Managing Resource Abundance and Wealth The Norwegian Experience

Managing Resource Abundance and Wealth: The Norwegian Experience describes the sundry and significant challenges, both economic and political, facing petroleum-producing countries. The volume outlines the pitfalls that policymakers encounter in the aftermath of a major resource discovery, and what they can do to protect their countries from the most adverse consequences. These lessons are derived from two very different sources: The broader-if still underdeveloped-social science literature that examines the 'Paradox of Plenty' in its disparate forms; and the experience of a country that has successfully managed its natural resources over several decades. As a small country on the margins of Europe, Norway has stood up to powerful international interests in one of the world's most powerful industries. Norway has exerted sovereign control over its natural environment, and exploited its resources in a way that has delivered significant wealth to its citizens. This volume explains how Norway has largely avoided the 'Paradox of Plenty'. It aims to demonstrate the variety of policy tools that are available to states rich in natural resources, and how these tools can be adjusted to changing (domestic and international) contexts. It considers a number of questions, such as how countries need to administer and regulate the industry to consider the costs and benefits associated with various contract and licensing regimes, and fiscal arrangements; to maintain competitiveness and avoid becoming too dependent upon the sector; to maximize local content; and to protect the broader economy from the volatility of petroleum prices. The volume shows how the industry can be managed in a democratic, just, and ethical manner, and for the benefit of the general population.

Jonathon W. Moses is a Professor of Political Science at the Norwegian University of Science and Technology, where he has taught since 1993. He is also Chairman of the Board, Researcher and Consultant at the Center of Petroleum Management (CPM). His research interests concern how states can maintain political sovereignty in response to the many faces of economic globalization, and his recent books include Emigration and Political Development (Cambridge University Press, 2011). He gained his PhD from the University of California, Los Angeles in 1995. Bjørn Letnes is Managing Director at Center for Petroleum Management (CPM) and Associate Professor at the Norwegian University of Science and Technology (NTNU), in Trondheim Norway. He holds a PhD in Political Science and a Master of Science in Petroleum Engineering from NTNU. He has extensive experience working in the Norwegian petroleum industry, as a petroleum engineer, researcher, and management consultant. Since 2009, he has developed the research and consultancy company CPM and has worked with clients to manage petroleum operations at the corporate level as well as petroleum resources at the national level.