Norway

G

3

Cultural Institutions

Oslo is the undisputed cultural center of Norway. Bergen, Trondheim, and Stavanger are important regional centers. The country’s largest art museum is the National Gallery in Oslo. Natural history museums are located in Oslo, Stavanger, Bergen, Trondheim, and Tromsø. Many other museums display artifacts of regional and national culture. The most notable of these is the Norwegian Folk Museum in Oslo. The Viking Museum in Oslo houses an amazingly well preserved 9^th century ship in which a Viking queen was buried.

The municipal library system in Norway, begun in the early 20th century, is patterned after the United States model. In addition, the state maintains specialized libraries, including the University of Oslo Library, which was established in 1811 and long served as the national library. A new National Library, separate from the university library, opened in Oslo in 1999. Also important is the National Archives in Oslo.

Performing-arts organizations include the National Theater and the national ballet and opera, all in Oslo, and the National Stage in Bergen. The Oslo Philharmonic is the principal orchestra; other permanent orchestras are in Bergen and Trondheim. Since 1953 Bergen has held an annual international music festival.

IV

Economy

A

Overview

Before the 20th century, most Norwegians made a living by farming, forestry, or fishing. Norway rapidly industrialized during the 20th century. Until the 1970s, this industrial expansion was based mainly on the exploitation of Norway’s vast waterpower resources and the materials provided by Norway’s farms, forests, and seas. During the 1970s, offshore drilling for petroleum and natural gas in Norway’s sector of the North Sea expanded rapidly, providing valuable new resources for industrial growth. Norway’s economy has since grown dependent on oil and natural gas production and is subject to fluctuations in international oil prices.

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Norway’s standard of living has increased steadily since World War II. Taxes have also increased. Norwegians pay about half of their income directly or indirectly to the government, making Norwegians among the highest taxed of all Europeans. At the same time, Norway’s growing prosperity, driven in part by the exploitation of North Sea oil and gas reserves, has allowed the country to enlarge its already extensive social welfare system. Today, Norwegians enjoy one of the highest per capita standards of living in the world; estimated gross domestic product (GDP) per capita in 2005 was $63,918.10. In 2005 Norway’s GDP was $295.5 billion.

Norway depends heavily on foreign trade and therefore advocates free trade. However, Norway has shown reluctance to forge closer bonds with other countries. Part of this reluctance stems from Norway’s desire to preserve its unique social democratic institutions as well as its small-scale agricultural and fishing operations. Norway was a founding member of the European Free Trade Association (EFTA, established in 1960). But Norwegian voters have consistently rejected membership in the European Union (EU). As an EFTA member, however, Norway is permitted to participate in a free-trade zone called the European Economic Area (EEA). With the exception of the fishing and agricultural sectors, this allows Norway full access to the EU’s large internal market.

B

The Government’s Role in the Economy

Norway’s economy is a mixed one of public and private enterprises. Although the economy is based on free-market principles, the government exercises considerable supervision and control. The state owns railroads and most of the public utilities, and state-owned enterprises largely control the vital oil and natural gas sectors. However, private industry is free to compete directly with state-owned enterprises in various fields, such as hydroelectricity. The government also holds investments in some companies that are privately operated, including Norsk Hydro, a leading producer of oil and metals. Other industries are entirely privately owned. All industries are subject to strict government regulations to protect the health and safety of workers and the environment.

The Norwegian government actively supports the nation’s industrial development. After World War II (1939-1945) the state took a lead role in promoting construction of power centers and industrial plants. Norway’s rate of domestic investment remains one of the highest in the world. The state works with the banking sector to channel financial resources and loans to various industries. In addition, about 2 percent of the nation’s GDP is invested in research and development to promote new industries and industrial processes in the areas of biotechnology, information technology, metallurgy, and other fields.

C

Labor

In 2005 Norway had a total employed labor force of 2.5 million. Labor was distributed among the various economic sectors as follows: services, 76 percent; industry, 21 percent; and agriculture, forestry, and fishing, 3 percent. Norwegian labor is well organized; about two-thirds of the labor force belongs to unions. The Norwegian Federation of Trade Unions comprises 28 national unions with a total of about 780,000 members; the Co-operative Union and Wholesale Society represents 570,000 members. Unemployment in Norway is low compared to other members of the Organization for Economic Cooperation and Development (OECD); it stood at 4.4 percent in 2004.

D

Agriculture

Agriculture accounts for just 2 percent of the annual GDP. Because of the mountainous terrain and generally poor soils, only 3 percent of the total land area is cultivated. The most important agricultural regions are the eastern valleys north of Oslo and the areas around Trondheim. Most farms are small and are worked by their owners and their families. Despite difficult conditions, farmers achieve high yields through mechanization and intensive use of fertilizers. Some farmland is so steep that tractors are impractical and farmers use power-operated cables to pull their plows.

The most important agricultural products in Norway are dairy products and cereal grains. More than half of the land under cultivation is meadow and pasture, most of which is planted with hay. Other important crops include oats, potatoes, barley, and corn. Norway must import about half of the grain needed to feed its livestock. The main livestock raised include cattle, hogs, sheep, and domestic fowl. Norway produces all of the meat and dairy products it needs and some of its vegetable and fruit requirements.

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