Natural Resources and Environmental Sustainability of Norway

Today we are focusing on Norway.  Norway has ample energy resources that are driving its oil and gas exports.  It may seem odd since they deal with oil and gas, but Norway is also a leader in its fish and forestry sustainability as well.  The government has taken many steps to ensure that the fish and forestry industries will continue to produce for years to come. 

In a paper found online here: https://www.regjeringen.no/globalassets/upload/fin/berekraftig/nat_action.pdf the authors layout the plan on how the Norwegian government is going to do this.  Page 33 section 1.5.4 describes the main objectives of the government in relations to natural resources.  There are specific sections for energy production and use, fisheries and aquaculture, forestry and agriculture.  Each section lists many steps and efforts specific to each topic. 

Norway is also ramping up efforts to reduce the effects of hazardous substances.  Their main objectives in this area are to limit chemical production and reduce emissions.  The government has increased their awareness of emissions and have created new regulations and restrictions on industries that are the biggest offenders. 

Since Norway has one of the lowest population densities among OECD members (https://www.oecd.org/env/country-reviews/2450976.pdf) they have expansive forestry and some of the most varied wildlife in Europe.  This has led to the creation of a national forest program to help protect this resource (https://www.regjeringen.no/globalassets/upload/fin/berekraftig/nat_action.pdf page 35).

Just three days ago, February 22, 2017, Norway was crowned as the “World’s Best Democracy” (http://www.nbcnews.com/storyline/trumps-address-to-congress/norway-world-s-best-democracy-we-asked-its-people-why-n720151) so it shows both that the people care and that the politicians listen.  In the article by Alexander Smith and Ben Adams, they describe that Norway has built an “$880 billion rainy-day piggy bank” because of their offshore oil strike in the 1960’s. 

This money has allowed the government to invest in alternative fuel research (which seems counterproductive to their financial well-being) as well as education and healthcare services for their citizens.  This is in attempt to sustain their current position as well as preserve their natural resources for future generations to enjoy.

Natural Resources and Environmental Sustainability of the UK

Today, let’s talk about the UK and how it pertains to natural resources and sustainability. Geological natural resources for the UK include coal, petroleum, natural gas, limestone, chalk, gypsum, silica, rock salt, china clay, iron ore, tin, silver, gold, and lead. Agricultural natural resources for the United Kingdom includes arable land, wheat, barely, and sheep   (https://en.wikipedia.org/wiki/Geography_of_the_United_Kingdom).

According to the OECD, the United Kingdom has been making changes to their environmental policies since the late 1980s. They also are committed to the highest levels of government to the environmental protection and sustainable development. In terms of future progress the UK plans on making to change there are 4 areas they plan on improving. The 4 areas are reduction of the pollution burden, nature conservation and landscape preservation, integration of environmental and economic decision making, and international co-operation.  To see what the OECD’s plan is for these 4 areas, click here: https://www.oecd.org/env/country-reviews/2452198.pdf

Here is a chart from the Climate Change Agreements company, click here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/587616/LIT_8080.pdf

. This chart shows The Environmental Agency certifications that the textiles energy intensive sector has gotten and plans to get in the United Kingdom from July 1^st, 2015 until June 30, 2017.

Hanseatic Countries Employment Statistics

Belarus seems to have a strong base of workers to draw from and a very low unemployment rate.  The official rate is less than 1% for the country.  It may be a bit misleading because 6.1% of people called themselves unemployed during a census in 2009.  With that said, Belarus has almost 4.5 million people in their work force.  Seven percent of the country’s population lives below the poverty line.  Of the employed workforce; 46% are in industry, 44% are in services, and 10% are in agriculture.  To read more on the statistics mentioned in this paragraph and on Belarus in general please go to this website: https://en.wikipedia.org/wiki/Belarus   

Belgium has an 8.5% unemployment rate with 5.255 million people in their workforce.  Fifteen percent of the country’s population lives below the poverty line.  Of the workforce 80% are in services, 19% are in industry and only 1% work in agriculture.  To read more on the statistics mentioned in this paragraph and on Belgium please go to this website: https://en.wikipedia.org/wiki/Belgium

Estonia has a 6.984% unemployment rate with 675,900 people in the countries workforce.  Eighteen percent of the country’s population lives below the poverty line.  Seventy-six percent of the workforce is in services, 20% is in industry, and 4% are in agriculture.  To read more on the statistics mentioned in this paragraph and on Estonia please go to this website: https://en.wikipedia.org/wiki/Estonia

Germany has a 3.9% unemployment rate as of November 2016.  There are 43.5 million people in their workforce.  Fifteen percent of the country’s population lives below the poverty line.  Of these employed workers, 74% are in services, 24% in industry, and 2% in agriculture.  To read more on the statistics mentioned in this paragraph and on Germany please go to this website: https://en.wikipedia.org/wiki/Germany

Latvia has a 9.1% unemployment rate with 900,000 people in their workforce.  There are 67% of the workers in services, 24% in industry, and 9% in agriculture.  To read more on the statistics mentioned in this paragraph and on Latvia please go to this website: https://en.wikipedia.org/wiki/Latvia

Lithuania has a 7.5% unemployment rate with 1.5 million people in their workforce.  Twenty-two percent of the country’s population lives below the poverty line.  Seventy-four percent of their workforce works in services, 17% in industry, and 9% in agriculture.  To read more on the statistics mentioned in this paragraph and on Lithuania please go to this website: https://en.wikipedia.org/wiki/Lithuania  

The Netherlands unemployment rate went from 5.4% in 2016 to 5.3% in 2017. In 2011, there were 480 thousand people who were unemployed and 8511 thousand employed people. In 2016, the jobless rate was 6.5%. The unemployed rate in the Netherlands averaged about 5.5% from 2003 to 2017, it was the highest in 2014 at 7.9% and the lowest was 2008 at 3.6%. To read more about the Netherlands’s unemployment rates and to view the graphs, click here: http://www.tradingeconomics.com/netherlands/unemployment-rate

Norway has an unemployment rate of 4.8%. 68% of Norway’s population is employed between the ages of 15-74. 9.5% of the population receives disability pension between the ages of 18-66. The government employs 30# of the laboring force. To learn more about Norway, click here: https://en.wikipedia.org/wiki/Norway

In 2016, Poland’s unemployment rate went from 8.30% to 8.70%. Between 1990 and 2017 the unemployment rate has averaged 13.30%, the highest it has been was 20.70% in 2003, and the lowest was .30% in 1990. To read more about Poland’s unemployment rates and to view the graphs, click here: http://www.tradingeconomics.com/poland/unemployment-rate

Russia’s average nominal salary Russia in 2013 was $967 American dollars a month and by 2014 it was $980 American dollars a month. In 2011, about 12.8% of Russians lived below the national poverty line. Unemployment rate went from 12.4% in 1999 to 5.4% in 2014. And the middle class grew from 8 million to 104 million in 13 years. To learn more about Russia, click here: https://en.wikipedia.org/wiki/Russia

About 4.5 million residents in Sweden are employed and about a third of them have completed tertiary education. Sweden has a GDP per hours worked was $31 American dollars in 2006. A typical Sweden worker only gets 40% of their labor cost after tax wedges because total tax collected by Sweden peaked to 52.3% in 1990. To learn more about Sweden, click here: https://en.wikipedia.org/wiki/Sweden

The United Kingdom space industry bought in over 29,000 employees with a growing rate of 7.5% annually. The goal is for the industry to be at 40bn by 2030. This captures 10% share of the 250bn in the world market of commercial space technology. In 2012, United Kingdom unemployment rate rose from 5.2% in 2008 to 7.6%. For young adults between 18-24 years old their employment rates went from 11.9% to 22.5% in 1992 but has since gone down to 14.2% in 2015. 60% of the median household income is the defining poverty line in the UK. Between 2007 and 2008, 13.5 million people lived below the poverty line which is only 22% of the total population. To read more about the United Kingdom, click here: https://en.wikipedia.org/wiki/United_Kingdom

Hanseatic Countries and International Institutions

- Belarus had free trade with Russia in the mid-1990’s and growth was rapid. Russia continues to be its largest trade partner.  Many raw supplies are imported from Russia; then turned into finished products and either exported back to Russia or sent elsewhere.  Along with the Union with Russia; they are involved in the Eurasian Economic Community.  The graph on the Belarus Wikipedia site (https://en.wikipedia.org/wiki/Belarus) shows a staggering graphic of the growth of GDP vs. the inflation rate.  It is alarming how these numbers have trended the past four years.  You can see it here: https://en.wikipedia.org/wiki/Belarus#/media/File:Belarus__Annual_GDP_and_CPI_rates_2001-2013.jpg.  They are members of CIS (Commonwealth of Independent States).  

- Belgium is one of the founding members of the European Union and is a strong supporter of an open economy.  The country is highly industrialized but is now more focused on services as opposed to manufactured goods.  They still export a large number of goods, but the economy is heavily focused on services.  The European Union and NATO (North Atlantic Treaty Organization) are headquartered in Belgium.  It is in the heart of the European economy and has experienced steady growth.  Due to its location it receives many travelers and has become a popular location because it has a well-developed transportation system.  They are members of EU, WTO, and OECD.  To read more on Belgium you can go to this website: https://en.wikipedia.org/wiki/Belgium

- Estonia is part of the European Union and their economic stability and growth is very closely tied to the economies of Sweden and Finland.  Estonia has had a balanced budget for many years and is usually in surplus.  Energy is its main export.  Most of which is produced by oil shale.  They are members of EU, WTO, and OECD.  To read more on Estonia you can go to this website: https://en.wikipedia.org/wiki/Estonia

- Germany has a social market economy, which is the largest national economy in Europe.  It is highly involved in information technology along with still being a large player in the automotive industry.  Their main exports are automobiles, chemicals, transport equipment, and electronic products to name a few.  They are members of EU, WTO, and OECD.  To read more on Germany you can go to this website: https://en.wikipedia.org/wiki/Germany

- Latvia has had to undertake a restructuring of their economy since 2009.  Many businesses in a multitude of industries were turned over to the state and now most have been returned to the private sector.  The government still is in control of the largest energy company, an oil transportation company, and the country’s largest telecom company.  It has no plans to privatize these companies at this time.  This has led to stability for the government and the economy.  However it is still effected by slow foreign investments due to laws that make it difficult to do so.  They are members of EU and WTO.  To read more on Latvia you can go to this website: https://en.wikipedia.org/wiki/Latvia

- Lithuania was called the Baltic Tiger pre-2009 because of their economic performance, but then a dramatic decline hit the country.  It is slowly rebuilding its economy with an emphasis on biotechnology.  The country has a flat tax system where both individuals and corporations are tax at a 15% rate.  This has drawn many companies to invest there.  Their main exports are mineral products, electrical equipment, and chemical products.  They are members of EU and WTO.  To read more on Lithuania you can go to this website: https://en.wikipedia.org/wiki/Lithuania  

- The Netherlands have very close ties to Germany, Belgium, UK, United States, France, Italy, China, and Russia. It was ranked the 3^rd in the Global Enabling Trade Report in 2014 and it is in the top 10 of leading exporting countries. Foodstuffs is the largest sector. Some other industries included are chemicals, metallurgy, machinery, electrical goods, trade, service, and tourism. To read more about the Netherlands, click here: https://en.wikipedia.org/wiki/Netherlands

- Norway is the second wealthiest country in the world when it comes to monetary value. They are also the second highest GDP per capita in the European countries and 6^th in the GDP per capita in the world. They are a part of the OECD organization and in 2013, they are ranked the 4^th equalized Better Life Index. Norway has a mixed economy – a prosperous capitalist welfare state and social democracy this features a combination of free market activity and large state ownership. To read more about Norway, click here: https://en.wikipedia.org/wiki/Norway

- Poland has connections to the EU; Poland is considered the fastest growing country in the EU. Germany is their main partner in the trading business. It is a market-based economy with major exports being machinery, furniture, food products, clothing, shoes, and cosmetics. Their sensitive sectors include coal, steel, rail transport, and energy. The private farms in the agricultural sector has tons of potential to become the leading producer in the EU. To read more about Poland, click here: https://en.wikipedia.org/wiki/Poland

- Russia’s economy is a developed, high –income market. It has tons of natural resources like oil and natural gas. Russia is the 15^th largest economy in the nominal GDP and 6^th in the PPP. 80% of Russian exports are made up of oil, natural gas, metals, and timbers. Unfortunately, Russia has 12.8% of their residences under the poverty line. In 2014, their unemployment rate was 5.4%. To read more about Russia, click here: https://en.wikipedia.org/wiki/Russia

- Sweden has an export-oriented mixed economy. Sweden is strongly affiliated with OECD and has connections with the United States, Norway, the UK, Denmark, and Finland. They have a strong importance for foreign trade, trading timber, hydropower and iron ore constitute. Their engineering sector makes up half of their output and exports. But, telecommunications, automotive industry and pharmaceutical industry also play a great part of the output and export. To learn more about Sweden, click here: https://en.wikipedia.org/wiki/Sweden

- United Kingdom is the 5^th largest national economy in GDP and 9^th largest in the world measured by PPP. London's one of the top three command centers of the global economy, New York and Tokyo are the first two. Tourism plays a huge role in the British economy, the UK is the 6^th major tourist destination. The UK is part of the EU organization. To learn more about the United Kingdom you can read here: https://en.wikipedia.org/wiki/United_Kingdom

Welcome!

You may be asking yourself, what is Hanseatic? And how does it relate to Northern Europe and the Baltic Sea?  Good questions.

Hanseatic is the common term for a trading alliance between northern European countries between the 13^th and 17^th centuries.  The region spans from the Baltic Sea to the North Sea in northern Europe.  The countries involved in the agreement were vast and have changed since the times of the agreement.  These countries are now the countries of:

-        Belarus

-        Belgium

-        Estonia

-        Germany

-        Latvia

-        Lithuania

-        Netherlands

-        Norway

-        Poland

-        Russia

-        Sweden

-        United Kingdom

Over the course of this semester this team will bring you up-to-date on how the countries are faring in international business.  We may not get to all aspects of each country, but we will cover the highlights of each country, what they do well, and where there are opportunities for growth.

There will be a comment section so please leave us a note and/or your feedback.