Quote:
Originally Posted by camaraderie
OsmundL...while I may disagree with the overall economic approach...it is clear that the citizenry of Norway have some rather admirable personal traits and views on issues like frugality and credit...and the value of offshore oil drilling!  |
Thanks,
Cam.
I try to hammer this point for one reason only: to demonstrate that clinging to the stereotype of “socialism” simply blocks one’s learning from real-world approaches in other countries.
The oil is bloody
annoying, because it clouds the issue. How many times have I heard that “yes, but your country is lucky” and that ends the debate. So, to clear up some basics:
1. Norway was doing very well before a drop of oil was drilled. In the late 60s, before they even found oil, we ranked 5th in the world for living standards.
2. We have, for at least a century, probably longer, relied on exports and a positive trade balance. Our economy is “open” and entirely market-driven.
3. Norway was always among the major shipping nations; its merchant fleet is roughly on a par with the US fleet, not bad for a tiny country. The fleet used to be bigger (much bigger than the US fleet), but new opportunities in oil platforms and related activity has diverted some of that focus.
4. Curiously, when oil was found in the North Sea, only US and multinational companies had platforms for ocean drilling. We began to build our own, new types. It took – and this is baffling – approx 5 years for Norway to become the world’s largest manufacturer of floating platforms, exporting to the world from South America to Australia, Asia, and now Russia. What the hell? Were the others asleep in class?
On “state ownership”: 40 years ago, we had some instances of state-owned enterprises: a coal mine on Svalbard; a cotton spinner; some aluminium/steel works… All have been privatized long ago. The government holds a major stake in Statoil, not surprising given (a) the sudden capital requirements and (b) an interest in not being dictated to by multinationals. In 1989-1992 some banks were taken over for the same reason that US does now, all of which have been returned to purely private ownership except one where a share is held. We have – I cannot repeat this often enough –
no other government-owned enterprise – fewer than the US even before the crisis.
And yet, we do have some social safety nets and a common belief in building a country together.
Odd isn’t it, that it is possible to do both things at once?
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