Originally posted by Rockpuck
reply to post by mystiq
Norway also has such vast oil reserves that the money from the sale of oil is enough to pay for every socialized program. Even the fairy tale
So it is also ironic that it is the Liberals that bloke the drilling of oil in America..
Oil is only one of the resources Norway has, in fact Canada enjoys all the resources Scandinavian countries as a whole, and Norway for example,
enjoy, but whereas we only get a silver star, they get gold.
The Norwegian economy is a prosperous bastion of welfare capitalism, featuring a combination of free market activity and government intervention. The
government controls key areas, such as the vital petroleum sector, through large-scale state enterprises. The country is richly endowed with natural
resources - petroleum, hydropower, fish, forests, and minerals
The Economy of Sweden is modern and highly industrialised. It has a modern distribution system, excellent internal and external communications, and a
skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Main
industries include motor vehicles, telecommunications, pharmaceuticals and forestry.
Finland has an industrial economy based on abundant forest resources, capital investments, and high technology. Traditionally, Finland has been a net
importer of capital to finance industrial growth; in recent years it has become a net exporter of capital. Finland has one of the best performing
economies in the EU and Europe.
The Finnish economy has made enormous strides since the severe recession of the early 1990s. Finland successfully joined the euro zone and has
outperformed euro-area partners in terms of economic growth and public finance
Norway’s wealth: Not just oil
Norway, of course, always had its natural resources; but it was only with the advent of educated labour that it became possible for the Norwegians to
harness those resources on a significant scale. Human capital accumulation was the primary force behind the economic transformation of Norway; natural
capital was secondary. Human capital accumulation can lift living standards without natural capital (as in Japan and Singapore, for example), but
natural capital is of little help or worse without the human resources necessary to harness it (consider Congo).
Norway’s oil management regime
Norway’s sensible approach to oil wealth management deserves the attention it has received in other resource-rich countries around the world.
Norway’s approach has several key features:
* From the beginning, before the first drop of oil emerged, the oil and gas reserves within Norwegian jurisdiction were defined by law as common
property resources, thereby clearly establishing the legal rights of the Norwegian people to the resource rents.
* On this legal basis, the government has absorbed about 80 percent of the resource rent over the years, having learnt the hard way in the 1970s
to use a relatively small portion of the total to meet current fiscal needs. Most oil revenue is set aside in the state petroleum fund, recently
renamed the pension fund to reflect its intended use.
* The government laid down economic as well as ethical principles (commandments) to guide the use and exploitation of the oil and gas for the
benefit of current and future generations of Norwegians.
Having oil has helped Norway, but diversification throughout Scandinavian countries is far more important than that one resource.
Seems turning out highly educated people to learn how to use their resources to create economy is the key secret.
[edit on 26-6-2008 by mystiq]
[edit on 26-6-2008 by mystiq]