Norway  

Workers benefit from access to an extremely high level of physical capital, placing Norway in the top three countries on this variable. Furthermore, both unemployment and inflation rates are very low at 2% and 1%, respectively. At 39% of GDP, Norway’s domestic savings rate is high, and this coupled with moderate household expenditure indicates a stable domestic market. With less than 1% of loans defaulting and interest margins of 1.7 percentage points, the Norwegian banking sector is highly efficient. Norway’s export revenue is highly dependent on raw material exports and the country enjoys relatively strong terms of trade with its partners. Foreign direct investment in Norway is very low when compared globally, equalling only 1% of GDP, placing the country in the bottom 15 countries on this variable.

Barriers to entry for new businesses are low, with only four procedures necessary to start a business, leading to the start up of more than 18,000 new businesses in 2007. Value added in service industries is moderate, with Norway ranking only 64th on this variable. Norway has a well-developed internet infrastructure with a high bandwidth, and approximately 389 secure internet servers per one million people. Access to computers is also widespread, with approximately 63 personal computers per 100 capita. However, ICT exports, as a share of exported goods, remain less than 2% while high-tech exports are at 18%, placing Norway 50th and 22nd out of 104 countries, respectively. Innovation is also strong in Norway as the country benefits from a high level of royalty receipts, while R&D expenditure is moderately high, at 2.3% of GDP.

Norwegians enjoy full political and civil rights enabling them to participate in political processes and express their opinions. As a fully democratic country, Norway has high levels of political competition and sound regulation of political participation. Furthermore, Norway has significant political constraints, preventing rash or arbitrary policy changes, and a high level of open political competition among multiple parties in the executive branch. In addition, electoral processes are highly regulated, placing Norway first in this variable. Furthermore, Norway benefits from competition among political parties in the legislative branch, as well as an independent judiciary. The country’s regime stability is ranked 13th, with the last change in the political system having occurred more than 50 years ago.

Primary school enrolment is at 98% in Norway, placing the country 16th on this variable. In addition, classroom sizes are small with only 11 students per teacher, and Norway schools are gender equal. Secondary and higher education enrolment rates are also high, ranking Norway amongst the top 10 on both variables. Norway’s workforce, on average, is well educated with very high levels of secondary and tertiary education, ranking the country 11th and 14th, respectively. Furthermore, expenditure on education per primary and secondary student exceeds $18,000, ranking the country first on this variable.

Norway provides a high number of doctors and nurses per capita and has the highest possible score in terms of access to sanitation facilities. However, it has a relatively low number of hospital beds, with only 42 available per 10,000 people. Health-adjusted life expectancy in Norway is 72 years, ranking the country eighth, globally, with very low rates of malnourishment and infant mortality. Overall, 83% of Norwegian respondents are satisfied with their health, with as many as 95% claiming satisfaction with the quality of water, only one out of five respondents having experienced pain the previous day and 67% stating they are well rested.* However, the number of reported health problems is moderate, placing Norway 63rd on this variable.*

Norway faces few security challenges related to the presence of refugees or social groups with a history of discrimination or other grievance. Furthermore, the Norwegian government does not engage in practices such as torture or political violence against its own citizens and Norway has no problem with human flight from dangerous conditions. In addition, Norway has not suffered any casualties due to civil or ethnic war during 2008 and the homicide rate is comparatively low, with only one victim per 100,000 citizens. With low theft and assault rates of 12% and 3%, respectively, a high 86% of the population feel safe walking alone at night.*

Enforcement of the rule of law is universal and equally applied to all citizens, with Norway ranking second for this variable. The quality of the regulation of economic and commercial activity is also very high, showing efficiencies in the bureaucratic system, while the effectiveness of the civil service ranks fourth. Confidence in the military among Norwegians is high, while 54% of respondents believe local business is corrupt and only 32% think government is corrupt.* Moreover, roughly four in five respondents have confidence in the judicial system and the honesty of the elections.* Norway ranks first overall for freedom of political participation, which is defined as the ability of citizens to change the laws and officials that govern them.

Norwegian citizens have unconstrained freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Norwegian citizens scored second highest, globally, for levels of satisfaction with their freedom of choice in daily life.* Tolerance for ethnic minorities is very high, with 86% of respondents believing that Norway is a good place for such minorities.* Tolerance for immigrants is higher, with 89% of respondents finding Norway a good environment for them to live.*

In Norway, social supports are strong, with approximately 65% of respondents believing that others can be trusted, while as many as 95% think they can rely on family and friends.* Norwegians place a very high degree of importance on friends, with Norway ranking in the top five countries on this issue. The number of people who have donated money is above the global average, while 38% volunteered their time and 50% helped strangers.* However, group membership among Norwegians is lower: 30% are members of a religious organisation, 22% involved in arts organisations, 7% are affiliated with environmental groups, and 39% are members of sports organisations.

* Data taken from the Gallup World Poll

• Back to top