Norway – The Accidental Role Model

Abstract

In the last 35 years, Norway has changed from a rather frugal, mid-income northern European social democracy into one of the world’s most prosperous countries. This is reflected in its purchasing power parity (PPP)-adjusted GDP per capita, where Norway usually ranks first among the ‘real’ states and only lags tax heavens and even more oil rich Qatar, ‘and in the size of its sovereign wealth funds (SWF), which as of December 2009 was valued at just below 2600 billion Norwegian krone (NOK), an equivalent of roughly US$450 billion.¹ Financial strength has not, however, placed Norwegian technocrats in a carefree position. Since the early 1970s when it became clear that Norway’s oil and gas resources would bring hitherto untold riches, transforming resource assets into income has been recognised as a potential force for destruction; that it can also be a blessing has been more of an afterthought.