The Norwegian Welfare System

1. Navn på foredragsholder Sted og dato The Norwegian Welfare System The photographs in this presentation may be reused by Norwegian diplomatic and consular missions as well as Ministry of Foreign Affairs’ delegations. (Please remember to include photo credits.) Photographs may otherwise only be used with the permission of the owner of the photograph. The Ministry of Foreign Affairs cannot give permission to third parties to use photographs that are not owned by the Ministry. The photographs in this presentation may be reused by Norwegian diplomatic and consular missions as well as Ministry of Foreign Affairs’ delegations. (Please remember to include photo credits.) Photographs may otherwise only be used with the permission of the owner of the photograph. The Ministry of Foreign Affairs cannot give permission to third parties to use photographs that are not owned by the Ministry.

2. Photo: Berit Roald/Scanpix A modern system – old ideas Norway is a modern society characterised by a high standard of living and high quality welfare services.   This kind of economic and social model is also typical of our Nordic neighbours, and is often referred to as the Nordic model. It is a modern system, but not a particularly new one. The first welfare or social security services such as health and accident insurance were introduced in Norway towards the end of the nineteenth century. Since then, the Norwegian welfare system has expanded both in terms of services offered and in terms of number of beneficiaries.   The interesting questions are: what enabled Norway to develop such a system of high quality welfare services for all, and how are we able to maintain it?   The first answer that comes to mind is that Norway is a wealthy country with abundant natural resources (oil and gas). The fact is that many of our social justice reforms were introduced at a time when GDP was low (as was also the case with our Nordic neighbours).   In short, the answer is decades of strong emphasis on the development of the welfare system and political will. Political will to make social justice, human rights and equal opportunity for all members of society a prime political objective.   For me and my fellow Norwegians today, this political will and long-term focus on the development of the welfare system mean that health care is free, education is free, and there is a social support system to assist me if I should become unemployed. For parents of small children it means that it is possible to have a healthy balance between work and family life.   We think of these welfare services as free, but of course it is not that simple. Citizens and residents of Norway have a statutory right to welfare services and contribute to them through their taxes.   Because there is a high degree of trust in the state and the quality of the welfare services is high, most Norwegians are favourably disposed to paying their share to finance the welfare system. Other aspects you can mention if there is time and interest:   There is a long tradition of mutual trust between the authorities and the people in Norway. Trust has been a key factor in the development of the welfare state. This has opened up for a high degree of flexibility and will to adjustment and reform. In modern-day Norway, the tripartite cooperation between labour unions, employers’ organisations and the state has been vital. Through this tradition of dialogue and cooperation, Norway has achieved a healthy social climate characterised by equality, security and flexibility. Broad political consensus. This has been important for the introduction of the many (at the time) bold and radical social reforms. When the legislation on the national insurance scheme was enacted in the 1960s, political will and consensus were particularly evident. The reform was viewed as radical, with a strong emphasis on the principles of social justice, equality and equitable distribution. Nevertheless, the parliamentary debate was dominated by a broad (and perhaps also unique) consensus across the party-political lines.   Norway is a modern society characterised by a high standard of living and high quality welfare services.   This kind of economic and social model is also typical of our Nordic neighbours, and is often referred to as the Nordic model. It is a modern system, but not a particularly new one. The first welfare or social security services such as health and accident insurance were introduced in Norway towards the end of the nineteenth century. Since then, the Norwegian welfare system has expanded both in terms of services offered and in terms of number of beneficiaries.   The interesting questions are: what enabled Norway to develop such a system of high quality welfare services for all, and how are we able to maintain it?   The first answer that comes to mind is that Norway is a wealthy country with abundant natural resources (oil and gas). The fact is that many of our social justice reforms were introduced at a time when GDP was low (as was also the case with our Nordic neighbours).   In short, the answer is decades of strong emphasis on the development of the welfare system and political will. Political will to make social justice, human rights and equal opportunity for all members of society a prime political objective.   For me and my fellow Norwegians today, this political will and long-term focus on the development of the welfare system mean that health care is free, education is free, and there is a social support system to assist me if I should become unemployed. For parents of small children it means that it is possible to have a healthy balance between work and family life.   We think of these welfare services as free, but of course it is not that simple. Citizens and residents of Norway have a statutory right to welfare services and contribute to them through their taxes.   Because there is a high degree of trust in the state and the quality of the welfare services is high, most Norwegians are favourably disposed to paying their share to finance the welfare system. Other aspects you can mention if there is time and interest:   There is a long tradition of mutual trust between the authorities and the people in Norway. Trust has been a key factor in the development of the welfare state. This has opened up for a high degree of flexibility and will to adjustment and reform. In modern-day Norway, the tripartite cooperation between labour unions, employers’ organisations and the state has been vital. Through this tradition of dialogue and cooperation, Norway has achieved a healthy social climate characterised by equality, security and flexibility. Broad political consensus. This has been important for the introduction of the many (at the time) bold and radical social reforms. When the legislation on the national insurance scheme was enacted in the 1960s, political will and consensus were particularly evident. The reform was viewed as radical, with a strong emphasis on the principles of social justice, equality and equitable distribution. Nevertheless, the parliamentary debate was dominated by a broad (and perhaps also unique) consensus across the party-political lines.  

3. Photo: Berit Roald/Scanpix Equality Gender equality   A steady focus on women’s rights has paved the way for women and girls in education, in the labour market, and to high positions in the economy and decision-making processes. Today Norway ranks among the countries with the highest level of gender equality (number two in the “Gender Gap Report 2011” by the World Economic Forum).   When gender equality was first put on the political agenda, it was a question of rights. Gender equality was mandated, and through political initiatives women were encouraged to enter the labour marked and enabling structures were put in place.   (As an example you can mention the 40% rule: The latest, and much debated, initiative in this regard is the act providing that each sex must make up at least 40% of the board members in limited companies.) The act was passed in 2003 and entered into force in 2006). Today we see that gender equality has become a question of “smart economics”. It pays. Women’s employment boosts the GDP and contributes greatly to Norway’s productivity, growth and level of development.     More women entering working life means a larger workforce. A larger workforce (as many women and men as possible) is quite simply an investment in a country’s future wealth and prosperity.   This is supported by several UN and EU reports showing a clear connection between the number of women in the workforce and a country’s economic growth and GDP. Countries that don’t include girls and women in their workforce are lagging behind. FACTS: 60% of students at universities and university colleges are women 1 out of 5 executive managers in the private sector are women 40% of board members in public limited companies are women 38% of Storting (parliament) representatives are women 50% of the members of the Government are women In Norway the aristocracy was abolished almost 200 years ago (1821) Contrary to many misconceptions, although Norway is among the world’s richest countries in terms of natural resources, our human resources, the men and women of Norway, represent our true wealth: Actually 72% of it. Petroleum accounts for only 12%.     Challenges that remain: Women tend to work in lower-paid sectors and earn on average 15% less than men per hour. More women than men tend to work part time. Part-time work results in lower income. Access to the labour market for women with a minority background must be improved.     Sources: Statistics Norway, Ministry of Children, Equality and Social Inclusion Gender equality   A steady focus on women’s rights has paved the way for women and girls in education, in the labour market, and to high positions in the economy and decision-making processes. Today Norway ranks among the countries with the highest level of gender equality (number two in the “Gender Gap Report 2011” by the World Economic Forum).   When gender equality was first put on the political agenda, it was a question of rights. Gender equality was mandated, and through political initiatives women were encouraged to enter the labour marked and enabling structures were put in place.   (As an example you can mention the 40% rule: The latest, and much debated, initiative in this regard is the act providing that each sex must make up at least 40% of the board members in limited companies.) The act was passed in 2003 and entered into force in 2006). Today we see that gender equality has become a question of “smart economics”. It pays. Women’s employment boosts the GDP and contributes greatly to Norway’s productivity, growth and level of development.     More women entering working life means a larger workforce. A larger workforce (as many women and men as possible) is quite simply an investment in a country’s future wealth and prosperity.   This is supported by several UN and EU reports showing a clear connection between the number of women in the workforce and a country’s economic growth and GDP. Countries that don’t include girls and women in their workforce are lagging behind. FACTS: 60% of students at universities and university colleges are women 1 out of 5 executive managers in the private sector are women 40% of board members in public limited companies are women 38% of Storting (parliament) representatives are women 50% of the members of the Government are women In Norway the aristocracy was abolished almost 200 years ago (1821) Contrary to many misconceptions, although Norway is among the world’s richest countries in terms of natural resources, our human resources, the men and women of Norway, represent our true wealth: Actually 72% of it. Petroleum accounts for only 12%.     Challenges that remain: Women tend to work in lower-paid sectors and earn on average 15% less than men per hour. More women than men tend to work part time. Part-time work results in lower income. Access to the labour market for women with a minority background must be improved.     Sources: Statistics Norway, Ministry of Children, Equality and Social Inclusion

4. Photo: Stein J. Bjørge/Scanpix Family and work Work and family life   This photo shows a father on parental leave.   When our current (2011) Prime Minister (Jens Stoltenberg) took a three-month parental leave in 1989, he was one of very few men in Norway to do so. Today (in 2011), two male ministers in the Government have taken a three-month parental leave, and 90% of the Norwegian fathers who are entitled to parental leave (12 weeks as of July 1, 2011) take it during the child’s first year.   The possibility for both parents to combine family and work is an important pillar of the Norwegian welfare system.   In Norway today, 72 % of the population aged 15-74 participates in the work force (women on an almost equal footing with men). A number of structures have been introduced to achieve this high rate of workforce participation:   One-year paid parental leave, including a quota reserved for the father, is one important factor.   Norwegian parents have the right to a kindergarten place for their children. We have full coverage for children aged 1-5 in kindergartens at a fixed low price.   Flexible working arrangements are also important: Paid leave of absence when a child is sick (ten days per parent per year). The right to reduction of working hours for employees who are responsible for the care of young children. Full acceptance if you have to leave a meeting to pick up children at kindergarten   The combination of a generous parental leave, full kindergarten coverage, etc., makes it possible for both parents to hold jobs and at the same time have time for their family.       FACTS 80% of women aged 25–54 are in the workforce Average fertility rate per woman is 1.98 (among the highest in Europe) 88.5% of children aged 1–5 had a kindergarten place in 2009 Norway has the lowest unemployment rate (3.5%) in Europe The one-year parental leave is the largest monetary benefit the Norwegian state provides to parents. Parents are entitled to 47 weeks’ parental leave at 100% of their salary, or 57 weeks at 80%. Although parental leave may be used by both parents, twelve weeks are reserved for the father (as of July 1, 2011).     Sources: Statistics Norway, Ministry of Children, Equality and Social Inclusion Work and family life   This photo shows a father on parental leave.   When our current (2011) Prime Minister (Jens Stoltenberg) took a three-month parental leave in 1989, he was one of very few men in Norway to do so. Today (in 2011), two male ministers in the Government have taken a three-month parental leave, and 90% of the Norwegian fathers who are entitled to parental leave (12 weeks as of July 1, 2011) take it during the child’s first year.   The possibility for both parents to combine family and work is an important pillar of the Norwegian welfare system.   In Norway today, 72 % of the population aged 15-74 participates in the work force (women on an almost equal footing with men). A number of structures have been introduced to achieve this high rate of workforce participation:   One-year paid parental leave, including a quota reserved for the father, is one important factor.   Norwegian parents have the right to a kindergarten place for their children. We have full coverage for children aged 1-5 in kindergartens at a fixed low price.   Flexible working arrangements are also important: Paid leave of absence when a child is sick (ten days per parent per year). The right to reduction of working hours for employees who are responsible for the care of young children. Full acceptance if you have to leave a meeting to pick up children at kindergarten   The combination of a generous parental leave, full kindergarten coverage, etc., makes it possible for both parents to hold jobs and at the same time have time for their family.       FACTS 80% of women aged 25–54 are in the workforce Average fertility rate per woman is 1.98 (among the highest in Europe) 88.5% of children aged 1–5 had a kindergarten place in 2009 Norway has the lowest unemployment rate (3.5%) in Europe The one-year parental leave is the largest monetary benefit the Norwegian state provides to parents. Parents are entitled to 47 weeks’ parental leave at 100% of their salary, or 57 weeks at 80%. Although parental leave may be used by both parents, twelve weeks are reserved for the father (as of July 1, 2011).     Sources: Statistics Norway, Ministry of Children, Equality and Social Inclusion

5. Photo: Øyvind Markussen/Scanpix Still writing the story Security, quality and equality Norway has come a long way in providing social security and quality services for people throughout their lives.   We have a flexible society that is adaptable to new needs. Equality and flexible working arrangements are key factors.   This does not mean that we are finished developing our welfare society. We never will be. A good welfare society is a continual “work in progress”, and Norway’s welfare story is still being written.   There is still broad consensus in Norway that the state should contribute to the well-being of its population from cradle to grave, and the general attitude is that the state is responsible for compensating for social and economic inequities.   Despite the broad consensus on the principles of the welfare state, there has been less consensus on how they should be practised, and the debate on welfare entitlements and policy details is part of everyday politics.   Debate is important – good welfare policies must constantly evolve in step with changes in the community. But the goal – high quality services, security and equality for all – will always be the same. These principles need to be safeguarded, modernised and further developed. Security, quality and equality Norway has come a long way in providing social security and quality services for people throughout their lives.   We have a flexible society that is adaptable to new needs. Equality and flexible working arrangements are key factors.   This does not mean that we are finished developing our welfare society. We never will be. A good welfare society is a continual “work in progress”, and Norway’s welfare story is still being written.   There is still broad consensus in Norway that the state should contribute to the well-being of its population from cradle to grave, and the general attitude is that the state is responsible for compensating for social and economic inequities.   Despite the broad consensus on the principles of the welfare state, there has been less consensus on how they should be practised, and the debate on welfare entitlements and policy details is part of everyday politics.   Debate is important – good welfare policies must constantly evolve in step with changes in the community. But the goal – high quality services, security and equality for all – will always be the same. These principles need to be safeguarded, modernised and further developed.

6. Navn på foredragsholder Sted og dato The Norwegian Welfare System In this presentation I have talked about…..  For example: Norway is a modern society with a high standard of living and high quality welfare services Gender equality is "smart economics”. It pays. 3) We have a flexible working life, which enables parents to combine work and family life in a balanced and healthy way.    Any questions?   Do not hesitate to contact us later if you should have more questions.   More information about Norway can be found on the Embassy’s /Consulate General’s website at: …………………….   I/we can also send you this presentation by email.In this presentation I have talked about….. For example: Norway is a modern society with a high standard of living and high quality welfare services Gender equality is "smart economics”. It pays. 3) We have a flexible working life, which enables parents to combine work and family life in a balanced and healthy way.    Any questions?   Do not hesitate to contact us later if you should have more questions.   More information about Norway can be found on the Embassy’s /Consulate General’s website at: …………………….   I/we can also send you this presentation by email.