General background: Despite its neutrality,
Norway was not able to avoid occupation by Germany in
World War II. In 1949, neutrality was abandoned and
Norway became a member of NATO. Discovery of oil and
gas in adjacent waters in the late 1960s boosted Norway's
economic fortunes. The current focus is on containing
spending on the extensive welfare system and planning
for the time when petroleum reserves are depleted. In
referenda held in 1972 and 1994, Norway rejected joining
the EU. Area comparative: Slightly larger
than New Mexico. Climate: Temperate
along coast, modified by North Atlantic Current; colder
interior with increased precipitation and colder summers;
rainy year-round on west coast. Terrain:
Glaciated; mostly high plateaus and rugged mountains
broken by fertile valleys; small, scattered plains;
coastline deeply indented by fjords; arctic tundra in
north.
Population: 4,525,116 (July 2002 est.)
Ethnic groups: Norwegian, Sami 20,000
Religions: Evangelical Lutheran 86% (state
church), other Protestant and Roman Catholic 3%, other
1%, none and unknown 10% (1997)
Language: Norwegian (official)
note: small Sami- and Finnish-speaking minorities
Government type: constitutional monarchy
Capital: Oslo
Legal system: Mixture of customary law, civil
law system, and common law traditions; Supreme Court
renders advisory opinions to legislature when asked;
accepts compulsory ICJ jurisdiction, with reservations.
Economic overview: The Norwegian economy is
a prosperous bastion of welfare capitalism, featuring
a combination of free market activity and government
intervention. The government controls key areas, such
as the vital petroleum sector (through large-scale
state enterprises). The country is richly endowed
with natural resources - petroleum, hydropower, fish,
forests, and minerals - and is highly dependent on
its oil production and international oil prices; in
1999, oil and gas accounted for 35% of exports. Only
Saudi Arabia and Russia export more oil than Norway.
Oslo opted to stay out of the EU during a referendum
in November 1994. Growth picked up in 2000 to 2.7%,
compared with the meager 0.8% of 1999, but fell back
to 1.3% in 2001. The government moved ahead with privatization
in 2000, even proposing the sale of up to one-third
of the 100% state-owned oil company Statoil. With
arguably the highest quality of life worldwide, Norwegians
still worry about that time in the next two decades
when the oil and gas begin to run out. Accordingly,
Norway has been saving its oil-boosted budget surpluses
in a Government Petroleum Fund, which is invested
abroad and now is valued at more than $43 billion.
Communication/Telephone system: Modern in all
respects; one of the most advanced telecommunications
networks in Europe.
Places of interest: Norway is a ruggedly beautiful
country of mountains, fjords and glaciers. It offers
incredible wilderness hiking, year-round skiing, and
some of the world's most scenic ferry, bus and train
rides. The 'Land of the Midnight Sun' has delightfully
long summer days, pleasantly low-key cities, unspoiled
fishing villages and rich historic sites that include
Viking ships and medieval stave churches.
Travel tips:
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