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Clearly, just having more oil didn't guarantee a better lifestyle or economy, but proper management did. An example of when a government works for its people, things work.
Clearly, just having more oil didn't guarantee a better lifestyle or economy, but proper management did. An example of when a government works for its people, things work.
Then there is another question that deserves an answer: What is it about Norway's government that makes it work.
Norway is one of the world's richest countries in per capita terms. It has an important stake in promoting a liberal environment for foreign trade. Its large shipping fleet is one of the most modern among maritime nations. Metals, pulp and paper products, chemicals, shipbuilding, and fishing are the most significant traditional industries.
Norway's emergence as a major oil and gas producer in the mid-1970s transformed the economy. Large sums of investment capital poured into the offshore oil sector, leading to greater increases in Norwegian production costs and wages than in the rest of Western Europe up to the time of the global recovery of the mid-1980s. The influx of oil revenue also permitted Norway to expand an already extensive social welfare system.
Petroleum production peaked in the early 2000s, and the pace of discoveries has not been sufficient to reverse that trend. However, innovative use of extraction technologies has extended the lives of fields. Declines in petroleum extraction is to some degree offset by increased extraction of natural gas in both new and existing fields, such as Snohvit and Troll. Given the energy industry’s weight in the economy, diversification into other industries is a long-term challenge for Norway.
Then there is another question that deserves an answer: What is it about Norway's government that makes it work?
For the most part, there was one party rule from the mid 30's to the very early 80's. The mix of a more representative government along with huge discoveries in hydrocarbon deposits.
The Norwegians have been fairly responsible with their capital. The major problem, of course, is their more recent economy is built largely around hydrocarbons. Of course that's nothing new and most certainly isn't only their problem.
Then there is another question that deserves an answer: What is it about Norway's government that makes it work.
At the risk of thread necromancy, I though this article had some interesting points:
NYT on Norway
"....unions calculates wage demands by closely examining the cost base and demand situation of Norway’s export industries and then working back from that. “We negotiate for exporters first. No other industry gets more,” she explained."
It is an interesting way of using the Unions tool.
At the risk of thread necromancy, I though this article had some interesting points:
NYT on Norway
"....unions calculates wage demands by closely examining the cost base and demand situation of Norway’s export industries and then working back from that. “We negotiate for exporters first. No other industry gets more,” she explained."
It is an interesting way of using the Unions tool.
Great idea, but unfortunately would never work here. Too many people in too many unions, more of an entitlement attitude, and a great many more Americans than Norwegians seem to live too far above their means.
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