Norway

Ethnically, Norwegians are predominantly Germanic, although in the far north there are communities of Sami who came to the area more than 10,000 years ago, probably from central Asia. In recent years, Norway has become home to increasing numbers of immigrants, foreign workers, and asylum-seekers from various parts of the world. Immigrants now total nearly 300,000; some have obtained Norwegian citizenship.

Although the Evangelical Lutheran Church is the state church, Norway has complete religious freedom. Education is free through the university level and is compulsory from ages 6 to 16. At least 12 months of military service and training are required of every eligible male. Norway's health system includes free hospital care, physician's compensation, cash benefits during illness and pregnancy, and other medical and dental plans. There is a public pension system.

Norway is in the top rank of nations in the number of books printed per capita, even though Norwegian is one of the world's smallest language groups. Norway's most famous writer is the dramatist Henrik Ibsen. Artists Edvard Munch and Christian Krogh were Ibsen's contemporaries. Munch drew part of his inspiration from Europe and in turn exercised a strong influence on later European expressionists. Sculptor Gustav Vigeland has a permanent exhibition in the Vigeland Sculpture Park in Oslo. Musical development in Norway since Edvard Grieg has followed either native folk themes or, more recently, international trends.

The Viking period (9th to 11th centuries) was one of national unification and expansion. The Norwegian royal line died out in 1387, and the country entered a period of union with Denmark. By 1586, Norway had become part of the Danish Kingdom. In 1814, as a result of the Napoleonic wars, Norway was separated from Denmark and combined with Sweden. The union persisted until 1905, when Sweden recognized Norwegian independence.

Bronze statue of children playing in Narvik.

The Norwegian Government offered the throne of Norway to Danish Prince Carl in 1905. After a plebiscite approving the establishment of a monarchy, the Parliament unanimously elected him king. He took the name of Haakon VII, after the kings of independent Norway. Haakon died in 1957 and was succeeded by his son, Olav V, who died in January 1991. Upon Olav's death, his son Harald was crowned as King Harald V. Norway was a nonbelligerent during World War I, but as a result of the German invasion and occupation during World War II, Norwegians generally became skeptical of the concept of neutrality and turned instead to collective security. Norway was one of the signers of the North Atlantic Treaty in 1949 and was a founding member of the United Nations. The first UN General Secretary, Trygve Lie, was a Norwegian. Under the terms of the will of Alfred Nobel, the Storting (Parliament) elects the five members of the Norwegian Nobel Committee who award the Nobel Peace Prize to champions of peace.

Norway is one of the world's richest countries in per capita terms. It has an important stake in promoting a liberal environment for foreign trade. Its large shipping fleet is one of the most modern among maritime nations. Metals, pulp and paper products, chemicals, shipbuilding, and fishing are the most significant traditional industries.

Norway's emergence as a major oil and gas producer in the mid-1970s transformed the economy. Large sums of investment capital poured into the offshore oil sector, leading to greater increases in Norwegian production costs and wages than in the rest of western Europe up to the time of the global recovery of the mid-1980s. The influx of oil revenue also permitted Norway to expand an already extensive social welfare system. Norway has established a state Petroleum Fund which reached $67 billion at the end of 2001. The fund primarily will be used to help finance government programs once oil and gas resources become depleted. Norway is currently enjoying large foreign trade surpluses thanks to high oil prices. Unemployment remains currently low (3%-4% range), and the prospects for economic growth are encouraging thanks to the government's stimulative fiscal policy and economic recovery in the United States and Europe.

Church near Narvik.

Norway voted against joining the European Union (EU) in a 1994 referendum. With the exception of the agricultural and fisheries sectors, however, Norway enjoys free trade with the EU under the framework of the European Economic Area. This agreement aims to apply the four freedoms of the EU's internal market (goods, persons, services, and capital) to Norway. As a result, Norway normally adopts and implements most EU directives. Norwegian monetary policy is aimed at maintaining a stable exchange rate for the krone against European currencies, of which the "Euro" is a key operating parameter. Norway is not a member of the EU's Economic and Monetary Union and does not have a fixed exchange rate. Its principle trading partners are in the EU; the United States ranks sixth.

Energy Resources
Offshore hydrocarbon deposits were discovered in the 1960s, and development began in the 1970s. The growth of the petroleum sector has contributed significantly to Norwegian economic vitality. Current petroleum production capacity is more than 3 million barrels per day. Production has increased rapidly during the past several years as new fields are opened. Total production in 2001 was about 251 million cubic meters of oil equivalents, nearly 79% of which was crude oil. Hydropower provides nearly all of Norway's electricity, and all of the gas and most of the oil produced is exported. Production increased significantly in the 1990s as new fields come onstream.

Norway is the world's third-largest oil exporter and provides much of western Europe's crude oil and gas requirements. In 2001, Norwegian oil and gas exports accounted for 57% of total merchandise exports. In addition, offshore exploration and production have stimulated onshore economic activities. Foreign companies, including many American ones, participate actively in the petroleum sector.