Best Countries to Live In - Part 3 : Norway

Norway

CAPITAL: Oslo

FLAG: The national flag has a red field on which appears a blue cross (with an extended right horizontal) outlined in white.
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ANTHEM: Ja, vi elsker dette landet (Yes, We Love This Country).

MONETARY UNIT: The krone (Kr) of 100 øre is the national currency. There are coins of 50 øre and 1, 5, and 10 kroner, and notes of 20, 50, 100, 200, 500, and 1,000 kroner. Kr1 = $0.15798 (or $1 = Kr6.33) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; National Independence Day, 17 May; Christmas, 25 December; Boxing Day, 26 December. Movable religious holidays include Holy Thursday, Good Friday, Easter Monday, Ascension, and Whitmonday.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Norway occupies the western part of the Scandinavian peninsula in northern Europe, with almost one-third of the country situated N of the Arctic Circle. It has an area of 324,220 sq km (125,182 sq mi). Comparatively, the area occupied by Norway is slightly larger than the state of New Mexico. Extending 1,752 km (1,089 mi) nne–ssw, Norway has the greatest length of any European country; its width is 430 km (267 mi) ese–wnw. Bounded on the n by the Arctic Ocean, on the ne by Finland and Russia, on the e by Sweden, on the s by the Skagerrak, on the sw by the North Sea, and on the w by the Norwegian Sea of the Atlantic Ocean, Norway has a land boundary length of 2,544 km (1,581 mi) and a total coastline estimated at 21,925 km (13,624 mi).

Norway's capital city, Oslo, is in the southern part of the country.

TOPOGRAPHY

Norway is formed of some of the oldest rocks in the world. It is dominated by mountain masses, with only one-fifth of its total area less than 150 m (500 ft) above sea level. The average altitude is 500 m (1,640 ft). The Glittertinden (2,472 m/8,110 ft, including a glacier at the summit) and Galdhøpiggen (2,469 m/8,100 ft), both in the Jotunheimen, are the highest points in Europe north of the Alpine-Carpathian mountain range. The principal river, the Glåma, 611 km (380 mi) long, flows through the timbered southeast. Much of Norway has been scraped by ice, and there are 1,700 glaciers totaling some 3,400 sq km (1,310 sq mi). In the Lista and Jaeren regions in the far south, extensive glacial deposits form agricultural lowlands. Excellent harbors are provided by the almost numberless fjords, deeply indented bays of scenic beauty that are never closed by ice and penetrate the mainland as far as 182 km (113 mi). Along many coastal stretches is a chain of islands known as the skjærgård.

CLIMATE

Because of the North Atlantic Drift, Norway has a mild climate for a country so far north. With the great latitudinal range, the north is considerably cooler than the south, while the interior is cooler than the west coast, influenced by prevailing westerly winds and the Gulf Stream. Oslo's average yearly temperature ranges from about 5°c (41°f) in January to 28°c (82°f) in July. The annual range of coastal temperatures is much less than that of the continental interior. The eastern valleys have less than 30 cm (12 in) of rain yearly, whereas at Haukeland in Masfjord the average rainfall is 330 cm (130 in).

Norway is the land of the midnight sun in the North Cape area, with 24-hour daylight from the middle of May to the end of July, during which the sun does not set. Conversely, there are long winter nights from the end of November to the end of January, during which the sun does not rise above the horizon and the northern lights, or aurora borealis, can be seen.

FLORA AND FAUNA

The richest vegetation is found in the southeast around Oslofjord, which is dominated by conifers (spruce, fir, and pine); at lower levels, deciduous trees such as oak, ash, elm, and maple are common. Conifers are seldom found at altitudes above 1,000 m (3,300 ft). Above the conifer zone extends a zone of birch trees; above that, a zone of dwarf willow and dwarf birch, and a zone of lichens and arctic plants. In areas exposed to salt sea winds, there is little tree growth. Of the larger wild animals, elk, roe deer, red deer, and badger survive, as do fox, lynx, and otter. Bird life is abundant and includes game birds such as capercaillie (cock of the woods) and black grouse. In the rivers are found trout, salmon, and char.

As of 2002, there were at least 54 species of mammals, 241 species of birds, and over 1,700 species of plants throughout the country.

ENVIRONMENT

Norway's plentiful forests, lakes, flora, and wildlife have suffered encroachment in recent years from the growing population and consequent development of urban areas, roads, and hydroelectric power. The forest floor and waterways have been polluted by Norway's own industry and by airborne industrial pollution from central Europe and the British Isles in the form of acid rain. The acid rain problem has affected the nation's water supply over an area of nearly 7,000 sq mi.

Annual particulate emissions have averaged 22 tons and hydrocarbon emissions have been about 270 tons. In 1992, Norway was among the 50 nations with the world's heaviest emissions of carbon dioxide from industrial sources, which totaled 60.2 million metric tons, a per capita level of 14.03 metric tons. In 2000, however, the total of carbon dioxide emissions was at 49.9 million metric tons. Transportation vehicle emissions are also a significant source of air pollution.

By the early 1980s, the government had enacted stringent regulations to prevent oil spills from wells and tankers operating on the Norwegian continental shelf. Coastal protection devices have since been installed, and new technologies to prevent oil damage have been developed. Industry, mining, and agriculture have polluted 16% of Norway's lake water. The nation has a total of 382 cu km of renewable water resource; 72% of the annual withdrawal is used for industrial activity and 8% is used for farming.

Pollution control laws operate on the premise that the polluter must accept legal and economic responsibility for any damage caused and for preventing any recurrence; the state makes loans and grants for the purchase of pollution control equipment. Municipal authorities supervise waste disposal.

Since its creation in 1972, the Ministry of the Environment has been Norway's principal environmental agency. Between 1962 and 1985, 15 national parks, with a total area of more than 5,000 sq km (2,000 sq mi), and more than 150 nature reserves were established. In 2003, about 6.8% of the total land area was protected. The West Norwegian Fjords—Geirangerfjord and Naerofjord—were named as a natural UNESCO World Heritage site in 2005. The country has 37 Ramsar wetland sites.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 9 types of mammals, 6 species of birds, 7 species of fish, 1 type of mollusk, 8 species of other invertebrates, and 2 species of plants. Threatened species include the Baltic sturgeon, marsh snail, and freshwater pearl mussel.
POPULATION

The population of Norway in 2005 was estimated by the United Nations (UN) at 4,620,000, which placed it at number 114 in population among the 193 nations of the world. In 2005, approximately 15% of the population was over 65 years of age, with another 20% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.3%, a rate the government viewed as too low. The projected population for the year 2025 was 5,114,000. The overall population density was 14 per sq km (37 per sq mi), with most inhabitants concentrated in the southern areas of the country.

The UN estimated that 78% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.18%. The capital city, Oslo, had a population of 795,000 in that year. The only other towns with populations exceeding 100,000 were Bergen (242,158) and Trondheim (156,161). Most provincial cities are small, with only Stavanger (115,157), Kristiansand (76,066), and Drammen (56,688) having more than 50,000.

MIGRATION

From 1866 on, North America received great waves of immigration from Norway, including an estimated 880,000 Norwegian immigrants to the United States by 1910. The United States and Canadastill provide residence for many of the estimated 400,000 Norwegians living abroad. Emigration in recent years has not been significant. Norwegians moving abroad numbered 23,271 in 2004; immigrants to Norway totaled 36,482. Of the over 20,000 European immigrants, 4,308 were from Sweden; of the 3,875 Africans, 1,068 were from Somalia; of the 8,848 Asian immigrants, 1,220 were from Thailand. Migrants from the United States numbered 1,405. In 2005, Norway's immigrant population numbered 364,981. Of these 301,045 were first-generation immigrants, 361,143 were foreign-born, and 213,303 were foreign citizens. In 2004, internal migration between municipalities was 190,446 and between counties it was 89,940.

Norway is an important resettlement country; as of 2001, it had an allocation of 1,300 places in cooperation with the United Nations High Commissioner for Refugees (UNHCR). In 2004, 7,950 asylum applications were submitted. Main countries of origin included Russia, Serbia and Montenegro, Nigeria, and Afghanistan. The estimated net migration rate for 2005 was 1.73 migrants per 1,000 population.

ETHNIC GROUPS

The Norwegians have for centuries been a highly homogeneous people of Germanic (Nordic, Alpine, and Baltic) stock, generally tall and fair-skinned, with blue eyes. Small minority communities include some 20,000 Sami (Lapps) and 7,000 descendants of Finnish immigrants.

LANGUAGES

Norwegian, closely related to Danish and Swedish, is part of the Germanic language group. In addition to the letters of the English alphabet, it has the letters æ, å, and ø. Historically, Old Norse was displaced by a modified form of Danish for writing, but in the 19th century there arose a reaction against Danish usages. Many dialects are spoken. There are two language forms, Bokmål and Nynorsk; the former (spoken by a large majority of Norwegians) is based on the written, town language, the latter on country dialects. Both forms of Norwegian have absorbed many modern international words, particularly from British and American English, despite attempts to provide indigenous substitutes.

While Norwegian is the official language, English is spoken widely in Norway, especially in the urban areas. The Sami (Lapps) in northern Norway have retained their own language, which is of Finno-Ugric origin. There is also a small Finnish-speaking minority.

RELIGIONS

Citizens are generally considered to be members of the Evangelical Lutheran Church of Norway, which is the state church, unless they specifically indicate other affiliations. As such, reports indicate that about 86% of the population are nominally affiliated with the Evangelical Lutheran Church. About 3.4% of the population belong to other Protestant denominations; 1.6% are Muslim and 1% are Roman Catholic. Buddhists, Jews, Orthodox Christians, Sikhs, and Hindus make up less that 1% of the population. The Norwegian Humanist Association, an organization for atheists and the nonreligious, claims about 69,652 adults as registered members.

The constitution provides for religious freedom for all faiths, even though the religion of state is designated as the Evangelical Lutheran Church of Norway. The king nominates the Lutheran bishops and the Lutheran church receives an endowment from the state. The constitution states that the king and half of the cabinet must be members of this church. There are a number of interfaith groups within the country, including the Cooperation Council for Faith and Secular Society, the Oslo Coalition for Freedom of Religious Beliefs, and the Ecumenical Council of Christian Communities.

TRANSPORTATION

In spite of Norway's difficult terrain, the road system has been well engineered, with tunnels and zigzags, particularly in the fjordlands of the west; but there are problems of maintenance because of heavy rain in the west and freezing in the east. Road transport accounts for nearly 90% of inland passenger transport. As of 2002, the total length of highway was 91,852 km (57,074 mi), of which 71,185 km (44,232 mi) were paved, including 178 km (111 mi) of expressways. As of 2003, there were 1,932,663 passenger cars and 468,500 commercial vehicles in use. The state railway operates bus routes and has been steadily increasing its activities in this field, which is heavily subsidized by the government. In 2004, there was 4,077 km (2,533 mi) of rail line in operation, all of it standard gauge, of which 2,518 km (1,564 mi) were electrified.

With a merchant fleet of 740 vessels of 1,000 GRT or more, totaling 18,820,495 GRT, as of 2005, Norway possessed one of the world's largest fleets. The sale of Norwegian ships and their registration abroad, which increased considerably during the mid1980s, severely reduced the size of the fleet. In 1988, the Norwegian International Ship Register program began, whereby ships could be registered offshore, thus allowing foreign vessels to operate under the Norwegian flag while reducing costs to shipowners. Oslo and Bergen have excellent harbor facilities, but several other ports are almost as fully equipped.

Norway had an estimated 101 airports in 2004. As of 2005, a total of 67 had paved runways, and there was also one heliport. Flesland at Bergen, Sola at Stavanger, and Fornebu and Gardermoen at Oslo are the main centers of air traffic. External services are operated by the Scandinavian Airlines System (SAS), which is 21% Norwegian-owned. Braathens Air Transport operates most of the domestic scheduled flights. Important internal air services include that linking Kirkenes, Tromsø, and Bodø; 2,000 km (1,240 mi) long, this air route is reputed to be the most difficult to operate in western Europe. In 2003, about 12.779 million passengers were carried on scheduled domestic and international flights.

HISTORY

Humans have lived in Norway for about 10,000 years, but only since the early centuries of the Christian era have the names of tribes and individuals been recorded. This was the period when small kingdoms were forming; the name Norge ("Northern Way") was in use for the coastal district from Vestfold to Hålogaland before ad 900. The Viking period (800–1050) was one of vigorous expansion, aided by consolidation of a kingdom under Olav Haraldsson.

From the death of Olav in 1030, the nation was officially Christian. During the next two centuries—a period marked by dynastic conflicts and civil wars—a landed aristocracy emerged, displacing peasant freeholders. A common legal code was adopted in 1274–76, and the right of succession to the crown was fixed. Shortly before, Iceland (1261) and Greenland (1261–64) came under Norwegian rule, but the Hebrides (Western Isles), also Norwegian possessions, were lost in 1266. Before 1300, Hanseatic merchants of the Baltic towns secured control of the essential grain imports, weakening the Norwegian economy.

Norway lost its independence at the death of Haakon V in 1319, when Magnus VII became ruler of both Norway and Sweden. The Black Death ravaged the country in the middle of the 14th century. In 1397, the three Scandinavian countries were united under Queen Margrethe of Denmark. Sweden left the union in 1523, but for nearly 300 more years Norway was ruled by Danish governors. Although the loss to Sweden of the provinces of Bohuslän (1645), Härjedalen (1658), and Jämtland (1645) was a handicap, gradual exploitation of the forest wealth improved Norwegian status. Denmark's alliance with France during the Napoleonic Wars resulted in the dissolution of the union. With the Peace of Kiel (1814), Norway was ceded to Sweden, but the Faroe Islands, Iceland, and Greenland were retained by Denmark. However, Norwegians resisted Swedish domination, adopted a new constitution on 17 May 1814, and elected the Danish Prince Christian Frederick as king of Norway. Sweden then invaded Norway, but agreed to let Norway keep its constitution in return for accepting union with Sweden under the rule of the Swedish king. During the second half of the 19th century, the Storting (parliament) became more powerful; an upsurge of nationalist agitation, both within the Storting and among Norway's cultural leaders, paved the way for the referendum that in 1905 gave independence to Norway. Feelings ran high on both sides, but once the results were announced, Norway and Sweden settled down to friendly relations. The Danish Prince Carl was elected king of Norway, assuming the name Haakon VII.

Although Norway remained neutral during World War I, its merchant marine suffered losses. Norway proclaimed its neutrality during the early days of World War II, but Norwegian waters were strategically too important for Norway to remain outside the war. Germany invaded on 9 April 1940; the national resistance was led by King Haakon, who in June escaped together with the government, representing the legally elected Storting, to England, where he established Norway's government-in-exile. Governmental affairs in Oslo fell to Vidkun Quisling, a Fascist leader and former Norwegian defense minister who had aided the German invasion and whose name subsequently became a synonym for collaborator; after the German surrender, he was arrested, convicted of treason, and shot. During the late 1940s, Norway abandoned its former neutrality, accepted Marshall Plan aid from the United States, and joined NATO. King Haakon died in 1957 and was succeeded by Olav V. King Harald V succeeded his father who died 17 January 1991.

The direction of economic policy has been the major issue in Norwegian postwar history, especially as related to taxation and the degree of government intervention in private industry. Economic planning was introduced, and several state-owned enterprises have been established. Prior to the mid-1970s, Labor Party-dominated governments enjoyed a broad public consensus for their foreign and military policies. A crucial development occurred in November 1972, when the Norwegian electorate voted in a referendum to reject Norway's entry into the EC despite a strong pro-EC posture adopted by the minority Labor government. After the 1973 general elections, the Labor Party's hold on government policies began to erode, and in the 1981 elections, the party lost control of the government to the Conservatives. Although the non-Socialists retained a small majority in the 1985 elections, disagreements among them permitted Labor to return to office in 1986.

Norway reconfirmed its rejection of the European Union on 28 November 1994, when the vote was cast 52% against, 47.8% for joining Europe. However, in December 2002, Prime Minister Kjell Magne Bondevik stated a new referendum would probably be held on EU membership. Public opinion polls in June 2003 registered 51.9% of the electorate in favor of joining the EU; 38.2% were opposed and 9.9% were undecided.

Norway was forthright in its support for the US-led war on terror following the 11 September 2001 terrorist attacks. It supported the NATO decision to invoke Article 5 of the alliance's constitution, pledging all members to collective security in the event of an attack on one. However, Norway did not support the US-led war in Iraq that began on 19 March 2003. Prime Minister Bondevik held that international weapons inspectors authorized by UN Security Council Resolution 1441 to inspect Iraq's weapons programs should have been given more time to do their work, and that military action should not be taken without an express Security Council resolution authorizing it. Eight out of ten Norwegian voters agreed in March 2003 that Norway should not support the US and British decision to go to war against Iraq.

On 19 January 2004, the Norwegian cargo ship Rocknes capsized after striking rocks in a fjord off the coast of Bergen. Eighteen crew members were killed, most of them Filipinos. Nearly 1,000 animals were oiled, a concern for environmentalists. Another concern for environmentalists was Norway's rejection of the 1986 International Whaling Commission's ban on whaling. Norway began whaling on a commercial basis in 1993.

In the general election held on 12 September 2005, the centerleft led by Jens Stoltenberg's Labor Party in a "red-green alliance" with the Socialist and Center parties won more than half the seats in parliament, defeating Bondevik's center-right minority coalition. The populist far-right Progress Party increased its number of seats held in parliament by 12, to 38, and it became the nation's largest opposition party.

GOVERNMENT

Norway is a constitutional monarchy. The constitution of 17 May 1814, as subsequently amended, vests executive power in the king and legislative power in the Storting. Prior to 1990, sovereignty descended to the eldest son of the monarch. A constitutional amendment in May 1990 allows females to succeed to the throne. The amendment only affects those born after 1990. The sovereign must be a member of the Evangelical Lutheran Church of Norway, which he heads. Royal power is exercised through a cabinet (the Council of State), consisting of a prime minister and at least seven other ministers of state (these numbered 18 in 2005). Since the introduction of parliamentary rule in 1884, the Storting has become the supreme authority, with sole control over finances and with power to override the king's veto under a specified procedure. While the king is theoretically free to choose his own cabinet, in practice the Storting selects the ministers, who must resign if the Storting votes no confidence.

The Storting was made up of 169 representatives in 2005 (an increase of four over the 2001 election) from 19 counties. Election for a four-year term is by direct suffrage at age 18, on the basis of proportional representation. After election, the Storting divides into two sections by choosing one-fourth of its members to form the upper chamber Lagting, with the rest constituting the lower chamber Odelsting. The Odelsting deals with certain types of bills (chiefly proposed new laws) after the committee stage and forwards them to the Lagting, which, after approval, sends them to the king for the royal assent; financial, organizational, political, and other matters are dealt with in plenary session. Where the two sections disagree, a two-thirds majority of the full Storting is required for passage. Constitutional amendments also require a two-thirds vote. The constitution provides that the Storting may not be dissolved.

A special parliamentary ombudsman supervises the observance of laws and statutes as applied by the courts and by public officials. His main responsibility is to protect citizens against unjust or arbitrary treatment by civil servants.

LOCAL GOVERNMENT

Norway has 435 municipalities (kommuner ) of varying size, each administered by an elected municipal council. They are grouped into 19 counties (fylker ), each governed by an elected county council. Each county is headed by a governor appointed by the king in council. Oslo is the only urban center that alone constitutes a county; the remaining 18 counties consist of both urban and rural areas. County and municipal councils are popularly elected every four years. The municipalities have wide powers over the local economy, with the state exercising strict supervision. They have the right to tax and to use their resources to support education, libraries, social security, and public works such as streetcar lines, gas and electricity works, roads, and town planning, but they are usually aided in these activities by state funds.

JUDICIAL SYSTEM

Each municipality has a conciliation council (forliksråd ), elected by the municipal council, to mediate in lesser civil cases so as to settle them, if possible, before they go to court; under some conditions the conciliation councils also render judgments. The courts of first instance are town courts (byrett ) and rural courts (herredsrett ), which try both civil and criminal cases. Their decisions may be brought before a court of appeals (lagmannsrett ), which also serves as a court of first instance in more serious criminal cases. There are six such courts: Borgarting, Eidsivating, Agder, Gulating, Frostating and Hålogaland. Appeals may be taken to the Supreme Court (Høyesterett) at Oslo, which consists of a chief justice and 18 judges. Special courts include a Social Insurance Court and a Labor Disputes Court who mediates industrial relations disputes.

The judiciary is independent of both the legislative and the executive branches. In criminal cases, defendants are afforded free legal counsel. Indigent persons are granted free legal counsel in certain civil cases as well.

ARMED FORCES

Norway's armed forces in 2005 had a total strength of 25,800 active personnel with reserves numbering 219,000. The Army of 14,700 was equipped with 165 main battle tanks, 157 armored infantry fighting vehicles, 189 armored personnel carriers, and 634 artillery pieces. The Navy numbered 6,100 active personnel, including 270 in the coast guard and 160 coastal defense personnel. The Navy operated 6 tactical submarines, 3 frigates, 15 coastal and patrol vessels, and 10 mine warfare ships. The Air Force consisted of 5,000 personnel operating 61 combat capable aircraft, in addition to 15 (each) transport and training aircraft, and 12 search and rescue helicopters. The Air Force also mans air defense guns and missiles.

Norway is the host nation for the NATO Allied Forces North headquarters and provides troops or observers for eight peacekeeping operations. The nation's defense budget in 2005 totaled $4.69 billion.

INTERNATIONAL COOPERATION

Norway has been a member of the United Nations since 27 November 1945; the country participates in the ECE and several nonregional specialized agencies, such as the FAO, IAEA, the World Bank, UNSECO, UNHCR, UNIDO, and the WHO. Norwegian experts serve in many countries under the UN Technical Assistance program. Norway has participated in at least 30 UN peacekeeping operations. The Norwegian Peace Corps, launched as an experiment in 1963, was made a permanent part of Norway's program of international aid in 1965.

Norway is a member of the WTO, the African Development Bank, the Asian Development Bank, the Council of the Baltic Sea States, the Euro-Atlantic Partnership Council, the Inter-American Development Bank, the Council of Europe, EFTA, the OSCE, the Paris Club, NATO, the Nordic Council, the Nordic Investment Bank, and OECD. The country holds observer status in the OAS and is an associate member of the Western European Union. A referendum on EU membership was held in November 1994; 52% of the electorate voted against membership.

Norway is part of the Australia Group, the Zangger Committee, the Nuclear Suppliers Group (London Group), the Nuclear Energy Agency, the European Organization for Nuclear Research (CERN), and the Organization for the Prohibition of Chemical Weapons. In environmental cooperation, Norway is part of the Antarctic Treaty, the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the London Convention, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change and Desertification.

ECONOMY

Norway, with its long coastline and vast forests, is traditionally a fishing and lumbering country, but since the end of World War II it has greatly increased its transport and manufacturing activities. The exploitation since the late 1970s of major oil reserves in the North Sea has had considerable impact on the Norwegian economy.

Foreign trade is a critical economic factor. Exports bring in over 40% of the GDP. As a trading nation without a large domestic market, Norway was especially vulnerable to the effects of the worldwide recession of the early 1980s and is sensitive to fluctuations in world prices, particularly those of oil, gas, and shipping. Since the early 1980s, Norway's exports have been dominated by petroleum and natural gas, which produced 56% of commodity exports in 2003.

Norway has a mixed economy with the government owning about 32% of the listed shares on the Oslo stock exchange, and holding shares in around 10–15% of Norwegian industry (as of 2005). State ownership is most dominant in the oil, hydroelectric, and mining sectors. At considerable expense, the government provides subsidies for industry, agriculture, and outlying regions. About half of the total goes to agriculture.

Norwegian competitiveness in the global economy is hampered by a small population (4.6 million), a restrictive immigration policy, and an expensive social welfare system that places high tax burdens on the population.

In the early 1980s, the nation's economy became increasingly dependent on oil revenues, which stimulated domestic consumption and, at the same time, increased costs and prices, thus hampering the competitiveness of Norway's other export industries. The drastic decline of oil prices in 1986 caused the value of Norway's exports to fall by about 20%. Recently, the service sector has grown, accounting for 61.6% of GDP (2004 est.)

From 1949 to 1989 the real GDP rose on the average by 3.9% per year. The GDP fell in 1988 for the first time in 30 years. Since 1989, however, growth resumed, averaging only 1.3% during 1989–91, but climbing by an annual average of 3.7% during 1992–94. In 1998, GDP growth was 2.4%, inflation was 2.3%, and unemployment was 2.6%. In 1999, low world oil prices helped reduce growth to 1.1%, while their recovery, in 2000 helped raise GDP growth to 2.3%. GDP growth fell to 1% by 2002 and to 0.5% in 2003, largely due to the global economic slowdown of 2001–02. The economy recovered strongly in 2004, with real GDP growing by 2.9%. Economic growth was forecast to peak in 2005 at 3%, before falling slightly to 2.5% in 2006.

Unemployment averaged about 3.3% 1999 to 2002, while annual price inflation was about 2.9%. The unemployment rate stood at 4.3% in 2004, and the annual CPI inflation rate was forecast at 1.8% in 2005. Government statistics show that government spending as a percent of GDP declined from 39% in 1999 to about 34.5% in 2001, down from the estimated 50% reported by the OECD in the mid-1990s. Government spending as a percent of GDP stood at approximately 40% in 2005.

Norwegian voters rejected European Union membership in 1994. However, Norway is a member of the European Economic Area (EEA) which consists of the EU member countries together with Norway, Iceland, and Liechtenstein. Membership gives Norway most of the rights and obligation of the EU single market but very little ability to influence EU decisions.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Norway's gross domestic product (GDP) was estimated at $194.7 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $42,400. The annual growth rate of GDP was estimated at 3.8%. The average inflation rate in 2005 was 2.1%. It was estimated that agriculture accounted for 2.2% of GDP, industry 37.2%, and services 60.6%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $322 million or about $71 per capita and accounted for approximately 0.1% of GDP.

The World Bank reports that in 2003 household consumption in Norway totaled $101.96 billion or about $22,350 per capita based on a GDP of $220.9 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 3.4%. In 2001 it was estimated that approximately 16% of household consumption was spent on food, 11% on fuel, 5% on health care, and 4% on education.

LABOR

In 2005, Norway's labor force totaled an estimated 2.4 million workers. As of 2003, services accounted for 74% of the workforce, with 22.1% in industry, and around 4% in the agricultural sector. From 1960–88, Norway's average unemployment rate was only 1.6%. Unemployment gradually increased during the 1970s, and decreased from 5.5% in 1991 to 3.9% in 2002. As of 2005, the unemployment rate was estimated at 4.2%.

As of 2005, about 55% of the labor force was unionized. Under Norwegian law, workers can organize and join unions, engage in collective bargaining, and strike. Government employees, including military personnel, can also organize unions and bargain collectively. Antiunion discrimination is prohibited by law.

In 1919, the eight-hour day was established, together with paid holiday periods. In 1986, the workweek was reduced to 37.5 hours, where as of 2005, it remained. There is also 25 days of paid leave, with 31 days for those 60 and older. There is no legal minimum wage. Wages scales are set through negotiations involving local government, employers and workers. Children between the ages of 13 and 18 years may engage in light work that will not negatively affect their health or education, but only on a part-time basis.

AGRICULTURE

Agricultural land in 2003 comprised 873,000 hectares (2,157,000 acres), or about 2.9% of the country's total land (excluding Svalbard and Jan Mayen). While the area under wheat and mixed grains has dropped sharply since 1949, that for rye, oats, and barley has more than doubled. The greater part of these crops is used to supplement potatoes and hay in the feeding of livestock. In 2004, the area planted with barley, oats, rye, and triticale covered 12,380 hectares (30,590 acres), while wheat covered 65,000 hectares (161,000 acres).

In 2005, Norway had 53,277 agricultural holdings, 96% held by individuals. Because of the small size of the holdings, many farm families pursue additional occupations, mainly in forestry, fishing, and handicrafts. Yields in 2004 included 1,076,000 tons of coarse grain and 340,000 tons of potatoes. Østfold county accounts for 20% of Norway's grain production; Hedmark county for one-third of potato production. Norway imports most of its grain and large quantities of its fruits and vegetables.

With steep slopes and heavy precipitation, Norway requires substantial quantities of fertilizers to counteract soil leaching. Smallholders and those in marginal farming areas in the north and in the mountains receive considerable government assistance for the purchase of fertilizers. Mechanization of agriculture is developing rapidly. In 2003, Norwegian farmers used 130,000 tractors and 13,400 combines.

Since 1928, the state has subsidized Norwegian grain production; a state monopoly over the import of grains maintains the price of Norwegian-grown grains. The Ministry of Agriculture has divisions dealing with agricultural education, economics, and other aspects. Each county has an agricultural society headed by a government official. These societies, financed half by the district and half by the state, implement government schemes for improving agricultural practices.

ANIMAL HUSBANDRY

Norway is self-sufficient in farm animals and livestock products. In 2005, there were 2,417,000 sheep, 920,000 head of cattle, 515,000 hogs, 28,000 horses, and 3,300,000 fowl. Norway is well known for its working horses. By careful breeding, Norway has developed dairy cows with very good milk qualities; artificial insemination is now widely used. In 2005, production included 83,600 tons of beef and veal, 116,500 tons of pork, 25,400 tons of mutton and lamb, 1,721,000 tons of milk, 81,200 tons of cheese, 51,000 tons of eggs, and 13,000 tons of butter. Norwegian production of milk, cheese, and meat satisfies local demand.

The breeding of furbearing animals has been widely undertaken, and good results have been obtained with mink. In 2003, there were 320,000 farm-raised foxes, 440,000 mink, and 203,000 deer. Reindeer graze in the north and on the lichen-clad mountains. In 2004, wild game hunting yielded 36,770 moose, 3,895 wild reindeer, and 25,896 red deer.

FISHING

Seafood is Norway's third-largest export item, after petroleum products and metals. In 2004, the value of Norway's seafood exports amounted to $4.2 billion, with salmon and trout accounting for 44%. Norway's wild fish catch in 2004 amounted to 2.5 million tons, valued at $1.5 billion. The main commercial species are herring, cod, mackerel, and sardines.

Cod spawn in March and April off the Lofoten Islands. The Lofoten fisheries are coastal, permitting the use of small craft, but there has been increased use of large trawlers that fish in the waters of Greenland, the Norwegian Sea, and the Barents Sea. Cod roe and liver (yielding cod-liver oil) are valuable by-products. In recent years there has been concern about declining wild fish stocks in the sea, but for Norway the wild fish catches seem to increase almost every year. According to the Norwegian Institute of Marine Research, the most important fish stocks in northern Norwegian waters have stabilized, and will remain at a high level in the years to come. The traditional wage system is on a share-of-the-catch basis. In view of the seasonal nature of the fisheries, many men work also in agriculture or forestry, and the supplementary income from part-time fishing is important to small farmers.

Aquaculture is also important in Norway, with over 3,500 workers and 700 facilities located along the entire coast from the Swedish border in the south to Finnmark far north of the Arctic Circle. The production of farmed salmon reached 537,000 tons in 2004, accounting for 45% of the world's farmed salmon production.

In 2003, sealing expeditions hunting in the Arctic Ocean caught 12,870 seals. Norway was one of the four countries that did not agree to phase out whaling by 1986, having opposed a 1982 resolution of the International Whaling Commission to that effect. In 2003, 647 minke whales were reportedly caught.

FORESTRY

Norway's forestland totals 8,868,000 hectares (21,913,000 acres), of which over 80% is owned by individuals, 9% by the state, and 7% by local governments; the remainder is held by institutions, companies, and cooperatives.

The state subsidizes silviculture and the building of forest roads. In 2004, removals amounted to 8,780,000 cu m (309.9 million cu ft), of which 86% was coniferous industrial wood and 14% was fuel wood. Sawn wood production in 2004 totaled 2,230,000 cu m (78.7 million cu ft); wood pulp, 2,528,000 tons; and paper and paperboard, 2,294,000 tons. The value of forest products exported was $1.8 billion in 2004, when Norway's trade surplus in forest products amounted to $641 million. The Norwegian Forest Research Institute has centers near Oslo and Bergen.

MINING

Mining was Norway's oldest major export industry. Some working mines were established more than 300 years ago and, for a time, silver, iron, and copper were important exports. Iron pyrites and iron ore were still mined in considerable quantities. Petroleum and gas comprised Norway's leading industry in 2004, and metals, chemicals, and mining were among other leading industries. Among export commodities, petroleum and petroleum products ranked first, while metals and chemicals followed close behind. Known deposits of other minerals were small; they included limestone, quartz, dolomite, feldspar, and mica (flake). In 2004, production of iron ore and concentrate (metal content) was 408,000 metric tons, up from 340,000 metric tons in 2003. Titanium (metal content) production in 2004 was 387,000 metric tons. Norway also produced nickel, hydraulic cement, dolomite, feldspar, graphite, lime (hydrated, quicklime), limestone, flake mica, nepheline syenite, nitrogen, olivine sand, quartz, quartzite, soapstone, steatite, sulfur (as a by-product), and talc. No lead or zinc was mined from 1998 through 2004, and no copper or pyrite from 1999 through 2004. The largest titanium deposit in Europe was at Soknedal. A large plant at Thamshavn used half the Orkla mines' output of pyrites for sulfur production. Reserves of minerals generally have been depleted, except for olivine, which was abundant. There has been recent gold exploration, and a zinc exploration program in the Roros district confirmed the existence of extensive stratiform sulfide mineralization with dimensions of a type that could host commercial deposits.

ENERGY AND POWER

Norway has Western Europe's largest proven reserves of oil, which are located on the country's continental shelf. Norway is also the second-largest supplier of natural gas to continental Europe and one of the largest producers in the world. In spite of its oil and gas reserves, hydropower is the primary source of electric power for Norway.

As of 1 January 2005, Norway's proven reserves of oil amounted to 8.5 billion barrels. In 2004, Norway produced an estimated 3,183,900 barrels of oil per day, of which crude oil accounted for 88%. Domestic consumption for oil averaged 244,300,000 barrels of oil per day. In 2005, Norway's crude oil refining capacity averaged 310,000 barrels per day, according to the Oil and Gas Journal. There are two major refining facilities: the 200,000 barrelper-day Mongstad plant, which is operated by 71% government owned Statoil; and the 110,000 barrel-per-day Slagen plant, which is operated by ExxonMobil.

Norway's natural gas reserves are mainly in the North Sea, although the Barents and Norwegian Seas are known to have significant reserves. As of 1 January 2005, Norway's proven reserves of natural gas were estimated at 73.6 trillion cu ft. In 2003, natural gas production was estimated at 2.6 trillion cu ft, with domestic consumption that year estimated at 146.2 billion cu ft.

Norway's reserves of coal, unlike its reserves of oil and natural gas, are very modest. In 2003, Norway's recoverable coal reserves were estimated at 5.5 million short tons. Output and consumption that year were estimated at 3.2 million short tons and 1.4 million short tons, respectively.

Norway's installed electric power generating capacity in 2003 was estimated at 26.6 GW. In that same year, electric power output was estimated at 1205.6 billion kWh, of which hydroelectric generated power amounted to 99% of the electricity produced. Geothermal/other and conventional thermal generated power account for the remainder. Domestic consumption in 2003 was estimated at 106.1 billion kWh.

INDUSTRY

Manufacturing, mining, and crude petroleum and gas production accounted for nearly 36.3% of the GDP in 2004. The most important export industries are oil and gas extraction, metalworking, pulp and paper, chemical products, and processed fish. Products traditionally classified as home market industries (electrical and nonelectrical machinery, casting and foundry products, textiles, paints, varnishes, rubber goods, and furniture) also make an important contribution. Electrochemical and electrometallurgical products—aluminum, ferroalloys, steel, nickel, copper, magnesium, and fertilizers—are based mainly on Norway's low-cost electric power. Without any bauxite reserves of its own, Norway has thus been able to become a leading producer of aluminum. Industrial output is being increasingly diversified.

About half of Norway's industries are situated in the Oslofjord area. Other industrial centers are located around major cities along the coast as far north as Trondheim. Norway has two oil refineries. Daily Norwegian offshore production in 2003 averaged 3.26 million barrels of oil. In the early 2000s, despite an improvement in world oil prices, investment in offshore oil and natural gas remained in decline, in part due to the completion of major projects, such as the Aasgard field. Norway's oil and gas reserves are declining; discovered oil reserves were projected to last 18 years in 2000, and natural gas reserves to last 95 years. The state oil company is Statoil. Norway's price support level for the oil industry is low, at around $20 per barrel of oil. Norway's oil economy employs more than 100,000 Norwegians.

Norway is also Europe's largest natural gas producer, and one of the largest natural gas exporters in the world. Natural gas reserves were measured at 1.71 trillion cu m in 2005. By 2020, natural gas production in Norway will overtake its oil output.

As Norway's economy will not be able to depend indefinitely upon oil, it must diversify. In addition to developing its knowledge-based economy (biotechnology, nanotechnology, the Internet, and knowledge-services), Norway may look to further develop its mineral resources.

SCIENCE AND TECHNOLOGY

A highly advanced industrialized nation, Norway invested $2,625.414 million or 1.6% of its GDP into research and development (R&D) in 2001. Of that amount, 51.7% came from the business sector, followed by government sources at 39.8%. Foreign sources accounted for 7.1% and higher education at 1.4%. In 2002, high-tech exports were valued at $2.863 billion and accounted for 22% of manufactured exports. Public funds come either as direct grants from the central government or as proceeds from the State Football Pool, whose net receipts are divided between research and sports. In 2001 (the latest year for which data was available), there were 1,524 technicians and 4,442 scientists and engineers engaged in R&D per million people.

The four principal research councils are the Agricultural Research Council of Norway, the Norwegian Research Council for Science and the Humanities, the Royal Norwegian Council for Scientific and Industrial Research, and the Norwegian Fisheries Research Council, each attached to separate government ministries. The councils recruit researchers by means of fellowship programs and allocate research grants to universities. They are part of the Science Policy Council of Norway, an advisory board to the government on all research matters. Principal areas of current study are arctic research, specifically studies of the northern lights; oceanography, especially ocean currents; marine biology, with special attention to fish migration; and meteorology.

The Royal Norwegian Society of Sciences and Letters, founded in 1760, has a Natural Sciences section. The country has 12 other scientific and technical learned societies and 24 scientific and technical research institutes. Located in Oslo are the Botanical Garden and Museum (founded in 1814), the Norwegian Museum of Science and Industry (founded in 1914), and other museums devoted to mineralogy-geology, paleontology, and zoology. The country has six universities and colleges offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 26% of university enrollment. In 2002, of all bachelor's degrees awarded, 14.5% were in the sciences (natural, mathematics and computers, engineering).

DOMESTIC TRADE

Oslo, the principal merchandising center, handles the distribution of many import products; Bergen and Stavanger are other west coast distribution centers. Trondheim is the chief northern center; Tromsøand Narvik are also important. The largest number of importers, exporters, and manufacturers' agents are in Oslo and Bergen. An 11% value-added tax (VAT) applies to many food products. A 25% VAT applies to most other goods and services, effective 2005.

Cooperative societies are an important distribution factor, with local groups operating retail stores for many kinds of consumer goods, especially in the food sector. Food market chains have developed rapidly in recent years. The Norwegian Cooperative Union and Wholesale Society represents a large number of societies, with over half a million members. Agricultural cooperatives are active in produce marketing and cooperative purchasing societies (Felleskjöp ) do much of the buying of farm equipment, fertilizer, and seed.

The Norwegian Consumer Council (established by the Storting in 1953) advances and safeguards the fundamental interests of consumers. It publishes comprehensive reports on accepted standards for key consumer goods, conducts conferences and buying courses in various parts of Norway, arranges consumer fairs, and cooperates closely with other organizations and institutions interested in consumer protection. Newspapers provide an important medium for advertisements; trade and other journals carry advertising, but the state-owned radio and television do not. However, in 1992, a national commercial television channel, TV2, was established in competition with the noncommercial Norwegian Broadcasting Corporation (NRK). TV2 currently has the sole right to broadcast advertising via Norwegian Telecom's terrestrial broadcasting network. Advertising is not permitted on NRK, but the growth of foreign-based commercial television channels broadcasting by satellite, and commercial television channels broadcasting via cable, opened the way for nationwide advertising on television. The advent of commercial television and radio advertising in Norway has led to new official control systems.

Shopping hours are usually from 9 am to 5 pm on weekdays (often until 7 pm on Thursdays) and from 9 am to 1 or 3 pm on Saturdays. Banks stay open from 9 am to 3:30 pm Mondays, Tuesdays, Wednesdays, and Fridays, and until 5 pm on Thursdays. Some manufacturers and major businesses will close for three to four weeks in July and/or August for a summer vacation.

FOREIGN TRADE

Foreign trade plays an exceptionally important role in the Norwegian economy, accounting, with exports of goods and services, for some 43% of the GDP in the mid-1990s and about 41% in 2004. Exports are largely based on oil, natural gas, shipbuilding, metals, forestry (including pulp and paper), fishing, and electrochemical and electrometallurgical products. Norway is the world's third-largest exporter of oil, after Saudi Arabia and Russia. The manufacture of oil rigs, drilling platforms, and associated equipment has developed into a sizable export industry.

Considerable quantities of motor vehicles and other transport equipment, raw materials, and industrial equipment.

Exports tripled between 1974 and 1981, largely on the strength of the petroleum sector, which accounted for a negligible percentage of exports in 1974 but half the total export value in 1981. During the same period, imports advanced by 93%. Following years of trade deficits, Norway had surpluses from 1980 through 1985. However, the drastic fall in oil prices caused a decline in export value resulting in deficits between 1986 and 1988. Since 1989, Norway has once again consistently recorded trade surpluses. In 2004, the value of Norwegian exports was $76.64 billion, and the value of imports totaled $45.96 billion, for a trade surplus of $30.68 billion. The leading markets for Norway's exports in 2004 were: the United Kingdom (22.3% of all exports), Germany (12.9%), the Netherlands (9.9%), France (9.6%), and the United States (8.4%). Norway's leading suppliers in 2004 were: Sweden (15.7% of all imports), Germany (13.6%), Denmark (7.3%) the United Kingdom (6.5%), and the United States (4.9%). In total, 78.2% of all Norwegian exports are traded with the EU, and Norway receives 70.8% of its imports from the EU.

BALANCE OF PAYMENTS

Norway's foreign exchange reserves have been built up to meet adverse developments in the balance of payments without the necessity of a retreat from the liberalization of imports. Until the oil boom of the late 1970s, imports regularly exceeded exports, but large deficits on current account were more than offset by the capital account surplus, giving a net increase in foreign exchange reserves. As of 2005 Norway was the world's third-largest exporter of oil, behind only Saudi Arabia and Russia.

Norway's economy is less open to trade than the Western European average, with total exports and imports of goods and services equal to 41.5% and 27.3% of GDP, respectively, in 2002.

Widen, reaching 17.3% of GDP in 2005, before narrowing slightly in 2006. The current account balance was estimated at $30.52 billion in 2004.

BANKING AND SECURITIES

The Bank of Norway was founded as a commercial bank in 1816; in 1949, all its share capital was acquired by the state. It is the central bank and the sole note-issuing authority. The bank discounts treasury bills and some commercial paper; trades in bonds, foreign exchange, and gold and silver; and administers foreign exchange regulations. The bank also receives money for deposit on current account but generally pays no interest on deposits. The head office is in Oslo, and there are 20 branches.

In 1938 there were 105 commercial banks, but mergers brought the total down to only 31 in 1974 and 21 in 1984. As of 1993, the total was down to 20. The three largest—the Norske Creditbank, Bergen Bank, and Christiania Bank og Kreditkasse—account for more than half of the total resources of the commercial banks. In 1988, a number of small savings banks and one medium-sized commercial bank, Sunnmorsbanken, became illiquid or insolvent. Most were rescued by merging with larger banks. After a slight improvement in 1989, however, banks' positions deteriorated again in 1990 following heavy losses sustained in the securities markets. As commercial property prices continued to fall, the position of the country's second and third-largest commercial banks, Christiania and Fokus, became increasingly precarious. To prevent a loss of confidence in the banking system, the government established a Government Bank Insurance Fund in March 1991. Within months this was called upon to provide capital to support the country's three largest banks, two of which—Christiania and Fokus—were by then insolvent.

By the late 1990s, increasing pressure fell upon Norway to shed its nationalistic protection of its banking industry and allow for foreign investment, particularly from its Nordic neighbors. Throughout the fall of 1998 and into 1999, attention centered on the fate of Christiania as two attempted merger attempts fell through. In mid-October 1999, Christiania was seeking to merge with MeritaNordbanken in order to avert a hostile takeover by either Swedish Svenska Handelbanken or Danish Den Norske Bank.

Ten state banks and other financial institutions serve particular industries or undertakings, including agriculture, fisheries, manufacturing, student loans, mortgages, and others. Although savings banks also have been merging in recent years, there were still 133 private savings banks and many credit associations in 1993.

A law of 1961 contains measures to implement the principle that banking policies are to be based on social as well as economic and financial considerations. The government appoints 25% of the representatives on the board of every commercial bank with funds of over Kr100 million. Guidelines for these banks are worked out cooperatively with public authorities.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $73.4 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $87.6 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 8.5%.

The stock exchanges of Norway are at Oslo (the oldest, founded 1818), Trondheim, Bergen, Kristiansund, Drammen, Stavanger, Ålesund, Haugesund, and Fredrikstad. Amid the increasing consolidation among European stock exchanges in the late 1990s, calls increased for the Norwegian markets to merge. As of 2004, there were 148 companies listed on the Oslo exchange, which had a market capitalization of $141.430 billion. In 2004, the Oslo exchange rose 31.3% from the previous year to 821.6.

INSURANCE

Norwegian insurance can be undertaken only by joint-stock companies of mutual assistance associations. Foreign life insurance companies have practically ceased to operate in Norway. Life insurance policies and those for pension schemes are exempt from income tax and cannot be written by firms doing other insurance work.

The crown in 1767 initiated compulsory fire insurance in towns and this fund still exists. Workers' compensation, third-party auto liability, pharmaceutical product liability, and aircraft liability are all compulsory insurances as well.

For marine insurance, stock companies now are more important than mutual associations. While a number of foreign insurance underwriters transact business in Norway, there is considerable direct insurance of Norwegian vessels abroad, especially in London. Most other insurance, such as automobile and burglary, is underwritten by Norwegian concerns. The insurance regulatory authority is the Banking, Insurance, and Securities Commission (BISC). The insurance sector is highly regulated, deeply influenced by the failure of a nonlife insurance company, Dovre, which spurred the Insurance Activities Act of 1988, which became effective in April 1989. The Insurance Activities Act of 1988 allows the BISC to control premium rates, monitor the financial position of insurance companies, and the risks that the insurance company writes. The BISC has wide powers of intervention. Companies may engage in insurance business after special permission has been granted and a license is obtained from the government. Recent liberalization throughout Europe promises to change radically the structure of the Norwegian insurance industry as foreign firms tap into the market. Direct insurance premiums written in 2003 totaled us$11.532 billion, of which us$5.501 billion of the total was nonlife insurance premiums, and us$6.031 billion was life insurance. In 2003, Norway's top nonlife insurer was If Skadeforsikring, which had gross written nonlife premiums of us$1,436.6 million. In 2004, the country's leading life insurer was Vital, with gross written life insurance premiums of $2,344.6 million.

PUBLIC FINANCE

Norway's fiscal year coincides with the calendar year. As one of the per capita richest countries in the world, Norway has a great deal of money to spend on investment, focusing especially on the offshore oil sector. The government maintains a Petroleum Fund that reached $67 billion at the end of 2001. The Fund will be used to finance government programs once oil and gas resources are depleted.

The US Central Intelligence Agency (CIA) estimated that in 2005 Norway's central government took in revenues of approximately $176.1 billion and had expenditures of $131.3 billion. Revenues minus expenditures totaled approximately $44.8 billion. Public debt in 2005 amounted to 36% of GDP. Total external debt was $281 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were Kr746.8 billion and expenditures were Kr605.3 billion. The value of revenues was us$105 million and expenditures us$85 million, based on an exchange rate for 2003 of us$1 = Kr7.0802 as reported by the IMF.

15.9%; recreation, culture, and religion, 1.2%; education, 6.5%; and social protection, 40.7%.

TAXATION

Both the central government and the municipal governments levy income and capital taxes. There is also a premium payable to the National Insurance Scheme. For individual taxpayers, income taxes and premiums adhere to the pay-as-you-earn system.

Taxes on corporations are paid in the year following the income year. As of 2004, corporate income taxes are levied at a flat rate of 28% of aggregate income. Companies involved in oil or gas pay a special oil tax of 50% in addition to the standard 28%. All income from capital is taxable at 28%. Although dividends received by resident shareholders from Norwegian countries are taxed at the corporate rate, a credit for the tax already paid by the distributing company on income effectively negates the tax. Dividends paid to nonresident shareholders are taxed at 25%. Interest and royalty income are not subject to a withholding tax.

Personal income taxes are levied at progressive tax rates that have a top rate of 55.3%. However, that rate is made up of: a combined 28% rate for national and municipal taxes; a national gross income tax of rate of 19.5%; and the employee's social security contribution of 7.8% (3% for pensioners, and 10.7% for the self-employed). A number of additional deductions from taxable income are available including allowance for some travel expenses, insurance payments, mortgage interest payments, living allowances, and deductions for contributions to capital investments. A withholding tax on wages can be credited against income taxes. There is also a municipal wealth tax, ranging from 0–1.1% and a land tax with rates from 0.2–0.7%. Gifts and inheritances are taxed according to progressive schedules with a maximum rate of 30%.

The main indirect tax is Norway's value-added tax (VAT), with a standard rate that has increased from 20% in 1999 to 24% in 2004. A reduced rate of 12% is applied to basic foodstuffs, and there is an extensive list of VAT-exempt goods and services, including health and social services, education, passenger transport, hotel accommodations, travel agents, government supplies, etc. Stamp duties are charged at a rate of 2.5%.

CUSTOMS AND DUTIES

Heavily dependent on foreign trade, Norway has traditionally supported abolition of trade barriers. During the 1950s, direct control of imports was gradually abolished. Tariff rates on industrial raw materials and most manufactured goods are low. Duties on finished textile products are levied at 15–25%.

A signatory of GATT and a member of EFTA, Norway has bilateral trade agreements with many countries in every part of the world. In 1973, Norway signed a Special Relations Agreement with the European Community (now the European Union), whereby both sides abolished all tariffs on industrial goods over the 1973–77 period. Other trade goods receiving gradual tariff reductions were fish, agricultural products, and wine.

Although Norwegian voters rejected EU membership in a 1994 referendum, Norway, as a member of the European Economic Area (EEA) maintains a free trade agreement with the European Union.

FOREIGN INVESTMENT

Norway welcomes foreign investment as a matter of policy and in general grants national treatment to foreign investors. Investment is encouraged particularly in the key offshore petroleum sector, mainland industry (including high-technology and other advanced areas), and in less developed regions such as northern Norway. Corporate taxation is levied at a flat rate of 28%, low by European standards.

Foreign capital has traditionally been largely centered in Norway's electrochemical and electrometallurgical industries, the primary iron and metal industry, and mining. The discovery of oil and natural gas in the North Sea area spurred foreign investments. The Ekofisk oil field was discovered in 1969 by an American Phillips Petroleum Co. consortium, including Petrofina of Belgium, ENI of Italy, and Norway's Petronord. A joint Norwegian-Phillips group company, Norpiepe, was formed in 1973 to construct the pipelines and to operate them for 30 years. Another US company, McDermott International, was awarded a $150-million contract in 1982 to lay pipe from the Statfjord gas field in the North Sea to the Norwegian mainland. In 1995, 11 international oil and gas companies announced plans for a $1.2–$1.35 billion gas pipeline from Norway's North Sea production area to the European continent. That same year, Fokus, Norway's third-largest commercial bank, fell under foreign control as foreign investors captured more than half the shares for sale in the bank's privatization.

Foreign direct investment (FDI) stock in Norway totaled about $21.4 billion in 1997. FDI inflow was nearly $3 billion in 1997 and more than $3.3 billion in 1998. Annual FDI inflow peaked in 1999 and 2000, at $6.7 billion and $6.3 billion, respectively, but in the global economic slowdown of 2001 fell to $2.8 billion. In 2002, FDI inflows increased to $3.4 billion. In terms of its attractiveness for foreign investment, Norway was ranked fourth in the world on UNCTAD's list of 140 countries for the period 1998 to 2000, up from fifth place for 1988 to 1990. Total FDI stock in Norway as of 2001 was $40.2 billion, equivalent to 18.7% of GDP. Norway's share in world FDI flows has been approximately equal to its share of world GDP.

Outward FDI flows from Norway averaged $5.3 billion for the four years 1999 to 2002. More than 2,000 enterprises have foreign investors holding at least 20% of the capital. Total outward FDI stock held by Norwegians totaled $40.7 billion as of 2001.

In 2003, FDI comprised 20.4% of GDP; total FDI stock in Norway was Kr327.1 billion ($46.2 billion). Leading investors were (in order) Sweden, the Netherlands, Denmark, the United States, and the United Kingdom. Most of Norway's investment abroad goes to (in order) the United States, the United Kingdom, Sweden, Denmark, the Netherlands, and Germany.

ECONOMIC DEVELOPMENT

The government holds shares in a number of large enterprises: a minority of shares in most industrial establishments and all or controlling shares in some armaments factories, as well as in chemical and electrometallurgical companies, power stations, and mines. The government also participates in joint industrial undertakings with private capital, in enterprises too large or risky for private capital, and in establishments with shares formerly held by German interests. Government policy also aims at attracting foreign investment.

Rapid industrial development and exploitation of resources are major governmental goals, with special emphasis on northern Norway, where development has lagged behind that of the southern areas. The Development Fund for North Norway, established in 1952, together with a policy of tax concessions, resulted in progress there at a rate more rapid than that of the rest of the country. The exploitation of offshore oil and natural gas reserves has had a profound effect on Norway's economy. Increased oil revenues have expanded both domestic consumption and investment. The government has used oil revenues to ease taxes and increase public investment in regional development, environmental protection, social welfare, education, and communications. Although the expansion of innovative oil development projects continues (one of which was the $4.2 billion Heidrun oil project), Norway is looking to produce more natural gas than oil. The $5 billion Troll gas field was one such project.

A tax law permits industry and commerce to build up tax-free reserves for future investment, foreign sales promotion, and research. Designed to provide a flexible tool for influencing cyclical developments, the law's intent is to help ensure that total demand at any given time is sufficient to create full employment and strong economic growth. In the late 1970s, the government introduced combined price and wage agreements in an effort to restrain inflation and ensure real increases in buying power for consumers.

To stimulate industry, incentives are available for undertakings in the north as well as in other economically weak regions; companies may set aside up to 25% of taxable income for tax-free investment. Tariff incentives are available for essential imports. A Regional Development Fund grants low-interest, long-term loans to firms to strengthen the economy of low-income, high-unemployment areas anywhere in the country.

In 1991, the government introduced a three-year program to improve infrastructure and reduce unemployment. This plan was to spend nearly Kr10 billion, primarily for road and rail communications, with the money coming from budget cuts in other areas.

Although Norwegians rejected EU membership in a 1994 referendum, Norway's economy is largely integrated with that of the EU. Norway has a free trade agreement with the EU; its currency is generally kept on par with the euro. Yet despite these elements of association, Norway retains extensive control over its own economic development policies.

Norway has been active in aiding developing nations under the Norwegian Agency for International Development (Norad). The leading recipients have been Tanzania, Mozambique, Zambia, Bangladesh, Nicaragua, and Ethiopia. Norway is one of five countries meeting the UN international aid target for donor countries (0.7% of national income); Norway gave 0.87% of gross domestic product (GDP) in 2004, more than any other country, ahead of Luxemburg, Denmark, Sweden, and the Netherlands.

The country's Petroleum Fund reached $190 billion in 2005; the fund will be used to finance government programs once Norway's oil and gas resources run out. As of 2005, unemployment was low, wages were high, and the UN ranked Norway as the most desirable country in which to live. Non-oil business was also booming in 2005; a survey of some 114,000 non-oil companies showed an average 43.9% increase in profits. However, high taxes and a welfare system burdened by an aging population remain challenges for continued economic prosperity.

SOCIAL DEVELOPMENT

Norway has been a pioneer in the field of social welfare and is often called a welfare state. Accident insurance for factory workers was introduced in 1894, unemployment insurance in 1906, compulsory health insurance in 1909, and accident insurance for fishermen in 1908 and for seamen in 1911. In the 1930s, further social welfare schemes were introduced: an old-age pension scheme; aid for the blind and crippled; and unemployment insurance for all workers except fishermen, whalers, sealers, civil servants, domestic servants, self-employed persons, salesmen, and agents. In the postwar period, health insurance became compulsory for all employees and available to self-employed persons; coverage includes dependents, with medical treatment including hospital and other benefits. Sickness benefits, family allowances during hospitalization, and grants for funeral expenses are paid. Costs of this scheme are met by deductions from wages and contributions by employers and by state and local authorities. Public assistance, available in Norway since 1845, supplements the foregoing programs. Social welfare has long included maternity benefits with free prenatal clinics.

The National Insurance Act, which came into effect in 1967, provides old-age pensions, rehabilitation allowances, disability pensions, widow and widower pensions, and survivor benefits to children. Membership is obligatory for all residents of Norway, including noncitizens, and for Norwegian foreign-service employees. Pensions begin at the age of 67. As of 2004, the system of varying rates for employers was reformed to eliminate intermediate levels. The source of funds is divided between employees, employers, and the government funds any deficit.

Workers' compensation covers both accidents and occupational diseases. Compensation is paid to a widow until she remarries, and to children up to the age of 18 (or for life if they are unemployable). Dependent parents and grandparents also are eligible for life annuities. Family allowance coverage, in force since 1946, is provided for children under the age of 16.

The law mandates equal wages for equal work by men and women, although economic discrimination persists. An Equal Rights Ombudsman addresses complaints of sexual discrimination. A provision protecting against sexual harassment is outlined in the Working Environment Act. A resolution mandating that 40% of publicly held companies be directed by women by 2005, and noncompliance will result in removal from the stock exchange in 2007. Violence against women persisted but is seriously investigated and prosecuted by authorities. Victim's assistance programs and battered women's shelters are available.

Human rights are fully respected and protected in Norway. Provisions exist to protect the rights and cultural heritage of minority peoples. The Sami (Lapps) located in the northeast are entitled to schooling in their local language, and also receive radio and television broadcast subtitled in Sami. The Sami also have a constituent assembly that acts as a consultative body on issues that affect them.

HEALTH

Since 1971, there has been a tax-based National Insurance Scheme. The public health service and the hospitals are the responsibility of the government at the central, county, and municipal levels. There are very few private hospitals in Norway. Hospital care is free of charge, but a minor sum is charged for medicine and primary health care. As of 1984, there has been a ceiling on the total amount one must pay for medical services. There is a three-part system made up of regional hospitals serving parts of the country, central hospitals serving the various counties, and local hospitals, also run by the counties. The country is in need of more nursing homes for the elderly. Most general hospitals are public; others are owned by the Norwegian Red Cross or other health or religious organizations. As of 2004, there were an estimated 356 physicians per 100,000 people. In addition, Norway had the second most nurses per capita at an estimated 2,065 per 100,000 population, and the most dentists at 125 per 100,000 people. Total health care expenditure was estimated at 9.2% of GDP.

On the local level, health councils are responsible for public health services, including tuberculosis control and school health services, and for environmental sanitation. Only in densely populated areas are public health officers appointed on a full-time basis; otherwise they engage in private practice as well. In some areas, they are the only physicians available.

Infant mortality has been appreciably reduced and in 2005 stood at 3.70 per 1,000 live births, one of the lowest rates in the world. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 12.4 and 9.8 per 1,000 people. About 71% of married women (ages 15 to 49) use contraception. Low birth weight was seen in 5% of all births. The maternal mortality rate was only 6 per 100,000 live births. Average life expectancy, among the highest in the world, was 79.40 years in 2005. The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 2,100 people living with HIV/AIDS in the country. There were an estimated 100 deaths from AIDS in 2003.

Children up to one year of age were vaccinated against diphtheria, pertussis, and tetanus, 92%; polio, 92%; and measles, 93%. Tuberculosis tests are given on a regular basis from infancy onward. Children go through a comprehensive vaccination program and also receive psychotherapy and dental care throughout their nine years of basic school.

The heart disease mortality rates were higher than the average for high human development countries. In the mid-1990s the likelihood of dying after age 65 of heart disease was 340 per 1,000 people for men and 374 per 1,000 for women.

HOUSING

Before World War II, responsibility for housing rested mainly with the municipalities, but the state has since assumed the major burden. Loans and subsidies keep rents under a certain percentage of a family's income. Cooperative housing has made great progress in such densely populated areas as Oslo, where the Oslo Housing and Savings Society pioneered the practice for Norway. With housing problems compounded by wartime destruction and postwar increases in marriages and in the birthrate, Norway built more dwellings per 1,000 inhabitants than any other European country, completing between 31,000 and 42,000 units annually from 1967 through 1981.

Home construction financing has come principally from two state loan organizations, the Norwegian Smallholdings and Housing Bank and the Norwegian State Housing Bank, but one-fourth of the nation's housing is still privately financed.

As of 2001, Norway had 1,961,548 dwelling units; 57% of them were detached houses. About 29% of the housing stock was built 1981–2001. About 19.5% of the housing stock was built in 1945 or earlier. About 77% of all dwellings were owner occupied. In 2002, at least 22,980 new dwellings were under construction and in 2003 about 22,677 units were started. According to estimates for 2004, about 52% of all households lived in single-family detached homes and 82% of all households were owner occupied. The rate of overcrowding (defined as having fewer rooms in the dwelling than the number of people in the household) was only at about 6%.

EDUCATION

Elementary school education has been compulsory since the middle of the 18th century. As of 1997, education is compulsory for 10 years of study, with students entering school in the year that they reach the age of six. Primary school covers seven years of study, followed by three years of lower secondary school. At this stage, students may choose to continue in a three-year general secondary school (gymnasium), which prepares students for the university. Since 1976, the upper secondary school system has also included vocational schools of various types, operated by the state, by local authorities, and by the industrial sector. A three-year trade apprenticeship program is also available for some secondary students.

Local authorities generally provide school buildings and equipment and the central government contributes funds towards teachers' salaries and covers a considerable proportion of the cost of running the schools. Although there are private schools, government authorities bear a major share of the financial responsibility for these through a system of grants.

In 2001, about 80% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 100% of age-eligible students. The same year, secondary school enrollment was about 96% of age-eligible students. It is estimated that about nearly all students complete their primary education. The student-to-teacher ratio for primary school was at about 10:1 in 2003; the ratio for secondary school was about 9:1.

Norway's institutions of higher education include 130 colleges and four universities. The four major universities include the University of Oslo (founded in 1811), the University of Bergen (1948), the University of Trondheim (1969), and the University of Tromsø (1969). Representing fields not covered by the universities, there are also specialized institutions, such as the Agricultural University of Norway (near Oslo); the Norwegian School of Economics and Business Administration (Bergen); and the Norwegian College of Veterinary Medicine (Oslo). Universities and colleges in Norway serve a dual function—both learning and research. At the four universities, degrees are granted at three levels: Lower degree (a four-year study program); higher degree (five to seven-year course of study); and doctorate degree. There are also courses lasting from five to seven years in law, medicine, agriculture, or engineering.

With a goal of placing adults on an equal standing with the educated youth and giving them access to knowledge and job skills, a program of adult education was introduced in August 1977. An official administrative body for adult education exists in all municipalities and counties. However, the Ministry of Education and Research has the highest administrative responsibility for adult education. Folk high schools are associated with a long Scandinavian tradition of public enlightenment. There are more than 80 folk schools in Norway geared toward providing personal growth and development rather than academic achievement. In 2003, about 81% of the tertiary age population were enrolled in some type of higher education program; 64% for men and 99% for women. The adult literacy rate has been estimated at about 99%.

As of 2003, public expenditure on education was estimated at 7.6% of GDP, or 16.2% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library of Norway in Oslo has over two million volumes in its central library. Since 1882, copies of all Norwegian publications have had to be deposited in the national library; since 1939, copies have been deposited at Bergen and Trondheim as well. Bergen University Library has over one million volumes, largely devoted to the natural sciences. Oslo University Library (founded in 1811), has the largest academic library system in the country, with four libraries and a central administrative unit. A special collection at the Oslo University Library includes the world's largest collection of materials on the life and works of Henrik Ibsen as part of the Centre for Ibsen Studies. The library of the Scientific Society in Trondheim, founded in 1760, is the country's oldest research library and has over one million volumes, including 330,000 pictures and UNESCO and GATT (General Agreement on Tariffs and Trade) documents. The Tromsø Museum Library has been organized to make it the research library for the north. There are technical and specialized libraries at many research institutes and higher educational centers. State archives are kept in Oslo, and there are record offices for provincial archives at Oslo, Kristiansund, Stavanger, Bergen, Hamar, Trondheim, and Tromsø.

The first municipal libraries were founded in the late 18th century. By law every municipality and every school must maintain a library; each such library receives financial support from state and municipality. Regional libraries also have been created. A special library service is provided for ships in the merchant navy, and a floating library service provides books to fishermen-farmers living in the sparsely populated regions.

There are natural history museums in Oslo, Stavanger, Bergen, Trondheim, and Tromsø. Oslo, Lillehammer, and Bergen have notable art collections. A traveling "national gallery" was established in 1952. The most important museums in Norway are those dealing with antiquities and folklore, such as the Norwegian Folk Museum in Oslo. Oslo has a unique collection of ships from the Viking period. Open-air museums in Oslo and elsewhere show old farm and other buildings, as well as objects of Norwegian historical and cultural interest. Also in Oslo are the International Museum of Children's Art; the Munch Museum, displaying the works of Edvard Munch, Norway's most famous artist; Norway's Resistance Museum, detailing the country's occupation during World War II; and the Viking Ship Museum. Among Norway's newer museums are the Astrup Fearnley Fine Arts Museum (1993), which features modern art; the National Museum of Contemporary Art (1990); and the Stenerson Museum (1994), which exhibits paintings from the 19th and 20th centuries. All three museums are in Oslo. There are at least three museums in the country that are dedicated to Henrik Ibsen.

MEDIA

Most of the telecommunications network is operated by the government-owned Televerket. The state owns all telephone facilities. In 2003, there were an estimated 713 mainline telephones for every 1,000 people. The same year, there were approximately 909 mobile phones in use for every 1,000 people.

The first private broadcasting stations launched in 1981. The public Norwegian Broadcasting Corp. continues to operate two television channels and three national radio stations, as well as a number of local radio stations. As of 1998 Norway had 5 AM and at least 650 FM radio broadcasting stations. Educational broadcasts supplement school facilities in remote districts. Radio license fees have not been required since 1977. Television programming on an experimental basis was initiated in 1958 and full-scale television transmission began in July 1960. In 2003, there were an estimated 3,324 radios and 884 television sets for every 1,000 people. About 184.5 of every 1,000 people were cables subscribers. Also in 2003, there were 528.3 personal computers for every 1,000 people and 346 of every 1,000 people had access to the Internet. There were 1,130 secure Internet servers in the country in 2004.

The Norwegian press is characterized by a large number of small newspapers. Five regional dailies account for about 20% of the total press circulation in the country. Verdens Gang and Dagbladet, both national tabloids, account for another 20% of circulation totals. The largest dailies (with their affiliations and circulations in 2004 unless noted) are: Verdens Gang (independent, 365,000), Aftenposten,(independent, 398,000), Dagbladet (liberal, 183,000), Daens Naeringsliv (60,027 in 2002), and Arbeiderbladet (Labor Party, 51,790 in 2002). Major regional papers include: De Fire Neste (Drammen, 442,000 circulation in 2002), Hedmark (Hamar, 91,100 in 2002), Bergens Tidende (in Bergen, independent, 89,000 in 2004), Adresseavisen (Trondheim, conservative, 85,000 in 2004), Stavanger Aftenblad (Stavanger, independent, 69,000 in 2004), Faedrelandsvennen (Kristiansund, independent, 46,960 in 2002), Akershus (Lillestrom, 42,100 in 2002), Haugesunds Avis (Hauguesund, 38,490 in 2002), and Sunnmorsposten (Ålesund, independent, 37,900 in 2002).

The constitution provides for freedom of speech and of the press and the government generally respects these rights.

ORGANIZATIONS

Cooperative societies are numerous and important in Norway. About 2,500 agricultural cooperatives are active; these include purchasing, processing, and marketing organizations. Some 528 retail cooperatives are affiliated with the Norwegian Cooperative Union and Wholesale Society.

Doctors are organized in the Norwegian Medical Association and in local associations. Farming organizations and agricultural cooperatives are represented in the Federation of Agriculture. There are associations of small and large forest owners, fur breeders, and employers' organizations in most sectors of industry, as well as a central Norwegian Employers' Confederation.

The Norwegian Academy of Science and Letters, the Royal Norwegian Society of Science and Letters, the Norwegian Academy of Technological Sciences, and the Society for the Advancement of Science are leading learned society. Other learned and professional organizations include the Nobel Committee of the Storting, which awards the Nobel Peace Prize; the Norwegian Research Council for Science and the Humanities; and various legal, scientific, economic, literary, historical, musical, artistic, and research societies.

National youth organizations include the Norwegian Student Union, Christian Democratic Party Youth, En Verden Youth, European Democratic Students, European Good Templar Youth Federation, Federation of Young Conservatives, Norwegian Union of Social Democratic Youth, Norwegian YWCA/YMCA, and the Norwegian Guides and Scouts Association. There are numerous sports associations and clubs.

Health and relief organizations include the Norwegian Red Cross, the Norwegian Women's Health Organization, and societies to combat a variety of conditions and diseases. Volunteer service organizations, such as the Lions Clubs International, are also present. International organizations with national chapters include Amnesty International and CARE Norge.
TOURISM, TRAVEL, AND RECREATION

Norway's main tourist attractions are the cities of Oslo, Bergen, and Trondheim, which are connected by road, rail, and daily flights; the marvelous scenery of the fjord country in the west; and the arctic coast with the North Cape and "midnight sun." In 2005, UNESCO named two Norwegian fjords, the Geirangerfjord and the Naeroyfjord to its World Heritage List.

A favorite method of tourist travel is by coastal steamer, sailing from Bergen northward to Kirkenes, near the Soviet frontier. Many cruise ships ply the Norwegian fjords and coastal towns as far north as Spitsbergen. Notable outdoor recreational facilities include the Oslomarka, a 100,000 hectare (247,000 acre) area located near Oslo, with ski trails and walking paths. To compensate for the shortness of winter days, several trails are illuminated for evening skiing. Other popular sports include ice skating, freshwater fishing, mountaineering, hunting (grouse, reindeer, and elk), and football (soccer). In 1994, Norway hosted the XVII Olympic Winter Games in Lillehammer, and the women's soccer team won the World Cup in 1995.

There are major theaters in Oslo and Bergen, as well as six regional theaters; Den Norske Opera in Oslo; and four symphony orchestras. International musical events include the Bergen Festival, held annually in late May or early June; and several jazz festivals in July.

No passport is required of visitors from the Nordic area, but travelers arriving in Norway directly from non-Nordic countries are subject to passport control. A visa is not required for visits of up to 90 days.

Tourist expenditure receipts totaled $3 billion when 3,146,000 tourists visited Norway in 2003. There were 67,114 hotel rooms with 143,798 beds and an occupancy rate of 35%.

In 2005, the US Department of State estimated the daily cost of staying in Oslo at $308, and Stavanger, $304.

FAMOUS NORWEGIANS

Ludvig Holberg (1684–1745), the father of Danish and Norwegian literature, was a leading dramatist whose comedies are still performed. Henrik Wergeland (1808–45), Norway's greatest poet, was also a patriot and social reformer; his sister Camilla Collett (1813–95), author of the first Norwegian realistic novel, was a pioneer in the movement for women's rights. Henrik Ibsen (1827–1906), founder of modern dramas, placed Norway in the forefront of world literature. Bjørnstjerne Bjørnson (1832–1910), poet, playwright, and novelist, received the Nobel Prize for literature in 1903. Other noted novelists are Jonas Lie (1833–1908); Alexander Kielland (1849–1906); Knut Hamsun (1859–1952), Nobel Prize winner in 1920; Sigrid Undset (1882–1949), awarded the Nobel Prize in 1928; and Johan Bojer (1872–1959).

Ole Bull (1810–80) was a world-famous violinist. Edvard Grieg (1843–1907) was the first Norwegian composer to win broad popularity. His leading contemporaries and successors were Johan Svendsen (1840–1911), Christian Sinding (1856–1941), Johan Halvorsen (1864–1935), and Fartein Valen (1887–1953). Kirsten Flagstad (1895–1962), world-renowned soprano, served for a time as director of the Norwegian State Opera. In painting, Harriet Backer (1845–1932), Christian Krohg (1852–1925), and Erik Werenskiold (1855–1938) were outstanding in the traditional manner; leading the way to newer styles was Edvard Munch (1863–1944), an outstanding expressionist, as well as Axel Revold (1887–1962) and Per Krohg (1889–1965). Norway's foremost sculptor is Gustav Vigeland (1869–1943); the Frogner Park in Oslo is the site of a vast collection of his work in bronze and granite.

Outstanding scientists are Christopher Hansteen (1784–1873), famous for his work in terrestrial magnetism; Niels Henrik Abel (1802–29), noted for his work on the theory of equations; Armauer (Gerhard Henrik) Hansen (1841–1912), discoverer of the leprosy bacillus; Vilhelm Bjerknes (1862–1951), who advanced the science of meteorology; Fridtjof Nansen (1861–1930), an oceanographer and Arctic explorer who won the Nobel Peace Prize in 1922 for organizing famine relief in Russia; Otto Sverdrup (1854–1930), Roald Amundsen (1872–1928), and Bernt Balchen (1899–1973), polar explorers; Johan Hjort (1869–1948), a specialist in deep-sea fishery research; Regnar Frisch (1895–1978), who shared the first Nobel Prize in Economic Science in 1969 for developing econometrics; Odd Hassel (1897–1981), co-winner of the 1969 Nobel Prize in chemistry for his studies of molecular structure; and Thor Heyerdahl (1914–2002), explorer and anthropologist.

The first secretary-general of the UN was a Norwegian, Trygve (Halvdan) Lie (1896–1968), who served from 1946 to 1953. The historian Christian Louis Lange (1869–1938) was co-winner of the Nobel Peace Prize in 1921.

Sonja Henie (1913–69) was the leading woman figure skater of her time, and Liv Ullmann (b.1939) is an internationally known actress. Linn Ullmann (b.1966), daughter of Liv Ullman and Ingmar Bergman, is a respected novelist and journalist. Grete Waitz (b.1953) is a champion long-distance runner.

DEPENDENCIES

Svalbard

The Svalbard group includes all the islands between 10° and 35° e and 74° and 81° n: the archipelago of Spitsbergen, White Island (Kvitøya), King Charles' Land (Kong Karls Land), Hope Island, and Bear Island (Bjørnøya), which have a combined area of about 62,700 sq km (24,200 sq mi). The largest islands are Spitsbergen, about 39,400 sq km (15,200 sq mi); North-East Land (Nordaustlandet), 14,530 sq km (5,610 sq mi); Edge Island (Edgeøya), 5,030 sq km (1,940 sq mi); and Barents Island (Barentsøya), 1,330 sq km (510 sq mi). Svalbard's population totaled 2,868 in 2002, down fromm 3,181 at the end of 1991. The population is 55.4% Norwegian and 44.3% Russian and Ukrainian.

Discovered by Norwegians in the 12th century and rediscovered in 1596 by the Dutch navigator Willem Barents, Svalbard served in the 17th and 18th centuries as a base for British, Dutch, Danish, Norwegian, German, and other whalers, but no permanent sovereignty was established. Russian and Norwegian trappers wintered there, and coal mining started early in the 20th century. Norway's sovereignty was recognized by the League of Nations in 1920, and the territory was taken over officially by Norway in 1925. Much of the high land is ice-covered; glaciers descend to the sea, where they calve to produce icebergs. The west and south coasts have many fjords, while the western coastal lowland is up to 10 km (6 mi) broad.

The most important mineral, coal, occurs in vast deposits in Spitsbergen. The west coast is kept clear of ice for six months of the year by the relatively warm water of the North Atlantic Drift, but an air temperature as low as -62°c (-80°f) has been recorded. In this region there are 112 days without the sun's appearance above the horizon.

The chief official, a governor, lives at Longyearbyen; his administration is controlled by the Ministry of Industry. Coal mining is the main industry, with Norwegian-worked mines at Longyearbyen, Sveagruva, and Ny Ålesund and Russian worked mines at Barentsburg, Grumantbyen, and elsewhere. Russia has extraterritorial rights in the areas where they mine. Cod fishing takes place around Bear Island, but whaling has virtually ceased. Norwegian sealers hunt seals, polar bears, and walrus in the summer. For centuries, trappers wintered in Spitsbergen to catch fox and bear while the pelts were in the best condition, but few trappers have wintered there in recent years.

Communications are maintained during the summer months by ships from Tromsø carrying goods and passengers, while colliers put in frequently at the mine piers. There are no roads and no local ship services.

Jan Mayen

Located in the Norwegian Sea at 70°30′ n and 8°30′ w, 893 km (555 mi) from Tromsø, the island of Jan Mayen has an area of about 380 sq km (150 sq mi). The island is dominated by the volcano Beerenberg, 2,277 m (7,470 ft) high, which is responsible for its existence; a major eruption occurred in September 1970. Jan Mayen was discovered by Henry Hudson in 1607 and was visited in 1614 by the Dutch navigator Jay Mayen, who used it subsequently as a whaling base. In 1929, the island was placed under Norwegian sovereignty. It is the site of a meteorological station and an airfield.

Bouvet Island

Bouvet Island (Bouvetøya), situated at 54°26′ s and 3°24′ e in the South Atlantic Ocean, was discovered in 1739, and in 1928 was placed under Norwegian sovereignty. An uninhabited volcanic island of 59 sq km (23 sq mi), Bouvet is almost entirely covered by ice and is difficult to approach.

Peter I Island

Peter I Island (Peter I Øy), an uninhabited Antarctic island of volcanic origin, is located at 68°48′ s and 90°35′ w. It has an area of 249 sq km (96 sq mi), rises to over 1,233 m (4,045 ft), and is almost entirely ice-covered. The island was discovered in 1821 by a Russian admiral. In 1931, it was placed under Norwegian sovereignty, and by a parliamentary act of 1933 became a dependency.

Queen Maud Land

Queen Maud Land (Dronning Mauds land) consists of the sector of Antarctica between 20°w and 45°e, adjoining the Falkland Islands on the w and the Australian Antarctic Dependency on the e. It was placed under Norwegian sovereignty in 1939, and has been a Norwegian dependency since 1957. The land is basically uninhabited, except for several stations operated by Japan, South Africa, and Russia.