Norway: Past, present, future -

1. Norway: Past, present, future - Adapting to change. Ambassador Jan Braathu

2. NORWAY

3. 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. “

4. Norway was a rather backward country on the European periphery.. This has changed. Norway is still locatedonEurope’speriphery, but today, Norway is one of the most developed and prosperous countries in the world, according to the UN Development Report. What happened?

6. The emergence of ”Modern Norway” • Natural resources + technology + capital + energy • Forestry, Fisheries, Shipping • Externaldemand – Export-ledgrowth • Industrial production – evolution from artisan/craftsman production • Knowledge-based – skilled labour

7. Typical for industrial managers/leaders: In-depth technological knowledge (engineers) Entrepreneurial spirit Monitoring of international trends and technological development

8. Otherfactors: • Increasing public sector investments in infrastructure • (roads, harbours, etc.) • Externalfactors • Development of educational institutions • “Civil Society” initiatives

9. “Selskabet for NorgesVel” (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)

10. “PolytekniskForening (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)

11. 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)

13. Bølerlia i Oslo oppføres i 1956. Foto: Dagbladet

15. 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)

16. 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

17. 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).

18. 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 andTurkey. 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.

19. Traditional economic activities are shipping (fourth largest fleetin 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.

20. 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.

24. 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%).