The Norwegian Context

This is the second chapter to deal with non-transferable aspects of the Norwegian experience. The chapter provides the broader Norwegian political context into which oil was inserted, that is, a democratic Rechtsstaat with a relatively developed economy where oil was discovered immediately prior to the 1970s’ oil crisis. In particular, the chapter relates a short history of Norway’s experience with natural resource management (including the development of a concessionary system to regulate ownership of the hydroelectric industry) and introduces some of the most important institutional features in the Norwegian economy—as these features allow Norway to adapt quickly to economic shocks—for example, strong traditions with parliamentary democracy, economic management, the labor movement, corporatist bargaining arrangements, and so on.