Background Sweden is a sparsely populated country of 9 million people, geographically located on the margins of the European Union (EU). Approximately one-third of the population lives in the three metropolitan areas of Stockholm, Göteborg and Malmö, and around 14 percent of Sweden's population are born overseas. Sweden is often described, together with Denmark, Finland, Iceland and Norway, as a welfare country characterized by low levels of income inequality (Lappi-Seppälä and Tonry, 2011). Prior to an election defeat in 1976, the Social Democrats had been in government since 1933, and Sweden had constructed what has been referred to as a welfare state par excellence (Tham, 1995). Although the Social Democrats quickly regained power, and governed until 2006 (with the exception of the period 1991-4), the Swedish political climate was influenced from the 1980s onwards by the international shift towards neoliberal ideas. The Social Democrats introduced changes to welfare policy, including, notably, gradually deregulating the economy. Today Sweden has a centre-right coalition government led by the conservative New Moderates. The consistent postwar 'party of government', the Social Democrats, is facing a serious challenge in the area of agenda-setting, and Sweden has become less different from the rest of Western Europe. Criminologists have also often described the Scandinavian countries as distinct from the rest of Europe, being characterized by low prison populations, knowledge-based crime policy and an absence of punitivity in the public debate (Lappi-Seppälä and Tonry, 2011). In his description of '"Scandinavian exceptionalism" in an era of penal excess', however, Pratt (2008) sees dark clouds on the Swedish horizon. In the early 1990s, Sweden suffered an economic crisis that tripled the unemployment rate (from around 3 to 9 percent) and produced major welfare policy cutbacks. Effects on living conditions