> From: THE NEW YORK TIMES INTERNATIONAL, Friday December 13, 1996 > > Front Page (bottom) > > > > > WELFARE'S SNUG COAT CUTS NORWEGIAN COLD > > By YOUSSEF M. IBRAHIM > > OSLO, Dec. 9 - Suffer from rheu- > matism? The Norwegian state will > send you to the Canary Islands for a > month of therapy, all expenses paid. > Husband walked out, leaving children to > raise? Not to worry. As a single mother > under the generous Norwegian welfare > system, you will get special subsidies > for the children and paid leave from your > job so you can stay home and rear them. > Take Dr. Sidsel Kreyberg, 42-year-old > pathologist. When her husband left her > in 1987, leaving her with two young > children, she was immediately embraced > by the state. > For nearly eight years, until both > children reached age 10, the state paid > her a pension. Other support systems > helped, including free day care, subsid- > ized housing and vacations, and free > medical and dental care. > The Government also footed the bill > for Dr. Kreyberg to fulfill her old > ambition of getting a Ph.D. in epidem- > ology at the University & Oslo. > Now she is off welfare and has a > better-paying job than before she went > on. The other day, she stood in her > living room overlooking a vista of > snow-covered forests and the Oslo Fjord. > She beamed at her daughter, Karoline, 12, > and son, Karsten, 10, and proclaimed, > "Look at the result." > The entire world, it seems, is dis- > mantling the welfare state, privatizing > the public sector, downsizing govern- > ment, reducing subsi- > > > [Picture #1. Poolside reading at Norway's > health center in the Canary Islands.] > > dies and cutting social programs that > were once sacrosanct. > From Europe to Africa, across most of > Latin America and even in the once > fabulously wealthy Arab oil countries, > governments plagued by soaring budget > deficits are everywhere embracing the > free-market gospel preached in the 1980's > by President Reagan and Prime Minister > Margaret Thatcher of Britain. > > Everywhere, that is, except Norway. > > Buoyed by an unending gush of oil > revenue and guided by a national commit- > ment to egalitarianism, Norway's 4.35 > million people are fattening the mother > of all welfare states. > Even business people -- including > those who export pulp, paper, lumber, > chemicals, fertilizers, aluminum and > transport machinery to the globalizing > world of dog-eat-dog capitalism -- join > in their nation's adherence to social > democracy. > In Norway, where individual tax rates > can climb above 50 percent, citizens > benefit from a number of entitlements and > a shrunken Workweek. > Inflation is below 2 percent. The > > Continued on Page A8, Column 1 > ---------------------------------------- > > IN WELFARE'S SNUG COAT, FEW FEEL NORWAY'S > COLD > > Continued From Page Al > > > unemployment rate is the lowest in > Europe. Economic growth in recent years > has ranged between 3 percent and 5 > percent. Oil exports are running at 3 > million barrels a day, second only to > Saudi Arabia's, and the petrodollars are > feeding a budget surplus this year of $6 > billion more than the Government's $61 > billion expenditure. > The Norwegian welfare cake, surely > the sweetest in the world today, includes > these ingredients: > *Annual stipends of $1,620 for every > Norwegian child under 17, which rise > slightly for every other child as a > family grows and rise still more if the > family lives in a remote part of the > country. > *Retirement pay, equivalent to in- > ------------------------- > > ONE COUNTRY EATS CAKE > WHILE THE REST OF THE > WORLD DOWNSIZES. > > ------------------------- > > dustrial workers' pensions, for all home- > makers, even those who have worked out- > side the home. > *Forty-two weeks of fully paid matern- > ity leave. > *Reimbursement for all medical costs > exceeding $187 a year per individual. > These benefits may be financed by oil, > but they are undergirded by the national > character. > Norwegians, with their profoundly > egalitarian persuasion, frown on wide > disparity in income. This permits one of > the highest personal-tax rates in the > world and provides the Government with > vast latitude for social engineering. > "It is a sense of solidarity," a > Western diplomat said. "High taxes > enjoy a great national consensus because > in a way it's like they see them as a > way to be saved from themselves." > > Norwegians have a word for their > anti-elitist views, Jantelaw, which means > nobody should start thinking he or she is > better than anybody else. Politicians > have lost their jobs for forgetting > this. > The disdain for the trappings of > wealth and power, which among other > things restricts executive pay and > mandates extensive workplace rules, meets > surprisingly little opposition from > business. > Henning Holstad, owner and president > of the Tiny Transport Company, says his > after-tax annual pay is about double the > $38,500 his workers average, compared > with multiples of 10 or more, and > sometimes 100 or more, in the United > States. > In addition to high personal income > taxes, Norway imposes a 23 percent sales > tax; gasoline costs $6 a gallon, and a > glass of beer in a bar goes for $8. > "It's enough for money to change hands > twice or three times for it to go back to > the Government and the welfare state," > Mr. Holstad said in an interview. > Business leaders do complain about > short workweeks and high overtime rates > and paid sick leaves of up to two weeks. > But they have made peace with the > system. > "We would like to fine-tune some > attitudes on sick leave, working hours > and minimum wage," said Karl Glad, > director general of the Confederation of > Norwegian Business and Industry, "but I > don't believe many businesses here think > it is worth taking the social risks > associated with radical change." > In fact labor in Norway, defying a > world trend, continues to wring con- > cessions from management. Having won > agreement to lower the retirement age to > 64 from 67, the unions are now pushing to > lower it to 62, at full pension. > The 165-member Parliament, dominated > by the Labor Party, is expected to > approve legislation soon for a "Lifelong > Learning" program, which would give > Norwegians a year off their jobs at full > pay every decade or so to hone their work > skills. The employers and the state would > split the cost of paying their salaries. > Even with so many social programs, > Norwegian business is doing quite well > for itself. It doesn't hurt that it has > one of the best educated and technologic- > ally savvy work forces in the world. It > certainly helps that Norway reduced the > corporate tax rate to 28 percent from 50 > percent four years ago. > To save on labor costs, Norwegian > companies have rapidly computerized their > operations. > "Ten years ago I had 750 book- > keepers," said Stein-Erik Hagen, 40, > chief executive of the Hakon Group, > Norway's largest supermarket chain. > "Today I employ only 150. Our goal is to > reduce much more." > In Hakon's ultramodern office build- > ing just outside Oslo, pots of free > coffee and plates of free fruit and cakes > are placed at strategic locations as an > extra perquisite for employees who work > in a building decorated with fine paint- > ings and sculpture. > Mr. Hagen recited the familiar > business complaints about high costs and > extensive regulations in Norway. But, > asked if he would favor abandoning his > country's approach for a British-style > model, he shook his head. > "We are a very social democratic > society," he said, "and we don't know > another system. It may be costly, but > there is social peace. There are no poor > people in Norway, and I don't want to > see any. There are no strikes, and no > high demand for salary increases. I want > to adjust the system, but only to > preserve it." > Health Minister Gudmund Hernes, who > also served in the Education and Finance > Ministries and who is considered the > Government's welfare guru, said the > country would never abandon its social > programs. > "Even if we didn't have oil," he > said, "we would not rethink the notion of > the welfare state." > Protecting workers against the va- > garies of the marketplace is only part of > it, Mr. Hernes said. In his view, the > state's investment in workers' health, > financial security and education pays big > economic dividends. For that reason, he > is a pioneer of the Lifelong Learning > plan. > "The most powerful drug you can > supply a person is education," he said. > "In Norway, we are schooling our > population to be at the forefront of > postindustrial society." > He scorns Britain's experiment in > downsizing government and world-wide > union-busting over the last quarter- > century. > "They are producing such dissatis- > faction and enormous strains on society," > he said. "That will come back to haunt > you." > Such talk might seem facile coming > from a Government that is propped up by > the exportation of more than a billion > barrels of oil a year to a thirsty world. > But what will happen when the oil money > runs out? > If policy makers have their way, it > never will. Starting this year, Norway > will divert its budget surplus -- $6 > billion of a total of $10 billion in oil > revenues -- to a new Petroleum Fund. The > money is to be invested outside the > country to avoid over-heating the > economy. By 2005, the Government hopes to > have accumulated $100 billion. > It is money that the conservative > minority wants to keep away from > welfare-benefits proponents. > "My party wants to lock it up," said > Ansgar Gabrielsen, a leading member of > the Conservative Party and Parliament's > social affairs committee. > "I don't trust politicians who have > money at their disposal. Here, if you > have money or no money, it doesn't make a > difference," he said. "We all go to the > same doctors; we all get the same > services." > "That is the good side of Norwegian > society," he added. "But it remains good > as long as people say, `What can I do > for the community?' > "Now, if everyone starts saying, > `What can the community do for me?' and > if this goes on without limits, the > system will go `poof.'" > > > >
