Norway is a prosperous country located in Northern Europe known for its mountainous landscapes and fjords. It has a high standard of living due to offshore oil and gas discoveries in the late 1960s. Norway invests much of its annual oil revenues of around $40 billion into a sovereign wealth fund valued at $400 billion in 2009. Politically, Norway remains independent after separating from Sweden in 1905 and has rejected membership in the EU, despite being urged to join by its governments.
1. Norway country profile
Europe's northernmost country, the
Kingdom of Norway is famed for its
mountains and spectacular fjord
coastline, as well as its history as a
seafaring power.
It also enjoys one of the highest
standards of living in the world, in large
part due to the discovery in the late
1960s of offshore oil and gas deposits.
OVERVIEW
Norway's annual oil revenue amounts to around $40bn (£21bn), and more than
half of its exports come from this sector. To counter inflation, spending of oil
revenue was restricted.
The considerable surplus is invested in a sovereign wealth fund, estimated in
2009 at $400bn.
What to do with the money is one of the country's most contentious political
issues. The centre-right want more of it to be used to fund infrastructure
improvements, while the centre-left wants to keep it invested for future
generations.
Norway declared its independence in 1905 when the union with Sweden was
dissolved. Norway's people value their independence and prosperity highly. The
Norwegians rejected membership of the then European Economic Community in
1972, and of the European Union in 1994, despite being urged by their
governments to vote "yes".
(www.news.bbc.co.uk)
2. In recent decades, Norway has forged a stronger role for itself in international
politics. It has mediated between Israel and the Palestine Liberation Organisation,
and from 2000 to 2009 was the chief mediator in the conflict between the Sri
Lankan government and Tamil separatists.
Norway has a rich, sea-faring tradition and its
lengthy, rugged coastline has been central to its
development. More than a thousand years ago,
Viking raids on the coasts of Britain and France
were commonplace. The Vikings also mounted
expeditions to the coast of North America.
Later, the Norwegians began to trade. Originally,
the coastal waters provided fish for export.
Today, Norway is among the world's largest
exporters of fuels and fuel products.
Royal palace, Oslo: The
monarch has little legislative
power
Norway registered objections to the 1986
International Whaling Commission (IWC) ban on whaling and resumed the
practice on a commercial basis in 1993. It argues that whaling is no more cruel
than fishing and that stocks are sufficient to allow it to continue. Conservationists
disagree.
(www.news.bbc.co.uk)
3. FACTS
Full name: Kingdom of Norway
Population: 4.9 million (UN, 2010)
Capital: Oslo
Area: 323,759 sq km (125,004 sq miles)
Major language: Norwegian
Major religion: Christianity
Life expectancy: 79 years (men), 83 years (women) (UN)
Monetary unit: 1 Norwegian krone = 100 ore
Main exports: Fuels and fuel products, machinery, metal products
GNI per capita: US $86,440 (World Bank, 2009)
Internet domain: .no
International dialling code: +47
(www.news.bbc.co.uk)
4. A business friendly environment
Aker Brygge is a central business district in Oslo. Photo:
Nancy Bundt / VisitOSLO
The World Bank has ranked Norway among the top
performers in the ease of doing business. The
Norwegian economy is strong, open and globally
integrated with a high level of trade and foreign
investments, and a favourable international
competitiveness.
A strong, open and productive economy
Norway is a prosperous and stable society with a strong democratic tradition and a
political, economic and social climate conducive to industry and business development.
According to Eurostat, Norway had the second highest GDP per capita in Europe in
2009, i.e. € 57 100 compared to the EU27 average of € 23 600.
Access to the EU internal market
Norway is part of the European Economic Area (EEA) agreement between the
European Free Trade Association (EFTA) and the European Union (EU), giving
Norwegian and foreign-owned companies located in Norway full access to the internal
market of the EU and the free movement of persons, good, services and capital across
European state borders.
Easy doing business in Norway
Political stability and good governance are key descriptors of the Norwegian business
environment. In Doing Business in 2010, an annual report from the World Bank, Norway
is ranked 10 out of 183 economies with regard to ease of doing business. It is easy to
start and close a business in Norway, and to enforce contracts, buying property, trading
across borders and paying taxes. The corporate tax rate is 28 per cent, VAT 25 per cent
and income tax and social security contribution on the average worker 29.7 per cent.
5. Benchmarking Norwegian Competitiveness
IMD World Competitiveness Yearbook ranks Norway 11 on the 2009 World
Competitiveness Scoreboard. Norway has climbed steadily on this ranking over the last
few years and get high scores across all four dimensions of the overall index; i.e.
economic performance, government and business efficiency, and infrastructure.
World Economic Forum Global Competitiveness Report ranks Norway 14 in the 2009-
2010 edition of the Growth Competitiveness Index, which is up one place from 2008-
2009. The rankings are drawn from a combination of publicly available structural data
and the results of an Executive Opinion Survey polling 11 000 business leaders.
(www.oslo.teknopol.no)
6. Norway’s foreign policy in the context of the challenges of
globalization
An important pointer to Norway’s prominent profile as a regional and global player
inheres in its high human development and human security status. According to recent
UN Human Development Index (HDI) reports, that measure levels of human wellbeing,
Norway has consistently occupied the first position. When it is compared to the United
States—the world’s leading superpower which in 2006, occupied the 8th position, and
most of the developing world, where HDI is declining, part of the challenges that
confront Norway come out in bold relief. This opens up opportunities, while also
presenting a fresh set of challenges to the country’s leading position in a highly
competitive world.
The most critical challenge is how Norway can strike a positive balance between
domestic priorities, and foreign policy imperatives, in a world where the boundaries
appear to be rather fluid and ever changing in response to the dynamics of an
increasingly inter-dependent world. In this connection, issues of prosperity, wellbeing
and security at home, alongside those of energy security and climate change, poverty,
migration, human development and human and environmental security, integration,
development co-operation are all encapsulated in its foreign policy thrust. Relations with
its Nordic and “High North” neighbors also occupy a special place.
As Norwegian investors and development actors increasingly move out into the
competitive world, the country will require more strategic ties with regional and global
players, particularly in terms of international peace operations, relations with Russia and
the Emerging Market Economies in the Asia-Pacific region, China, participation in the
war on terror, and relations with the developing countries in Africa, South America and
Asia.
(www.regjeringen.no)
