This session reviews public sector reform in the Nordic Region, with special emphasis on the Swedish experience during the past 25 years. Incremental changes and the principles of decentralization and deregulation are pointed out as distinguishing traits of the Swedish reform. The general background is described first, including historical and political factors and the structure of Swedish public administration. This is followed by a discussion of the reform, mainly since the economic crisis of the early 1990s. The session ends with a description of the main challenges for continued reform in Sweden today, which are to adapt to the changes from the recent membership in the European Union, improve the system for performance management, and continue the development of an electronic infrastructure and electronic services.