The essay discusses main features and peculiarities of Scandinavian or Nordic socio-economic model supposedly pioneering «the middle way» between free market capitalism and Soviet type centrally planned economy. Its success owes a lot to corporatist policies of centralized wage bargaining resulting in wage moderation and equality between industries and firms and the practice of «functional socialism». Active social engineering policies especially so called «national integration» however resulted in «statist individualism» that is the destruction of traditional human (family, friendly, neighborly etc.) ties and complete reliance on the paternalist role of state institutions.