ECONOMIC DIVERSIFICATION IN RESOURCE-BASED ECONOMIES: NORWAY EXPERIENCE

Abstract

The need for economic diversification in oil-rich countries is mainly explained by the following reasons. First, oil returns became seriously concerned by highly volatile and unstable oil prices. Second, there is an increasing pressure on all the countries to decrease their use of fossil fuels in order to avoid global warming from becoming worse and avoid the worst consequences of climate change. In current paper, we have considered the experience of Norway in diversifying the economy. In contrast with other resourcebased countries, Norway has not demanded oil incomes to relieve poverty-related issues or to sustain any particular political regime. The country has developed strong political, economic and legislation system in order to avoid resource-curse dependency.