Nordic countries are often seen as synonymous with "abundant welfare" and "high happiness index", and among these countries, Norway is considered a "paragon".
This country with a population of 5 million is one of the highest per capita GDP in the world, known not only for its beautiful scenery and fresh air but also for its comprehensive welfare system.
Local residents enjoy comprehensive medical care, education assistance, and a well-established retirement system, making it truly worry-free to lie in the "cradle" of the nation.
So, how does this country located in the "Arctic Circle" become so "wealthy" and effortlessly support its entire population? What changes and challenges will it face?
When it comes to Norway, many people first think of the image of the "Vikings".
From the 8th to the 11th century, the Vikings living on the Scandinavian Peninsula embarked on raids at sea with specially made longships.
They conquered the entire Nordic region and even broader territories, bringing back wealth from their plundering trips, and even reached North America earlier than the locals, establishing the first European colony there.
However, in modern times, this once glorious "maritime power" gradually faded from the world's view. For centuries, Norway was ruled by Denmark and Sweden, becoming a vassal state.
During World War II, Norway was occupied by Nazi Germany for nearly 5 years, and it was not until after the war that this small Nordic country truly welcomed independence and liberation.
However, even before the discovery of oil, Norway was still a small peripheral country in Europe, relying mainly on forestry and fishing industries, and the standard of living for its citizens was relatively tough.
Then oil fields were discovered in the North Sea waters between the UK and Norway, which brought a turning point for this originally poor country.
The unexpected discovery of oil fields made this cold country suddenly wealthy.
In the 1970s, when Britain and Norway were exploring the North Sea, they discovered vast oil and natural gas resources, despite the complex geological conditions and high extraction costs in the area.
However, amid the Middle East oil crisis, countries urgently needed new sources of energy. Therefore, despite the huge investment and high risks of exploiting the North Sea oil fields, Western European countries decided to massively develop the resources here to ensure energy supply.
Since then, the North Sea oil fields have rapidly risen to become one of the world's three major oil and gas areas, with 60% of the oil resources concentrated in Norwegian waters.
This means that Norway will gain enormous wealth and development opportunities from this "black gold" oil field.
Indeed, this has changed the fate of this Arctic Circle fringe country.
The Norwegian government nationalized the oil industry, storing most of the oil income in a fund, and using only the profits to support national finances.
This management strategy avoids the risk of a large amount of funds flowing into the market causing inflation and prevents the occurrence of the "resource curse".
Norway has established the world's largest sovereign wealth fund to manage oil revenues.
The fund's portfolio is widely diversified globally, including stocks, bonds, real estate, and other fields.
This not only avoids domestic speculative bubbles and economic overheating but also obtains stable long-term investment returns through the allocation of global assets, thereby providing sustainable support for the country's fiscal revenue.
At the same time, Norway has made significant progress in oil extraction technology and related support industries.
The state-owned Norwegian oil company has accumulated experience in offshore oil and gas extraction in the harsh environment of the North Sea through cooperation with leading service providers. The related exploration and extraction equipment manufacturing industry has also experienced rapid development.
This not only improves extraction efficiency but also cultivates a large number of talents in this field, develops advanced technologies suitable for the Arctic Circle region, which are difficult for other countries to follow.
Therefore, Norway has an advantage in oil resource development. Domestically, the Norwegian government encourages energy companies to invest part of their oil income in domestic economic revitalization, promoting the vigorous development of a series of related industries such as shipbuilding, marine fisheries, and chemical industry.
Overall, Norway has achieved effective connection between energy export income and domestic economic system, avoiding serious single dependence.
On the social level, the development of the North Sea oil fields has also improved the living standards of the Norwegian people.
Before the 1970s, ordinary Norwegians had difficult living conditions, with simple housing, backward heating conditions, and material shortages.
The export of oil resources not only increased national fiscal revenue but also significantly reduced the prices of domestic energy such as coal and natural gas, improving the living conditions of ordinary Norwegians and laying the foundation for the establishment of the welfare system later.
It can be said that the discovery of the North Sea oil fields has greatly changed the face of Norwegian society as a whole.
An originally remote and poor European country has become a wealthy and advanced welfare state in just a few decades, relying entirely on the opportunities brought by oil resources.
Through decisive capital operations and industrial planning by the government, Norway has resolved the hidden dangers of the "resource curse" and transformed oil exports into sustainable economic and social prosperity.
The Norwegian government uses oil revenue to promote the rapid development of related industries domestically, forming a complete industrial chain.
At the same time, it also conducts large-scale financial investments and settlements globally and currently has a sovereign wealth fund of up to $1 trillion.
With a population of less than 6 million, Norway's per capita GDP exceeds $100,000. Just 100 years ago, it was the poorest place in Europe, a huge change that is astonishing.
Supported by strong economic strength, Norway began to establish a stunning social welfare system in the 1980s.
Here, not only medical care and education are completely free, but all aspects of life receive national assistance. From birth to retirement, as long as one is a Norwegian citizen, there are basically no worries.
Newborns receive various subsidies from the government after birth, and then can enter free kindergartens and schools, and even university education does not require tuition fees.
After entering society, the average wage exceeds 4,000 euros, and there is not much income gap in various industries. Medical and pension costs are also borne by the state, so the elderly's lives are relatively affluent.
Even ordinary workers can retire at the age of 67 and receive a monthly pension of over 10,000 RMB, thanks to the continuous financial support provided by the huge sovereign fund.
It can be said that Norway's 5 million citizens are almost "taken care of" by their own country, enjoying Nordic-style "universal welfare". People working less than 8 hours a day are not uncommon, and you can often see people playing table tennis or exercising in the office.
During the summer, the entire country takes long vacations, and people travel abroad or go fishing and outing domestically, making life stress light and unimaginable.
However, for locals, this way of life has been passed down through generations, so they are not so enthusiastic about it. Even in recent years, the birth rate in Norway is still declining, and more young people choose not to have children.
This sense of distance makes people think, is this universal welfare system ultimately built on unsustainable natural resource development?
What challenges will its future face?
Aging population and immigrant children: The ultimate challenge of welfare states?
In recent years, Norway has faced severe aging population problems, with the number of newborns in the country dropping to below 50,000 in 2022, hitting a historic low.
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