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Source: CC BY-SA 3.0, Jens Cederskjold

3. Policies for counteracting segregation and promoting social inclusion

This chapter focuses on the first of the study’s four core themes, namely national policies aimed at counteracting segregation and promoting social inclusion in Nordic cities. In doing so, it provides an overview of the national policy landscape across all five Nordic countries, and sheds light on the policies and tools Nordic governments and cities are employing to address segregation and foster more socially inclusive communities. Building on this, the chapter addresses the similarities and differences apparent among the Nordic countries in dealing with segregation and social inclusion.
More specifically, the key questions addressed are:
  • What does the national policy landscape concerning strategies aimed at preventing segregation and promoting social inclusion in Nordic cities look like?
  • What are the characteristics of these policies and strategies in terms of design, implementation, aims and objectives, and what similarities/differences are there between countries?
Below, each of the five Nordic countries is addressed in turn. A cross-Nordic discussion on the topic is presented in the final chapter (section 7.1), containing takeaways from the individual countries and the Nordic region more broadly.

3.1 Finland

Segregation has emerged as a topic of growing societal importance in Finland over recent decades. Although there is no national strategy explicitly focused on segregation, there have been numerous policy initiatives and programmes featuring reduced segregation and increased social inclusion as key objectives.

3.1.1 Policies and initiatives

The Government Programme

In Finland, the Government Programme is a political action plan that describes the objectives and main areas of activity during a specific government’s term of office (Finnish Government, n.d.). The notion of creating more socially inclusive, less segregated cities and neighbourhoods was strongly emphasised in the programme put forward by the government of former prime minister Sanna Marin for the years 2019–2023. Titled ‘Inclusive and Competent Finland – A Socially, Economically and Ecologically Sustainable Society’, the programme’s overall aim was to transform Finland into a sustainable society by 2030 (Finnish Government, 2019). In terms of social sustainability, the programme discussed ensuring equality, reducing inequalities, promoting wellbeing, and allowing people agency over their life paths irrespective of where they live. Cities and urban areas in particular were mentioned as key to promoting sustainable growth and employment, combating climate change, and preventing exclusion.
The 2019–2023 Government Programme placed strong emphasis on preventing urban segregation and revitalising suburban areas. Over recent decades, many of Finland’s suburban housing estates have been targeted by regeneration efforts in an attempt to counter unfavourable socio-economic development. The Government Programme’s strategic focus on this area prompted the initiation of a new horizontal programme called the Neighbourhood Renewal Programme (Lähiöohjelma) 2020–2022 (Lähiöohjelma, 2020). The Finnish government also acknowledged the need for a more long-term national housing policy by launching the comprehensive Housing Policy Development Programme (Asuntopoliittinen kehittämisohjelma), covering the years 2021–2028 (Ministry of the Environment, n.d.-a).
Another important instrument mentioned in the Government Programme are the so-called ‘MAL agreements’ on land use, housing and transport. These are urban development partnerships between the central government and Finland’s largest urban regions, and include specific objectives for land use development, housing production and key transport development projects over the coming years (Ministry of the Environment, n.d.-c). The MAL agreements also aim to mitigate segregation and diversify neighbourhoods by allocating land for building affordable housing and sustainable transport links.

Regional policy priorities

Recent years have also seen social sustainability, inclusion and segregation feature prominently in Finnish regional policy priorities, as demonstrated by the Regional Development Decision 2020–2023 (Ministry of Economic Affairs and Employment, 2020b). The document contains six key priorities, of which increasing inclusion and wellbeing and preventing inequality is the most relevant to this study.
Several key points were highlighted under this priority, including multidisciplinary cooperation on methods designed to reverse inequality trends and increase participation; promoting partnerships between companies and third/fourth sector actors; and well-functioning public services. Moreover, the Regional Development Decision emphasised that segregation in cities, along with disparities in wellbeing and health, are best addressed by ensuring equal access to services, education, employment and adequate livelihoods (Ministry of Economic Affairs and Employment, 2020b).

National urban strategies

The relevant strategic aims contained within the 2019–2023 Government Programme were concretised in a variety of urban policy strategies and programmes. An important document in this regard is the National Urban Strategy 2020–2030. Aptly titled ‘Stronger Together – Cities and Central Government Creating a Sustainable Future’, the strategy sets out a vision of vibrant, climate-smart, socially sustainable cities (Ministry of Finance, 2020). Towards this end, partnerships are highlighted as an important means of strengthening cooperation between cities and urban areas of different sizes. Such cooperation encompasses everything from goal-setting to embarking on different paths that lead to shared objectives.
Underlining the responsibility borne by cities in mitigating spatial and demographic disparities, the National Urban Strategy advocates for a shared knowledge base that can help inform decision-making, particularly when it comes to education, employment and wellbeing. Social sustainability hinges on societal participation and solidarity, coupled with inclusive service provision across diverse demographics. Urban planning is mentioned as a tool for increasing inclusion and reducing social inequality, while housing affordability is another key focus area for the policy (Ministry of Finance, 2020).
The National Urban Strategy was concretised through various urban policy programmes and agreements between the central government and cities. Central to this was the Urban Programme 2018–2022 (Urjankangas & Voutilainen, 2018), which placed particular emphasis on the large cities and regional centres where socio-spatial disparities are most pronounced. Here, a key focus was on mitigating socio-economic and ethnic segregation, which have become increasingly intertwined. Addressing disparities in education, employment and income was highlighted as a prerequisite for levelling out socio-spatial differences between people and neighbourhoods, thereby ensuring equal opportunities and fostering community security.
The Urban Programme 2018–2022 underscores the importance of cross-sectoral cooperation within city administrations, including the need for a common knowledge base when setting shared targets and aligning activities across administrative branches. In recognising the risk factors for marginalisation, especially among young people and those with migrant backgrounds, the programme advocates prioritisation of early childhood education, family support and youth services, alongside measures aimed at combating loneliness among older adults.
Also emphasised is the need for spatially targeted interventions in specific neighbourhoods, backed up by sufficient resources for implementation. Examples mentioned include improving public transport, cycling lanes and walking paths; applying social mixing to housing policy; and enhancing cultural and recreational services in order to promote participation and active citizenship (Urjankangas & Voutilainen, 2018).
In addition to the Urban Programme 2018–2022, several other national policies have been introduced targeting specific urban regions or types. One area of focus has been on Helsinki and its surrounding urban region, which has been addressed through the so-called ‘Metropolitan Policy’. The Metropolitan Policy for 2019–2023 had a strong emphasis on sustainable urban development, with areas covered including the prevention of segregation; housing policy and land use; and the transition towards carbon neutrality (Ministry of the Environment, n.d.-d). In doing so, the policy encouraged a holistic approach to addressing urban challenges and leveraging opportunities for inclusive growth in the Helsinki metropolitan region, highlighting affordable housing and employment/skills development – especially for young people and migrants – as focal points for policy interventions.
So-called ‘regional cities’ have also been a focus of national urban policy. Although medium-sized centres in their own functional regions, these cities are not regional administrative, economic or cultural centres, nor located in the vicinity of larger regional centres. Such cities were the subject of the 2018 Regional Cities Programme (Seutukaupunkiohjelma) (Ministry of Finance, 2018), and its accompanying Implementation Programme of the Regional Cities Programme Seutukaupunkiohjelman toimeenpano-ohjelma) 2020–2022 (Ministry of Economic Affairs and Employment, 2020a).
The policy was based around the idea of effective cooperation, partnerships and networking between key actors at the national, regional and municipal level. This included efforts towards addressing structural unemployment, which poses a major challenge in many cities of this type. Another issue highlighted was that declining property values present difficulties in financing housing renovations in many regional cities. In this respect, a possible solution put forward in the programme was demolishing social rented housing units in low-demand areas, with subsidies made available to cover demolition costs.

Housing policy initiatives addressing segregation and social inclusion

A central document for guiding Finland’s national housing policy – which represents a key area for addressing segregation and social inclusion – is the Housing Policy Development Programme (Asuntopoliittinen kehittämisohjelma) 2021–2028 (VNS, 2021). The programme was prepared by a working group led by the Ministry of the Environment, although it included representatives from other key ministries and agencies dealing with housing. By ensuring extensive cooperation in preparing a programme that extends beyond a single government term, the aim was to make national housing policy more long term and goal oriented (Ministry of the Environment, n.d.-a).
The Housing Policy Development Programme defines the relevant objectives in this area, as well as the measures needed to achieve them. Key goals include safeguarding the right to good and affordable housing, and ensuring housing supply meets the needs of different population groups. In this respect, a diverse mix of residents within neighbourhoods is underlined as important for preventing segregation (Ministry of the Environment, n.d.-a). It also mentions state-subsidised housing as an important tool for preventing segregation when deployed alongside market-based housing, the programme acknowledges that policy initiatives in areas such as education, employment and access to services is crucial when it comes to addressing the root causes of segregation (VNS, 2021).

Urban policy programmes and national funding for local projects and interventions

Besides the national strategies detailed above, various other urban policy programmes involving national funding have been implemented with the intention of strengthening social inclusion and mitigating segregation in cities.
One such programme is the Sustainable City Programme (Kestävä kaupunki -ohjelma) 2019–2023, which promoted sustainable urban development through practical development initiatives and strategic management (Sustainable City Programme, n.d.). Based on cross-sectoral collaboration and a partnership-based approach, the programme brought together ministries, municipalities and other actors working towards sustainable urban development, and was strongly influenced by the UN New Urban Agenda and the Agenda 2030 Sustainable Development Goals. Concrete actions included developing new solutions through pilots and development projects, replicating good practices, and sharing experiences.
The programme’s two main thematic focus areas – sustainable growth and sustainable wellbeing – were further divided into sub-themes (see Table 4). As can be seen, many of the core topics addressed in this report (e.g. preventing segregation, reducing inequality, affordable housing, integration) were grouped under the socially sustainable cities sub-theme (Sustainable City Programme, n.d.).
Table 4. Focus areas, sub-themes and topics in the Sustainable City Programme 2019–2023
Sustainable growth
Sustainable wellbeing
Low-carbon cities
Smart cities
Socially sustainable cities
Healthy cities
  • Circular economy
  • Sustainable food systems
  • Wood construction
  • Innovative, sustainable public procurements
  • Sustainable transport and mobility
  • Smart infrastructure and energy
  • Smart services
  • Digitalisation
  • Preventing segregation
  • Reducing inequality
  • Sense of community
  • Affordable housing
  • Integration
  • Culture
  • Safety
  • Healthy indoor and outdoor spaces
  • Green spaces, recreation, ecosystem services, nature-based solutions
  • Accessibility
The Sustainable City Programme had a total budget of around €6 million, with €4.4 million of this provided by state funding. During the first two years of the programme, around 80 municipalities and 50 other organisations participated. In an interim evaluation carried out in 2021, the adoption of a broad perspective on sustainability was assessed positively. In a similar vein, strengthened cooperation was highlighted as important, as the various aspects that constitute sustainability are not the responsibility of any individual sector in the municipalities (Owal Group, 2021). According to the evaluation, the programme had helped in the development of new solutions, networks and expertise, successfully engaging and supporting municipalities based on their own needs.
Several projects relevant to this study were carried out under the Sustainable City Programme. In one project, 36 Finnish municipalities of varying sizes worked together to monitor sustainable development, setting and measuring sustainability targets using different indicators (Sustainable City, n.d.-c). In another project (discussed further in Chapter 4), the City of Tampere’s approach to monitoring segregation was scaled up to the broader city region (Hynynen, 2020; Sustainable City, n.d.-b). Several projects funded by the programme had a focus on participation, such as the City of Helsinki’s efforts to develop a replicable model for enhancing the participation of residents with immigrant backgrounds in urban development projects (Sustainable City, n.d.-a).
In recent decades, a number of area-based regeneration projects targeting specific residential areas have been carried out, often with state funding. The first national programme for neighbourhood renewal in suburban districts launched back in the mid-1990s (Stjernberg, 2019a), while the most recent is the Neighbourhood Renewal Programme (Lähiöohjelma) 2020–2022 (Lähiöohjelma, 2020).
Figure 3. The suburban district of Jakomäki, in northeastern Helsinki, which has been targeted by numerous regeneration initiatives
Source: Helsinki City Museum, SKY-FOTO Möller
The latter was the fifth such national programme and a continuation of previous initiatives. Through the programme, state funding was provided to municipalities carrying out development projects in selected neighbourhoods, as well as for research projects addressing the development of suburban housing estates. In total, 24 development projects were carried out in 13 Finnish cities, along with 18 research projects, which were led by universities and research institutes from across Finland and implemented in cooperation with partner cities.
The Neighbourhood Renewal Programme 2020–2022 took a comprehensive approach to the renewal of suburban housing estates. Specific aims included strengthening the vitality of these neighbourhoods, promoting wellbeing and social inclusion, and combating segregation. Towards this end, a variety of themes was addressed, such as strengthening a sense of neighbourhood community and security through cooperation between key actors, and promoting neighbourhood vitality via interventions in the physical living environment. Other focus areas concerned the role of local schools in promoting educational equality, as well as child wellbeing; creating better, sustainable transport solutions; promoting infill development; and ensuring high-quality services and housing (Lähiöohjelma, 2020).

3.1.2 Implementation and governance structure

In Finland, regional and urban policy is to a great extent implemented through close cooperation between different administrative branches and actors at the national, regional and municipal levels. The key actors in this regard, together with their main responsibilities and duties, are presented in Table 5.
The Ministry of the Environment is central to steering national urban policy, together with the Ministry of Economic Affairs and Employment. Most programmes and initiatives addressed in this chapter were coordinated by the Ministry of the Environment, but implemented through close collaboration between several ministries and national agencies. Relevant ministries include the Ministry of Economic Affairs and Employment, the Ministry of Social Affairs and Health, the Ministry of Education and Culture, the Ministry of the Interior, and the Ministry of Justice, while the national agencies involved include the Housing Finance and Development Centre of Finland (ARA), the National Institute for Health and Welfare (THL), the Criminal Sanctions Agency, and the Social Insurance Institution (Kela). Up to now, ARA has had responsibility for coordinating housing-related subsidies, grants and guarantees, as well as supervising the use of state-subsidised ARA housing. In 2024, however, a decision was made to transfer the functions of the agency to the Ministry of the Environment, beginning in 2025 (ARA, 2024).
Regional policy in Finland is increasingly implemented not only through interactions at the national level, but through partnerships between actors at the national and regional levels, within the regions, and between public and private actors, organisations and citizens. The regional development legislation was revised in 2021 to include new forms of interaction, knowledge-based approaches and the consideration of longer-term objectives (Ministry of Economic Affairs and Employment, n.d.-b). When it comes to implementing regional policy in Finland, the Advisory Board on Regional Renewal (AUNE) has a central role in promoting cooperation between national and regional actors, compiling the development needs of regions, and monitoring the effectiveness of measures (Ministry of Economic Affairs and Employment, n.d.-a).
At the national level, the Urban Policy Committee – which is appointed for each four-year government period – is responsible for promoting implementation of national urban policies, coordinating the ministries’ urban policy measures, developing cooperation between the government and urban regions, and facilitating national and international networking (Ministry of Economic Affairs and Employment, n.d.-c). The committee includes representatives from most ministries, numerous Finnish cities, and the Association of Finnish Local and Regional Authorities.
At the regional level, regional councils are statutory joint municipal authorities that have two main functions defined by law: regional development and regional land use planning (AFCM, 2017). In addition to their statutory mandate, the councils take on a broad scope of voluntary tasks determined by the relevant region’s characteristics, and are involved in the preparation of regional programmes and plans, together with their implementation plans and regional EU programmes (Ministry of Finance, n.d.-b). Also relevant at the regional level are ELY Centres (Centres for Economic Development, Transport and the Environment), which are tasked with promoting regional competitiveness, sustainable development, and supporting implementation of central government policy measures in the regions (ELY Centre, 2024).
While this section has focused on national-level policy initiatives, implementation is often managed and implemented at the municipality level. For instance, the Sustainable City Programme and Neighbourhood Renewal Programme allowed for state funding to be provided to municipalities, which were then responsible for carrying out practical interventions related to the broader thematic focus of the programmes.
In Finland, municipalities have a number of statutory duties when it comes to organising services for their residents, encompassing education; early childhood education and care; cultural, youth, library and sports services; urban planning and land use; water and waste management; and environmental services (Ministry of Finance, n.d.-a). Health and social services, along with fire and rescue services, which to date have fallen under the remit of municipalities, will be transferred to the counties as part of the current health and social services reform. In addition to their statutory duties, the municipalities may assume other tasks relating to, among other things, economic development, employment and housing.
Table 5. Key public actors in Finland and their responsibilities
Actors
Responsibility
The government
  • Central government defines the general direction of national policy.
  • The government programme is a political action plan setting out the objectives and main areas of activity during a government’s term of office, and includes various programme and strategies specifying the priorities and aims for different areas of policy (e.g. Regional Development Decision, National Urban Strategy).
Ministries and national agencies
  • Various ministries and national agencies play important roles in different areas of policy.
  • The Ministry of the Environment and the Ministry of Economic Affairs and Employment have central roles within regional and urban policy.
  • Other key ministries include the Ministry of Social Affairs and Health, the Ministry of Education and Culture, the Ministry of the Interior, and the Ministry of Justice.
  • Key national agencies include the Housing Finance and Development Centre of Finland (ARA) (discontinued in 2025), the National Institute for Health and Welfare (THL), the Criminal Sanctions Agency, and the Social Insurance Institution (Kela).
Regions
  • Regional councils are responsible for regional development and regional land use planning, along with the preparation of regional programmes and plans, and also their implementation plans and regional EU programmes.
  • ELY Centres (Centres for Economic Development, Transport and the Environment) are tasked with promoting regional competitiveness, wellbeing and sustainable development; curbing climate change; and supporting implementation of central government policy measures in the regions.
  • The Advisory Board on Regional Renewal (AUNE) has a central coordinating role in the implementation of regional policy.
Municipalities
  • Have statutory duties to provide services for residents across various policy areas (e.g. education; early childhood education and care; cultural, youth, library and sports services; urban planning and land use; water and waste management; environmental services).
  • May decide to assume other self-government tasks in matters concerning – among other things – the economy, employment and housing.

3.1.3 Key focus areas

The Finnish national policies and programmes examined above can be linked to a variety of related concepts. For example, all the policies address the broad theme of social sustainability in urban areas, while many have a strong focus on segregation and strengthening social inclusion. Despite the absence of a national strategy that explicitly deals with segregation as its core focus, the examples discussed point to the numerous policy programmes and initiatives that together aim to ensure less segregated, more socially inclusive cities and neighbourhoods. These policy initiatives are set against a background of mounting concern about the widening socio-spatial disparities apparent between different population groups and territories in Finland.
Social sustainability is commonly mentioned in these policies in relation to ensuring equality between people. Here, participation and trust among individuals and other actors are emphasised as important preconditions for achieving this. Promoting wellbeing and reducing inequalities are clear priorities, with key services an essential means of reinforcing social sustainability, everyday safety and community spirit. Another core focus is the role of schools in promoting educational equality, as well as the wellbeing and inclusion of children and young people.
Urban planning is highlighted in the policies as something that can help increase inclusion and reduce social inequality. When combined with other targeted actions and measures, such planning can create pleasant, functional, green living environments that contribute to neighbourhood vitality. When it comes to preventing segregation, there has historically been a strong policy focus in Finland on developing suburban housing estates, built during the 1960s and 1970s in particular. More broadly, housing policy – and especially social housing – is seen as an important tool for preventing segregation. In this respect, affordability, diversity of housing for people with different needs (including solutions for reducing homelessness), housing mixing and infill development are among the core concepts mentioned in the policies.
Overall, the policy programmes and initiatives have a wide-ranging thematic focus and for the most part endorse a holistic approach. One common characteristic when it comes to promoting social inclusion and counteracting segregation is an emphasis on cooperation and partnerships between policy sectors and key actors at the national, regional and local levels. Cooperation is considered important not only from the perspective of setting common goals and implementing measures, but in terms of building a common knowledge base that can be used to monitor progress towards shared targets.
Turning to implementation, preventive measures are highlighted by the policies as being particularly important, with inclusion and wellbeing best promoted by investing in the early identification of those in greatest need of support. Moreover, solutions should be tailored to the local context, and in some cases targeted to the specific needs of targeted population groups.
The policy frameworks examined in this section were mainly initiated during the 2019–2023 government period. In June 2023, however, a new right-wing government led by Prime Minister Petteri Orpo entered office, prompting a change in direction for Finnish national policy. While the 2019–2023 Government Programme (Finnish Government, 2019) had a relatively strong focus on preventing segregation, increasing neighbourhood vitality through area-based interventions, and promoting resident wellbeing and participation opportunities, the current government programme – titled A Strong and Committed Finland (Finnish Government, 2023) – is markedly less concerned with these issues. For instance, there is no continuation of the Neighbourhood Renewal Programme, nor an equivalent of the former Sustainable City Programme.
In terms of housing policy, income limits are to be reintroduced to publicly subsidised rental housing in 2025 (Finnish Government, 2024), while the construction of right-of-occupancy dwellings – essentially a mix between rental and owner-occupied housing – is to be discontinued (Ministry of the Environment, n.d.-e). All this is testament to the fact that a country’s national policy landscape is subject to shifting political currents.

3.2 Denmark

In Denmark, the issue of segregation has been a national policy focal point for decades, culminating in the launch of the so-called ‘Ghetto Strategy’ in 2018, which aims to eradicate so-called ‘parallel societies’ by 2030 (Danish Government, 2018). The strategy adopts a multifaceted approach encompassing – among other things – housing, education and integration. As will be discussed, the strategy has been much contested due to its controversial content and outcomes. Housing plays a pivotal role in the strategy, including policies aimed at increased social mixing in vulnerable areas. The practical result of the strategy’s policies has, however, often been a reduced concentration in public housing, with flexible rental criteria and redevelopment plans leading to demolishment and significant transformations in the physical built environment.
Alongside the Ghetto Strategy, several other national initiatives emphasise socially sustainable urban development and inclusion, while various legislative frameworks, pilot programmes and partnerships seek to revitalise urban areas, promote social mixing and alleviate social exclusion.

3.2.1 Policies and initiatives

The ‘Ghetto Strategy’

The previously mentioned Ghetto Strategy or ‘Ghetto Package’, formally titled ‘A Denmark Without Parallel Societies – No Ghettos in 2030‘ (Ét Danmark uden parallelsamfund – Ingen ghettoer i 2030) (Danish Government, 2018), incorporates a wide range of policy measures dealing with housing and urban planning issues. In addition, it addresses integration; social issues such as education, language and social welfare; and crime and punishment.
The geographical areas targeted by the policy are identified using criteria related to demographic (ethnic) and socio-economic composition, as well as the criminal history of an area’s population (these criteria are discussed in greater depth in section 4.2). The strategy includes 22 initiatives categorised under five different themes:
  1. Physical demolition and conversion of vulnerable housing areas;
  2. More tangible control of who can live in vulnerable housing areas;
  3. Strengthened police efforts and higher penalties to combat crime and increase security;
  4. A good start in life for children and young people; and
  5. Monitoring of efforts aimed at preventing parallel societies.
The status of ongoing integration work is presented each year in an Integration Action Plan (Regeringens Integrationshandlingsplan) (Ministry of Immigration and Integration, 2020). The plan covers both general measures related to integration, particularly such aspects as employment, and more specific measures previously set out in the Ghetto Strategy. Among the key proposals included in 2020 the Integration Action Plan were the abolition of fees for education; the expansion of target groups for integration basic education (IGU); a better socio-economic and ethnic distribution of students in upper-secondary school; integration through sports; and strengthened efforts against negative social control. The 2020 Integration Action Plan also reported on improvements seen in ‘vulnerable areas’ and ‘ghetto areas’, including the fact that the number of such areas fell by almost half between 2019 and 2020. Based on this, the government extended policy measures targeting these types of neighbourhoods.
In 2019, changes were made to the Immigration Act and other legislation relating to the Ghetto Strategy (Ministry of Immigration and Integration, 2019). In February 2019, the so-called ‘L140 bill’ – presented as a ‘paradigm shift’ – was approved by the Danish parliament. The bill is a reform package that encompasses multiple laws concerning foreigners, integration, repatriation, and related matters. Following the revisions, individuals arriving as spontaneous asylum seekers (regardless of status), as well as those granted family reunification, can only have their status renewed if failure to do so would directly contravene Denmark’s international obligations. Moreover, the Minister for Integration now has the authority to introduce a cap on family reunification with just a month’s notice, should a surge in applications be deemed a strain on national or municipal resources. The reforms also reduced social benefits for individuals granted protection or family reunification, while significantly increasing penalties for violating entry bans or failing to report regularly to authorities (European Council on Refugees and Exiles, 2019).
While not all the policies affected by the L140 bill are about segregation, several of the changes particularly affect people living in targeted areas, or are applicable only to those living in such areas. For example, the ‘integration assistance’ system (i.e. social assistance for newcomers, which is lower than general social assistance) was renamed ‘self-reliance and repatriation assistance’ (selvforsørgelses- og hjemreiseydelse) in order to emphasise the temporary nature of protection in Denmark (Minister of Immigration and integration 2019). In addition, children entering school in designated areas must undergo language testing, with parents required to speak a ‘functional’ level of Danish. School absenteeism above 15% in a quarter, or failure to attend language testing, is sanctioned by reducing child benefit or holding it back completely.
Other relevant policy initiatives from recent years include measures connected to the ‘parallel society’ agreements introduced to strengthen police efforts – including increasing their visibility and control – within particularly vulnerable residential areas. The police can also designate stricter punishment zones, whereby the penalties for violating certain types of crime are, for a set duration, significantly increased. Tougher measures against domestic violence and harsher penalties for neglect by senior executives in public office have also been introduced (Ministry of Immigration and Integration, 2020).

Social mix and housing

Social housing – operated by housing organisations (boligforeninger) and overseen by municipalities – is not only central to Danish welfare society (Housing 2030, n.d.), but a key tool for achieving social inclusion-related goals (Interview 1, 2023). Approximately half-a-million social housing (almene bolig) dwellings have been built in Denmark using public funding (Boligforeningen AAB, n.d.). Although such housing aims to maintain social mixing by accommodating a wide spectrum of tenants (Housing 2030, n.d.), there are particular obligations involved when it comes to population groups with specific housing needs, such as students, older people, disabled people, single parents, refugees, and residents in need of rehousing due to urban renewal (Boligforeningen AAB, n.d.)
Following amendments to the Danish Planning Act in 2015 (Bolig og planstyrelsen, 2021), municipalities were given the power to require that 25% of housing stock in new housing areas be social housing, regardless of whether the land is privately or municipally owned (Skovgaard Nielsen et al., 2023). The overall objective of the Planning Act is to ensure cities develop in socially sustainable ways and prevent particular social groups from living in isolation (Skovgaard Nielsen et al., 2023). Against this backdrop, the amendments were influenced by a housing tenure indicator showing the distribution of tenures (ownership, private and public renting) in different areas, and aim to increase social mixing through increased tenure mixing.
Additionally, in areas where the housing market is under more pressure, such as in Copenhagen, the municipality can provide funding for the purchase of plots in areas where high land costs have traditionally stood in the way of building ‘public housing for families, youth, and the elderly, as well as care homes’ (City of Copenhagen, 2015). As scholars have demonstrated, however, a major obstacle to turning such objectives into realty is the fact that landowners retain the power to decide whether they are willing to sell their plots to public housing associations (Alves, 2019). Furthermore, there is a risk that housing in new developments is not actually affordable to those in greatest need.
Another relevant recent initiative adopted in July 2022 by the Danish parliament is the ‘Fund for Mixed Cities – More Affordable Housing and a Way Out of Homelessness’ (Fonden for blandede byer – flere billige boliger og en vej ud af hjemløshed), which consists of 10 billion Danish kroner (€1.3 billion) covering the period 2022‒2035, provided by the construction fund Nybyggerifonden (Regeringen KL, 2022). The fund aims to promote mixed cities through the provision of affordable housing – which must not be located in vulnerable areas or areas at risk – and social housing rent reduction subsidies for those with acute housing needs but a low ability to pay.
The fund is accompanied by various support schemes that allow housing associations to buy private buildings, convert commercial or office buildings, and acquire land in expensive areas. The overall objective of the support schemes is to create new and better opportunities for public housing provision. This is especially the case in larger cities, where the need for public housing is estimated to be greatest due the difficulty in finding affordable accommodation. As such, an expansion in public housing can help counter the trend towards more divided cities.
While these various policies seek to encourage the construction and development of more social housing in urban centres, the ‘Ghetto Strategy’ takes a contrasting approach by aiming to decrease public housing in specific areas. These divergent policies are intended to target different areas with the combined aim of increasing social mixing. The actual results have, however, provoked controversy.
Figure 4. Mjølnerparken, located in the Nørrebro district of Copenhagen, has been targeted by interventions carried out as part of the ‘Ghetto Strategy’
Source: CC BY-SA 4.0, Leif Jørgensen

Strategies promoting sustainable cities and social inclusion

Denmark has a variety of national planning strategies and instruments to promote social sustainability and inclusion in urban development. One example is the Partnership for Living City Centres (Partnerskab for levende bymidter), a pilot network established in 2020 consisting of various actors from the public and private sectors working together to solve common challenges (Housing and Planning Agency, 2021). This initiative resulted in a number of recommendations being presented to the state, the municipalities and businesses (Housing and Planning Agency, 2023). Another example is the Act on Urban Renewal and Urban Development (Lov Om Byfornyelse Og Udvikling Af Byer, 2015), which contains building and area-based renewal initiatives, as well as the potential means to improve open spaces and the management of inadequate housing.
In recent years, Denmark has implemented several reforms and initiatives designed to contribute to the Europe 2020 strategy, which consists of five key focus areas: employment; research and development; climate and energy; education; and social inclusion (Ministry of Economic Affairs and the Interior, 2019). One of the national objectives set by the Danish government in its 2019 Reform Programme was to lift more people out of social exclusion. This in turn led to ten specific goals being formulated, which together underlined the importance of including more people in the working community and reducing social exclusion (Ministry of Economic Affairs and the Interior, 2019).
Moreover, several initiatives related to the Ghetto Strategy revolve around vulnerable children and young people in targeted areas. Examples include compulsory learning opportunities for one-year-olds, language tests from grade 0, and a requirement that no more than 30% of children from disadvantaged housing areas be newly admitted to a day care institution during a calendar year. In addition, more consistent intervention has been introduced regarding the supervision of primary and lower secondary schools, as well as the strengthening of responsibility for senior citizens (Ministry of Immigration and Integration, 2020).
In 2021, the government launched a 43-point social programme of early interventions aimed at supporting children, including removing them from environments where they are mistreated, and ensuring children with non-Western backgrounds are not failed. The policy states that even though there is more violence in homes where the parents have non-Western backgrounds, their children are less likely to be placed in family homes (Ministry of Social Affairs and the Elderly, 2021). The ‘Children First’ agreement signed by Denmark’s governing party and nine other political parties also states an intention to provide funding for ‘rights schools’ (rettighedsskoler) located in or close to the areas featured in the government’s 2020 ghetto list. Here, the objective is to ensure all children, regardless of ethnic background, know their rights (Ministry of Social Affairs, Housing and the Elderly, 2021).

3.2.2 Implementation and actors

The Ministry of Social Affairs and Housing (formerly the Ministry of the Interior and Housing) is tasked with combating parallel societies, both in terms of coordinating the government’s overall efforts and setting out action areas in the housing arena. Specific tasks include supervising development plans, rental rules, annual ghetto areas lists, and assuming the secretariat role for the government’s ghetto representatives (see below) (Ministry of the Interior and Health of Denmark, 2019).
Meanwhile, the Danish Authority of Social Services and Housing (formerly Danish Housing and Planning Authority) is responsible for the general development of housing policies and urban renewal, as well as work with vulnerable areas and parallel societies. The authority also bears responsibility for coordinating social housing efforts, usually designed as comprehensive plans – in many cases, this involves public housing organisations working in cooperation with municipalities. Here, a key aim is to lift up vulnerable public housing areas through locally based projects conducted in close collaboration with residents, with a particular focus on areas such as security and wellbeing, employment, education and crime prevention. (Danish Authority of Social Services and Housing, 2023)
In 2007, the Danish Local Government Reform came into force, using mergers to reduce the number of municipalities from 271 to 98. At the same time, the country’s 13 counties were abolished and replaced by five regions (Blöchliger & Vammalle, 2012). These changes entailed a new distribution of tasks between different levels of government. The new regions took over responsibility for health care from the counties, as well as a number of tasks involving regional development, including environmental planning, soil pollution management and to some extent public transport (SOU 2020:8, 2020).
The regional administrations are not, however, the main actors when it comes to implementing the governmental strategies set out above. Instead, the newly reconstituted municipalities are now tasked with handling the majority of welfare responsibilities (Blöchliger & Vammalle, 2012). Although the municipalities’ duties are comparable to the other Nordic countries in terms of spatial planning, children and elderly care, primary schools and social sector assignments, one key difference in Denmark is that the municipalities are responsible for the employment agency. By contrast, in Finland, Norway and Sweden this responsibility is borne at the state level (SOU 2020:8, 2020)
In order to follow up and monitor the Ghetto Strategy, the Minister of the Interior and Housing appointed three dedicated ghetto representatives with relevant competencies (Ministry of the Interior and Health of Denmark, 2019). The representatives are tasked with monitoring progress towards the milestones set out in master plans and development plans, including publishing written evaluations and recommendations.
When it comes to monitoring, the government also presents annual reports, including an overview of policies and the targeted geographical areas according to thematic area (Staver et al., 2019). The 2020 annual report showed that the number of ‘vulnerable areas’ had fallen from 40 to 25 between 2019 and 2020, the number of ‘ghetto areas’ from 28 to 15, and ‘hard ghettos’ from 15 to 13 (Ministry of Immigration and Integration, 2020).
Table 6. Key public actors in Denmark and their responsibilities
Actor
Responsibility
Government
and parliament
  • The government – and in particular the Ministry of Social Affairs and Housing (formerly the Ministry of the Interior and Housing) – is responsible for overall policies related to the ‘Ghetto Strategy’.
  • Ministries and ministers are granted extensive decision-making powers and room for manoeuvre.
  • Several policies, strategies and laws are majority agreements involving multiple parties in parliament.
State agencies
  • The Housing and Planning Authority is responsible for the general development of the housing market and urban renewal, as well as work with ‘parallel societies’.
Regions
  • Responsible for health care, environmental planning and to some extent public transport.
Municipalities
  • Central actors for implementation of national strategies.
  • Responsible for public housing, schools, social care, planning, public transport, employment.
  • Responsible for municipal-level implementation and follow-up of the Ghetto Strategy and creation of development plans together with housing organisations.
  • Decide on settlement placement of refugees.

3.2.3 Key focus areas

The initiatives set out in the Integration Action Plan and Ghetto Strategy are centred around urban regeneration, privatisation, strategic demolition of public housing, and the development of new private housing. Drawing on the extensive literature on social mixing policies and their social implications (Bridge et al., 2011; Rosol, 2015), this can be seen as a form of planned gentrification, or ‘gentrification by stealth’. The objective of these policies is often to change the residential composition of targeted neighbourhoods by hindering vulnerable groups from residing there, and introducing owner-occupied housing in areas dominated by public housing (Stjernberg, Oliveira E Costa, et al., 2020).
Another characteristic of these policies is that they not only target specific areas, but primarily affect non-Western immigrants either already living in such areas or looking to move there. Moreover, children and young people feature prominently in the policies – for example, through steering mechanisms such as the withdrawal of social subsidies in response to a lack of language skills, or the shutting down of local schools and transfer of children to schools in other neighbourhoods. On some issues, the policies have altered the power balance between the central state and the municipalities, as the state can assume responsibility for housing units owned by municipalities or housing organisations if intervention results are deemed unsatisfactory after several years.
The Ghetto Strategy has provoked controversy ever since it was introduced, and in September 2024 the Court of Justice of the European Union (CJEU) held a public hearing to review the policy’s legality under European law (Open Society Justice Initiative, 2024). This was preceded by a series of court cases, one of which was brought in 2020 by a group of residents in Mjølnerparken, Copenhagen, who took action against the Danish government on the grounds that the strategy’s plan to sell homes was unlawful under both domestic and European Union law (Open Society Justice Initiative, n.d.).
There is an almost non-existent focus on work and employment in the Ghetto Strategy, which is surprising given that this is an important criterion for identifying vulnerable areas placed on the list (see section 4.2). It also sets the Danish policy apart from the key strategies pursued in the other Nordic countries, where work and employment are strongly emphasised.
On the other hand, a number of other recent Danish integration reforms have addressed these issues, including the so-called ‘basic integration education’ and changes to the benefits system (such as integration assistance), which are intended to make employment more attractive compared to receiving benefits. Also missing from the Ghetto Strategy is any specific mentioning of civil society. By contrast, this aspect is highlighted as important in several of the Finnish, Icelandic, Norwegian and Swedish policies discussed in this study.

3.3 Norway

Concern over segregation and social inclusion is on the rise in Norway, particularly in terms of the profound implications for social cohesion, economic opportunities and overall wellbeing within communities. The impact of these issues on Norway’s urban policy agenda is reflected in research showing that both ethnic and socio-economic segregation has increased over recent years, in Oslo especially (Cavicchia & Cucca, 2020; Wessel, 2015).
Efforts to address segregation and promote social inclusion in Norway are multifaceted, encompassing integration, education, employment, housing and physical regeneration. Norway’s approach to dealing with these challenges relies on close cooperation between different levels of government and a variety of sectors, as well as collaboration with other actors, including civic organisations. Against this backdrop, Norway has undertaken a range of initiatives aimed at fostering integration and social inclusion in cities.

3.3.1 Policies and initiatives

National Integration Strategy

A key national-level policy document is Norway’s 2019–2022 Integration Strategy (Ministry of Education and Research, 2019), which addressed the integration of immigrants mainly through a focus on education and qualifications. Here, the overriding goal was to increase immigrant participation in working life, and by extension society more broadly (see also Karlsdóttir et al., 2020). The strategy set out a number of economic and social sustainability targets corresponding to the government white paper, ‘Opportunities For All’ (Ministry of Finance, 2019). In addition, the strategy made specific reference to efforts aimed at counteracting segregation and exclusion, with particular emphasis placed on measures promoting participation and togetherness (Ministry of Education and Research, 2019). These measures were to be followed up with others designed to increase children’s and young people’s participation in activities. Such measures were to be achieved through settlement policy, housing policy, and cooperation with voluntary services and civil society (Ministry of Education and Research, 2019).
The Integration Strategy included the following four priority areas: 1) education and qualifications; 2) employment; 3) ‘everyday integration’; and 4) the right to live a free life (The Ministry of Education and Research, 2019).While the strategy must be seen in the broader context of Norway’s immigration policies, it nevertheless exemplifies how the prevention of segregation and promotion of social inclusion are implemented across sectors, often at the local level.
In parallel, the government formed a ‘City and Living Conditions’ (By- og levekårsutvalget) expert commission tasked with examining residential and ethnic segregation, including the challenges thrown up by living conditions and integration issues in and around Norway’s major cities. In response, the committee produced a report titled ‘Living Conditions in Cities: Good Local Communities For All’ (Levekår i byer — Gode lokalsamfunn for alle) (Ministry of Education, 2018), which took a comprehensive approach to understanding living conditions and emphasised the importance of countering economic inequality and ensuring basic welfare (Andersen et al., 2021).Having summarised the latest knowledge on the topic, the report presented a toolbox of strategies and measures aimed at ensuring all the country’s residents can live in safe, inclusive communities with good living conditions.

Strategies to counteract segregation

Another relevant national policy document is the 2023 government white paper ‘Good Urban Communities with Small Differences’ (Gode bysamfunn med små skilnader) (Meld. St. 28, 2022–2023) (Ministry of Local Government and Regional Development, 2023). In the paper, the government proposed various measures designed to reduce socio-spatial disparities and provide greater opportunities for those living in vulnerable areas. In doing so, the paper addressed various topics, such as existing economic policy and general welfare schemes; the promotion of better living conditions and participation in society; the key drivers and challenges affecting living conditions in Norwegian cities; and the measures used by the government to target neighbourhoods with accumulated welfare challenges. Another key focus was the role of urban planning, housing policy and the local living environment in preventing urban segregation, and how municipalities – through community and land use planning – can play a vital role in ensuring social cohesion, as well as economic and environmental resilience.
Measures to prevent segregation and promote social inclusion also featured in the government’s 2017 urban sustainability and rural strength white paper, which emphasised that every Norwegian citizen should experience equal living conditions and have access to basic services, regardless of how and where they live (Ministry of Local Government and Regional Development, 2017). In this respect, the document expressed governmental concerns on preventing increased inequality between population segments, as well as its desire to ensure healthy, inclusive communities (Ministry of Local Government and Regional Development, 2017).

Area-based initiatives

Relatedly, the white paper included a six-point priority list concerning innovative working methods and models to be developed through area-based initiatives (områdesatsninger), with a particular focus on social sustainability, employment opportunities, preventing loneliness and promoting social inclusion. In turn, the learnings from these area-based initiatives were to be inputted into the design of new governmental policies.
Initiatives targeting specific areas confronted by a concentration of welfare challenges are a key approach when it comes to addressing urban segregation in Norway (Andersen & Brattbakk, 2020). Essentially, area-based initiatives are founded on long-term contractual partnerships between the Norwegian state and certain municipalities, with the aim of using neighbourhood initiatives to improve living conditions and enhance the vitality of local communities. As of 2023, the central state had agreements in place with the municipalities of Oslo, Bergen, Drammen, Stavanger and Trondheim, Sarpsborg, Fredrikstad, Kristiansand and Skien. The following year, plans were made to enter agreements with the municipalities of Gjøvik, Halden, Indre Østfold, Larvik and Tromsø (Ministry of Local Government and Regional Development, 2024).
Figure 5. Aerial view of Oslo’s Groruddalen district, which has been targeted by various area-based regeneration initiatives
Source: CC BY-SA 3.0,

Strategies for inclusive communities

Elsewhere, the 2019 ‘Opportunities For All: Distribution and Social Sustainability’ white paper (Meld. St. 13, 2018-2019) stressed that Norway’s distribution and inclusion policy – coordinated by the Ministry of Finance – will need to focus on education, competence, work and better integration (Ministry of Finance, 2019). In addressing the issue of inequality and the impact of low incomes in Norway from an international perspective, the paper highlighted the importance of the Norwegian labour market and how the country’s social security schemes help distribute opportunities, support lifelong learning, reduce healthy inequalities, and promote democratic and social participation.
Following this, a strategy for small and medium-sized towns was published in 2021, outlining the government’s cross-cutting priorities concerning the development of compact, attractive cities and towns (Ministry of Local Government and Regional Development, 2021). The aim of the strategy was to facilitate good physical surroundings, vibrant urban centres, mixed housing, and a wide range of goods, services and cultural/leisure facilities in small and medium-sized towns, thereby strengthening their status as regional powerhouses. The strategy also stressed the importance of these towns as residential, visiting and business hubs servicing their surrounding regions.
The national strategy for social housing 2021‒2024 (Ministry of Local Government and Rural Affairs, 2020) built on previous strategies outlining national efforts and targets towards supporting people disadvantaged by the housing market, both in terms of accessing suitable housing and ensuring good living conditions. The strategy was titled ‘We All Need a Safe Place to Call Home’, with ‘home’ in this context referring to as a framework for social life, along with a sense of belonging to a local environment and community. The government states in the document that living well and safely is important for citizens, as is receiving an education, starting a family, having employment and taking care of one’s health.
Although the strategy features a chapter dedicated to social sustainability, the concepts of inclusion and segregation go unmentioned. Instead, the key linkages between immigration and integration policies and housing policies can be found in the goals and measures relating to the settlement of newcomers, particularly refugees.
Norway’s national spatial planning strategies are also key to meeting cross-cutting targets for socially mixed and inclusive neighbourhoods, and to promoting social inclusion. In this regard, the 2019–2023 National Expectations Regarding Regional and Municipal Planning represented a key guideline document (Ministry of Local Government and Modernisation, 2019), underlining that municipalities must plan for sustainable social and economic development, while ensuring social justice and good public health services. Objectives contained in the document include the cultivation of trust among the local community, access to work and education, and the provision of a local environment conducive to feelings of security and belonging.

3.3.2 Implementation and actors

Norway’s national-level approach to preventing segregation and promoting social inclusion is distributed across a range of policies and strategies. These are primarily devised by key ministries in cooperation with regional and local administrations. A brief overview of the relevant national-, regional- and municipal-level public actors, including their main responsibilities and duties, is presented in Table 7.
The government bears primary responsibility for the strategies overseen by its respective ministries. Implementation of national goals and objectives are translated to the local level, where regional strategies and frameworks shape how municipalities approach place-specific land use and community development issues. Depending on the strategy, government agencies and other stakeholders may also have a role to play in policy translation and implementation. For example, in pursuing area-based initiatives, cooperation has been built between different levels of government – ranging from ministries to municipalities and city districts – and actors such as the Norwegian State Housing Bank (Husbanken) and Norwegian Directorate of Immigration (UDI), along with various civic organisations (Staver et al., 2019).
Regional policies are presented every two-to-four years and fall under the responsibility of the Ministry of Local Government and Regional Development (KDD). These high-level visions are operationalised under the thematic areas set out in By- og stedsutvikling (city and place development), which includes both an urban and a rural focus. By- og stedsutvikling encompasses initiatives for sustainable land use and urban development, including area-based initiatives. KDD has a dedicated website for this work, which provides practical guidance on how to plan and develop towns and cities for the benefit of residents, businesses and the environment (Norwegian Government, n.d.).
Tackling urban segregation and promoting socially mixed and inclusive neighbourhoods features in numerous national policies, with the country’s largest cities often the main beneficiaries of large, targeted support grants, including government-funded area-based initiatives (Onsager et al., 2021). Over the past few decades, interventions directed at areas facing accumulated welfare challenges have been central to Norwegian policies targeting segregation (Andersen & Brattbakk, 2020). The overarching aim of such initiatives has been to improve the housing, living conditions and wider environment found in these vulnerable areas, thereby making them more attractive.
One example of efforts to strengthen the knowledge base in this area is the Roadmap for Smart and Sustainable Cities and Communities – developed by Design and Architecture Norway (DOGA), the Norwegian Smart City Network and Nordic Edge – which essentially acts as a guide for local and regional authorities (DOGA, 2019). Among the key principles contained in the roadmap – which seeks to promote the development of sustainable, productive, resilient cities and communities – is the meaningful pursuit of inclusion and co-creation, with the views of those affected placed centre-stage in relevant initiatives.
Table 7. Key public actors in Norway and their responsibilities
Actor
Responsibility
National government
  • Key ministries are responsible for devising overall strategies and policies, as well as overseeing implementation of national goals and objectives. Work addressing specific issues related to segregation and social inclusion is carried out in cooperation with regional and local administrations.
  • The Ministry of Local Government and Regional Development (KDD) is responsible for regional policies addressing segregation and social inclusion. These policies are operationalised under thematic areas such as urban and rural development.
National agencies
  • The Norwegian State Housing Bank (Husbanken) supports implementation of initiatives targeted at vulnerable areas, including those promoting inclusion through housing-related programmes and projects.
  • The Norwegian Directorate of Immigration (UDI) plays a role in the implementation of strategies related to immigration and integration.
Regional and local administrations
  • Responsible for translating national strategies/objectives into regional and local initiatives, which in turn how municipalities approach place-specific issues through land use and community development plans.

3.3.3 Key focus areas

There is currently increased attention in Norway on combating segregation and enhancing social inclusion through national, regional and local policies and initiatives. In this respect, integration, inclusion and social mixing are all key themes of the most recent national integration strategy. Efforts have been directed towards ensuring equal opportunities, education and employment for individuals from diverse backgrounds (Ministry of Education and Research, 2019). The spatial concentration of social challenges is another priority area, with concerted efforts made to address issues affecting ‘areas with complex welfare challenges’ (komplekse levekårsutfordringer).
National policy objectives and instruments aimed at ensuring equal living conditions, value creation and sustainable settlements throughout the country are mainly linked to regional and rural policies. These set the stage for how the government seeks to address social sustainability issues: while rural policies target the most remote and rural municipalities, regional policies usually apply to every type of municipality. Within these policies, the concept of social sustainability encompasses everything from avoiding poverty to creating integrated local communities with adequate housing, educational opportunities, jobs, social meeting places and security.
There is also a growing emphasis on urban development issues and specifically ensuring that the physical design of small and medium-sized cities contributes to social inclusion. City parks and other publicly accessible meeting places such as libraries, cultural centres and sports facilities are important arenas in this respect. Such policies and strategies also acknowledge that immigration and integration – in conjunction with holistic planning processes – are important for local development. Towards this end, Norway’s larger cities have been the main beneficiaries of area-based initiatives dealing with issues of urban segregation and integration.
The underling objective behind Norway’s integration and segregation policies is the empowerment of individuals through strengthening social integration, education and employment opportunities. Target populations are usually residents of disadvantaged areas or groups with an immigrant background. At the local level, these policies aim to improve the local living environment by focusing on housing and living conditions within a specific area, thus mitigating certain vulnerabilities and strengthening the social fabric of local communities.
Turning to regional development policies, the housing market, physical planning and local sustainable development are all important levers for encouraging socially mixed and inclusive neighbourhoods, including securing socio-economic equity across regions and communities. Such efforts are vital when it comes to preparing Norwegian society for long-term sustainability. Above all, it is important to continuously adapt to find out what works well, implementing change across relevant policy areas when plans and programmes are implemented at different governance levels.

3.4 Sweden

Sweden has experienced a noticeable rise in residential segregation since the 1990s. This is related not only to increased socio-economic disparities across the country at large, but also changes in the population’s demographic composition as Sweden has become more ethnically heterogeneous over time (Boverket, 2023a). Studies comparing the Nordic countries have found socio-economic and ethnic segregation to be most pronounced in Sweden (see e.g. Haandrikman et al., 2023; Östh et al., 2015; Tammaru et al., 2021). This growing segregation is reflected in stark disparities between residential areas across the country – both in major cities and smaller towns (Boverket, 2023a) – highlighting the pivotal role of location in determining an individual’s life opportunities and outcomes (Boverket, 2021).
In response, Sweden has actively sought to address the issue of segregation through comprehensive governmental strategies and action plans. Such initiatives recognise segregation as a multifaceted phenomenon encompassing – among other things – housing, education, labour market participation, democratic participation and crime. In addition, they acknowledge the interconnectedness of these various aspects, and thus the importance of correct sequencing when attempting to counteract segregation. Legislative frameworks, such as the Discrimination Law and housing policy reforms, have also played a crucial role in promoting equal rights and opportunities, while combating discrimination in housing and labour markets. Additionally, national initiatives focused on sustainable urban development demonstrate the weight placed on creating more inclusive, cohesive cities.

3.4.1 Policies and initiatives

Two key national policies pursued in recent years have had an explicit focus on counteracting segregation in Sweden: the government’s 2018 long-term strategy to reduce and counteract segregation (Ministry of Culture, 2018), and its related governmental action plan, ‘A Sweden That Stays Together – the Government’s Efforts to Reduce Segregation and Promote Good Life Chances For All’, from 2020 (Ministry of Labour, 2020a). Both policies arose from the Long-term Reform Programme for Reduced Segregation 2017‒2025 (Government Office, 2017).

National strategies to reduce segregation

The long-term strategy to reduce and counteract segregation (Ministry of Culture, 2018) is based on the notion that segregation consists of five closely related dimensions: 1) housing; 2) education; 3) labour market; 4) democracy and civil society; and 5) crime.
The strategy emphasises that work related to these five dimensions – which have helped guide efforts to address segregation in Sweden over recent years – should be observable and measurable (see also Nordic Welfare Centre, 2018). In terms of housing, the government states that a longstanding failure to build sufficient housing, together with unequal access to the housing market and a failure to create areas with mixed housing, represents the first link in a chain of problems concerning segregation. Thus, housing is connected to education. Here, the long-term strategy states that a combination of growing housing segregation and reforms enabling the establishment of more private schools has led to an increasingly segregated school system. This is evidenced by the differences in high school completion rates between native and foreign-born students.
Education is directly connected to the labour market, as an individual’s level of educational attainment greatly impacts their employment prospects. The strategy highlights the significant differences in employment status between those who completed high school and those who did not, as well as between native and foreign-born residents. Moreover, given socio-economic status impacts the degree to which one can participate in society and community life, educational level and employment status have a clear impact on democracy and civil society. This in turn relates to crime, as democratic participation is important for counteracting social exclusion, and thus preventing distrust in public institutions and crime.
An overview of the key policy measures presented in the Swedish government’s long-term strategy to reduce and counteract segregation is presented in Table 8 (Ministry of Culture, 2018).
Table 8. Policy measures from Sweden’s 2018 long-term strategy to reduce and counteract segregation
Dimensions
Measures
Housing
  • Increase diversity in housing tenure, size, type and price in vulnerable areas through new construction.
  • Invest in research on the housing market and sustainability in planning and social housing policy.
  • Make housing more accessible for low-income groups.
  • Reform policies to allow a more even distribution of asylum seekers and newcomers, with limitations on self-settlement in socio-economically challenged areas.
Education
  • Map preschool participation in order to increase it.
  • Review school admission rules for student diversity.
  • Address socio-economic disparities by allocating increased funding to school leaders.
  • Prevent dropouts and incentive education for newly arrived students.
  • Emphasise adult education for labour market integration and provide support for children’s education.
Labour market
  • Pursue targeted measures for young people, women, long-term unemployed and newcomers.
  • Utilise the Delegation for Employment of Young People and Newly Arrived Migrants (Dua).
  • Enforce regulations requiring newcomers in employment programmes to enter education.
  • Provide funding for Swedish classes and anti-discrimination efforts.
  • Enact Employment Service reform and work-oriented integration programmes.
Democracy and civil society
  • Pursue reforms aimed at enhancing democratic participation, addressing discrimination and understanding residents’ experiences.
  • Provide funding for libraries, civil society organisations and local culture schools.
Crime
  • Increase police budgets, including for the employment of officers tasked with tackling organised crime, especially gun violence.
  • Adopt both supply- and demand-side approaches to drug issues, with prevention efforts targeting children.
In 2020, the Swedish government presented its ‘A Sweden That Stays Together’ action plan, based on the previously discussed long-term strategy to reduce and counteract segregation (Ministry of Labour, 2020a). The plan presented a wide range of measures and collaboration efforts that were to be implemented over the coming years. The long-term strategy drew on the latest social science research base concerning segregation, while also building on previous experiences of tackling segregation.
In doing so, the strategy emphasised a number of key principles for combating segregation, such as adopting a cross-sectoral approach, relying on collaboration and coordination, and adopting a knowledge-based approach. Alongside this, it stressed the need for a variety of broad reforms, targeted efforts and preventive measures. The overarching perspective expounded by the strategy was that efforts addressing segregation are needed at all levels of policy and planning, and should involve relevant actors at the national, regional and local levels (Ministry of Culture, 2018).
Another core aspect of the long-term strategy and its action plan is the notion that segregation as a phenomenon is relational. This means a ‘segregated’ area cannot simply be viewed in isolation – rather, segregation refers to the relationship between at least two groups in society and at least two geographical areas. Thus, urban segregation should be understood in the context of the whole city or region, as the development of one neighbourhood will impact the development of other residential areas.
Nevertheless, the long-term strategy specified that its main purpose was to address those aspects of segregation that have negative consequences for people’s rights, preconditions and possibilities (Ministry of Culture, 2018). In this respect, segregation was explained as a complex, interrelated phenomenon linked to various societal structures and individual choices, with the main driver being increased economic inequality over time (Liang, 2021; Scarpa, 2016).
The stated objectives of the policies were to reduce segregation, ensure equal conditions for growing up and living, and provide good life chances for all (Ministry of Culture, 2018). As reflected in the strategy’s name, a long-term – specifically ten-year – perspective was adopted. Thus, implementation should go beyond merely improving the situation in areas with significant socio-economic challenges, and address the underlying structural causes of segregation. With this in mind, the strategy put forward the goal of Sweden one day no longer having any ‘especially vulnerable’ areas (särskilt utsatta områden) or areas afflicted by socio-economic challenges. Towards this end, it was envisaged that the number of such areas, along with segregation and exclusion in the broader sense, would gradually be reduced year on year (Ministry of Culture, 2018).
The strategy also referred to previous large-scale efforts dealing with segregation, which had been implemented in Sweden since the mid-1990s. One of the first reform programmes was the so-called ‘Blommansatsningen’, initiated in 1995, which targeted areas characterised by exclusion in eight Swedish municipalities: Botkyrka, Gothenburg, Haninge, Huddinge, Malmö, Solna, Stockholm and Södertälje. The programme aimed to tackle ethnic segregation by increasing the skills of immigrants, thereby strengthening their position within the labour market. Implementation of Blommansatsningen was carried out through locally developed actions plans, in collaboration with various key actors.
In 1999, a succeeding reform programme, Storstadssatsningen, was launched. Targeting 24 disadvantaged areas in seven municipalities in Sweden’s three largest urban regions Stockholm, Gothenburg and Malmö, the new initiative placed greater emphasis on cooperation across levels of government (see also Staver et al., 2019). Several years later, in 2007, the government entered into development agreements with 21 municipalities concerning 38 vulnerable areas, with a second round of efforts undertaken in some of the targeted areas in 2012. The thematic focus of the 2007 agreements tilted towards employment, education and safety. Moreover, rather than relying on project-based efforts, as in the previous initiatives, the agreements sought to develop existing institutional structures and link various policy areas (Ministry of Culture, 2018).
Figure 6. New housing construction in Alby, Botkyrka, one of the areas targeted by both the Blommansatsningen and Storstadssatsningen initiatives
Source: CC BY-SA 4.0
These preceding initiatives had all targeted specific neighbourhoods regarded as disadvantaged or vulnerable; relied on some form of public engagement or participation element; and had action plans developed locally in cooperation with various actors (Staver et al., 2019). In referencing these previous national efforts, the long-term strategy emphasised their positive impacts at the local and individual level (Ministry of Culture, 2018). Nevertheless, a major shortcoming of the previous initiatives was that they had ultimately failed to tackle the broader structural causes of segregation. Hence, the long-term strategy underlined that, going forward, such efforts had to take full account of, among other things, the planning of neighbourhood living environments and housing stocks, as well as employment and integration.

Legal frameworks

In terms of relevant legislation, the Discrimination Law, updated in 2008 (2008:567), promotes equal rights regardless of gender, ethnicity, religion, disability, sexual orientation or age, and moreover stipulates that no one should be discriminated against in the housing market (Diskrimineringslag, 2008). In 2006, the Equality Ombudsman – a governmental body tasked with promoting equal rights and opportunities – initiated targeted efforts to address housing market discrimination, with a particular focus on the cities of Gothenburg, Malmö and Sundsvall. More recently, in 2017, the Swedish government entrusted the task of reducing labour and housing market discrimination to the Equality Ombudsman and the Swedish Agency for Participation (MFD) (Ministry of Culture & The Ministry of Social Affairs, 2017).
The so-called ‘EBO Act’ is also relevant to the thematic focus of this study. The law originally gave asylum seekers the right to seek accommodation on the regular housing market and be compensated for its cost by the Migration Agency (Migrationsverket) in the form of extra housing benefits. In 2016, however, the legislation was changed in order to allow the state to refer newcomers to particular municipalities (SOU 2018:22, 2018). Three years later, the Swedish parliament approved a government proposal limiting the rights of asylum seekers to seek non-government housing (Prop. 2019/20:10, 2019).
The following year, the law was further reformed, allowing certain municipalities to limit the application of the EBO Act in areas with socio-economic challenges. The aim of this change was to encourage more asylum seekers to choose to live in areas more conducive to a socially sustainable reception and thereby avoid potentially negative social consequences in already vulnerable areas (Swedish Association of Municipalities and Regions, 2021). Since 2020, refugees and asylum seekers have been denied benefits if they settle in areas identified as having socio-economic challenges (Swedish Parliament, 2021).

Strategies for sustainable cities

Finally, there are several national policy initiatives related to the theme of sustainable cities that have direct relevance for policies aimed at reducing segregation. For instance, the ‘Strategy for Living Cities – Policies for Sustainable Urban Development’ (Ministry of the Environment and Energy, 2018) highlights addressing segregation as a crucial element in creating more sustainable cities (this strategy is addressed in greater depth in section 6.4). More specifically, the strategy states that architecture, urban form and the design of physical living environments can contribute to reducing segregation and increasing social cohesion. It also stresses that sustainable urban development must include the whole city, including all its inhabitants and areas, if it is to effectively counteract segregation processes.

3.4.2 Implementation and actors

Over recent years, work against segregation in Sweden has leaned strongly towards a long-term, cross-sectoral perspective, involving cooperation between different levels of governance and diverse sectors. Through the previously addressed long-term strategy, the government aimed to clarify the role of the state, as well as provide all relevant actors with an environment conducive to working towards shared goals (Ministry of Culture, 2018). The government is the main actor responsible for national strategies relating to segregation. More specifically, as of October 2024, work against segregation and discrimination comes under the purview of the Ministry of Employment (Government of Sweden, n.d.).
Strategy implementation is further distributed between state agencies. Here, the long-term strategy highlighted that a clear shortcoming in previous work to counteract segregation had been that some agency missions were ill-defined (Ministry of Culture, 2018). Thus, an explicit aim of the long-term strategy was to clarify the role of several government missions and thereby tie them closer to the strategy’s objectives. According to the long-term strategy, approximately 25 state agencies and county administrative boards are in some way connected to segregation-related thematic areas. At the time of the strategy’s launch, there were two agencies given assigned specific responsibility for reducing segregation: the Delegation Against Segregation (Delmos), and Boverket – the Swedish National Board of Housing, Building and Planning.
The establishment of Delmos, a state agency, in January 2018 was an important element of the long-term strategy (Ministry of Labour, 2020a). The agency’s overall mission was to promote research, cooperation and knowledge exchange on issues relating to segregation, including providing support to regions, municipalities and civil society. Delmos also distributed government funds to municipalities deemed eligible for this purpose (Delmos, 2021c). The 2021 budget saw the Swedish parliament decide to discontinue Delmos, which was told to phase out operations by the end of 2022 (Ministry of Labour, 2021).
Boverket is Sweden’s national-level authority for issues concerning the built environment, including land and water area management, physical planning, construction, building management, and housing and housing finance issues. Boverket also coordinates the government’s efforts to reduce exclusion in specific districts. Such efforts are designed to achieve positive social and economic development, reduce housing segregation, and promote sustainable housing environments and better school results in the targeted districts (Ministry of Culture, 2018).
Other relevant agencies reporting to the national government mentioned in the long-term strategy include the police, the Swedish National Council for Crime Prevention, the National Agency for Education, the Public Employment Service, and the Swedish Agency for Economic and Regional Growth. In addition, several agencies have a more general remit concerning equality and inclusion, such as the Agency for Equality and the Swedish Agency for Participation. Various forms of collaboration between agencies exist, such as the Council for Sustainable Cities, which works to strengthen the conditions in municipalities for developing vibrant, sustainable cities and communities (Ministry of Culture, 2018).
Statistics Sweden also has an important role in work against segregation. Particularly relevant in this context is the database developed by the agency covering 38 areas previously targeted by area-based policies in the past. In 2019, the government tasked Delmos and Statistics Sweden with mapping what segregation looked like in Sweden at that moment, and also investigating how it has developed over time (Ministry of Labour, 2020b). One of the concrete results of this work was the Segregation Barometer (discussed in section 4.4), a tool that uses a variety of indicators based on the key themes related to segregation presented in the long-term strategy. In doing so, the aim is to increase knowledge on segregation and establish a common starting point for discussions (Delmos, 2021c).
Following Delmos’s discontinuation at the end of 2022, Boverket assumed responsibility for maintaining and updating the Segregation Barometer (Boverket, 2023a). It is noteworthy that the classification of areas in the Segregation Barometer does not entirely overlap with the classification of vulnerable areas developed and maintained by the Swedish Police. The police list (also discussed further in section 4.4) has been the subject of much public debate in recent years, and is frequently cited by actors advocating urban planning and development initiatives in disadvantaged neighbourhoods (Salonen, 2023).
Municipalities and regions are key actors when it comes to implementing the long-term strategy, as well as work combating segregation more generally. In Sweden, municipal and regional authorities are responsible for most policy areas relevant to segregation, including housing, education, planning and public transport (see Table 9). Municipalities are also important actors in encouraging citizen participation and democratic inclusion, which are key elements of Sweden’s approach to dealing with segregation.
The long-term strategy emphasised the government’s intention of providing a more conducive environment for municipalities to deal with segregation. As part of this, a funding instrument known as the ‘welfare billions’ (välfärdsmiljarderna) was introduced in 2018. Through this mechanism, state funding to municipalities was increased by SEK 10 billion (around €900 million), with funds disbursed based on the number of citizens, asylum seekers and newly arrived immigrants in a municipality (Ministry of Culture, 2018). In parallel, the government set out a series of long-term efforts covering the period 2018‒2027 aimed at municipalities and areas with socio-economic challenges. Moreover, in order to facilitate the coordination of local-level work, separate government grants were made available in 2018 for municipalities and regional councils wishing to pursue networking and knowledge exchange, or the development of new knowledge and methods (Ministry of Culture, 2018).
The long-term strategy also mentions civil organisations as being central to several of its thematic areas, while at the same time highlighting the role of Sweden’s private sector in counteracting segregation, for instance through providing finance, services, and employment and internship opportunities in disadvantaged neighbourhoods. Finally, the strategy references agreements entered into by the government, different labour unions (LO, Unionen), and the Confederation of Swedish Enterprise (Svenskt näringsliv) in 2018, concerning so-called ‘establishment jobs’ for the long-term unemployed and newly arrived persons (Ministry of Culture, 2018).
Table 9. Key public actors in Sweden and their responsibilities
Actors
Responsibility
The government
  • Responsible for overall work and strategies aimed at countering segregation.
  • Each department and minister is responsible for dealing with segregation issues in their sector. This work is coordinated by a group of ministers led by the Minister for Cooperation.
  • The government and parliament assign governmental missions to relevant state agencies.
State agencies
  • Undertake governmental missions and cooperate with each other to counter segregation.
  • Two key agencies are Boverket and Delmos (which operated between 2018 and 2022).
County administrative boards
  • Main mission is to represent state interests in the regions, following up on national strategies and goals as they apply to the relevant region.
  • Coordinate activities between municipalities, agencies, organisations and companies on issues relevant to segregation, such as elections, emergency services, businesses, social development, infrastructure and housing.
  • Also given more specific, time-limited missions, such as coordinating crime prevention, municipal capacity for accepting newly arrived children and adults, and early initiatives for asylum seekers.
Regions
  • Responsible for health care and public health, including reducing health inequalities.
  • Also responsible for public transport, culture and leisure activities, regional development, and business development.
Municipalities
  • Responsible for housing, water and sewage, environmental and health protection, schools, libraries, social care, planning and building, public transport.
  • Play an important role in increasing citizen participation and inclusion.
  • Cultural and leisure activities, which can play a central role in the work against segregation, may be undertaken should a municipality wish to do so.

3.4.3 Key focus areas

The above has mainly addressed the Swedish government’s 2018 long-term strategy to reduce and counteract segregation and its related 2020 governmental action plan (Ministry of Culture, 2018; Ministry of Labour, 2020a). The strategy and plan had a strong focus on socio-economic segregation, defined as people being separated into different housing areas based on level of education, income or their occupation (Ministry of Culture, 2018).
While the policies did not specifically focus on ethnic segregation, its importance was acknowledged and its existence primarily ascribed to socio-economic factors. Housing segregation was strongly emphasised in the policies, as a person’s place of residence can substantially affect their life chances, for example through children’s access to education and adults’ access to work opportunities. This underlines the connection between residential, school and labour market segregation.
Since the previously discussed policies were launched, there has been a shift in Sweden’s national policy discourse concerning urban segregation and social inclusion. This can be seen in the policy reorientation that has taken place since the current right-wing government took office in October 2022. Broadly speaking, counteracting social exclusion, particularly in disadvantaged areas, remains a clear policy focus. However, while the former strategies were explicitly directed at counteracting socio-economic segregation, defined as a complex phenomenon, the current national policy is more oriented towards social exclusion specifically. Thus, the current national policy aims to reduce the number of people living in exclusion, combat parallel social structures, and increase people’s security and life chances (Government Offices of Sweden, n.d.). Alongside this, there is a stronger focus on individual responsibility.
Preventing crime and increasing security in particular have been prioritised by the current government, with the former issue addressed via targeted measures relating to education, the labour market, exclusion and integration. Specific focus areas include dealing with gang crime, increasing the number of foreign-born women in the labour market, providing more resources to schools in vulnerable areas, and creating summer jobs for young people in municipalities with high unemployment (Government Offices of Sweden, 2023a).
In this vein, the government released a written communication (skrivelse) in March 2024 outlining its crime prevention stance and the kinds of measures it believes are needed (Swedish Government, 2024). Areas mentioned in the communication include blocking recruitment into criminal networks, preventing children and young people from becoming involved in crime, and inducing individuals engaged in illegal activities to leave crime behind.
A new law introduced in April 2024 allows for the setting up of so-called ‘security zones’ (säkerhetszoner, also known as ‘stop-and-search zones’) (Swedish Parliament, 2024) for up to two weeks – although the police can extend this if necessary – in areas deemed to be at severe risk of crime (Swedish Police, n.d.). The security zones allow the police greater powers to search people and vehicles under suspicion within the designated area, and are intended to make it more difficult for criminals to prepare and carry out serious violent crimes.
Another core focus of the current national policy is integration, reflected in two Swedish official reports (SOU) that were presented on the matter in 2024. The first was an interim report titled ‘Objectives and Aim of Integration’ (SOU 2024:12), which proposed a reorienting of the country’s integration policy based on the principle that people intending to remain in Sweden for the long-term must take responsibility for becoming part of Swedish society (Government Offices of Sweden, 2024a). The second was a final report titled ‘Strong Governance for Successful Integration’ (Styrkraft för lyckad integration) (SOU 2024:41), which made a number of proposals regarding the strategic, coherent governance of integration policy (Government Offices of Sweden, 2024b). Among other issues, the report highlighted the inadequacy of current governance and monitoring, as well as the need for relevant indicators and an integration barometer.
The various policies, strategies and initiatives discussed above illustrate how Sweden’s policy landscape is constantly evolving. While a certain path dependency can be observed, with more recent policies often building on previous ones, there has nevertheless been an observable shift in the direction of policy and prioritisation over the last couple of years.

3.5 Iceland

Iceland differs from the other Nordic countries in that segregation – whether socio-economic or ethnic – has not generally been considered a significant societal problem. This may be down to a number of reasons. The first is that until relatively recently immigration was not a noticeable demographic trend in Iceland. Over the past couple of decades, however, immigration has become much more pronounced, reflected in the fact that the proportion of Iceland’s population with a foreign background increased massively from approximately 5% in 1996 to 27% in 2023 (Heleniak, 2024). Nevertheless, the proportion of second-generation immigrants is lower in Iceland than in the other Nordic countries, which is testament to the country’s short history of immigration: only 1.4% of the population were second-generation immigrants in 2018, compared to a miniscule 0.1% in 1998 (Statistics Iceland, 2019b). Thus, while various issues often associated with immigration, such as segregation, inclusion and integration, have historically not been high on Iceland’s policy agenda, the increased immigration seen in recent years means they are becoming increasingly important.
Another possible reason why segregation has attracted relatively little policy attention in Iceland is that the country has a comparatively small population. Around two-thirds of the country’s inhabitants live in and around the Reykjavík Capital Region in the southwestern part of the country, with settlements in other regions usually host to no more than a few thousand inhabitants – and often far less than that. This may also explain why Iceland has less experience of segregation as a phenomenon compared to the other Nordic countries, which have significantly larger urban populations. Moreover, the housing market often plays a crucial role in segregation dynamics. In this respect, the majority of Icelandic households own the dwelling in which they live (Sveinsson, 2020), while the country’s rental market is almost exclusively private and generally considered expensive, insecure and congested (Anundsen et al., 2021).
Even so, despite segregation not being an issue of great societal importance historically, the increased immigration seen over the past two decades – along with developments such as rapidly increasing housing prices – has led to a growing policy focus on issues relating to integration, segregation, inclusion and social mixing.

3.5.1 Policies and initiatives

One reason for the emergence of segregation-related concerns in Iceland is that the integration of immigrants and their children does not always appear to be working as intended (OECD, 2023). Given that Iceland has few existing national strategies or policies in this area, it is increasingly looking to other countries for inspiration in dealing with these challenges. This is reflected in the various policy initiatives and interventions that have been introduced over the last few years.

Housing policy and urban plannings

Housing is generally considered to be the main policy area relevant to segregation and social disruption in Iceland. The country’s social housing system was abolished at the end of the last century, resulting in a halving of its social housing stock between 1998 and 2017 (Kjarninn, 2019). A shortage of housing, alongside urbanisation and increased international tourism, has in recent years pushed housing prices up, especially in and around the capital region (Guðnason, 2020).
Prior to the signing of the collective agreements on the labour market in 2019, the issue of housing was a major area of contention between the labour market unions and the government. As a result, a task force was established to identify key challenges related to housing and suggest ways of resolving the dispute as part of a larger collective agreement between the labour unions, the government, municipalities and the Confederation of Icelandic Enterprises (Government of Iceland, 2019b).
In 2019, the task force presented 40 proposals, grouped into seven categories, to Iceland’s prime minister (Government of Iceland, 2019a). Suggestions included re-introducing the public housing system with higher initial contributions and income limits; legally mandating a capital contribution to public housing in order to improve the housing security of low-income families; creating a supply of affordable apartments, with the rent charged not to exceed 25% of income; increasing support for non-profit housing associations; reviewing regulations with a view to simplifying them; pursuing digitalisation of planning and construction administration; and allocating state-owned land for apartments (including rental units) (Government of Iceland, 2019a).
Another relevant initiative is the Icelandic Equity Loans (Hlutdeildarlán), a governmental remedy introduced in 2020 to help provide access to the real estate property market (HMS, n.d.). Applicants must be first-time buyers or those who have not owned a property during the preceding five years, have personal funds for a 5% deposit, and earn an income below the stipulated limit. The initiative is based on the principle that buyers can apply for a mortgage covering 75% of the purchase price, with the Housing and Construction Authority (HMS) providing an equity loan for the remaining 20% (once the 5% deposit is taken into account). This arrangement is intended to encourage the construction of affordable housing, with loans only provided for the purchase of newly built affordable properties approved by the HMS – although in exceptional circumstances, older properties outside the Capital Area can also be approved if they have been fully refurbished (HMS, n.d.).
While equity loans may be regarded as preventing social segregation by allowing more people to enter the housing market, they have also been criticised. Such loans are only intended for low-income groups and newly built housing below a certain sale price. However, this largely excludes people seeking to buy property in the more central and established parts of Reykjavík, where new housing is deemed too expensive. As such, some view the initiative as pushing those who qualify for the equity loans to the outskirts of the city, which may lead to increased socio-spatial segregation through the formation of low-income areas on the urban fringes (Valdimarsson, 2024).
In 2023, the Ministry of Infrastructure published a report on housing as part of the government’s policy-making process on the subject (Ministry of Infrastructure, 2023) – the first time a formal policy on housing matters had been developed at the national level. The report lays the foundation for a housing policy covering the next 15 years, as well as a five-year action plan. Although the report includes a status assessment of housing issues and presents a draft of the policy’s key issues, vision and priorities, it does not directly address segregation. Instead, it limits itself to emphasising the need for better targeted housing support, improvements in tenants’ legal status and housing security, and more public housing and rental apartments (Ministry of Infrastructure, 2023).
In addition, Iceland’s National Planning Strategy (Landsskipulagsstefna), which supports municipalities and lays out national policy in planning matters, was recently revised to put more emphasis on public health, air quality and land use (WHO, 2020). With this in mind, the revised strategy clearly states that a key objective for spatial planning and land use is enhancing people’s quality of life (Planning agency, 2016b, 2021a). In relation to developing urban areas – almost exclusively in the capital region around Reykjavík – great emphasis has been placed on public transport infrastructure as a means of making neighbourhoods more accessible and inclusive.
The government has also approved the Borgarlína infrastructure project – a joint venture between the state and the capital region’s association of municipalities aimed at accelerating development of transport infrastructure and public transport in the capital region (see e.g., Lidmo et al., 2024). The project is viewed as an efficient way of making transport faster and shortening travel distances between the suburbs and the city centre. More generally, increased accessibility through public transport is viewed as a good way of reducing segregation within, and especially between, residential areas in Iceland, thus promoting diversity in urban development. This can be seen, for example, in the transport agreement between the capital region’s municipalities and the state approved in 2019, as well as in the capital region’s 2015 regional plan (SSH, 2015; Statistics Iceland, 2019a, 2019a).

Integration strategies

Other governmental policies introduced as part of plans to increase integration, reduce segregation, and establish socially mixed neighbourhoods include the ‘Action Plan For Immigration Matters 2016–2019’ (Parliament of Iceland, 2016), which was followed up by a new action plan covering the years 2021–2024 (Government of Iceland, 2024a). Both action plans were based on five pillars – 1) society; 2) family; 3) education; 4) the labour market; and 5) refugees – with the measures contained with them reflective of the action plan’s objectives around promoting a society where everyone can be an active participant, regardless of nationality or origin.
The governmental ‘Action Plan For Immigration Matters 2021–2024’ addresses – among other things – segregation, integration, housing, social security and welfare. The specific proposals set out in the plan represent either a continuation of policies initiated under the previous action plan, or are based on needs identified through research, development projects or general societal developments. Regarding social inclusion and segregation, the action plan focuses on the topic specifically from the perspective of immigration (Icelandic Government, 2022), with possible future actions including the development of a platform that enables the sharing of relevant research, knowledge and statistical information.
In the end of 2024, a draft proposal for a Policy on Matters of Immigrants for 2025–2038, together with a four-year action plan for the years 2025–2028, were introduced and presented for public commentary (Ministry of Social Affairs and Labour, 2024b, 2024c). The new policy builds on the same pillars as the previous policy, while defining three new main goals. The first one is Participation, Equality, and Diversity, which refers to ensuring that immigrants are active participants in society and enjoy equal opportunities. The policy promotes respect for diversity and strives to create an inclusive society where immigrants can thrive, while also stating that efforts will be made to reduce poverty among immigrants and increase their representation in public sector jobs. Additionally, the visibility of immigrants in public media will be enhanced to foster a more inclusive narrative.
The second goal concerns Information, Accessibility, and Services, highlighting the importance of providing comprehensive and accessible information services to new residents. Timely support will be offered to refugees, and the recognition of foreign qualifications will be facilitated to help immigrants better integrate into the workforce. There is also a focus on improved research and data on immigration issues to better inform policy decisions. Furthermore, the educational and social needs of children and young people with diverse linguistic and cultural backgrounds will be addressed, along with ensuring equal access to housing for immigrants.
The third goal refers to Communication and Language and to provide more diverse and inclusive ways of learning the Icelandic language. Also, standardised assessments for Icelandic language proficiency will be implemented to ensure consistent and effective language education. These efforts aim to help immigrants integrate into Icelandic society and participate fully in community life. (Ministry of Social Affairs and Labour, 2024b, 2024c).
Many of the topics addressed in the new policy draft are based on a large consultation process involving numerous stakeholder, as well as recommendations from the OECD(2024) report ‘Skills and Labour Market Integration of Immigrants and their Children in Iceland’. The OECD publication highlighted, for example, the need for better data collection on immigrants, enhancing the scope and quality of Icelandic language education, and better utilizing the education and skills of immigrants in the labour market, to help them secure jobs that match their qualifications and experience. Additionally, there is a call to place greater emphasis on integrating the families of those who move to Iceland for work, along with addressing discrimination against immigrants, particularly on the housing rental market. Furthermore, the policy stresses the need to invest in measures that support the children of immigrants, for instance, by implementing systematic assessments of their language skills from preschool age and providing targeted language support to those in need. These recommendations aim to create a more inclusive and supportive environment for immigrants in Iceland, ensuring they can fully participate in society and the workforce. Alongside new policy drafts, funds for the Development Fund for Immigrant Affairs were increased to accommodate more research and projects related to democratic participation and combating prejudice and discrimination towards immigrants (Ministry of Social Affairs and Labour, 2024a).
The Multicultural Information Centre (MCC), a governmental institute, has in the past assumed the role of disseminating information to immigrants with a view to enabling their active participation in Icelandic society (mcc, n.d.-b). In 2019, however, the Icelandic parliament passed a resolution calling for the establishment of an immigration advisory office called ‘New in Iceland’. This pilot project has since evolved into a counselling service hosted at the MCC. The office is responsible for providing immigrants with accessible advice, guidance and information on their rights and obligations, as well as necessary services. It is also intended to be a forum for cooperation between state institutions, municipalities, and stakeholders such as trade unions and non-governmental organisations (NGOs). All services are free and provided in a variety of languages (English, Polish, Spanish, Ukrainian, Arabic, Lithuanian, Russian and Icelandic) (MCC, 2024).
In Iceland, education, equality and human rights laws require that the state make proactive efforts to combat segregation and social inclusion. For instance, national educational policy states that the state must offer a wide range of free education to ensure everyone has good access to the education system, regardless of background or other circumstances. The educational rights afforded to immigrants are more clearly defined in the previously mentioned action plan, in addition to which there is a plan called ‘Inclusive Education’ (Menntun án aðgreiningar). As mentioned earlier, the new policy drafts for immigration matters also addresses language education specifically. Numerous ministries and governmental institutions are involved in addressing matters concerning segregation, including the Ministry of Social Affairs, Ministry of Finance and Economic Affairs, Ministry of Transport and Local Government, and Ministry of Education and Culture.

3.5.2 Implementation and actors

At the national level, the government is responsible for establishing general strategies and policies, while implementation mainly takes place at the local level. Icelandic municipalities are responsible for overall planning when it comes to aspects such as housing, social care, primary and elementary school, and children’s leisure activities (MCC, n.d.-a).
As such, municipalities have considerable responsibilities when it comes to preventing social segregation, securing integration, and planning socially inclusive, mixed neighbourhoods. In this context, Iceland’s municipalities – particularly Reykjavík – have developed various policies and plans addressing these matters.

City of Reykjavík initiatives

Reykjavík, the capital city, is by some distance Iceland’s largest urban settlement – together with its surrounding municipalities, it is home to around two-thirds of the entire Icelandic population. Reykjavík has over recent years developed various plans for mixed neighbourhoods, as well as setting its own ‘Policy in Matters of Immigrants, Refugees and Applicants for International Protection 2018–2022’. This policy addressed Reykjavík’s role as an authority, employer, and provider of services and social assistance in matters concerning immigrants (City of Reykjavík, 2017b).
Figure 7. Aerial view of Reykjavík
Source: Mats Stjernberg
Also noteworthy is that Reykjavík’s masterplan 2010–2030/2040 contains a chapter dedicated to mixed and inclusive neighbourhoods, titled ‘Residential and Mixed Neighbourhoods’ (Íbúabyggð og blönduð byggð) (City of Reykjavík, 2019). Similarly, the main aim of the Reykjavík Housing Policy is creating more inclusive, mixed neighbourhoods, with an emphasis on densification, especially in the city’s more central areas and older, more established settlements. Suburban development is also considered important, with stress placed on providing sustainable means of transport to better connect suburban areas to the city centre. The aforementioned Borgarlína public transport project is a vital part of this policy, as it aims to introduce a high-speed bus network connecting the capital region’s municipalities (City of Reykjavík, 2017a).
While Iceland’s public authorities are primarily responsible for policy-making and implementation related to social inclusion and integration, a number of other actors are also deeply involved in these matters. These include various NGOs, associations of foreign-born people, and labour unions. In recent years, the country’s workers movement and labour union associations have attempted to pressure the authorities to produce measures on more affordable housing, more rental apartments, and more generally better conditions for the tens of thousands of immigrants and migrant workers who have moved to Iceland in search of employment.
The fact that the construction of new housing has lagged far behind the rate of population growth has created various problems. For instance, large groups of foreign workers have been housed in industrial buildings that do not meet the standards set for residential houses (ASÍ, 2021). Both NGOs and the labour movement have highlighted this problem and pushed the authorities to act accordingly. The same actors have also been central in encouraging political participation among immigrants, helping foreign-language speakers access social services, and providing information in languages other than Icelandic, including on labour market rights.
The newly updated Reykjavík Housing Plan 2024–2033 outlines a number of specific actions promoting social inclusion. These include strengthening non-profit housing associations in order to provide affordable housing options for various social groups; integrating public transport to guarantee accessibility for all residents; ensuring young people, the elderly and those with special needs have access to suitable housing; providing significant financial contributions from the city and state to support housing initiatives, particularly for vulnerable groups; and collaborating with labour unions, non-profit organisations and other stakeholders to ensure diverse community needs are met (City of Reykjavík, 2024).
Table 10. Key actors in Iceland and their responsibilities
Actor
Responsibility
National government
  • Establishing general strategies and policies.
  • Provides financial assistance for initiatives such as the Borgarlína high-speed bus system.
Municipalities
  • Overall planning in sectors such as housing, social care, primary and elementary school, and children’s leisure activities.
  • Considerable broad responsibilities for preventing social segregation, ensuring integration, and planning for socially inclusive, mixed neighbourhoods.
  • Specific responsibilities potentially include implementing plans for mixed neighbourhoods and immigrant integration, as seen in Reykjavík’s case.
Non-governmental organisations (NGOs) and associations
  • Play a prominent role in matters of inclusion and integration.
  • Advocate for the rights of and better conditions for immigrants and migrant workers.
  • Push for measures such as cheaper housing and rental apartments.
  • Promote activity, political participation and access to social services among immigrants.
Labour unions
  • Actively participate in pressuring authorities to improve housing conditions.
  • Advocate for better conditions for immigrants and migrant workers.
  • Promote political participation and access to rights on the labour market.

3.5.3 Key focus areas

As discussed above, the issues of segregation, integration and inclusion have only fairly recently gained prominence on Iceland’s policy agenda, in large part because the proportion of foreign-born people living in Iceland was extremely small prior to the past two decades. Nevertheless, several policies and plans relevant to integration, education and housing already exist and more are in development, both at the national level and among municipalities. In the latter respect, Reykjavík has been particularly active in developing its own policies and plans for securing socially mixed, inclusive neighbourhoods. To date, however, initiatives have largely been reactive. Despite this, there is growing political will in Reykjavík, and some parts of the Icelandic parliament, to pursue more proactive measures aimed at tackling future problems. Moreover, better policy coordination is needed between the governmental and municipal level, as well as with various labour market actors and NGOs seeking to be included in formal policies.
In December 2024 a new government consisting of the Social Democratic Alliance, the Reform Party and the People’s Party assumed power in Iceland. The coalition government’s proposed platform outlines a number of initiatives designed to further promote social inclusion and prevent segregation, as well as address housing issues. These include rapidly increasing the number of available homes in order to achieve housing market balance, supporting non-profit housing associations and improving the position of tenants. The plan also emphasises the development of moveable modular homes; converting commercial properties into residential housing; making state land available for development; and simplifying building and planning regulations.
Financial support is promised in support of these aims, with measures ranging from profit participation loans to encouraging pension funds to enter the housing construction sector. Additionally, the government aims to combat social dumping; increase public safety; improve relations between the state and local governments; and support marginalised groups through emphasising equal status for all and eradicating deep-rooted societal prejudices (Government of Iceland, 2024b)