scandinavian nations as poorer, more backward lands?

(Disclaimer; I have nothing against scandinavians. It's a screw-dystopic kinda idea.)

Finland is probably easier, simply maybe a nasty Finnish Civil War ongoing some more, reds winning maybe.. or more realistically, the Winter or Continuation wars somehow ending badly for the finns, and the USSR get in and instal a puppet regime maybe... Or bad 'finlandisation'...

Denmark harder, because too close to Germany and UK?

I admit not knowing those nations well.... Set in pre 1900 to be safe with specific alt point of history, maybe before 1900.
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