Norway

THE KINGDOM OF Norway makes up the westernmost area of the Scandinavian peninsula. Approximately 70 percent of the country's area is uninhabited, covered only by mountains, glaciers, moors, and rivers. After two centuries of Viking raids from the 8th to the 10th centuries, Norway was converted to Christianity. For the next 400 years, Norway was merged into Denmark. In 1814, Norway refused to become part of Sweden, opting instead to adopt a new constitution.

Sweden's subsequent invasion could not stamp out rising nationalism, and Norway established itself as a constitutional monarchy in 1905. During World War I, Norway's neutrality did not protect the country from devastating economic losses to the shipping industry. Neither did neutrality prevent German invasion during World War II. After World War II, Norway abandoned neutrality to join the North Atlantic Treaty Organization. The question of membership in the European Union (EU) has continued to be a volatile issue in Norway over the last several decades. Despite its decision not to become a member, Norway does contribute to the EU budget.

Offshore oil and gas were discovered in Norway in the late 1960s, paving the way for Norway's emergence as the fourth richest nation in the world, with an annual per capita income of $40,000. Norway is the third largest oil exporter in the world, after Saudi Arabia and Russia. Other natural resources include iron ore, copper, lead, zinc, nickel, and hydropower. The Norwegian economy is heavily dominated by services, which employ 74 percent of the labor force. Some 22 percent of the workforce are engaged in various industries, and the remaining four percent of workers are involved in agriculture, forestry, and fishing. Currently unemployment stands at 4.3 percent.

Norway has an extensive welfare system that is derived from a combination of capitalism and government intervention. While the state maintains control of key industries, including the oil industry, efforts to privatize other industries continue. Well aware that the oil and gas resources are finite, the government has placed surpluses in a trust fund of some $150 billion. The quality of life is understandably high in Norway. For several years the United Nations Human Development Report has ranked Norway as the top country in the world on quality of life issues.

As a result of the high standard of living and the low wage differential, Norway has a minimal amount of poverty. A 1995 study revealed that 4.4 percent of the population earned less than 50 percent of the minimum wage. By 2005 that number had risen to 6.4 percent. Over four percent of the population live on less than $11 a day.

Although inequalities are not comparatively low in Norway, they do exist. The poorest 20 percent of the population claim 9.6 percent of resources, and the richest 20 percent share 37.2 percent. Norway is ranked 25.8 on the Gini Index of Human Inequality.

Norwegians most likely to be poor are children, young people, single providers, and non-Western born residents. The Action Plan Against Poverty was established in 2002 to combat existing poverty. The program promotes employment while targeting welfare schemes and enhancing social inclusion. Child support standards have also been amended to improve the quality of children's lives.

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