NORWAY

Norway continues to perform extraordinarily well in the Status Index and ranks second only to Sweden (-1 rank relative to SGI 2009).

Norway is a typical consensus-driven democracy able to adapt smoothly to a changing global environment. The country’s economic and social policies are exemplary in cross-national comparison and help ensure a high quality of life for Norwegian citizens.

The tax burden for individuals is exceptionally high. A large portion of these revenues is used to sustain a generous welfare system that combats inequalities and supports infrastructure.

Education and innovation policies are areas of concern, as lavish public expenditures in these sectors often fail to yield expected results.

Norway continues to rank among the top performers in terms of democracy.

Electoral processes are firmly established. The media are autonomous and pluralistic despite some influential state-owned broadcasting stations. Every citizen has access to official documents held by public authorities.

Civil rights are protected against abuse by either state or non-state actors. Access to justice is free and easy. Political liberties are granted by law. Discrimination against minorities is low.

The legal system is sound and transparent. Citizens generally trust their institutions. There are few instances of corruption.

Rising from rank 4 in the SGI 2009, Norway tops the SGI 2011 ranking of economic policy in OECD states.

Public finances are rock solid, with the state budget effectively running a massive and durable surplus as a result of significant petroleum revenues from the North Sea. Norway has long enjoyed strong economic growth and near-full employment, largely thanks to the public sector. The country weathered the recent world economic crisis with only modest adverse effects.

The state wields an exceptionally strong influence in the economy. Citizens are subject to a relatively heavy tax burden, both through high consumption taxes and relatively high labor income taxes. Corporate taxation is by contrast moderate.

Norway tops the SGI 2011 social policy ratings, reflecting a wealthy, equitable society.

The extensive health system provides high-quality care to all residents. Health care for mothers and children is particularly good. However, the efficiency of the system is questionable.

Income distributions are comparatively equitable, and poverty rates are among the lowest in the world. Social expenditures are well above the EU average.

Family policy successfully facilitates exceptionally high labor market participation rates for women. The pension system is well-positioned to support the aging of the population in coming decades.

Integration policy is well-organized and well-funded, but complaints about discrimination in the labor and the housing markets are frequent.

Norway has influence beyond its relatively small size in various international forums and activities. Security policy is informed by a commitment to international cooperation and by a determination to do good.

Norway is one of the world’s largest providers of development aid. It participates in a range of UN and NATO peacekeeping missions in Afghanistan and elsewhere.

Internal security is not seriously threatened by crime. Police presence and activism have each been relatively low, and most of the police force remains unarmed. Norway relies primarily on policies targeting long-term crime prevention rather than harsh prison sentences.

Norway ranks 11th in the SGI’s resources category.

The government regularly promotes international cooperation on environmental issues. CO2 emissions are among the world’s lowest per unit of GDP, while renewable resource use is among the most developed in the world.

The country continues to be a relative laggard in spending on R&D. The manner in which research funds and state subsidies are allocated has drawn some criticism.

The labor force is one of the world’s most educated, and the government spends highly on public education. But the country’s share of degrees granted in scientific disciplines is low by international standards, and student performance is low relative to resources expended.

At rank 2, Norway’s management performance is a model of good governance.

Norwegian governments consistently demonstrate the capacity to formulate realistic long-term strategic goals while involving various actors in the policy-making process. The country’s governments therefore face few constraints in implementing the agreed-upon policies.

The executive branch effectively adapts its domestic structures to new requirements and collaborates with the EU. Recent institutional reforms have been adopted assiduously.

Norwegian governments recognize the importance of a consensus-oriented society in which citizens, the media and NGOs have considerable oversight powers.

At rank 3, Norway is among the OECD’s best in terms of government steering capability.

Governments display significant strategic planning capacity. Academic advice has considerable influence on policy-making. The Office of the Prime Minister has a small to medium-sized staff, but primarily plays a policy coordinating role rather than evaluating policy proposals in detail.

A system of regulatory impact assessment was introduced in 1985 and revised in 1995.

Norway is a consensus-oriented society. Interested parties are fully informed of measures under discussion, and often play an active role in the legislative process.

At rank 7, Norway’s policy implementation capacity shows substantial gains (+9 ranks) relative to the SGI 2009

Recent governments have held parliamentary majorities, and have had no significant external constraints with respect to policy implementation. Collaboration between the three parties in the government coalition has generally proven smooth.

A tradition of close cooperation between ministers increases identification with the government’s program.

Funding levels have produced constant tension between the central and local governments. The present center-left cabinet radically increased local government funding during its first term.

At rank 4, Norway continues to rank among the OECD’s top performers in terms of institutional learning.

Government structures have remained rather stable over time. There have been some ongoing efforts to improve the institutional framework, although not primarily in response to international developments. The country is very diligent in adopting EU legislation.

Self-monitoring takes places both in an informal and in a formal way. Recent institutional reforms include giving responsibility for labor policy and social security policy to a single ministry, and the creation of a department within the Ministry of Trade and Industry that would for the first time provide unified oversight of all state-owned firms.

At rank 1, Norway’s executive accountability rating is the OECD’s highest.

The public is generally well-informed about government policies, measures and operations. This is partly attributable to the country’s small size, but also to the population’s high level of education, the very high newspaper circulation rates and widespread Internet and TV use.

Parliamentary committees have the de facto power to obtain government documents and to summon ministers and experts.

Most political parties make proposals that are largely plausible. The government and the opposition parties listen carefully to the opinions expressed by business, farmers and union leaders.