Norway's indigenous values

Thriving Norway Provides an Economics LessonWith a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state.

And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent and its ledger is entirely free of debt.How did Norway achieve this success?Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world, despite losing 23 percent last year because of investments that declined.

Norway’s relative frugality stands in stark contrast to Britain, which spent most of its North Sea oil revenue—and more—during the boom years. Government spending rose to 47 percent of G.D.P., from 42 percent in 2003. By comparison, public spending in Norway fell to 40 percent from 48 percent of G.D.P.

“The U.S. and the U.K. have no sense of guilt,” said Anders Aslund, an expert on Scandinavia at the Peterson Institute for International Economics in Washington. “But in Norway, there is instead a sense of virtue. If you are given a lot, you have a responsibility.”

Eirik Wekre, an economist who writes thrillers in his spare time, describes Norwegians’ feelings about debt this way: “We cannot spend this money now; it would be stealing from future generations.”Comment:  This is my impression of how a modern Native nation based on traditional values would operate. Develop but don't deplete the land's natural resources. Invest prudently in rainy-day funds. Closely regulate the excesses of capitalism. Make sure no child or elder is left behind. Don't live ostentatiously or flaunt your wealth. Think of what's best for future generations, not for yourselves.

Such nations might've evolved out of traditional Indian cultures if Columbus and company hadn't interfered. Even today, I think many of today's Indian nations try to follow this model. It's probably tough when the surrounding culture constantly tells them to "Buy! Spend! Get Rich Quick!"

For more on the subject, see The Best Country in the World (Hint:  It Isn't the USA).