The Du-reform took place in Sweden at the end of the 1960s' when the use of du (equivalent to thou in English, tu in French or du in German) was generalised for all contacts between persons.
Prior to the Du-reform, the rules of etiquette to address people were complex. In these times, if you would meet Mr Johan Björn, a professor, you could address him as follows, in order of politness:
In short, people outside the inner family circle should be always addressed using their title (option 1 to 3). In the working environment, a subordinate could be addressed using you or preferably he or she. But You was considered as disrespectful, degrading if not even rude. Du could only be used whithin inner family, when addressing childrens or cousins, but hardly for older relatives.
Social interactions became increasingly challenging within this framework of bienseance. Here are examples of the challenges one was facing while engaging contact with someone:
These rules of etiquette became increasingly difficult to comply with because of the innumerables ambiguities and opportunities to unintentional offence. People started increasingly using circumlocutions to address each other. For example, if you would want to propose a cup of tea to someone, you would say "Might it be a tea...?" in fear of not getting it right by using a more direct form.
Then came Bror Anders Rexed, a famous neuroscientist professor who became in 1967 the Head of the National Board of Health and Welfare in Sweden. In his welcome speech to the employees, he annouced that he would address everyone using Du and was expecting everyone to address him in the same way, or using his christian name Bror which means brother in Swedish.
He became known for his "Call me Brother" speech that was amplified in the media and started a profound change in the Swedish society. The development was considerably speeded up when Olof Palme, as new Prime Minister in 1969, let reporters call him du on live broadcasts. It did not take long until du became the standard way of addressing, even in formal and official contexts with the only exception of the the Royal Family, whose members are still addressed in third person or by their titles.
In recent years, the Ni is coming back, in particular among the younger generation without being perceived anymore as degrading or humiliating.