Why Norway is Becoming the World's Richest Country

Summary by Krater

An overview of how Norway's geography and history shaped its economic development, from historical maritime trade and hydroelectric power to its rise as a major oil and gas exporter and the creation of its massive sovereign wealth fund.

From the video

Answers: How did Norway become so wealthy without turning into a corrupt petrostate?

• Norway geography and demographics
• Hydroelectric power development in Norway
• Norwegian maritime culture and shipbuilding
• Oil and gas discoveries in the North Sea
• Establishment of the Norwegian Government Pension Fund Global
• Comparison of Norway to petrostates

What it concludes

• Norway's mountainous and cold geography made it historically sparse and poor for agriculture, leaving only 2.2 percent of land arable.
• Oil discoveries did not make Norway rich, but rather made an already wealthy nation even richer.
• Difficult terrain and jagged fjords created a maritime culture and fostered decentralized cooperation in shipping and shipbuilding.
• Hydroelectric power development in the early 20th century provided Norway with its first major economic boom and industrialization.
• Norway's state-owned ownership model for oil and gas ensured national control and prevented resource curse corruption.
• Norway's massive sovereign wealth fund and strict fiscal rules insulate the country from oil price fluctuations and fund a large portion of the government budget.