Norway a shining example of how to manage resource revenues
KAMLOOPS — I’m having a bit of a socialist moment today. A somewhat different kind of socialist moment though, as I want to be a millionaire like every man woman and child is in Norway. I mean let’s face it, if you’re going to be a socialist, it might as well be a rich socialist.
So how did all these Norwegians become so wealthy? It was a pretty straightforward approach but it did take political will and an ability to think, plan and act beyond the constraints of election cycles. It required a government acting in the best interests of its citizens as opposed to its own short-term political interests.
In Norway, this type of long term planning became known as the Government Pension Fund (Global) of Norway. Some still refer to it by the old name, The Petroleum Fund, but regardless of title, it is the largest pension fund in Europe with a January 2017 valuation of 7.5 trillion NOK or about $1.1 trillion Canadian.
Unlike a true pension fund, Norway funds the plan through income from oil profits as opposed to personal contributions from Norwegians. The revenue comes in the form of corporate taxes, exploration licenses (leases) and from dividends paid by the state owned Statoil.