Norway

Norway achieves the top rank in Comparative Liveability, scoring consistently high marks across all the indicators. However, the country scores only 26th place in Economic Competitiveness, due to an exceptionally low business ownership rate, signalling low levels of entrepreneurship. This places Norway in 14th place overall, tied with Canada, France, the UK and Belgium.

Norway scores well on the majority of economic performance indicators. It has a welfare capitalist model similar to its Scandinavian neighbours, balancing liberal market conditions alongside government intervention. Norway is the third largest oil exporter in the world after Russia and Saudi Arabia, and public coffers are currently seeing the benefits of record oil prices. Norway is also a large net producer of natural gas, which, as with the oil industry, is controlled by the government. (However, at Norway’s high per capital income levels, and given the country’s strong political and economic institutions, dependence on these types of exports is unlikely to lead to the problems faced by poorer countries).

Norway enjoys a superb reputation for governance, with its scores for regulatory quality and government effectiveness among the highest in the world. Its restrained, long-term approach to economic planning is evident from the Government Petroleum Fund, a reserve of over $250 billion derived from oil- and gas-related budget surpluses. Other natural resource-based industries such as hydropower and fisheries add to Norway’s positive trade balance.

Norway’s excellent mass education system produces workers with on average 4.88 years of secondary education, and high levels of capital investment bode well for future growth in material wealth. Going forward, movements in relative price levels suggest weaknesses in levels of competitiveness, a possible challenge for the Norwegian economy. Exceptionally low business ownership rates, when compared to the Eurozone, also suggest low levels of internal competition and entrepreneurship.

The quality of life in Norway is unrivalled. Annual income levels of over US$37,700 stand alongside the United States as the highest in the world. Unemployment levels are also among the lowest in Europe.

However, these are not the only factors driving Norway’s high Comparative Liveability rank. Health-adjusted life expectancy is among the highest in the world, with the average Norwegian living until around 79 years old. Careful management of the environment enables Norway’s citizens to enjoy their naturally abundant surroundings fully. The only complaint registered in the Index is the severe cold in winter, but this has few implications at this level of income.

Norway has created a world-class model of modern, effective government. Transparency, control of corruption and the protection of civil liberties all score exceptionally highly. In terms of equality of opportunity, Norway tops the Index, and women’s political representation and personal income are particular strengths.

Norway’s stellar performance continues into community and family life. Levels of social trust are on par with Sweden and Denmark as the world’s highest. High divorce rates are the only major concern highlighted in the Index. Religion follows the same trend as other European countries, with strong protections on religious freedoms but low rates of personal religious affiliation.