This Selected Issues paper describes wages and competitiveness in Norway. Norway may have to downwardly revise its expectations for wage growth if it is to avoid a significant loss of competitiveness and manage the transition to a less oil-dependent economy. Norway was able to afford very high wage growth in the past (notwithstanding the noted challenges in several sectors) thanks to good fortune in its terms of trade. Going forward, it would be prudent not to count on being fortunate twice: wage moderation would help build resilience in case of less favorable trends in international prices. It would also help facilitate the needed transition out of oil by supporting sectors that did not benefit from past terms of trade gains. Communication from the government can continue to help in managing public expectations. Fiscal policy plays a key role in promoting competitiveness and containing the spending effect of Dutch Disease. After a prolonged expansion of fiscal policy—partly enabled by large valuation gains of the sovereign wealth fund—it is now appropriate to gradually start tightening fiscal policy. The ongoing up-cycle provides an ideal setting to get started on structural consolidation, which will ultimately be needed to face to address aging pressures.

'Norwegian Catch-Up' looks at the early Norwegian economic trajectory in the light of its external commitments and opportunities. Detailing Norway's economic performance relative to other countries at a time characterized by globalization, it has a particular focus on the role of international trade, investment and migration. The book examines how a small open state adapted successfully to the demands of (and opportunities provided by) a global market place. Not only did Norway manage an impressive economic record, but it developed concomitantly a strong and articulate labor movement and resilient democratic institutions. In short, the Norwegian example provides hope for development in a context of globalization. This text provides the student with a pioneering new vantage point for understanding the nature and scope of today's globalization and its effect on economic (and political) development. It also provides a historical reflection on the liberal antecedent of modern social democracy.

The concept of National Innovation Systems is well established in academic research and enthusiastically adopted by policymakers. Yet there are relatively few in-depth studies of individual national innovation systems. This book provides just that, a model for the application of the concept to an individual economy. Leading scholars provide a detailed analysis of the particular circumstances of Norway - a high income, high productivity, resource rich economy, with relatively modest investment in R&D, and a remarkable track record of social equity. The authors argue that investment in human capital may be more significant than any formula for R&D investment. The book includes contributions from historians, economists, and political scientists, and offers an unparalleled account of the development of one of the world's most successful economies. It will be essential reading fro academics and policymakers concerned with innovation and growth.

The OECD's periodic review of Norway's economy. It finds that Norway has seen several years of strong growth and very low unemployment, but that it will not be untouched by the current slowdown. The survey examines three key economic challenges ...

This paper examines the development of general government finances in Norway during 1988–96. The paper looks at general government revenue and expenditure in detail, examines the importance of revenue from the petroleum sector for general government finances, and reviews developments in the general government balance sheet. The paper also analyzes the conduct of fiscal policy over 1988–96, and compares the development of the authorities’ estimates of the state budget’s fiscal impulse with the development of the IMF staff’s estimates of changes in the non-petroleum, general government structural balance.

"Food producers and other producers of primary products such as forestry increasingly face international competition, and the markets for their products increasingly become globalized. This process can provide promising opportunities to reach new markets and to increase value added by marketing new products. But there are challenges though, as new competitors show up in the domestic markets and access to the retail outlets is denied .Norway is a country with a successful export oriented aquaculture industry and more protected forestry and agricultural sectors. This book explores some of the lessons learned from these sectors in coping with international competition and in exploiting the opportunities that are offered by more open markets. The perspectives adopted come from marketing, economics as well as multidisciplinary social sciences. Each perspective is essential to paint a reliable picture of the opportunities and challenges facing primary industries."