Norway, the socialist heaven on earth. Often brought forward as an example of how socialism could work. But is Norway really socialist? And is it rich **because of** socialist elements, or are those elements **inhibiting** even more wealth? **A brief introduction of Norway's economic history** ![Arendal035.jpg](https://steemitimages.com/DQmNmA9HkuxZt7YdAU5sH1QK5hweN3M6ciUtwa8jCmNXz6i/Arendal035.jpg) Contrary to popular belief, and also announced by former prime minister Kjell Magne Bondevik in the 2005 jubilee for Norway's independence (1905) "In 1905 we were one of the poorest nations in the world, but today we belong to the worlds riches elite" Norway has not been a particularly poor country, at least not after the 15th century. In the 18th and 19th century Norway was about 25% poorer than our western european neighbours. We were on the same economic level as our eastern european friends. Our economy was based on agriculture and fishing. But also keep in mind that the cost of living was cheap, and there were strong property rights. In the mid 19th century almost 800.000 norwegians immigrated to America. Reasons for that were issues with free speech, freedom of religion, over-population and wanderlust. Contrary to popular belief, Norway did not experience more hardship than other countries in this period. Actually, we had a positive growth throughout the entire 19th century. In the early 20th century shipping became a big part of Norway's economy, and we did not have a big depression in the 30'. After the second world war there was a strong unity between people working together towards prosperity. The world came closer, and we got rock'n roll, american cars, coca cola. At the same time the workers party (Arbeiderpartiet) came into power togheter with the communist party. The working party did however trash the idea of class warfare, and decided they wanted to create a new industrial state, much like America. Most of the influence in popular culture came from America. ## The oil ## ![StatfjordA(Jarvin1982).jpg](https://steemitimages.com/DQmYAwnFvqAxzb2EWAy3miW9397hWLVMnPCyLqartkte3JS/StatfjordA(Jarvin1982).jpg) In 1966 Norway introduced the "Folketrygd" (social security) the same year as the first oil rig, Ocean Traveller, was installed by Esso. They came up with nothing. In 1969 Philips Petrolium could inform the Norwegian government that oil was found on the oilfield later known as **Ekkofisk** which turned out to be the biggest off shore oil field ever discovered. In the following years more oil fields were discovered; Statfjord, Oseberg, Gullfaks and Troll. These large oil fields are to this date where our oil revenue comes from. In the beginning there were mainly foreign oil companies who dominated these fields. But Norway had a plan and a goal to build up an Oil Nation. In 1972, Statoil was founded. Before 2001, it was 100% state owned, but after 2001 it has been 50/50. After the creation of Statoil, the government saw the increasing importance of controlling the oil itself. In june 1972 the Government made 10 rules for Norwegian Oil politics that would be central in the wealth of Norway. The central points are: 1. All activity on Norwegian Shelf must happen under national governing and control 2. Oil findings shall be exploited in a way that it supplies Norway with oil. 3. Oil from Norwegian Shelf shall be taken to land in Norway 4. The government shall be engaged on every level of oil production. One can only imagine the tuff negotiations that happened in this era. New agreements with Great Britain and Denmark of off shore parting lines So what happened after this. We all know Norway would become one of the richest countries on earth. But was it only due to oil? Usually finding oil is a curse for most countries. Were there other factors? Was the rest of Norway going socialist? Or did we move towards a more capitalistic society? How free were the norwegian markets in the 80's and 90's? How free are they now? When Bernie Sanders point to Norway as a socialist heaven - is he right? Is Norway really socialist? And if it is - is it a promoting factor for Norway's wealth, or is it an inhibitor? One can certainly argue that the Norwegian Government did a fine job making sure the oil reserves came to benefit to the norwegian people. Or did it? Stay tuned for part 2...
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one of those places that i still have to visit thanku for writing this
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Yeah, please do.It's not exactly a hell hole to put it lightly :) But it's a mystery that we have to uncover!
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A very interesting and informative article!
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Interesting post. I like how detailed this post is. You have alot of great arguments here, can't wait for part two.
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Thanks :) Oh boy..the pressure I just put on myself. I need a lot of red wine and snus for the next one.
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hahaha, you clearly have alot of knowledge here, keep it up :)
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Spot on! I do not know where the fallacy of the 'poor Norway' came from. I would guess it was a trick from the Socialists. One of the wisest person I know said: "I would rather not have the oil'". Anyway, Norway is blessed with natural resources. We have tons of minerals, woods and seafood. I do not worry about Norway's future. But of course, Venezuela is also blessed with natural resources (and beautiful girls). Look what happened to them because of the socialist! Also we have funny politicians such as Jonas Gahr StΓΈre, a jellylike persona, without a spine. What does he want? The Norwegian regime is also very good at painting a picture of Norway as 'pure', but we go have a lot of corruption. As a long time investor in the Norwegian capital market, I can testify that there is a lot of insider trading going on. My 5 cent tip is that the wealth in Norway come the ethnic Norwegian people: We are generally very hard working and loyal (perhaps a little bit naive) people:)
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You'll enjoy part 2. Im pretty sure of that. Thats where the fun begins :D
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It all about oil here π³π΄ Looking to see part 2 , thanks for that π
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Dont touch muh oil revenues :) Thanks!
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No, I don't, such a wonderful country!!!
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I might be a bit ignorant, but I think the most important thing is that the succeeding governments(backed up by the people), didn't follow populist measures, putting the oil taxes into a 'pension' oil fund, instead of using using the money to pump up the economy or to distribute wealth to the people. This way Norway didn't suffer of the 'dutch disease', a term which describes an economic slowdown when brute natural resources are discovered and exploited which makes other sectors to decrease. It's not a general rule, but we can see that many countries having advanced economies don't have many natural resources. People living in harsh conditions have to work harder and to find solutions to compensate lack of resources. And when you combine hard work with good leadership results are amazing. I'd tell Bernie that this is way closer to a libertarian capitalism than a socialism regime. https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway https://en.wikipedia.org/wiki/Dutch_disease PS I don't know much about Norway, this is the ignorant opinion of someone seeing the things from far away.
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Good points! Thanks for input! Cant see anything wrong with them. Im not an expert in this, so it will be fun to dive more into it. The oil fund is interesting.
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such an interesting read I thought I knew quite a bit about Norway from friends over the years from there but I learnt so much from this and looking forward to part 2
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permlink | re-scandinavianlife-why-is-norway-so-rich-part-1-history-of-norway-and-the-oil-adventure-20170701t103848325z |
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Cool. Appreciate it a lot!
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permlink | re-tattoodjay-re-scandinavianlife-why-is-norway-so-rich-part-1-history-of-norway-and-the-oil-adventure-20170701t113505592z |
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Looking forward to part 2.
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category | norway |
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Thanks!
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permlink | re-gregario-re-scandinavianlife-why-is-norway-so-rich-part-1-history-of-norway-and-the-oil-adventure-20170701t113410738z |
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Enda en nordmann! Snart e hele slekta her...
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Hehe. Hva er vi? Hele 100 stk? :)
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NΓ₯r man finner 2 pΓ₯ en og samme dag, blir man skuggeredd ;-)
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