You are here

The Norwegian Trillion

In the 1990s, Norway set up the equivalent of what would have been "the mining tax", the public accumulation of a wealth fund to capture resource-based superprofits.

The Minerals Council of Australia objected to the idea and put aside $100 million war chest in negative advertising, and forced the Gillard government to capitulate after spending only $22 million. Australia, as a result, has lost a staggering $90 billion dollars in revenue.

Norway on the other hand, has gone from strength to strength, to the point that they now have over a million dollars in their wealth fund for every person in the country. Prudently invested, they have almost 1.4% of the total world's investment. Not bad for a sliver of a country with a population of 5 million.

These days, their biggest political head-ache is that they have TOO MUCH MONEY - whilst the rest of the world blinks with incredulity at such a prospect. So they've done a comedy show about managing this enormous slush fund.

All because they taxed their resource companies appropriately. And Australia didn't.

Commenting on this Blog entry will be automatically closed on February 18, 2019.