Country Profile: The Kingdom of Norway
Population: 4.7 Million (2007 Census)
Capital: Oslo (Population:
I. Historical Overview:
Unification: 814
Constitution: May 17, 1814
Independence (Union of Sweden): June 7, 1905
The Kingdom of Norway in the media and in the general public's imagination is
renowned for being the home of the revered Viking explorers of the late first millennia.
While the tumultuous and exciting era of Viking exploration and settlement ended
almost one thousand years ago many people are unaware of the complexities and
nuances of this intriguing highly developed modern nation-state.
Moreover it is a common and unfortunate misconception for the general public to often
perceive Norway as part of a cultural and historically homogenous" bloc" shared
between the nations that comprise the Scandinavian Peninsula. While the Kingdom of
Norway most certainly shares many commonalities with its neighbors as a prominent
example of a Scandinavian welfare democracy it is essential to rectify this misleading
perception by noting that Norway's development as a modern nation- state is quite
distinct from its Scandinavian neighbors such as Sweden, Denmark, and Finland.
For example in 1397, while Norway was absorbed into a union with Denmark which
lasted until the eighteenth century, the Norseman attempted to preserve their unique
cultural and historical identity. This strong national spirit climaxed during 1814, when
the Norwegians resisted the cession of their country into the Kingdom of Sweden and
adopted a new constitution that has served as the foundation for Norway's evolution into
a remarkably prosperous bastion of liberal democratic values and ideals.
During this period Sweden invaded Norway but due to the strength of Norwegian
defenses agreed to let Norway keep its constitution in return for accepting the union
under a Swedish king. Rising nationalism throughout the 19th century led to a 1905
referendum granting Norway independence and the formation of its own executive,
judicial and legislative branches.
This period also saw the rise of Norwegian romantic nationalism, whereby the
Norwegians sought to define and express a distinctive national character. The movement
covered all branches of culture, including literature; Henrik Wergeland, Bjørnstjerne
Bjørnson, Peter Christen Asbjørnsen, Jørgen Moe, Henrik Ibsen; painting; Hans Gude,
Adolph Tidemand, music; Edvard Grieg, and even language policy, where attempts to
define a native written language for Norway led to today's two official written forms for
Norwegian: Bokmål and Nynorsk.
A tremendously important aspect of the Kingdom of Norway's modern historical
narrative is its maintenance of strict neutrality during the twentieth century's two world
wars. For example Norway remained neutral in World War I; however the country did
suffer heavy losses to its shipping infrastructure and merchant marines.
This is also reflective of Norway's World War II foreign policy, were the country
proclaimed its neutrality at the outset of the War, but was nonetheless occupied for five
years by the Nazi German regime (1940-45). In 1949, neutrality was abandoned and
Norway became a member of the historical NATO Defense Alliance. During the cold
war Norway was closely aligned with the United States, however it did maintain cordial
relations with its close geographic neighbor the USSR.
The Discovery of vast reserves of oil and natural gas in territorial waters in the late
1960s boosted Norway's economic fortunes and transformed the country's industrial and
economic infrastructure. Today Norway's domestic focus is on containing spending on
its extensive and rigid welfare system, as well as planning and investing in infrastructure
for the time when its vast petroleum reserves are depleted.
Norway is also a highly active and enthusiastic proponent of peaceful resolution of
international disputes through the offices of the United Nations, and its own privately
subsidized intermediaries. The Honorable Trygve Lie served as its first secretary general
of the UN General Assembly. Norway is one of the top ten contributors to the UN's
annual operating budget.
Currently the Norwegian per capita GDP is the second highest in the world after
Luxembourg currently at $US50, 000 per annum. Its GINI Index Rating, the index
which measures the level of income disparity between the richest and poorest citizens of
a particular state is currently rated as the most equitable of all developed nations.
II. Political Structure:
Type: Constitutional Parliamentary Monarchy
Monarch: King Harold V
Prime Minister: Jens Stoltenberg (Norwegian Labor Party)
Norway's Political Structure:
A. Executive Branch
Monarch: King Harald V (since 17 January 1991)
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The Kingdom of Norway is a constitutional monarchy with a Proportional
Parliamentary system of government.
The King has devolved or symbolic state power
However King Harald plays an important role in various ceremonious
functions and as a prominent symbol of Norwegian National pride.
For example the King of Norway welcomes Foreign Dignitaries and
Ambassadors, and opens the Council of State (Executive Cabinet) every
October.
He is also the ceremonial Supreme Commander of the Norwegian Royal
Armed Forces.
Executive Cabinet: Council of State
Head: Prime Minister Jens Stoltenberg (September 2005)
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The Primary governing political structure on the Executive side of the
Norwegian Government is the Council of State (Cabinet).
The Council of State or Executive Cabinet is determined by the monarch
with the approval of the Norwegian Parliament.
Following parliamentary elections, the leader of the majority party or the
leader of the majority coalition is usually appointed prime minister by the
monarch once approved by the parliament
B. Legislative Branch:
Name: Storting (The Great Assembly")
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The Storting is Norway's Unified Unicameral Parliament
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Its membership consists of 169 (in 2009 will be changed to 165)
Proportionally Elected Politicians from the official 19 designated
administrative counties.
The Parliamentarians are voted into the Storting every four years.
For certain purposes and during designated periods the Storting divides itself
into two chambers:
It and elects one-fourth of its membership who would in the Lagting (Upper
House)
Three-fourths of its membership would be represented in the Odelsting
(Lower House)
C. Judicial Branch:
Name: The Norwegian Supreme Court or the Hoyesterett (Norwegian)
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The justices appointed by the monarch, King Harald V
Judicial system is a mixture of customary law, civil law system, and
common law traditions.
The Supreme Court renders advisory opinions to the legislature when
requested to do so.
Accepts compulsory ICJ (International Court of Justice) jurisdiction with
certain reservations
Has power to vote-render interpretation on potential amendments to the
National Constitution.
D. Current Government Synopsis:
Election Schedule: September 2005, the next election will be held in September
2009
Electoral Distribution by Parties:
Labor Party 32.7%, Progress Party 22.1%, Conservative Party 14.1%, Socialist Left
Party 8.8%, Christian People's Party 6.8%, Center Party 6.5%, Liberal Party 5.9%.
Profile:
The radical roots of the socialist labor movement in Norway were based on dangerous
working conditions, exploitative labor relations policies, and the demand for collective
bargaining in agriculture, mining, lumber, and oil industries. As socialism became part
of the mainstream labor movement, it also became part of the mainstream political
discourse to this day and is reflected in Norway's domestic policies and electoral history.
The last parliamentary-national election was held in 2005, where the dominant political
party the Norwegian Labor Party emerged with 32.7% of the vote. The leader of the
Labor Party Jens Stoltenberg, a member of a prominent old-line Norwegian political
family is currently serving as the country's Prime Minister.
His first tenure as Prime Minister (2000 to 2001) was controversial within his own
party, being responsible for reforms and modernization of the welfare state that included
partial –privatization of several key state-owned services and corporations in a country
with some of the some most stringent Union and Labor regulations in the developed
world.
Thus in the parliamentary elections of September 10, 2001 the party suffered one of its
worst results ever, winning only 24% of the vote. The disastrous results of 2001 were
quickly followed by a bitter leadership battle between Thorbjørn Jagland and Mr.
Stoltenberg, with Stoltenberg ultimately winning the party leadership and official
mandate.
The September 2005 parliamentary elections saw a vast improvement for Labor, and the
party gained a majority in parliament together with the other "Red-Green" parties, the
Socialist Left Party and the Centre Party. This paved the way for a historic first in
Norwegian parliamentary politics, with the Labor Party joining in a coalition
government, the Red-Green Coalition (Socialist-Environmentalists). Mr. Stoltenberg
became Prime Minister for the second time on October 17 2005
III. Foreign Policy:
A Social Democratic- Leftist Agenda:
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In combination with it's historically attachment to progressive, liberal social
democratic values and its involvement with dozens of humanitarianreconciliatory initiatives Norway is highly critical towards country's that it views
as oppressive or inequitable.
Prizes itself on its Humanitarian Record and extensive United Nations
involvement
Major contributor to the General Assembly and UNCR (United Nations
Commission of Refugees) and Security Council.
Has been highly critical of Israeli Policy towards the Palestinians especially
during the last intifada.
The Norwegian Ministry of Foreign Affairs has been prone to highly critical
statements regarding the Israel Defense Forces and the Governments breaches in
abiding to the "Road Map"
Highly critical of the failure of the Oslo Accords which was hosted by the Norwegian
Government in the early 1990's.
Oslo is a bastion of activity regarding major humanitarian oriented NGO's such as
Human Rights Watch, Amnesty International etc.
IV. Geography:Size: Slightly larger than New MexicoCapital: Oslo (Largest City,
Current Population
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Norway is located in Northern Europe on the Northwestern Side of the
Scandinavian Peninsula
It is in possession of numerous outlying Islands that are located in the North and
Barents Sea's respectively:
Norway is bordered by the Norwegian Sea, the North Sea, and the Skagerak. The
Barents Sea washes on Norway's northern coast.
Due to its strategic location at the crossroads of Northern, Central, Eastern and
Western Europe it has extensive array of highly integrated Naval Ports and
Shipping Facilities that utilize its access to five different bodies of water.
It has one of the largest merchant marine fleets in the world
The country's territorial waters have blessed this Nordic state with abundant
mineral and physical resources such as fish, harvesting capacity, natural ports,
iron ore, natural gases and vast supplies of petroleum that have easy access to
vital points of distribution and transport.
Neighbors:
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Its land neighbor is the Kingdom of Sweden immediately to the East, Finland on
its North-Eastern border, and along Lappland at its most Northern border by
Russia.
V. Economy:
A. Norwegian Ministry of Trade and Industry
Minister: Mr. Dag Terje Andersen (2006)
Born: May 27, 1957 in Frogn, Akershus
Mr. Andersen is a Norwegian politician representing the Norwegian Labor Party, in
addition to professional politics he has worked at a steel mill and as a lumberjack
something that has given him a reputation in domestic politics as representing the
average guy in current Norwegian politics.
B. Economic Profile:
GDP: $207.3 billion
GDP by Sector: agriculture (2.3%), %), industry (41.4%), services (56.3%) (2006 est.)
Labor Force: 2.42 Million
Trade Membership: WTO, OECD, EEA (European Economic Area), EFTA (European
Free Trade Association)
Major Exports:
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$133.0 billion
Primarily petroleum and petroleum products, machinery and equipment,
metals, chemicals, ships, fish
Major Imports:
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$81.5 billion
Primarily machinery and equipment, chemicals, metals, foodstuffs
Major Trading Partners:
25.5%, Germany 12.6%, Netherlands 9.9%, France 9.1%, US 6.7%, SwedenUK 6.5%,
Economic Synopsis:
The Norwegian economy is a prosperous bastion of social welfare capitalism, featuring
a combination of free market activity and considerable government intervention. The
government controls key industrial areas, such as the vital petroleum sector, through
large-scale state enterprises. The country is richly endowed with natural resources petroleum, hydropower, fish, forests, and minerals - and is highly dependent on its oil
production and international oil prices, with oil and gas accounting for one-third of
exports. Only Saudi Arabia and Russia export more oil than Norway.
The country's extensive welfare state is largely subsidized by very high taxes and oil
revenues. The government is planning for the future depletion of finite energy resources
by saving annual surpluses in investment funds outside of Norway. This fund is already
the country's largest pension fund, "The National Gas and Petroleum Fund".
However despite its vast and lucrative natural resources the Total government
expenditures, including consumption and transfer payments, are high. In the most
recent year, government spending equaled 42.3 percent of GDP. The government has
focused on containing expensive welfare programs in recent years. The state still
owns around 50 percent of all major established industries.
The following graph is the Heritage Foundation's assessment of Norway's
Economic strength and weaknesses:
Potential Obstacles for Israeli Entry:
(The above graph illustrates potential Barriers to Entry for Israeli Enterprise
issues that are removed from the Arab-Israel Political conflict)
The major barriers for Israel to build lasting business and industrial partnerships with
Norway are the following.
Freedom from Government - 46.3% (Low)
Total government expenditures, including consumption and transfer payments, are
high. In the most recent year, government spending equaled 42.3 percent of GDP.
The government has focused on containing expensive welfare programs in recent
years. The state still owns around 50 percent of all industries which are highly
regulated and closely administrated.
Labor Freedom - 53.9% (Low)
Restrictive employment regulations hinder employment opportunities and
productivity growth. The non-salary cost of employing a worker is moderate, but
dismissing a redundant employee is relatively difficult and costly. Regulations
related to the number of work hours are relatively rigid. Norway's labor unions are
some of the most aggressive and assertive in the developed world.
Financial Freedom - 50% (Low)
Supervision of the financial system is prudent, and regulations are largely consistent
with international norms. Credit is allocated on market terms, and banks offer a wide
array of services. There were eight foreign banks and three foreign subsidiary banks
at the end of 2006. The government still owns 34 percent of Den Norske Bank,
which accounts for 40 percent of assets. Acquisition of financial institutions that
exceed certain thresholds must be approved by the Norwegian Financial Supervisory
Authority. Half of a bank's board and corporate assembly must be nationals or
permanent residents of Norway or an EEA nation
Furthermore what must be taken into consideration regarding Norway's economic
structure are the following:
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Highest Cost of living - Norway is among the most expensive countries in the
world. Historically, transportation costs and barriers to free trade have caused
the disparity, but in recent years, Norwegian policy with respect to labor
relations, taxation, etc., have contributed significantly to the skyrocketing cost of
living.
The Non-Competitive disposition of vital mainland industries - the high cost
of labor and other structural features of the Norwegian environment have caused
concern about Norway's ability to maintain its cost of living in a post-petroleum
era. There is a clear trend toward ending the practice of "protecting" certain
industries and making more of them open to European and international
competition. In addition to interest in information technology, a number of
small- to medium-sized companies have been formed to develop and market
highly specialized technology solutions.
The role of the public sector – While the ideological divide between socialist
and non-socialist views on public ownership has decreased over time. The
Norwegian government has sought to reduce its ownership over companies that
require access to private capital markets, and there is an increasing emphasis on
government facilitating entrepreneurship rather than controlling (or restricting)
capital formation. Despite some contemporary basic economic-labor reforms a
residual distrust of the "profit motive" persists, and Norwegian companies are
heavily regulated, especially with respect to labor and trade relations.
Potential Opportunities for Israeli Enterprise:
While Norway's large state enterprises and major export industries are highly regulated
and cautious of foreign influence. Over the last decade the Norwegian government has
started to move promoting some incentives on national and local government levels to
encourage formation of new "mainland" industries, develop agricultural capacities, and
build a innovative hi-technology sector that are competitive internationally.
For example:
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The Development of Hi-Technology Industry: There are aspirations for a
specialized and innovative high-tech industry, as well increasing growth in
small business development as a source of employment for the future.
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Controlled Urbanization and Land Development: For several decades,
agricultural policy in Norway was based on the premise of minimal selfsufficiency. In later years, this has given way to a greater emphasis on
maintaining population patterns outside of major urban areas. The term "district
policy" (distriktspolitikk) has come to mean the demand that old and largely
rural population centers should be allowed to persist, ideally by providing them
with a sustainable economic basis.
Environmental Technology and "Green Industry": Norway is a prominent
and outspoken international advocate of clean energy or safe energy solutions to
the global warming crisis.
Solutions:
Israeli Industry has tremendous depth and capabilities in regards to many of
Norway's most pressing needs;
Potential Norwegian Company Matches:
Software Development, Pharmaceutical Research, Environmental or
Agricultural Technology, Petrochemicals Technology and Research
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Den norske Eterfabrikk: (DnE) is a pharmaceutical/chemical company
developing, manufacturing and marketing prescription drugs, OTC,
cosmetics and chemicals
Opera Software (OSE: OPERA): is a Norwegian software corporation,
primarily known for its Opera suite of Internet applications. Opera Software
is also involved in promoting Web standards through participation in the
W3C. The company has its headquarters in Oslo,
Telenor Norway: Is a public and largest telecommunications company in
Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor
is mostly an international wireless carrier with operations in Scandinavia,
Eastern Europe and Asia. In addition, it has extensive broadband and TV
distribution operations in four Nordic Countries.