Saturday, November 24, 2018

Why is NORWAY so RICH? - VisualPolitik EN

State capitalism works, and China and Norway are good examples of this. Britain privatized all its oil companies and the elite squirreled the wealth into off -shore tax havens, while Norway did the opposite. Today Norway is rich while the UK is poor, so we are told, so it's never ending austerity. We're always being told that we are living beyond our means.

Norway is one of the World’s wealthiest countries. Also they have really small inequality between rich and poor and a big welfare state. Part of this wealthy lifestyle can be explained with their enormous oil reserves, located on the Nord Sea. But… this is not the only one.
In fact, Norway has managed their natural wealth on a very specific way: state capitalism. This means: Government control a big share of the economy but, then again, it behaves as a business: they care about efficiency and productivity, save money and even… invest it in the stock market!
In fact, Norway is not just a wealthy country. It is also one with a big sway on international finance. Why? Because the Norwegian Central Bank invest all the oil profits on the stock market. This is the so called ‘Norway’s sovereign wealth fund’ or the ‘Norwegian pension fund’. This country invest more than 1 TRILLION dollars in companies from all over the world. But how does this system work? In this video, we will tell you how.

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