Norway: Why is this country said to have a perfect economy? | Europe | Government Pension Fund Global | composition

Norway It is known as a country with a “perfect economy”. It appears in the first positions of the ranking of the best quality of life, Democracywork, etc. At present, it maintains a stable loan with 40% PPI.

However, that is not always the case. After the oil boom, they were able to prosper economically and diversify their wealth to benefit their citizens compared to other countries with large oil wells.

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A little history

In the 60s, Norway Known for its fishery production. At the time, activity was considered its main economic engine.

However, the discovery of his first oil well on the north coast of the country changed his fortunes.

BI Norgewian Business School professor, Erling Steigmun, told El Economista that people expect changes because of said business.

Oil is money

Immediately, the government through its government agency started the process of extraction Statoil (now called Equinor) and within a short time the country became one of the world’s largest oil and gas producers.

Sigbjorn Johnsen, a former Norwegian politician, told the aforementioned media that crude oil prices spiked in the 1980s, leaving a surplus to save and invest.

Politicians decided to diversify their income from relying solely on oil. Because if the price drops anytime soon, they can suffer a lot.

Thus, they strengthened their business network, created their sovereign fund named “Government Pension Fund Global” and started buying shares of technology companies. Apple, Alphabet (Google matrix), Microsoft Even more.

Government Pension Fund Global

The Scandinavian country created the sovereign wealth fund because they feel that Norwegian resources should belong to Norwegians.

The said fund is worth 1.2 billion euros, which means that each Norwegian has 200,000 euros.

Money was invested in quality education, necessary infrastructure and free healthcare. In addition, they support companies that, as long as they do not pollute, have no cases of labor exploitation and are not controversial.