The OECD advises Norway to retain the welfare state

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For several years, the Organisation for Economic Co-operation and Development (OECD) has advised Norway to slim down the public sector, and cut taxes. Now they warn against building the welfare state, according to a new report.


‘Fiscal reforms should not aim at reducing the scope of Norway’s welfare systems and public services. This is crucial for the country’s socioeconomic model, and plays a decisive role in making economic growth inclusive and ensuring prosperity,’ the report said.

According to Finansavisen newspaper, OECD Norway is in a position to find a growth-enhancing tax model, ensure a competent workforce, and deregulate to make it easier to conduct economic activity.

Chief economist, Øystein Dørum of NHO referred to Perspective.

‘It clearly stated that if we are to preserve the oil fund for future generations, then there isn’t enough money, given the existing tax rate and resource utilisation, to maintain the level of welfare schemes.’

His conclusion is in line with this.

‘We can’t maintain welfare systems unless we do something. NHO has no ambition to build these schemes, and it would be strange if the nation became richer and we still built welfare structures.

But the maths doesn’t look like changing today’, he told the newspaper.

©  NTB Scanpix / Norway Today