Finally at our last stop: Norway! Let’s get to know a bit more about the economy in Norway. Norway is a mixed economy which means that both the state and private sector direct the economy. So the means of production are mainly under private ownership.
Norway
has a very strong competitive economy with a base of openness and transparency.
There exist policies that support trade and investment. It provides also
effective protection of property rights. There is a strong tradition of minimum
tolerance for corruption.
Norway
has grown a lot if it comes to industrialization. The export sector contains
shipping but nowadays also natural resources, including petroleum exploration
and production, hydroelectric power, forests, minerals and fisheries.
The
public sector is almost one of the largest in the world as a percentage of the
overall gross domestic product(*). The
thing which surprised me a little bit is that Norway has a very high standard
of living compared with other European countries. It has a very good welfare
system valued at over $700 billion in January 2013. The reason why they have
such a good welfare system is the fact that they have a large financial reserve
from the exploitation of the North Sea oil which accounts for the largest portion of
export revenue and about 20% of government revenue.
Norway
is not a member of the EU but it is a member of the European Economic Area,
which contributes to the EU budget. So they are strongly integrated even if
they’re not a member of the EU.
The
reason why Norway is against the membership is because of the threat to the
sovereignty of Norway. They are convinced that the fishing industries and
agricultural world would suffer. Which would mean that there would be less favourable
conditions for the welfare state. That is a logical explanation to me!
(*) The market value of
all officially recognized final goods and services produced within a country in
a given period of time.
Sources:
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