Why is NORWAY so RICH? - VisualPolitik EN

Summary

This video explores Norway's significant, yet often overlooked, influence on global capitalism. Beyond being a wealthy and egalitarian nation, Norway controls a massive sovereign wealth fund, investing in major global corporations like Apple, Facebook, and Tesla. With a unique model of state capitalism, Norway uses its oil wealth to manage a $1 trillion fund, influencing corporate policies on ethics, gender gaps, and executive pay. The video highlights how Norway’s economic strategy and shareholder power make it a quiet but powerful player in the world economy.

Takeaways

• 💰 Norway is a major player in global capitalism, with significant influence on international businesses.
• 🎸 Norway is culturally unique, with Satanic Black Metal bands like Gorgoroth and Mayhem regularly topping the charts.
• 🏦 The Government of Norway controls a massive sovereign wealth fund, which owns major shares in corporations like Apple, Facebook, and Tesla.
• 🌍 Norway’s population is small, but the country holds 1.5% of all global stocks, making it highly influential in corporate governance.
• 🛢️ Norway’s wealth is largely based on oil, but unlike other oil-rich nations, it has managed its resources conservatively, investing profits into a sovereign wealth fund.
• 📊 Norway follows a model of 'state capitalism,' where the government controls key industries like Statoil (now Equinor) while acting like a private investor.
• 🔒 Norway’s sovereign wealth fund is used for investment diversification, but the government cannot touch the capital, only the returns.
• 🗳️ Norway uses its stake in major corporations to push for ethical business practices, influencing issues like wage gaps and corporate governance.
• ❌ Norway maintains a blacklist of companies it avoids investing in, including those involved in arms production, tobacco, and corruption.
• 📈 Norway’s economic success is attributed to careful, long-term planning, avoiding the 'Dutch Disease' that affects many resource-dependent countries.

Q & A

What is the main claim made about Norway in the video?

The video claims that Norway is a powerful player in global capitalism, with significant influence through its government-controlled hedge fund, despite its small population.

How does Norway's approach to its oil wealth differ from other oil-rich countries?

Unlike many oil-rich countries that spend lavishly or rely heavily on oil, Norway invested its oil profits into a sovereign wealth fund and diversified its economy, maintaining strict regulations and production limits.

What is 'state capitalism' as it applies to Norway?

State capitalism in Norway means that the government controls significant parts of the economy, such as its oil industry, but operates these state-owned companies like private enterprises with a focus on profitability and sustainability.

What is the 'Dutch Disease' and how did Norway avoid it?

The 'Dutch Disease' refers to economic instability caused by over-reliance on a single resource, like oil. Norway avoided this by regulating its oil production, imposing high taxes on oil companies, and investing the revenue into a diversified sovereign wealth fund.

How does Norway's sovereign wealth fund influence international businesses?

Norway’s sovereign wealth fund holds significant shares in many major corporations like Apple, Facebook, and Tesla, allowing it to participate in shareholder meetings and influence corporate policies, particularly in areas like executive pay and ethical practices.

What is the 'Oil Fund' and how is it managed?

The 'Oil Fund,' officially known as the Government Pension Fund of Norway, is a sovereign wealth fund managed by the Norwegian Central Bank. It invests in global markets, with strict rules preventing the use of its capital for public spending, ensuring its growth and sustainability.

How does Norway ensure that its oil wealth is not wasted?

Norway ensures that its oil wealth is not wasted by investing oil profits into the Oil Fund and imposing strict regulations on oil production, limiting government spending, and avoiding over-reliance on oil by focusing on long-term sustainability.

What role does Norway play in corporate decision-making globally?

Through its sovereign wealth fund, Norway plays an active role in corporate decision-making by influencing key issues like gender equality, fake news policies, and executive compensation at shareholder meetings of major global corporations.

How did Norway manage to remain stable during oil price fluctuations?

Norway remained stable during oil price fluctuations by setting aside oil revenue in the Oil Fund, which is invested globally. This diversification protected the economy from being overly dependent on volatile oil prices.

Why is Norway described as having a 'political weapon' through its investments?

Norway's investments are considered a 'political weapon' because the country uses its shareholder influence in global companies to push for ethical corporate policies, such as rejecting investments in weapon manufacturers and tobacco producers, thereby shaping global corporate behavior.