DOCSLIB.ORG

Poverty in Mozambique Discourse, Analysis and Monitoring

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Poverty in Mozambique Discourse, Analysis and Monitoring CMIREPORT Poverty in Mozambique Discourse, Analysis and Monitoring Suggestions for National Stakeholders and the Donor Community Jan Isaksen (team leder) Anette Staaland Bernhard Weimer R 2005: 9 Poverty in Mozambique Discourse, Analysis and Monitoring Suggestions for National Stakeholders and the Donor Community Jan Isaksen (team leader) Anette Staaland Bernhard Weimer R 2005: 9 CMI Reports This series can be ordered from: Chr. Michelsen Institute P.O. Box 6033 Postterminalen, N-5892 Bergen, Norway Tel: + 47 55 57 40 00 Fax: + 47 55 57 41 66 E-mail: [email protected] www.cmi.no Price: NOK 50 ISSN 0805-505X ISBN 82-8062-118-0 This report is also available at: www.cmi.no/publications Indexing terms Poverty Research Mozambique Project number 25021 Project title Norad: Poverty analysis & monitoring - CMI REPORT POVERTY IN MOZAMBIQUE R 2005-9 Contents EXECUTIVE SUMMARY .............................................................................................................................................V ACRONYMS AND ABBREVIATIONS .....................................................................................................................X INTRODUCTION..............................................................................................................................................................1 PART I: INSTITUTIONS, ANALYSIS AND ISSUES IN MOZAMBIQUE ............................................................3 1. BACKGROUND .......................................................................................................................................................5 2. POVERTY IN MOZAMBIQUE: DATA, INSTITUTIONS AND ANALYSIS .......................................9 2.1 GENERATION OF DATA......................................................................................................................................9 2.2 POLICY ANALYSIS INSTITUTIONS..................................................................................................................10 2.2.1 Governmental Institutions........................................................................................................................ 10 2.2.2 Academic, Research and Training Institutes........................................................................................ 12 2.2.3 Civil Society Organisations (CSOs) and the Private Sector NGOs.................................................. 13 2.2.4 Donors......................................................................................................................................................... 14 2.2.5 Poverty Observatory (PO) ....................................................................................................................... 15 2.2.6 Second and Third Tier Government: Nampula Province................................................................... 15 2.2.7 Consultancies............................................................................................................................................. 16 2.3 IMPORTANT POLICY DOCUMENTS.................................................................................................................17 2.3.1 Poverty and Well-Being in Mozambique: IAF and the Second National Assessment................... 17 2.3.2 The Annual Poverty Report 2004............................................................................................................ 20 2.3.3 Balanço do Plano Económico e Social 2004........................................................................................ 21 3. DATA, INSTITUTIONS AND ANALYSIS: PRESENT AND EMERGING ISSUES ....................... 23 3.1 DATA.................................................................................................................................................................23 3.1.1 Present Situation........................................................................................................................................ 23 3.1.2Emerging issues............................................................................................................................................... 24 3.2 STUDIES.............................................................................................................................................................25 3.2.1 Present Situation........................................................................................................................................ 25 3.3.2 Emerging Issues......................................................................................................................................... 26 3.3 INSTITUTIONS...................................................................................................................................................27 3.3.1 Present Situation........................................................................................................................................ 27 3.3.2 Emerging Issues......................................................................................................................................... 28 4. WAYS OF SUPPORTING POVERTY RESEARCH IN MOZAMBIQUE .......................................... 29 4.1.1 Research Cooperation .............................................................................................................................. 29 4.1.2 A Centre for Poverty Documentation..................................................................................................... 33 4.1.3 Capacity Building, Training, Exchange of Personnel......................................................................... 35 4.1.4 Institution Building.................................................................................................................................... 36 4.1.5 Pluralistic Research and Discussion..................................................................................................... 39 PART II: NORWAY’S ROLE ....................................................................................................................................... 43 5. NORWEGIAN INSTITUTIONS AND RESEARCH.................................................................................. 45 5.1 INTRODUCTION.................................................................................................................................................45 5.2 NORWEGIAN INSTITUTIONS INVOLVED IN POVERTY RESEARCH..............................................................46 5.3 POVERTY RESEARCH RELATED TO THE ENERGY, HEALTH AND FISHERIES SECTORS...........................47 5.4 INSTITUTIONS AND RESEARCHERS WITH EXPERIENCE OF MOZAMBIQUE ...............................................50 5.5 CONCLUSION ....................................................................................................................................................52 iii CMI REPORT POVERTY IN MOZAMBIQUE R 2005-9 6. ROLES FOR NORWAY: MODALITIES AND PROJECTS ................................................................... 53 6.1 RESEARCH COOPERATION ..............................................................................................................................53 6.2 A CENTRE FOR DOCUMENTATION.................................................................................................................57 6.3 CAPACITY BUILDING, TRAINING, THE EXCHANGE OF PERSONNEL..........................................................57 6.4 INSTITUTION BUILDING...................................................................................................................................58 6.5 A LANGUAGE CONSTRAINT?..........................................................................................................................59 FIRST STEPS.....................................................................................................................................................................59 REFERENCES....................................................................................................................................................................62 ANNEX 1. TERMS OF REFERENCE...................................................................................................................... 63 ANNEX 2: TEAM FIELDWORK AND INTERVIEWS IN MOZAMBIQUE.............................................. 66 ANNEX 3: POVERTY IN MOZAMBIQUE: INSTITUTIONS, DATA AND ANALYSIS ........................ 71 3.1 DATA..........................................................................................................................................................................71 3.1.1 Instituto Nacional de Estatística (INE) and the National Statistical System.................................. 72 3.1.2 Banco de Moçambique (BM)........................................................................................................................ 73 3.2 POLICY ANALYSIS....................................................................................................................................................73 3.2.1 Governmental Institutions............................................................................................................................ 73 3.2.2 Academic Institutions: University and Research Institutes.................................................................... 77 3.2.3 Independent Research and Training Institutes, Consultancies.............................................................. 78
Load more

Recommended publications
  • Combating Child Poverty Through Measures Promoting the Socio
    comment paper Norway Peer Review on combating child poverty, Belgium 2012 Combating child poverty through measures promoting the socio-cultural participation of clients of the Public Centres of Social Action/Welfare (Brussels, 20-21 September 2012) Comment paper Norway1 Anne Skevik Grødem Fafo 1. A brief assessment of the possible relevance and the learning value of the Belgian policy to Norway On child poverty in Norway Norway enjoys low levels of child poverty, compared to most other countries in Europe. By 2010, 14.6% of children in Norway were at risk of poverty and social exclusion (Eurostat 2012), which was the third lowest national rate among the countries compared. Moreover, Norway is one in relatively few countries in this study where children have a lower risk of poverty than the population at large. Also when measuring child deprivation, that is, the number of children lacking access to central goods – living in poor housing, wearing second-hand clothes, not celebrating special occasions – the proportion is very low in Norway (de Neubourg et al. 2012). Although Norway is a relatively equitable society, the economic disparities have risen somewhat over the past decades, and the number of children in low-income households has risen. Children in families with immigrant background are especially at risk. Rather than being an issue of deep material deprivation, child poverty in Norway is about inequalities touching issues like belonging, participation, and identity. Promoting socio-cultural participation is therefore an important topic in Norway, no less than in other countries where children experience poverty. Poverty has been relatively high on the political agenda in Norway for more than 10 years.
    [Show full text]
  • Faith and Human Rights
    Human rights—and the related instruments and mechanisms—are tools for the DOC 51 promotion of justice and the protection of the dignity of all human beings, each of whom bears the image of God. The Lutheran World Federation (LWF) therefore LWF Documentation sees human rights work as an important part of an holistic Christian ministry. Many 51/2006 individual members of Lutheran churches around the world are active participants in the struggle for human rights. This volume is a collection of essays and articles by some of these members of the Lutheran family, illustrating their experiences and concerns, the ways in which they are working for human rights in their different contexts, and how they relate this work Faith and Human Rights to their faith principles. Their writings offer inspiration and examples to others who may feel called to a human rights ministry. The LWF is a global communion of Christian churches in the Lutheran tradition. Founded in 1947 in Lund, Sweden, the LWF now has 140 member churches in 78 countries all over the world, representing 66.2 million Christians. Faith and Human Rights Voices from the Lutheran Communion LWF LWF Documentation No. 51/06 Documentation No. Lutheran University Press The Lutheran World Federation – A Communion of Churches Documentation 51 cover-E.indd 1 22/03/2007 03:20:19 PM DTS-Studies-201002-text.indd 10 02/03/2011 15:55:18 PM FAITH AND HUMAN RIGHTS Voices from the Lutheran Communion The Lutheran World Federation Lutheran University Press Minneapolis, Minnesota Documentation 51-E.indd 3 12/12/2006 01:57:00 PM Faith and Human Rights: Voices from the Lutheran Communion Copyright 2006 Lutheran University Press and the Lutheran World Federation All rights reserved.
    [Show full text]
  • The Global Goals for Sustainable Development Challenges and Possible Implications for Norway
    The Global Goals Arne Backer Grønningsæter and for Sustainable Development Svein Erik Stave The UN has adopted 17 Sustainable Development Goals. The goals are universal. The aim of the SDGs is to increase awareness The Global Goals and engagement on important issues. In this discussion paper we discuss how these goals challenge Norwegian authorities both for Sustainable Development when it comes to implementation and monitoring. Challenges and possible implications for Norway P.O.Box 2947 Tøyen ISBN 978-82-324-0247-2 N-0608 Oslo Order no. 956 www.fafo.no 956-omslag.indd 1 20.10.2015 14:45:37 Arne Backer Grønningsæter and Svein Erik Stave The Global Goals for Sustainable Development Challenges and possible implications for Norway Discussion paper Fafo © Fafo 2015 ISBN 978-82-324-0247-2 (paper edition) ISBN 978-82-324-0248-9 (web edition) Cover illustration: SDG logo, United Nations Cover: Fafo Information Office Printed in Norway by Allkopi AS 2 Contents Preface 4 Introduction 5 Poverty and inequality 7 Health 11 Education 14 Equality and anti-discrimination 17 Justice for all 20 Economy, industries and jobs 22 Urban development 24 Climate and environment 25 Contributions to global sustainable development 29 Summary 30 3 Preface This paper discusses some of the challenges of implementing the Global Goals for Sustain­ able Development – commonly referred to as the Sustainable Development Goals, or SDGs – in a Norwegian context, with special emphasis on the present status, existing policies, and sources of information for the various thematic areas covered by the SDGs. The SDGs cover a wide range of topics, of which this report covers a selection.
    [Show full text]
  • 17 GOALS 1 FUTURE How the UN Sustainable Development Goals Can Be Reached in and with Norway by 2030
    17 GOALS 1 FUTURE How the UN Sustainable Development Goals can be reached in and with Norway by 2030 1 his report was developed by the Norwegian ForUM for Development and Environment (ForUM), a network consisting of 50 Norwegian civil society organizations who have almost one million members Tbetween them. ForUM represents many different fields of expertise, and primarily works on environmental, developmental, peace and human rights issues. The report is nearly identical to the inputs sent to the Norwegian government in the drafting process of the national report ahead of the voluntary examination on SDG implementation at the High-level Political Forum in July 2016. The report has been created by contributions from: Caritas Norway, Digni, FOKUS (Forum for Women and Development), FIVAS, Forum for Development and Environment (ForUM), The Future in our hands (FIOH), Greenpeace, Women’s International League for Peace and Freedom (WILPF Norway), IPB, The Norwegian Children and Youth Council (LNU), the international department within the Norwegian Confederation of Trade Unions (LO), Norges Naturvernforund (Friends of the Earth Norway), Norwegian People’s Aid, Save the Children Norway, Rainforest Foundation Norway, International 17 GOALS Planned Parenthood Foundation Norway (Sex og Politikk), Spire, Norwegian Students’ and Academics’ International Assistance Fund (SAIH), The Development Fund Norway, Victoria W. Thoresen at Hedmark University, and WWF-Norway. The editorial group for the report consisted of the following people and organizations: Borghild Tønnessen-Krokan, Arvid Solheim and Ingvild Hancke Øgstad (ForUM), Anita Sæbø and Ragnhild Therese Nordvik (FOKUS), Eirik Lindebjerg (WWF-Norway) and Irene Dotterud (Save the Children Norway). We would like to take this opportunity to give our sincere appreciation and thanks to everyone who have contributed in the making of this report! Design: Jenny Jordahl / Differ Media Print: Grøset Trykk AS Coverphoto: Pixabay, CCO Public Domain Translation (Norwegian to English): Trond Sæbø Skarpeteig.
    [Show full text]
  • Tackling Unemployment and Child Poverty
    NORWAY Tackling unemployment and child poverty Bjørn Richard Nuland Fafo – Institute for Labour and Social Research Fami - Norwegian Centre for Research on Poverty and Social Assistance Tackling unemployment and child poverty in Norway Norway has enjoyed both low levels of unemployment and low levels of poverty during the course of the last few decades compared to many European countries. The Nordic welfare model is characterised by a relatively large redistribution of wealth through its income tax system, its universal welfare system, a comprehensive, publicly financed education system and an active labour market policy. Nevertheless, the last ten years have seen a growing awareness of poverty as an issue in Norway. Until a decade ago the term poverty had been noticeably absent from public debates and the generally consensus was that strong focus on equalizing measures and improving living conditions had helped abolish the problem it may have once represented. However, poverty found itself back at the centre of the political agenda and as a result of this, the government presented in 2002 a plan of action with the purpose of combating poverty (St. Meld. No 6 (2002- 2003). Since 2003 the yearly national budgets have consequently included a ‘poverty package’, where resources have been specifically allocated to fight poverty. Additionally, in its Government declaration, the coalition government elected in 2005 promised to eradicate poverty (The Soria Moria declaration 2005), and in 2006 an action plan to combat poverty was launched (St.prp. no. 1 (2006-2007) appendix). In 2008 the action plan was reviewed and new priority areas and measures were proposed (Action Plan against Poverty.
    [Show full text]
  • Voluntary National Review 2021 Norway Report on the Implementation of the 2030 Agenda for Sustainable Development Contents
    Norwegian Ministry Report of Local Government and Modernisation Norwegian Ministry of Foreign Aff airs Voluntary National Review 2021 Norway Report on the Implementation of the 2030 Agenda for Sustainable Development Contents 1 Opening statement by the Prime Minister 4 2 Highlights of the report 6 3 Introduction 9 4 Methodology and process for preparation of this review 11 4.1 Key changes/lessons learned 11 4.2 Preparation of the VNR 12 4.3 Main messages from the Peer Dialogue 13 4.3.1 Denmark’s main message from the Peer Dialogue 13 4.3.2 Indonesia’s main message from the Peer Dialogue 15 4.4 Sámediggi’s message to the Government 16 4.5 Message to the Government from the university sector 17 4.6 Message to the Government from the private sector 19 5 Policy and enabling conditions 22 5.1 Key changes/lessons learned 22 5.2 Creating ownership of the SDGs 23 5.2.1 Whole-of-government approach 23 5.2.2 Whole-of-society approach 24 5.3 The SDGs in Norwegian counties and municipalities 28 5.4 Dissemination and communication 29 5.5 Incorporation of the SDGs in national frameworks 32 5.5.1 Key changes/lessons learned 32 5.5.2 The Norwegian Parliament’s role in the implementation of the 2030 Agenda 32 5.5.3 The Government’s policy priorities 2016–2021 33 5.5.4 Incorporation of the SDGs into ministries’ strategies and programmes 34 5.5.5 The National Action Plan for SDGs 35 5.5.6 The SDGs in national planning and budgeting processes 35 5.5.7 Incorporation of the 2030 Agenda into the education system at all levels 35 5.5.8 Incorporation of the 2030
    [Show full text]
  • The Impact of Relative Poverty on Norwegian Adolescents' Subjective
    Int. J. Environ. Res. Public Health 2012, 9, 4715-4731; doi:10.3390/ijerph9124715 OPEN ACCESS International Journal of Environmental Research and Public Health ISSN 1660-4601 www.mdpi.com/journal/ijerph Article The Impact of Relative Poverty on Norwegian Adolescents’ Subjective Health: A Causal Analysis with Propensity Score Matching Jon Ivar Elstad 1,* and Axel West Pedersen 2 1 NOVA-Norwegian Social Research, P.O. Box 3223 Elisenberg, Oslo 0208, Norway 2 Institute for Social Research, P.O. Box 3233 Elisenberg, Oslo 0208, Norway; E-Mail: [email protected] * Author to whom correspondence should be addressed; E-Mail: [email protected]; Tel.: +47-225-412-88; Fax: +47-225-412-01. Received: 20 October 2012; in revised form: 6 December 2012 / Accepted: 10 December 2012 / Published: 18 December 2012 Abstract: Studies have revealed that relative poverty is associated with ill health, but the interpretations of this correlation vary. This article asks whether relative poverty among Norwegian adolescents is causally related to poor subjective health, i.e., self-reported somatic and mental symptoms. Data consist of interview responses from a sample of adolescents (N = 510) and their parents, combined with register data on the family’s economic situation. Relatively poor adolescents had significantly worse subjective health than non-poor adolescents. Relatively poor adolescents also experienced many other social disadvantages, such as parental unemployment and parental ill health. Comparisons between the relatively poor and the non-poor adolescents, using propensity score matching, indicated a negative impact of relative poverty on the subjective health among those adolescents who lived in families with relatively few economic resources.
    [Show full text]
  • Gender-Based Violence and Poverty in Europe 4
    Gender-based 2019 Violence and Poverty in Europe EAPN Gender and Poverty WG - Briefing # 2 Authors: Graciela Malgesini (ES), Letizia Cesarini Sforza (IT), Marija Babović (RS) With the collaboration of Stanislav Mrózek (CZ), Eleni Karaoli (CY), Jiri Sironen (FI), Guy Janvier (FR), Dina Vardaramatou (GR), Johanna László (HU), Tess Murphy (IE), Laufey Ólafsdóttir (IS), Rimgailė Matulionytė (LT), Robert Urbé (LU), Maja Staleska and Biljana Dukovska (MK), Sonja Leemkuil (NL), Eva Karlsen (NO), Fátima Veiga, together with Paula Cruz (PT), Andreea Braga (RO), Gunvi Haggren (SE), Katherine Duffy, Clare Caves and Nazek Ramadan (UK). 2 GENDER-BASED VIOLENCE AND POVERTY IN EUROPE 4 100-WORD SUMMARY 4 WHAT ARE THE PURPOSES AND SCOPE OF THIS PAPER? 4 WHY IS IT IMPORTANT TO FOCUS ON GENDER-BASED VIOLENCE AND POVERTY? 6 WHAT IS GENDER-BASED VIOLENCE? 8 WHAT ARE THE DYNAMICS OF GENDER-BASED VIOLENCE? 8 WHAT ARE THE CONSEQUENCES OF GENDER-BASED VIOLENCE ON CHILDREN? 14 GENDER-BASED VIOLENCE - EUROPEAN COUNTRIES 16 INFORMATION BY COUNTRY 24 TESTIMONIES 56 WHAT HAS THE EU BEEN DOING TO ADDRESS GENDER-BASED VIOLENCE? 58 EXAMPLES OF ACTIONS AND GOOD PRACTICES 61 EAPN’S POSITION 66 TO LEARN MORE 70 3 Gender-based violence and poverty in Europe 100-word summary Gender-based violence is a silent disease. It affects women and girls of all ages but is particularly hard with those who live in poverty and face social vulnerability. In this report, we analyse the context, the typology and the features of this grave human rights violation, which has a big social and economic impact in Europe.
    [Show full text]
  • Missing Poor and Income Mobility Mathieu Lefebvre, Pierre Pestieau, Grégory Ponthière
    Missing Poor and Income Mobility Mathieu Lefebvre, Pierre Pestieau, Grégory Ponthière To cite this version: Mathieu Lefebvre, Pierre Pestieau, Grégory Ponthière. Missing Poor and Income Mobility. 2017. halshs-01662808 HAL Id: halshs-01662808 https://halshs.archives-ouvertes.fr/halshs-01662808 Preprint submitted on 13 Dec 2017 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. WORKING PAPER N° 2017 – 56 Missing Poor and Income Mobility Mathieu Lefebvre Pierre Pestieau Gregory Ponthière JEL Codes: I32 Keywords: poverty, measurement, mortality, missing poor, income mobility PARIS-JOURDAN SCIENCES ECONOMIQUES 48, BD JOURDAN – E.N.S. – 75014 PARIS TÉL. : 33(0) 1 80 52 16 00= www.pse.ens.fr CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE – ECOLE DES HAUTES ETUDES EN SCIENCES SOCIALES ÉCOLE DES PONTS PARISTECH – ECOLE NORMALE SUPÉRIEURE INSTITUT NATIONAL DE LA RECHERCHE AGRONOMIQUE – UNIVERSITE PARIS 1 Missing Poor and Income Mobility Mathieu Lefebvrey Pierre Pestieauz Gregory Ponthierex December 5, 2017 Abstract Higher mortality among the poor leads to selection biases in poverty measures. Whereas existing attempts to deal with the "missing poor" problem assume the absence of income mobility and assign to the prema- turely dead a fictitious income equal to the last income enjoyed, this paper relaxes that assumption in order to study the impact of income mobility on the size of the missing poor bias.
    [Show full text]
  • Comparability of Income Data Across Households/Individuals and Over Time
    Comparability of income data across households/individuals and over time Rolf Aaberge Research Department, Statistics Norway 1. Introduction An underlying assumption for the meaningfulness of comparing and ranking a set of income distributions according to the degree of inequality is that the assessment carries over to the distributions of economic well-being. This requires that there must be insignificant interpersonal variations in the conversion of individual incomes into individual well-beings. Otherwise, an equal distribution of income may yield significantly unequal well-being levels, and it becomes hard to justify equality in the income space in terms of distributional justice. The reason is that income is a good that does not have intrinsic value but is important merely as an instrument for individuals to pursue well-being. This implies that the population in a study of income inequality should, in principle, consist of identical income-recipients in every relevant aspect other than income. For this reason, comparisons of incomes across countries seek to adjust country currencies to common measures by accounting for important non- income differences such as variation in the pattern of prices across countries, typically by the use of purchasing power parities. Acknowledging, however, that the welfare basis of such real income comparisons may be rather limited due to methodological and data issues ranging from the basic index-number problem to disparities in national household surveys, cross- country studies of inequality regularly confine the comparisons to intra-country relative measures and do not seek absolute comparisons of levels of incomes in different countries.1 By contrast, empirical analysis of income distributions within a country does usually not consider the implications of non-income differences between individuals beyond accounting for resource sharing and scale economies in the households by the use of equivalence scales or various dominance criteria.
    [Show full text]
  • WP4 Public Perceptions of Poverty Norway
    Draft: Not to be cited without prior permission of authors Poverty, Shame and Social Exclusion Working Paper 4 The role of society in shaming people living in poverty Norway Erika Gubrium Ivar Lødemel 2012 Dr. Erika K. Gubrium, Oslo & Akershus University College of Applied Sciences, Norway. <[email protected]> Professor Ivar Lødemel, Oslo and Akershus University College of Applied Sciences, Oslo, Norway. <[email protected]> 1 Draft: Not to be cited without prior permission of authors 1. INTRODUCTION Poverty is a concept loaded with meaning. It has been operationalized within the framework of varying agendas and predicated upon the use of differing indicators (Hagen and Lødemel 2010, Murray 1984, O’Conner 2004, Room 1999, Townsend 1979, Wacquant 1996, Walker 1995). The meaning of poverty extends to identity. We establish who and what we are – our selves – through social interaction (Mead 1934/2003). Who we are draws from, and reflects in complex ways, where we are in social life – we reflexively construct our experiences and our selves in relationship to available and prevalent social identities (Blumer 1969, Rose 1997). Studies in social psychology have demonstrated this, suggesting that the phenomenon of shame is both externally generated and internally felt (Adler and Adler 1993, Becker 1963, Goffman 1963). Within the context of poverty, Sen suggests that a key capability is one’s ability to live without shame, arguing that the experience of shame and being shamed or stigmatized may reduce one’s agency and capability to act, and as a result, may increase one’s social exclusion (Alkire, 2002, Sen 2006).
    [Show full text]
  • The True Cost of Austerity and Inequality: Norway Case Study
    OXFAM CASE STUDY SEPTEMBER 2013 THE TRUE COST OF AUSTERITY AND INEQUALITY Norway Case Study Introduction Norway appears to be emerging relatively unscathed from the financial crisis. This is in marked contrast to its European neighbours who continue to pursue austerity drives in a bid to rein in spiralling deficits. With a strong welfare state, low unemployment and falling poverty, Norway is looking forward to a healthy growth forecast for 2013. But high levels of household debt and a very high cost of living suggest that Norway is not entirely immune from economic problems. Economy This Scandinavian nation, on the fringes of Europe, is not an EU member, but has close ties to EU states. Unlike many European countries, the Norwegian economy is expected to grow by a healthy 2.6 per cent in 2013, compared to the EU, which will likely contract by 0.1 per cent.1 Norway’s budget surplus fell back to 10.6 per cent of GDP in 2009 from a high of 18.8 per cent in 2008. But since then, Norway has recorded annual increases in its surplus, rising to 13.9 per cent in 2012.2 At the same time, Norway’s debt-to-GDP ratio has fallen from a high of 55.4 per cent in 2006 to just 29 per cent in 2011, with only Luxembourg, Estonia and Bulgaria recording lower debt ratios across the entire EU.3 Inequality Since the mid-1980s, Norway has, like many European countries, seen an increase in pre-tax income inequality. Over the 18 years from 1986 to 2004, market income inequality – inequality before redistribution through taxes and social transfers – rose nearly nine percentage points to a Gini index rating of 0.45.4 However, Norway has shown a remarkable ability to reduce the effects of market income inequality through redistribution; over the same period, net income inequality – inequality after taxes and transfers – rose just five points to 0.27.
    [Show full text]