General Conference 1999

Norway at a glance

Norway's four million inhabitants live in one of the most northerly parts of the world, on the Scandinavian peninsula. The Gulf Stream and westerly winds provide a climate which is not so different from the rest of Europe, and much warmer than generally assumed. The average July temperature in Oslo is about the same as in London, Zurich and Bonn (16.4° C). But the weather can get much warmer, approaching the kind of temperatures better known in the Mediterranean. In January, the average temperature in Oslo is -4.3° C.

Norway has common borders with Sweden (1,619 km), Finland (721 km) and Russia (196 km).

Population
Norway covers an area of 386,958 square kilometres, meaning that in mainland Norway there are 13 Norwegians for every square kilometre. The country's population is 4,348,410 (January 1995.) Almost three-quarters of the population live in the major towns and cities. Oslo, the country's capital, has 483,401 inhabitants (1995). Men have a life expectancy of 74.2 years, while women have 80.3 years. Families have an average of two children.

The Sami, the indigenous people of the far north, number some 30,000, and form a distinct ethnic minority with their own culture and language.

History
The Kingdom of Norway first came into being around the year 900 AD. The Vikings founded many settlements in Britain, France, Ireland, Iceland and Greenland and reached America about 500 years before Columbus. After a period of internal feuding and the Black Death, which wiped out two-thirds of Norway's population, the country came under Danish rule in a union which lasted from 1380 until 1814. Thereafter, Norway was united with Sweden until the association was dissolved peacefully in 1905. During the Second World War, Norway was occupied by the Germans from 1940 until 1945.

Constitutional monarchy
Norway is a constitutional monarchy, with full parliamentary democracy. Executive power is vested formally in the King, but is exercised through the government. There are general elections every four years for the 165 seats in the national assembly, the Storting. The 19 counties and 435 municipalities also have an extensive system of local government. The monarchy holds a strong position in Norway, not least on account of the admirable fulfilment of its functions, firstly by King Haakon VII, (1872 - 1957) who became king in 1905 after a referendum following the dissolution of the union with Sweden, and subsequently by his son King Olav V (1903 - 1991). Public expressions of gratitude and affection were particularly strong when King Olav V died. The present king, Harald V, is carrying on the royal traditions and working procedures of his father and grandfather.

Business and industry
The Norwegian economy has undergone major structural changes over the last decade with a decline in traditional industries and manufacturing and increases in the service sector and oil-related and advanced industries, such as engineering and data technology. Foreign trade amounts to approximately 45 per cent of Norway's GDP. Access to the rich supply of hydroelectric power from Norwegian waterfalls gives a large part of the Norwegian industry its competitive edge on international markets. Hydropower is an important industry in itself (accounting for 3.6 per cent of the GDP in 1992). Service industries make up around 34.8 per cent of the GDP.

Norway has a proud tradition as a seafaring nation and after the establishment of the Norwegian International Ship Register (NIS) in 1987, the Norwegian merchant fleet is the world's fourth biggest. Norwegian shipowners control nearly 10 per cent of the world fleet, or 48 million dwt, in 1993. Included in the figure are 12.5 million dwt in Norwegian hands which sail under foreign flags. Norway also has 20 per cent of the world's offshore fleet.

Agriculture represents only a small portion of the gross domestic product and it is maintained through government subsidies to keep up employment in rural areas. Although Norway lies far north, its farmers supply it with most agricultural products. Over 20 per cent of mainland Norway is covered with productive forests, and forestry provides the basis for a thriving wood processing industry. The country's fisheries industry is among the biggest in Europe. In recent years, it has been augmented by a rapid expansion of the fish-farming business, because the coastal fjords are particularly suited for the trade.

Full employment is a prime political goal in Norway. Unemployment remained low in Norway from 1945 to the mid-1980s. However, on account of market stagnation and structural changes in business and industry, it rose from 1987 to a peak of about 6 per cent in 1993. The situation has improved and in 1994 joblessness sank to 5.4 per cent of the working force. A further decrease is expected.

Other traits of the Norwegian economy in 1994 were the low rate of inflation (1.4 per cent, the lowest rate since 1960), record growth in export of industrial goods (up 14 per cent from 1993), and the biggest jump in industrial production in 20 years. The GDP rose by 5.1 per cent (the same rise as in the boom year 1985).

Oil and gas
Norway's oil and gas industry accounts for around 16 per cent of the GDP. In 1994, exports of oil and gas from the continental shelf earned Norway nearly NOK 114 billion. Unless considerable new discoveries are made, oil production will slowly decrease in the next century. But based on the present proven reserves, it is estimated that the gas fields will last for another 100 years at current production levels.

Foreign policy
Norway was a founding member of the UN since its inception in 1944-45 and of NATO in 1949. It joined the OECD in 1949.

Norway's strategic position and the importance of Nordic security policy was further emphasized by the discovery of large amounts of oil and gas in the North Sea, which gave Norwegian foreign policy a new dimension.

Norway's key economic figures

Percentage changes from previous year, fixed prices
........................................................1994....1995....1996 ....1997-99

Private consumption.........................4.4.......2.6.......2.2.......1.9

Public consumption..........................2.7.......1.2.......0.9.......1.4

Oil investments.................................1.8.......4.0....-24.4.....-2.4

Other businesses...............................4.8.....19.3.......9.8.......3.4

Housing investments.......................33.8.....19.9.....10.2.......5.1

Domestic demand.............................4.7.......4.5........0.7.......1.8

Export...............................................7.6.......8.3........6. 2........2.8

Import...............................................7.2.......7.5........0. 1........2.9

GDP..................................................5.1.......5.1.......3.6 .........1.9

Mainland Norway.............................3.9........3.1.......2.5.........2.2

Current balancein $ billions...............4.2.......5.8......10.5

Unemployed (%)...............................5.5..................5.0

Norway is a member of the European Free Trade Association, EFTA.By a referendum in November 1994 a majority of the Norwegians rejected menbership in the European Union. However, the agreement on the European Economic Area, EEA, ensures Norway full access to EU markets and participation in a great number of the Union's various cooperation schemes, e.g. within research.

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Lay-out: Ingun Nerlie LA1LIA (e-mail: nerlie@online.no)

Last updated 10. januar 1999