Can a Country Be Too Rich? Norway Is Finding Out
A contentious book argues that endless oil revenue and a sovereign wealth fund are making Norway increasingly bloated, unproductive and unhealthy.
Illustration: Ibrahim Rayintakath for Bloomberg
In 1969, Phillips Petroleum was poised to abandon exploration of the Norwegian continental shelf when the company decided to drill one last oil well — and hit the jackpot. The discovery made Norway one of the world’s richest countries. Its sovereign wealth fund, established to invest the money, now manages about $2 trillion, equivalent to roughly $340,000 for every Norwegian.
For years, oil revenue and the wealth fund have helped this tiny nation to enjoy low unemployment, low government debt and a wide social security net guaranteeing a high standard of living.