Transcript Norway: Past, present, future -

Norway: Past, present, future Adapting to change.
Ambassador Jan Braathu
NORWAY
Norway in the 1800’s:
An Englishman who visited Norway in 1800 wrote to his
friends that
“There is no reason to help these people! These dirty,
ignorant people produce far too many children. They do
not want to work, and they are undisciplined. They
misuse all the opportunities they are given. Every time
they get any money, most of it is spent on alcohol and
is just squandered. “
Norway was a rather backward country on the European
periphery..
This has changed.
Norway is still located on Europe’s periphery,
but today, Norway is one of the most developed and prosperous
countries in the world, according to the UN Development Report.
What happened?
The emergence of ”Modern Norway”
• Natural resources + technology + capital + energy
Forestry, Fisheries, Shipping
External demand – Export-led growth
Industrial production – evolution from artisan/craftsman
production
Knowledge-based – skilled labour
Typical for industrial managers/leaders:
In-depth technological knowledge (engineers)
Entrepreneurial spirit
Monitoring of international trends and technological
development
Other factors:
• Increasing public sector investments in infrastructure
(roads, harbours, etc.)
• External factors
• Development of educational institutions
• “Civil Society” initiatives
“Selskabet for Norges Vel” (29.12.1809)
Established on the initiative of a bishop and other leading
members of society.
The objective was to support municipal development through
various forms of enterprise development, education and spread of
“best practices,” for example in agriculture.
The Society initiated a funding campaign in 1810 for the
establishment of a university in Christiania (Oslo). The university
was established in 1811)
“Polyteknisk Forening (23.06.1852)
Initiated by a group of industrialists as a forum to exchange
ideas and information about science, technology and industry.
It has developed into a forum for discussion of a wide range of
economic, industrial and societal issues, including development
of public policy.
(There is also a sub-group for international politics and
economy)
1.November: Self-government for Municipalities
2. November: The State Investment Fund (Petroleum Fund)
New technologies – Stimulating growth & development
Telephone & Electricity
Elektrisk Bureau (1882) – production of telephone sets and electric
lighting units
Rapid growth in use of electric motors
Capital – Foreign Investments
•Ca. 1900 – 80% of Norwegian industry foreign-owned
•1909 – Concession Laws (Water resources)
Bølerlia i Oslo oppføres i 1956. Foto: Dagbladet
Quick facts about Norway
• Area: 385 199 km2
• Population: 4.8 million
• Languages: Norwegian and Sami
• Capital city: Oslo
• GDP: € 310,2 Billion
• GDP per capita: € 64.632,7
• Currency: Norwegian Krone (NOK)
• Exchange rate: € 1 = NOK 7,968 (29.06.2010)
Norway in international trade
• 0,1 % of world population
• 1,2 % of world export (no. 28 in the world)
• 1,1 % of world import (no. 38 in the world)
• 75 % of GDP consists of trade (average OECD 45%)
• Value of total import: € 60,1 billion (2008)
• Less than 25 % of imports are consumption goods
Economic overview
Norway's real incomes are among the highest in the
world; employment is high and unemployment low.
GDP per capita of €64,600 in 2008 (2nd highest in the EEA
after Luxembourg) and a national budget surplus.
Public finances are boosted by significant revenues
from the petroleum sector.
The oil and gas sector constitutes around 25% of the
Norwegian GDP and 52% of Norwegian exports (35 times
higher than the export value of fish).
Norway is the EU's 4th most important import partner for
trade in goods with €91.85 billion in 2008, after China, USA,
and Russia
…. and the 6th export market with €43.58 billion, after the USA,
Russia, Switzerland, China and Turkey.
Norway's trade with the EU shows a surplus of €48.27 billion.
Norway’s imports from the EU are mainly manufactured
products with a share of 81.3% in 2008.
Norway's exports to the EU are concentrated on primary
products (share in 2008 was 71% thereof 61.1% on supply of
energy.
Traditional economic activities are shipping (fourth largest fleet
in the world), fisheries, metals.
Norway is one of the top three seafood-exporting nations
worldwide. Around 95% of production is exported.
The construction and operation of the largest offshore
installations on earth has led to the establishment of a
substantial offshore technology industry.
Despite intensive technological and industrial developments that
have taken place in Norway, natural resources still account for the
bulk of Norwegian exports.
Norway is the main source for the EU of primary aluminium. 60%
of our total imports of alloys and 15% of unwrought metal originate
in Norway.
Services account for a growing share of Norway's world trade.
During 2008, Norway exported services worth approximately
€31.1 billion, imports totalled to 29.6 billion.
Norway has become after Russia the most important non-OPEC
oil exporter.
Norway is the third largest exporter of crude oil, after Saudi
Arabia and Russia.
Norway is Western Europe's most important source of natural
gas. Norwegian gas exports account for approximately 15% of EU
gas consumption, with nearly 100% of Norwegian exports going
to EU.
Main importers: Germany (almost 30%), France (almost 20%), UK
(18%) and Belgium (8%).