Report No. 15 (2008–2009) to the Storting

Interests, Responsibilities and Opportunities The main features of Norwegian foreign policy

Table of contents

Introduction...... 7 5 The High North will continue Norwegian interests and globalisation ...... 8 to be of special importance The structure of the white paper ...... 9 to Norway ...... 49 5.1 Major changes in the High North Summary...... 10 since the end of the Cold War. . . .. 49 5.2 The High North will continue to be Part I Challenges to Norwegian a major security policy challenge . . 51 interests ...... 15 5.3 A greater role for the EU and the Northern Dimension ...... 52 1 Globalisation is broadening 5.4 International law issues ...... 53 Norwegian interests ...... 17 5.5 Cross-border and innovative 1.1 Globalisation and the state ...... 18 cooperation in the High North . . . . 54 1.2 Globalisation is a challenge to 5.6 Increasing interest in the polar Norway ...... 18 areas and the Arctic Council ...... 55 1.3 Norway is becoming more closely involved in the global economy. . . . 20 6 Europeanisation and Nordic 1.4 Norway’s broader interests ...... 22 cooperation ...... 57 6.1 The importance of the EU ...... 57 2 The downsides and 6.2 Further development of the EU . . . 59 counterforces of globalisation . . 24 6.3 Europeanisation defines the 2.1 Globalisation includes and excludes 24 framework ...... 60 2.2 The new uncertainty of globalisation 6.4 Agreements and cooperation . . . . . 60 – new security policy challenges. . . 26 6.5 Fisheries policy...... 63 2.3 Threats to Norway from global 6.6 Broad Nordic cooperation ...... 63 instability ...... 27 6.7 The Council of Europe and the OSCE ...... 65 3 The geopolitical balance of power and the consequences 7 Challenges facing an for security policy ...... 30 environmentally aware energy 3.1 Towards a multipolar world...... 30 nation ...... 67 3.2 Challenges and direct threats to 7.1 International trends ...... 67 Norwegian security interests . . . . . 39 7.2 Challenges for Norway ...... 69

4 The vulnerability of the UN and 8 Increasing migration entails global organisations, and both opportunities and Norway’s dependence on an challenges ...... 73 international legal order ...... 43 8.1 Global migration...... 73 4.1 Globalisation and geopolitical change 8.2 Immigration to Norway ...... 75 are a challenge ...... 43 8.3 The national and international 4.2 The response of the multilateral value of migration...... 77 system ...... 43 4.3 Finding the right balance between 9 The communication revolution legitimacy and effectiveness ...... 45 poses new demands ...... 79 4.4 The international community’s 9.1 The communication revolution norms and rules ...... 46 and foreign policy...... 79 4.5 Norway’s great dependence on an 9.2 Reputation-building and the need international legal order...... 47 for public diplomacy...... 81 10 Diversity of actors brings new 14.2 The EU/EEA as a key economic opportunities but also new framework condition...... 126 challenges ...... 83 14.3 The importance of trade policy for 10.1 Role of the state tested ...... 83 Norway...... 129 10.2 The new foreign policy actors . . . . . 84 14.4 The state’s role as an investor and 10.3 How can we best exploit the new investment manager ...... 130 political potential? ...... 89 14.5 An integrated Norwegian maritime policy ...... 132 Part II Foreign policy priorities for 14.6 The Norwegian/Nordic model as safeguarding Norwegian a resource ...... 134 interests ...... 91 14.7 A positive image ...... 135 14.8 The need for tolerance and 11 Focus on interests ...... 93 multicultural understanding ...... 136 11.1 Globalisation and interest-based policy ...... 93 15 Safeguarding Norwegian energy 11.2 Interests ...... 94 interests ...... 137 11.3 Values ...... 94 15.1 Norway will be a climate- 11.4 Norway’s broader interests ...... 94 conscious energy nation...... 137 11.5 Norway as a foreign policy actor . . . 95 15.2 Norway – a stable and predictable 11.6 The need for priorities ...... 96 oil and gas supplier ...... 139 15.3 Norway does not wish the oil and 12 Promoting Norwegian security gas market to become politicised . . 140 in our neighbouring areas and 15.4 The EU and Norwegian energy globally ...... 98 policy ...... 141 12.1 Security policy to safeguard 15.5 The importance of energy Norway’s security interests ...... 98 security is growing ...... 142 12.2 Norway’s security policy aims . . . . . 99 15.6 Transparency, cooperation and 12.3 Security policy priorities...... 100 dialogue ...... 143 12.4 The pillars of Norwegian security – 15.7 Better governance of the energy a security network...... 103 sector in developing countries. . . . . 144 12.5 A policy of engagement towards Russia ...... 109 16 Giving priority to Norway’s 12.6 Focus on China and Asia in environmental, climate and Norwegian security policy ...... 110 natural resource interests . . . . . 147 12.7 The armed forces as a security 16.1 The international dimension of policy tool – the need for a Norway’s environmental interests. . 147 coherent approach ...... 111 16.2 Global environmental threats that affect Norway...... 148 13 Exercising global responsibility 16.3 How much pressure does Norway through our policy of put on the environment abroad? . . . 154 engagement ...... 112 16.4 Strengthening global 13.1 The rationale behind Norway’s environmental cooperation ...... 156 policy of engagement ...... 113 16.5 Norway’s environmental interests 13.2 Aid and the fight against poverty. . . 113 within the framework of the EEA 13.3 Human rights – obligations and Agreement and in cooperation challenges ...... 116 with the EU ...... 157 13.4 Peace and reconciliation...... 118 13.5 Humanitarian aid and policy in 17 Promoting a global order to the face of new challenges ...... 121 deal with current and future challenges ...... 160 14 Safeguarding economic and 17.1 International cooperation since social interests in a globalised 1990 – a complex picture ...... 160 world ...... 124 17.2 Prerequisites for a better global 14.1 Promoting the interests of order ...... 161 Norwegian economic actors...... 124 17.3 Reforming the global order: 20 Improving the Norwegian Norway’s main priorities ...... 162 authorities’ overall 17.4 The central role of the UN in administration of foreign Norwegian foreign policy ...... 162 policy ...... 180 17.5 Norway’s policy for reform of the 20.1 Foreign policy coordination ...... 180 UN ...... 163 20.2 Globalisation increases the need 17.6 Security ...... 165 for and poses challenges in terms 17.7 The financial crisis and the global of coordination ...... 181 economic order...... 166 17.8 Global health and foreign policy . . . 169 21 Further developing the foreign 17.9 Challenging and supporting the service in response to the system. The EU’s role as a global challenges of globalisation . . . . 183 actor ...... 170 21.1 Ongoing changes and reforms . . . . 184 17.10 Diversity, complexity and the 21.2 Managing growth ...... 185 need for transparency ...... 171 21.3 Services for Norwegian citizens abroad ...... 186 Part III A coherent approach to the 21.4 Security and emergency promotion of Norwegian foreign preparedness...... 187 policy interests ...... 173 21.5 Strengthening foreign policy expertise ...... 187 18 Coherence in the public administration ...... 175 22 Making active use of public diplomacy to take advantage 19 The impact of globalisation on of the freedom of manoeuvre the public administration ...... 176 offered by globalisation ...... 190 19.1 Increasing diversity of 22.1 Systematic public diplomacy international tasks ...... 176 efforts as part of Norwegian 19.2 Increasing number of foreign policy ...... 190 government bodies involved in 22.2 International cultural cooperation international matters ...... 177 in public diplomacy ...... 192 19.3 The Norwegian public 22.3 Public diplomacy at the national administration well equipped to level – the Refleks project ...... 193 deal with the challenges of globalisation ...... 178

2008– 2009 Report No. 15 to the Storting 7 Interests, Responsibilities and Opportunities

Ministry of Foreign Affairs

Interests, Responsibilities and Opportunities The main features of Norwegian foreign policy

Recommendation from the Ministry of Foreign Affairs, dated 13 March 2009, approved by the Council of State on the same date. (Stoltenberg II Government)

Introduction

Almost 20 years have passed since the last time a well as European issues when required, budget white paper on the main features of Norwegian for­ proposals and other reports, propositions and spe­ eign policy was submitted to the Storting. Early in cific matters in various connections. the current parliamentary term, the Government The aim of the Refleks project has been to announced its intention to present a white paper on encourage public debate and analysis of Norwe­ how globalisation and geopolitical change are gian foreign policy. The need for an open debate on posing challenges to Norway’s interests in the the international challenges facing Norwegian world and the main features of our foreign policy. society and foreign policy dilemmas, and the This white paper ushers in the last stage of a series desire to involve and engage new groups in this of studies, publications and meetings throughout debate, have been at the core of the project. Norway under the auspices of the project “Refleks Since 1990, globalisation and geopolitical – globalisation and national interests” (the Refleks change have posed new, difficult challenges to project). The white paper draws on analyses and Norwegian interests and the implementation of conclusions set out in the report prepared by the Norwegian foreign policy. The main purpose of project, National Interest. Foreign policy for a global- this white paper is to examine these challenges. ised world – the case of Norway, which was pub­ The white paper is also an indication of the value lished in September 2008. the Government attaches to openness, analysis There is great interest in foreign policy in Nor­ and debate on foreign policy issues. The greater way. There is an ongoing broad, lively debate on the global complexity and the magnitude of global foreign policy issues between the media, research change, the greater the need to secure support for institutions, private individuals and various politi­ and legitimise foreign policy in the public domain. cal groups. Every year the Ministry of Foreign This applies not least to cases where dilemmas and Affairs arranges and supports more than 100 meet­ conflicts between different interests and between ings in which a large number of actors from many interests and values call into question Norway’s sectors of Norwegian society take part. Funds are approach in important foreign policy issues. allocated to a wide range of organisations that In this respect, the white paper is a contribution engage the population in debate on foreign and to the Government’s overall analysis and discus­ development policy. The Storting debates two sion of the challenges globalisation and geopoliti­ general foreign policy addresses every year, as cal change pose to Norwegian society. Many of the 8 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities policy areas are dealt with in more detail in other through a policy that seeks to promote the welfare documents and policy instruments. The aim of this and security of Norwegian society and the political white paper is to encourage a focus and reflection values on which it is based. on central foreign policy trends. The white paper In the course of the past 20 years, there have constitutes the general foreign policy component been major changes in the challenges facing Nor­ of what might be termed the Government’s global­ wegian interests and how our interests can best be isation project. safeguarded through foreign policy. These changes The Ministry of Foreign Affairs has recently also concern the foreign policy tools that can be presented three other white papers: Report No. 13 used to safeguard Norwegian interests. The most (2008–2009) to the Storting, Climate, Conflict and important reason for this, and in itself also the Capital. Norwegian development policy adapting to greatest change, is the broad, far-reaching proces­ change; Report No. 10 (2008–2009) to the Storting, ses of globalisation and the new, more shifting Corporate Social Responsibility in a Global Econ- global geopolitical and geoeconomic landscape. A omy; and Report No. 9 (2007–2008) to the Storting, clearer grasp of the concept of interests is there­ Norwegian Policy on the Prevention of Humanita- fore essential to enable us to formulate clear objec­ rian Crises. In addition, the following white papers tives for our foreign policy. and propositions submitted by various other mini­ The most important changes that have taken stries are all important elements in the Govern­ place since 1990 can be summarised as follows: ment’s effort to meet the challenges of globalisa­ • Extensive globalisation, where sovereign states tion: Report No. 9 (2007–2008) to the Storting, are challenged by supranational and transnational Long-term Perspectives for the Norwegian Economy processes and players. These processes are (Ministry of Finance); Proposition No. 48 (2007– driven by a combination of conscious political 2008) to the Storting, A Defence for the Protection of choices and structural trends. They include Norway’s Security, Interests and Values (Ministry of revolutionary technological changes, econo­ Defence); Report No. 18 (2007–2008) to the Stor­ mic liberalisation and increasing cultural and ting, Labour Migration (Ministry of Labour and ideological diversity. Social Inclusion); Report No. 7 (2008–2009) to the • A geopolitical and security policy landscape Storting, An Innovative and Sustainable Norway that in the space of 20 years has changed from (Ministry of Trade and Industry); Report No. 34 superpower rivalry between the US and the (2006–2007) to the Storting, Norwegian Climate Soviet Union, via a unipolar order dominated Policy (Ministry of the Environment); and Report by the US, to what is currently an increasingly No. 14 (2008–2009) to the Storting, The Internation- multipolar order where old and new major alisation of Education (Ministry of Education and powers compete for economic and political Research). power and influence. This white paper has a long-term, strategic per­ • Although the state is still the main player in spective. It draws on the above-mentioned docu­ world politics, the number of players in the ments and other sources of knowledge on the chal­ international arena has increased considerably. lenges facing Norway in the future. Both the The ways in which the various types of player above-mentioned ministries and a number of other relate to each other is becoming increasingly ministries have participated actively in the prepara­ complex. This calls for a political review of tion of the white paper. strategies, alliances and specific foreign policy tools. • Climate change is threatening the basis for Norwegian interests and globalisation sustainable development and is gaining an increasingly prominent place on the international The white paper underscores the importance of a political agenda. clearer focus on safeguarding Norwegian interests in an increasingly more intricate and unpredictable All of these changes require a new understanding world. Although foreign policy interests are com­ of how Norwegian interests and trends in Norwe­ plex and have been the subject of a great deal of gian society are linked to international trends. It is academic and political debate, the foundation on easy enough to define “Norwegian interests”, and which they are based remains more or less there is a long tradition in Norway of seeking polit­ unchanged. There is broad-based political consen­ ical consensus on them. But determining the prio­ sus on our fundamental interests, which do not rity to be given to the various interests, the chal­ change much over time. They are safeguarded lenges they face, and the implementation of foreign 2008– 2009 Report No. 15 to the Storting 9 Interests, Responsibilities and Opportunities policy to safeguard Norway’s interests are none­ Part 1 of the white paper is made up of 10 chapters, theless issues that are, and should be, subject to each of which deals with how key trends pose chal­ constant political debate and substantive scrutiny. lenges and creates opportunities and room for manoeuvre for Norwegian interests in various them­ atic areas. The structure of the white paper Part 2 provides an overview of how Norwegian foreign policy is responding to these challenges The white paper is divided into three main parts, and making use of the opportunities described in each of which is devoted to one of the three general Part 1. This overview comprises six areas covering questions discussed in the report: the following key interests: security, engagement, 1. How do global changes and trends challenge the economy and welfare, energy, the environment Norwegian interests? and climate, and a global order. 2. How can our foreign policy best safeguard Nor­ Part 3 discusses how the challenges posed by wegian interests in a world characterised by globalisation and foreign policy priorities should globalisation and geopolitical change? be dealt with at the administrative level. The main 3. What will the present and future global land­ conclusion is that globalisation calls for a more scape require of Norway in the way of new for­ coherent approach to foreign policy, closer coordi­ eign policy tools and new ways of pursuing our nation between the various ministries, and a more foreign policy? open dialogue between the public administration and society at large. 10 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Summary

ensure the physical integrity of the individual citi­ Global challenges zen and protect against threats and attacks by for­ The primary objective of Norwegian foreign policy eign powers, but at the same time it must also be is to safeguard Norway’s interests. In the Govern­ designed to safeguard the principles of a liberal ment’s view an interest-based foreign policy is one society, such as the rule of law and human rights, that is designed to systematically advance the wel­ which play an essential role in maintaining peace fare and security of Norwegian society and pro­ between countries and preventing radicalism and mote our fundamental political values. In order to conflicts in many parts of the world. The fight pursue a targeted and predictable foreign policy against poverty and our contributions to promot­ over time, it is important that we know and are ing social and economic development in Africa and aware of these interests, and this is an essential the Middle East spring out of a sense of inter­ point of reference for Norway’s dealings with other national solidarity, but they are also necessary to countries. Maintaining a focus on interests is also secure the global social fabric that Norway is crucial in enhancing our ability to set priorities entirely dependent on. Other examples, such as between various needs, strategies and choices of the climate challenge, global health threats and the action in our foreign policy. consequences of the financial crisis, similarly illu­ The world is experiencing a period character­ strate the need to take a broad approach to our ised by sweeping processes of globalisation and understanding of Norway’s interests. geopolitical change. This poses challenges to the Our world is still characterised by injustice and interests of Norwegian society and places new huge inequalities in terms of power and influence – demands on our foreign policy. These develop­ both between countries and between groups within ments also make it even more necessary to set prior­ a country. Globalisation is creating tensions and is ities. In response to increasing global complex­ having an impact on the competition to secure ity, the Government has opted for a principle of interests and gain power. Experience from the past “dual priorities”. This means taking a systematic decade indicates that globalisation can give rise to approach to two key considerations: first, it is religious and national counterforces and to increased necessary to determine the importance of the inte­ competition between advantaged and disadvant­ rests that are affected by a given development or aged groups and countries. Similarly, an increasing situation; second, it is necessary to assess how degree of economic globalisation is creating tens­ relevant Norway is as an actor and to what extent ions between employees and business interests, Norway can make a difference in any given case. both in Norway and in the world as a whole. As a More specifically, this means placing greater country that has largely benefited from globalisa­ emphasis on foreign policy areas that are impor­ tion, Norway has a responsibility to make use of tant for Norway and where we at the same time foreign policy tools and resources to reduce this have an international role to play, such as energy, kind of tension and power rivalry, to safeguard maritime industries, the High North and Russia, both its own interests and fundamental political our policy of engagement and our contributions to values. a global order. The “Norwegian model” has become a reser­ As the world becomes increasingly woven voir of resources and a tool for Norwegian foreign together into one global society, Norway’s foreign policy when it comes to reducing the tensions and policy interests can no longer be reduced to nar­ counterforces resulting from globalisation, provid­ row self-interest. One of the consequences of glob­ ing expertise on international and national struc­ alisation is that Norway’s national interests and our tures and resource management. It represents col­ political values are closely intertwined. Our foreign lective political values related to the rule of law, policy must therefore be based on the principle of gender equality and non-discrimination. The global “extended self-interest”. There are a number of social trends stress the importance of using the examples of this: security policy is intended to Norwegian model as a foreign policy resource in 2008– 2009 Report No. 15 to the Storting 11 Interests, Responsibilities and Opportunities keeping with the aim of contributing in areas example in its policy of engagement and its policy where Norway is relevant in relation to other coun­ on marine resources. The question of Norway’s tries’ interests and needs. form of association with the EU is not dealt with in Current global trends and the combination of this white paper. The Government takes Norway’s Norway’s interests related to security policy and current form of association as a basis for its efforts resources and its maritime economic interests to gain acceptance for its views in the EU and for its highlight that Norway has a fundamental interest efforts to safeguard Norwegian interests globally. in ensuring a well-functioning regional and global legal order, in which right prevails over might, and Norwegian interests where relations between states are governed by a constantly closer web of binding standards, con­ Security ventions and laws. In the Government’s view, Nor­ Norway’s security interests are being challenged way has a vital, cross-cutting interest in preventing by far-reaching changes, both in the field of geopol­ erosion of the international legal order and multila­ itics and in connection with the new uncertainty teral governance systems and regimes. caused by globalisation. In combination, this leads The UN system continues to play a key role in to an increasing degree of unpredictability and a upholding a world order based on international more complex threat picture. NATO continues to law. From the point of view of Norway’s interests, be the cornerstone of Norway’s security. From an however, it is important to acknowledge that there overall perspective, Norway’s security is best is an increasing gap between global governance ensured through a web of complementary security challenges and the UN system’s capacity and abil­ arrangements. In its efforts to safeguard Norway’s ity to resolve problems. Increased efforts to pro­ security interests the Government gives priority to mote regional development in the EU and other promoting security in the north and contributing to parts of the world, closer cooperation between the aspects of global security that are closely related to various international and regional levels, and the Norwegian security. An international legal order is involvement of non-governmental actors will there­ a mainstay of Norwegian security policy. fore be used as measures to consolidate the inter­ national legal order. The financial crisis in likely to increase the speed with which global governance Engagement bodies are changing. This will help to adjust the Through its policy of engagement, the Govern­ world order more quickly to the present reality, for ment is pursuing its aim of actively taking advan­ example by according China and India increasing tage of the positive aspects of globalisation and power in the global arena. minimising its negative aspects. This policy covers The High North and Norway’s relations with aid and the fight against poverty, efforts to pro­ Russia are key elements and will gain importance mote human rights, peace and reconciliation in Norway’s foreign policy in the time ahead. efforts, and humanitarian policy and assistance. Energy security issues and climate challenges are The policy is motivated by our values and is based adding to the visibility and importance of the High on an altruistic desire to promote the common inte­ North. The Georgia crisis and its aftermath have rests of mankind. At the same time globalisation revealed Russia’s potential to use force and its vul­ implies that we must abandon a narrow interpreta­ nerability, as well as the uncertainty surrounding tion of Norwegian interests and realpolitik. Global Russia’s future, for example in the light of the finan­ developments mean that peacebuilding and efforts cial crisis. These developments underscore the to promote an international order and human importance of combining a close neighbourhood rights are increasingly becoming realpolitik. policy vis-à-vis Russia with a firm basis in Euro- Atlantic cooperation. As a champion of an improved global legal The economy order, the EU is important for Norwegian foreign One of the main purposes of our foreign policy has policy. The EEA Agreement and other agreements always been to promote Norwegian economic inte­ between Norway and the EU provide a framework rests. As a result of globalisation, this task is being for broad Norwegian interests and shape the both extended and challenged in parallel with the everyday life of Norwegian authorities and civil increasing impact international economic develop­ society actors. At the same time Norway will seek ments are having on Norway and with the global­ to understand and make use of the opportunities isation of Norwegian business interests. Promoting and room for manoeuvre it has outside the EU, for innovation and value creation as Norwegian busi­ 12 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities ness is confronted with the complex globalised and reform of regional and global institutions. The economy is therefore an important foreign policy EU is a key partner in the efforts to find global task. The financial crisis and other negative environmental and climate-related solutions. aspects of globalisation show the need for manage­ ment and regulation of the international economy and politics, and highlight the Nordic model as a An international order policy resource. Key foreign policy tasks include The processes of globalisation and geopolitical promoting framework conditions that are condu­ change are posing challenges to global gover­ cive to international trade through the WTO sys­ nance institutions and underscore the strong inte­ tem, ensuring more effective management of the rest Norway has in a robust international legal economy in general by strengthening multilateral order. It is therefore in Norway’s interest to work cooperation and institutions such as the UN, the actively together with other countries and actors to World Bank and the IMF, and further developing reform and strengthen the UN and other regional governance systems in cooperation with regional and global institutions. In some cases there may be non-governmental and private actors. a lack of correspondence between the legitimacy and the effectiveness of international institutions, and this may be expected to increase in a world Energy that is becoming more and more multipolar, with Norway is known in the world as a major energy new actors demanding their legitimate place in nation. It is the world’s second largest gas global governance bodies. The financial crisis is exporter, the fifth largest oil exporter and the sixth likely to accelerate the global shift of power we are largest producer of hydropower. The complex cli­ witnessing in favour of countries like China and mate and energy security crises the world is facing India. The Government considers it important that are challenging Norway’s role as a global energy Norway should be a loyal and constructive, but at supplier, generating increased interest in Norway the same time critical and reform-oriented, suppor­ as an energy nation, and increasing the importance ter of the UN in its role as a mainstay of the global of Norway’s energy resources in foreign policy. governance system. At the same time, the increas­ Norway’s most important contribution to energy ing diversity of actors in international politics security is to provide stable supplies of oil and gas makes it necessary for Norway to seek new alli­ to the world market and prevent natural resources ances at various levels in a variety of institutional becoming subject to political and geopolitical joc­ settings – both governmental and non-governmen­ keying for power and competition. In the Govern­ tal and formal and informal. ment’s view, Norway can play an important role in systematically promoting transparency in the energy markets, facilitating dialogue between pro­ Strategic and operative challenges ducers and consumers, and providing support to Globalisation is blurring the boundaries between improve the management of energy resources in foreign and domestic policy. The Ministry of For­ developing countries. eign Affairs is becoming more involved in domes­ tic policy issues, while other ministries are becom­ ing more involved in the implementation of Nor­ Climate and the environment way’s foreign policy. This means that other The climate crisis and the threats to the global eco­ ministries and directorates are playing a more system are a challenge to Norwegian interests and important international role and are providing make it increasingly important to pursue an active resources and expanding our room for manoeuvre international environmental policy. The climate in the field of foreign policy. At the same time there problems, the threats to biological diversity, the is a growing need for expertise, close coordination spread of environmentally hazardous substances/ and consistency in our foreign policy. This both chemicals, the dangers associated with nuclear challenges and underscores the importance of the facilities close to the Norwegian border, the risk of role played by the Ministry of Foreign Affairs in oil spills and pollution along our coast, and our coordinating a coherent foreign policy. responsibility for ensuring sustainable manage­ The current global changes underscore the ment of the Arctic all involve important foreign importance of maintaining a constant focus on how policy tasks for Norway. Norway has a strong inte­ the Ministry of Foreign Affairs and other parts of rest in a robust global environmental governance the government administration are geared to deal­ regime, and is actively advocating the development ing with the international challenges of the future. 2008– 2009 Report No. 15 to the Storting 13 Interests, Responsibilities and Opportunities

Future reform and changes in our foreign service foreign policy, and, not least, a willingness to administration should be based on an overall, change and to foster openness within the various cross-sectoral approach. branches of the foreign service. Expertise and Expertise, relevance, flexibility and a network relevance will also require a stronger focus on gen­ approach will be decisive in determining the ability der equality and on increasing the involvement of of the foreign service to respond to an increasingly Norwegians of immigrant background in the complex and unpredictable world. This will require implementation of Norway’s foreign policy. A com­ openness on the part of our foreign service vis-à­ petent and representative Norwegian foreign ser­ vis Norwegian society and ongoing debate on our vice for the future must mirror Norwegian society. 14 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities 2008– 2009 Report No. 15 to the Storting 15 Interests, Responsibilities and Opportunities

Part I Challenges to Norwegian interests 16 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities 2008– 2009 Report No. 15 to the Storting 17 Interests, Responsibilities and Opportunities

1 Globalisation is broadening Norwegian interests

For around 40 years, from 1948 to 1989, the pre­ changed our lives. In area after area, territorial bor­ mises of Norwegian foreign policy were defined by ders between countries have lost their role as a for­ the ideological and territorial rivalry between the eign policy tool, or at least this role has become US and the Soviet Union during the Cold War. less important. Today, the central premises and challenges of Nor­ But the process of globalisation has a long his­ wegian foreign policy continue to be defined by tory. Foreign policy has long been conducted geography and resources, particularly in the High within the framework of an international commun­ North, but also, and increasingly rapidly, by globa­ ity in the sense that economies, cultures, commun­ lisation and geopolitical change. The process of ications and politics have long since transcended globalisation presents Norway with a number of the formal borders of the nation state. Even the new questions, and challenges our way of thinking international system of sovereign states that we about foreign policy. Traditionally, foreign policy take for granted is actually the result of a long pro­ has been concerned with managing national inte­ cess of globalisation. The same applies to the revo­ rests in relation to the rest of the world. However, lution in information technology that enables us to in this respect we find that it is becoming increas­ witness events and crises anywhere in the world ingly difficult to define the economic, social, with a delay of less than three seconds. Far from cultural and technological boundaries between being a sudden event, this is the product of a long Norway’s interests and those of other countries. process of internationalisation that has progressed There are many ways of defining and explain­ in technological fits and starts, from the first tele­ ing globalisation. Globalisation is a complex histor­ graph in 1843, via telephone cables, wireless radio ical process that involves the deregulation of inter­ signals and satellites, to the first fibre-optic cable national financial markets and currency transac­ that was laid across the Atlantic Ocean in 1988. tions, the introduction of satellites, fibre-optic Thus internationalisation is not a new pheno­ cables and the internet, the internationalisation of menon, and much of what we now call globalisation consumer habits and diet, the development of a consists of processes that have been taking place global knowledge and news industry, the negotia­ over a very long space of time. In the last few deca­ tion of international agreements and regimes, and des in Europe, the EU (and the EEA) has been the universalisation of human rights. For many, the responsible for much of the integration between ideological aspects of the process, such as liberal­ different countries. This “Europeanisation” is a isation and Westernisation, are the most important, unique phenomenon in a global perspective, and while others emphasise internationalisation, uni­ globalisation in European countries must largely versalisation and deterritorialisation. In this white be understood within this specifically European paper, globalisation is understood to refer to pro­ framework. cesses and actors that are transnational and that However, globalisation is a broader and deeper therefore challenge the role of the sovereign state. concept than internationalisation. It should not be Globalisation is treated in this report as a lasting, equated with the growing economic interdepen­ complex process that is taking place, not in a dence between countries that took place in previ­ straight line, but in many different sectors of soci­ ous eras. Interdependence refers to a process ety at the same time. whereby the ties between countries gradually Globalisation brings with it concrete changes become closer and more numerous. In globalisa­ that we all experience at close hand in our daily tion, on the other hand, the ties have become so lives. The wide range of goods available in our close and so numerous that in a number of sectors supermarkets, the price of DVD players manufac­ social systems have in practice already merged, tured in China, the country of origin of the clothes national borders in important sectors of society we wear, the number of channels available on tele­ have become almost invisible and it is therefore no vision and the most frequently used links on our longer meaningful to regard societies as economi­ PCs are all reminders of the way globalisation has cally, socially or culturally distinct and independent 18 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities entities. In an increasing number of areas, political and strong constitutional state power. (Norway decisions that only apply in one country are no lon­ ranked 17th on the Globalisation Index for 2007.) ger adequate to steer social development. Globali­ Among most experts and politicians, it has sation is internationalisation to the power of infi­ become generally accepted that the state plays a nity. It reaches deeper than politics. It transforms vital role in economic globalisation. A well-function­ our entire society. ing state has proved to be a precondition for crea­ ting and maintaining a well-functioning market. In many sectors, development of an integrated global 1.1 Globalisation and the state economy requires the state to play a major role, as shown most recently by the efforts undertaken by Globalisation changes many things, but we should government authorities in many countries to mini­ not exaggerate its novelty or overemphasise the mise the global financial crisis. The key role of the difference between the current globalisation pro­ state within the global community is also clearly cess and similar processes in previous eras. The recognised in development policy, where increas­ point is that globalisation transforms and breaks ing importance is being assigned to measures down barriers around and within societies, that aimed at strengthening and developing the central this is happening at a greater speed and in many government administration in developing coun­ more areas of society than ever before, and that the tries and preventing the weakening or dissolution impacts on people’s everyday lives are much grea­ of states. ter than ever before. A number of developments in recent years have The fact that globalisation is erasing the bor­ emphasised the importance and relevance of the ders between countries and societies does not state and state actors in foreign policy. While the mean the end of the nation state, or that national low oil prices of the 1990s allowed major interna­ symbols, perspectives and interests or local identi­ tional oil companies (and their host countries) to ties are disappearing. Most of the fundamental char­ dictate prices and investment conditions, the rise acteristics of the nation state persist. Formal sove­ in oil prices up to autumn 2008 gave a number of reignty, national legislation, border controls and energy-rich countries considerably greater power distinctive national, regional and local characte­ and independence vis-à-vis the oil companies. Rus­ ristics and cultures continue to exist; membership sia, Venezuela, Algeria and Bolivia are all examples of international organisations is voluntary and so is of countries where resource nationalism now occu­ adherence to international agreements and trea­ pies a strong position. Similarly, the financial crisis ties. The majority of the almost 200 member states has had an impact on private financial institutions, of the UN are able to and have the right to break off which until recently had considerable influence on relations with other countries. And many countries the international economy. While it has also chal­ still make use in various ways of national borders lenged the state as an institution, the financial cri­ as foreign policy tools. Extreme examples of this sis has unquestionably strengthened its legitimacy are North Korea and the military junta in Burma, as host country and regulator of both national and which have severed internet connection with the international financial institutions. outside world several times in recent years. There is no evidence for the popular idea that globalisation weakens the nation state. In many 1.2 Globalisation is a challenge to cases the opposite is true. Viewed from a historical Norway perspective, globalisation is largely the result of active, persistent efforts by countries to liberalise Globalisation means that Norwegian society is national and international markets. Many of the closely interwoven with the rest of the world. As a countries most deeply involved in this process are result, developments in a range of areas of Norwe­ also among those where the position of the state gian society are closely linked with developments has been most strengthened in recent decades. in many other countries. We take some aspects of This can be seen in the annual Globalisation Index this for granted. For example, we realise that it is compiled by A.T. Kearney and the Carnegie meaningless to talk about “Norwegian society” as Endowment for International Peace. All the fifteen a distinct entity in the face of global environmental countries with the highest degree of globalisation challenges, the potential for nuclear accidents, in economic, social, technological and political wars between major powers and the risk of out­ terms score high on well-functioning state sectors breaks of pandemics. However, our common fate involves far more than joint efforts to deal with 2008– 2009 Report No. 15 to the Storting 19 Interests, Responsibilities and Opportunities transnational threats and global crises. Social insti­ a threat to Norwegian security and welfare, and tutions and social development throughout the consequently to vital Norwegian interests. The world are contingent on one another for their very immediacy of globalisation makes us exceptionally existence. The following are some examples. vulnerable to the spread of communicable disea­ ses, such as multi-resistant tuberculosis or an influ­ enza pandemic, against which we have inadequate Norwegian security protection. Viruses and bacteria are no respecters The situation in Afghanistan shows how close the of national borders, and communicable diseases links can be today between Norway and another can now spread around the world in a few hours. A country, and how geographically distant events system of disease preparedness and prevention can have enormous consequences over time. The and the development of vaccines are therefore ISAF operation in Afghanistan, which has a man­ more important than ever. Such efforts, which are date from the UN Security Council, is the most in everyone’s interest, touch on many fundamental important operation in which NATO is engaged, values such as rights, social justice and economic and NATO is the anchor point of Norway’s territo­ development. For example, Norway has supported rial security. This means that now in 2009 Afghanis­ the quality assurance of medical laboratories in tan is one of the most important arenas for Norwe­ Indonesia under the Biological Weapons Conven­ gian security policy. Developments in Afghanistan tion, because in addition to the broader usefulness have implications for Norway, both directly, in of this measure, well-functioning and reliable terms of their significance for the future develop­ disease preparedness is an important factor in add­ ment of NATO and their impact on opium pro­ ressing such threats. duction, soldiers and their families, and Norwe­ gian party politics and opinion polls, and indirectly, through the growth of radical Islamist groups and Norway’s strategic position and the Middle East potential terrorist activity. Not many years ago, few Another example of the close links between geo­ people would have predicted that Afghanistan graphically distant countries is the Middle East. would assume such importance for Norway and Political, social and economic development in the for the entire world. Middle East in the years ahead will have a direct impact on Norwegian society in a number of diffe­ rent areas. Some of these are fairly obvious, since Norway and climate change stability and development in the Middle East affect It is difficult to imagine an area where global inter­ oil prices, recruitment to terrorist organisations relationships are clearer and national borders less and the escalation of religious conflicts. But the relevant than that of climate. The industrialised links are also more complex than this. For exam­ countries have to a large extent created the pro­ ple, the future of the Middle East could affect Nor­ blem of climate change but do not on their own way’s strategic position and make us more vulner­ have the resources or the power to solve it. It is the able, because a prolonged high level of uncertainty, developing countries, particularly China and India, unrest in other oil-producing countries and the that will dominate future emissions scenarios. The spread of the conflict in Iraq could lead to keener imbalance between the historical responsibility for global competition for scarce energy resources climate change and the current ability to solve the and lead to greater interest in exploiting resources problems is a huge challenge to the decision- in the High North. Similarly, there is a link making ability of the international community. Nor­ between religious and political conditions in the way’s credibility and success in the area of climate Middle East and the religious and cultural climate policy depend on the efficiency of the global coope­ in Norwegian society. The Mohammed cartoon ration mechanisms. Although Norway’s petroleum controversy of 2006 is an example of this, and so interests will both challenge and be challenged by were the January 2009 riots in Oslo about the situ­ future climate regimes, it is very much in our inte­ ation in Gaza. The feeling of exclusion experienced rest to strengthen the global machinery for negoti­ by young European Muslims and their recruitment ating on climate issues. to radical political groups since 11 September 2001 is yet another example. Norway and challenges to global health It is becoming increasingly clear that a worldwide epidemic, in other words a pandemic, is ultimately 20 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

tional law in many countries and many different Norwegian prosperity sectors are directly relevant to Norway in a num­ Another social sector that is affected by global fac­ ber of ways. Broad issues related to local and tors is the Norwegian housing market. A large per­ global developments and international structures centage of the population own their own homes and governance will extend far beyond the current and finance the purchase by a mortgage. The low political framework for Norwegian development interest rate in the last few years has made mortga­ policy. And new dilemmas and conflicts will arise in ges cheap, but also resulted in a considerable rise areas that have previously been mainly of periphe­ in the demand for housing, with a correspondingly ral and theoretical interest to us. steep rise in prices. The sharp rise in the interest rate in 2008 led to stagnation in the housing market and the fall in prices continued into 2009. Interest 1.3 Norway is becoming more closely rates are directly influenced by the price of impor­ involved in the global economy ted goods since monetary policy in Norway is based on inflation-targeting. This link has been par­ Globalisation is making the rest of the world even ticularly important in recent years as the rapidly more important to Norway’s economy and to the growing volume of cheap goods from China has efforts to ensure prosperity for Norwegian citi­ kept inflation low, and thus also interest rates. zens. Norway is one of the main winners in the glob­ China is able to manufacture goods cheaply alisation process; our prosperity has substantially because it has plentiful access to cheap labour increased as a result. Thanks to globalisation Nor­ from the countryside. This means that without wegian businesses have a larger export market cheap Chinese labour, inflation and consequently and Norwegian consumers have a greater choice interest rates would have been higher in Norway, of goods and services. It has also provided greater which would in turn have curbed the rise in house opportunities for concentrating production in prices. The question of exactly who benefits from areas where Norway has a competitive advantage, this particular effect of the growth in imports of which in turn increases prosperity through greater Chinese goods does not have a clear-cut answer, wealth creation. This means that in spite of Nor­ but it does show that house prices in Norway are way’s relatively high labour costs, our plentiful related to the flow of workers from the countryside access to capital and raw materials enables us to to industrialised areas in China. Correspondingly, import labour-intensive goods more cheaply than other changes, imbalances or responses, even before and to sell capital-intensive and raw-mate­ minor ones, in social developments in China could rial-intensive products at a better price. have major consequences. China’s rise to prominence as a key global actor illustrates how this situation works in Norway’s favour. The country’s rapid growth means that Do Norwegian business interests conflict with important Norwegian export commodities like oil Norway’s policy of engagement? and gas fetch high prices, and China is becoming In 2008 over 50% of Norwegian export earnings an increasingly important market for a number of came from oil and gas production on the Norwe­ Norwegian products and services. The import of gian continental shelf, and Norway’s dependence cheap, labour-intensive consumer goods such as on petroleum resources is likely to continue. clothes, shoes, toys and consumer electronics However, the political picture will change because from China also helps to keep inflation and interest a gradually increasing proportion of these earn­ rates low for Norwegian households. In addition, ings will be based on the extraction of petroleum Norwegian businesses experience little competi­ resources in Asian and African countries that have tion from China since the restructuring of the Nor­ opened their continental shelves to the interna­ wegian economy that has taken place since the tional oil and gas industry; for example, there is 1980s has meant that the manufacture of many already considerable petroleum activity in Azerbai­ goods that would have been affected by Chinese jan, Iran, Libya, Algeria, Nigeria and Angola. This competition has been moved out of the country. development poses many new and complex chal­ But how does globalisation affect the Norwe­ lenges for Norway. Regional development trends gian welfare state and the Nordic model of interac­ in Africa, the side-effects of globalisation, local tion between wealth creation, distribution and environmental issues, human rights and gender social security for the individual? There are those equality, anti-corruption and democratisation who fear that economic globalisation will reduce efforts, and developments in national and interna­ the role of trade unions, make it difficult to 2008– 2009 Report No. 15 to the Storting 21 Interests, Responsibilities and Opportunities maintain a high income tax level and consequently global economic downturn is having a significant the policy of equitable distribution, lower labour impact on Norwegian economic developments in standards, lead to social dumping and an under- the year ahead. In spite of these negative conse­ class of low-status workers, and increase the quences, there is no doubt that overall Norway has income gap between rich and poor in Norway. gained considerably from participating in the inter­ However, recent socioeconomic research national division of labour, and that such participa­ shows that, although these challenges are impor­ tion will continue to be vital in the future. tant and legitimate aspects of globalisation, the pro­ As in most other Western countries, the aging cess has not had consequences of this kind for Nor­ of the population will pose a considerable chal­ wegian society (Halvorsen and Stjernø: Work, Oil lenge in the years up to 2050. If labour immigration and Welfare, Universitetsforlaget, 2008). The wel­ continues, Norway will become a very different fare state is alive and well, and enjoys strong sup­ and more multicultural society. The term “Nor­ port. The reasons for this are numerous and com­ wegian” will increasingly come to mean a person plex. Norway has always had an open economy, with close links to several different countries and and has managed to combine oil and gas pro­ cultures. The scope of Norwegian foreign policy is duction and high wage levels with a competitive expanding with the growing number of immi­ business sector and low unemployment. The main grants, partly as a function of the extensive contact reasons for this are high labour force participation, between immigrants and their countries of origin. including a high proportion of women, a flexible This can be seen in the increasingly close coopera­ labour market combined with incentives for retain­ tion between the Ministry of Foreign Affairs, the ing employees, strong but cooperative trade uni­ Ministry of Labour and Social Inclusion, the ons and a positive climate for entrepreneurship. Ministry of Justice and the embassies on immigra­ This shows that the Nordic model is in a strong tion matters. An important area of cooperation is position in spite of the turbulence in the global the recruitment of health personnel from develop­ economy, which is causing problems for countries ing countries, which has a bearing on the sustain- with other, less solidarity-based welfare models. ability of these countries’ health systems. The Thus Norway and the other Nordic countries Government’s policy is that Norway should refrain have derived great benefits from participating in from active, systematic recruitment of health per­ the international economic system. Extensive sonnel from developing countries. international trade has provided a sound basis for Generally speaking, the increase in labour specialisation and for exploiting our competitive immigration from the new EU countries over the advantages. From this point of view the growing last few years has benefited the Norwegian econ­ international integration primarily represents an omy. The immigration of groups with high labour opportunity to gain more profit from our invest­ market participation has in the short term relieved ments rather than a threat to employment and stan­ economic bottlenecks. It has improved the balance dards of living. However, in order to profit from the between the economically active and the economi­ opportunities available, we need an adaptable and cally inactive groups of the population, and thus proactive business sector. This can be achieved by improved government finances. However, in the high labour market participation and a high level of long term, labour immigration is unlikely to solve investment and creativity, for which we need a the problems that the aging of the population will sound educational system at all levels and an inclu­ pose for public finances, since the immigrant work­ sive labour market. ers will themselves become older and our petro­ However, the picture is not entirely rosy. Global­ leum wealth will have to be distributed between a isation does challenge Norwegian economic inte­ larger number of people. The consequences of this rests, wealth creation and welfare. Participation in trend for support for the Norwegian welfare state the international economic system can also have are a matter of debate. negative consequences such as losses to investors, We must dare to ask difficult questions and companies that are out-competed or lose business, allow them to influence our thinking and our stra­ and higher prices of consumer goods for house­ tegy for promoting our economic interests and wel­ holds. The losses experienced by Norwegian fare: municipalities in the US financial market have • What will we live on as oil and gas become a resulted in the closing down of municipal cultural declining source of revenue? and childcare facilities, which is an example of how • What balance should we aim for between Norwegian welfare can be affected by develop­ labour immigration and a coherent Norwegian ments in markets outside the country. The current immigration and social inclusion policy? 22 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

• How can we ensure the desired room for democracy-building, strengthening the internatio­ manoeuvre in our welfare policy and at the nal legal order and institution-building, are there­ same time work for stronger and more effi­ fore becoming more relevant and significant in cient regional and global governance, with terms of realpolitik. Direct contact and relations greater normative authority? between Norway and a particular society or coun­ • How can we maintain and further develop our try are not necessarily very important. As long as position in the European market as long as we development in one country has economic, social are outside the main decision-making institu­ or political effects that are not merely local, Nor­ tions of the EU? way will not necessarily have significantly fewer • How can we contribute to economic develop­ interests in a geographically distant country with ment in poor countries and at the same time which it has few direct relations than it has in a geo­ protect Norwegian sectors that are exposed to graphically closer country with which it is linked foreign competition? through close economic ties and personal networks. Globalisation minimises the significance of geographical distance for social and economic Knowledge relations and for security. Thus geographical proxi­ A broadly-oriented foreign policy that safeguards mity is losing much of its former pre-eminence as Norwegian interests must be based on up-to-date, a factor in national interest-based policies. relevant knowledge in a wide range of areas. It is In the media, in public administration and in essential to keep abreast of the new knowledge public political debate, discussions on foreign that is continually being developed in areas affect­ policy frequently take little account of what are ing Norwegian interests. Focused, targeted efforts referred to in this report as Norway’s broader inte­ must be made to develop the knowledge base in rests. To put it simply, the debate is usually based relation to foreign policy goals, content and tools. on an assumption that there are two opposing posi­ We need to keep a foreign policy focus on educa­ tions in foreign policy: on the one hand the funda­ tion and research in order to ensure that Norway’s mental considerations of realpolitik, which are linked need for knowledge is met, and such a focus is an with economic, security and business interests, important tool for achieving lasting change in and on the other, the soft, ethical policies based on other foreign policy priority areas. Statistics Nor­ idealpolitik, which are often considered to be altru­ way has calculated that human capital accounts for istic and which are concerned with development 77% of Norway’s national wealth, as against 12% for cooperation, human rights, peace-building and our oil and gas reserves (2004). Relevant know­ commitment to international solidarity. ledge and expertise are therefore not only import­ What globalisation does is to make this simple ant inputs and success factors in Norway’s econ­ division less clear. Globalisation extends Norway’s omy and in Norwegian society today; they will also interests in the direction of traditional idealpolitik, be crucial to future wealth creation, which will which thus assumes greater importance. Those require that we are able to successfully address areas of foreign policy that are normally associated new concerns in fields such as energy, climate and with idealpolitik are providing necessary tools and the environment, and sustainable development. expertise for promoting Norwegian interests. To Thus the Norwegian research and higher educa­ put it more clearly, expertise acquired through tion sector is of great value in a number of foreign development policy and international institution- policy areas. building are becoming useful tools in realpolitik, while military measures may also be an important dimension of idealpolitik. 1.4 Norway’s broader interests The main goal of Norwegian foreign policy is to promote Norwegian society’s welfare and security In the close network of relationships resulting interests in a globalised world. Globalisation from globalisation, the development of Norwegian makes it necessary to extend the scope of what are society is dependent on that of other societies in a traditionally understood as foreign policy interests. number of sectors and at a number of different The concept of “interests” must be expanded to levels. Areas of Norwegian foreign policy that are include both new geographical areas and new often regarded as purely altruistic or value-based, areas of foreign policy. A considerable number of such as economic development and development foreign policy areas that have until now been cooperation, facilitating the UN’s ability to resolve regarded as soft, or altruistic, must be upgraded to humanitarian crises, peace and reconciliation, priority areas in order to safeguard Norwegian 2008– 2009 Report No. 15 to the Storting 23 Interests, Responsibilities and Opportunities interests. We must recognise that expertise in main interests. Safeguarding these interests will peace-building, society-building and international depend on the ability of the Norwegian Govern- structures is now an important resource for pro- ment to uphold global framework conditions and to moting our interests. Today our national borders adapt Norwegian society accordingly. are only of limited use for safeguarding Norway’s 24 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

2 The downsides and counterforces of globalisation

2.1 Globalisation includes and The sociologist Karl Polanyi has studied the excludes counterforces to globalisation from a historical perspective. Towards the end of the Second World Globalisation has brought with it considerable War in 1944, he sought to understand why the long benefits for societies in many parts of the world, process of internationalisation that had character- and Norway is one of the winners in this process. ised European history from about the middle of the Globalisation is increasing the demand for Norwe- 19th century had been halted after 1900, to be gian goods and services, especially from the fast- replaced by increasing protectionism and less growing economies in Asia, and is providing us openness, culminating in the outbreak of the First with cheap Chinese goods, which over the last few World War in 1914. His explanation was that the years has kept inflation and interest rates low. We rapid internationalisation of European societies are largely able to avoid competing with cheap had given rise to strong emotional, religious and imports from Asia because several internationally nationalistic counterforces that opened the way for exposed sectors that were hard hit by competition political parties that played on people’s fear of in the 1970s and 80s have since been scaled back. change and social disorder. Labour immigration is supplying sorely needed In recent years, everything from xenophobia to labour and promoting flexibility in the labour mar- radical Islamist movements to the widespread ket. Globalisation is also having a number of other increase in interest in religion to nationally- positive effects. The selection of foods in shops and oriented political parties has been explained in restaurants has exploded in recent decades, our terms of the social change and sense of insecurity young people have become prodigious consumers resulting from globalisation. Some claim that glob- of global culture and the globalised media provide alisation is aggravating religious and cultural us with information and stimulate our motivation to differences and thereby creating global fronts. help victims of poverty, war and conflict all over the This polarisation between “us” and “them”, parti- world. Globalisation has the power to make us all cularly when extended to “Islam” and “the West” as global citizens with global consciences. in the idea of a “clash of civilisations”, is problema- However, globalisation also contains inherent tic, and risks becoming self-fulfilling. It is difficult contradictions. It gives rise to national, religious to moderate the strongly polarised global conflicts and political counterforces and tensions. Greenho- of identity and values that are making it difficult for use gas emissions are increasing in spite of the us to live together in heterogeneous local and glo- continual development of environmental techno- bal societies, and to combat the politics and ways of logy. For many groups, the negative aspects of glo- thinking that are aggravating these conflicts. On balisation far outweigh the positive ones, for exam- the other hand, globalisation is leading to a greater ple for the unemployed workers in the French diversity of cultures and identities both in Norway manufacturing industry or the Mexican companies and internationally, which is in itself of great value being outcompeted by China. The current financial and benefits large numbers of people. Cultural crisis is partly due to the fact that the liberalisation diversity is also an important precondition for of financial markets resulting from globalisation future Norwegian welfare. has been insufficiently regulated. A further nega- In addition to these cultural, religious and iden- tive effect is that globalisation is triggering forces tity-based counterforces, globalisation has also that pull in the opposite direction. It is for example provoked political anti-globalisation movements. not at all evident that globalisation leads to less One of the most prominent is the World Social nationalism. In a historical perspective, the erosion Forum, which was established in 2001 as a counter- of economic and social borders between countries weight to the World Economic Forum. The World has tended to generate strong political, cultural Social Forum is an anti-globalisation movement and religious counterforces, many of them rooted that works against neo-liberalism and for what its in cultural differences and the nation state. members believe will be a more just world. Its main 2008– 2009 Report No. 15 to the Storting 25 Interests, Responsibilities and Opportunities purpose is to combat the forces excluding large resources such as food and other goods, or if glob- numbers of people from the benefits of globalisa- alisation increases nationalism and isolationism tion, the democratic deficit resulting from the because it is perceived as a threat to the integrity power of the market, and the undermining of well- and distinctive features of a society and to the indi- functioning welfare states and governments’ ability vidual’s sense of security. to provide necessary services to their citizens. The These downsides and counterforces of globali- effects of the financial crisis, which revealed the sation are an important background for Norway’s inadequate regulation of the international econo- policy of engagement, which includes poverty mic and financial systems, are fuelling criticism of reduction, human rights and gender equality, envi- globalisation. ronmental and climate policy and the work for a Although globalisation leads to an interweav- better-organised world. It is in Norway’s interest to ing of societies, and from this point of view is a ensure that the benefits of globalisation reach a social, cultural and economic inclusion process larger number of people and that the international that is experienced as positive by large numbers of community develops more effective strategies to people, it is also clear that it does not include every- ensure that the globalisation process is inclusive one. And although there is evidence that economic and sustainable. Both development policy and Nor- globalisation benefits most people, not everyone is way’s international engagement for human rights able to profit from it, and it is possible that the gap and democracy are important tools in the efforts to between the richest and the poorest will become combat globalisation’s negative effects. An exam- larger, both internally in many countries and ple of this is Norway’s initiative to ensure that the between countries. Thus concern about the decent work agendas of the World Trade Organiza- adverse effects of globalisation and some of its tion and the International Labour Organization are side-effects is fully justified. However, halting or more closely coordinated, both locally and glob- reversing the process, even if it were possible, ally, with a view to providing decent working condi- would not be a realistic strategy. It would under- tions for the employees of today and tomorrow. mine future development and future possibilities Another example is Norway’s international engage- for hundreds of millions of people. Thus what is ment for gender equality and equal worth, which needed, especially in the context of the current draws on the Norwegian/Nordic model, and in financial crisis, is to improve political control of the which development policy is an important tool. process and promote sustainable development and social and democratic standards. Norway has not escaped some of the negative Environmental and climate challenges consequences of globalisation. Jobs are being Globalisation, climate challenges and the threats to moved abroad. The financial crisis is resulting in the Earth’s ecosystems in the form of loss of biodi- uncertainty, the disappearance of jobs and fear of versity and the spread of environmentally hazard- the future. The importance of a good social safety ous substances make it increasingly relevant to net, like that in the Nordic countries, is becoming talk about Norway’s environmental and resource increasingly evident. It seems likely that the finan- interests. Humanity’s survival and welfare depend cial crisis, and especially the global decline in the on environmental resources that cannot be replaced. real economy, will focus even more attention on the We are dependent on ecosystem services, but are downsides of globalisation, especially the lack of a ourselves also part of the Earth’s ecosystems. This social safety net in societies that are well on their is the principle behind the ecosystem-based way to participating in the global economy. approach advocated in the Convention on Biologi- However, it is important to remember that increas- cal Diversity. Economic growth often puts increas- ing protectionism could have substantial negative ing pressure on the global environment and eco- effects. systems. The natural environment and natural Like a number of other countries, Norway has resources are vital for Norwegian value creation gained much from globalisation. The country and welfare, and we are dependent on well-function- therefore has a considerable interest in participat- ing international cooperation to ensure sustainable ing in the efforts to manage and steer global management of the Earth’s resources and to solve development in such a way that the process does the environmental problems caused by human activ- not undermine itself. Globalisation can be under- ity. mined if large groups of people are not able to Global climate change is and will continue to be benefit from the increases in welfare, if new con- one of the greatest challenges facing the world, and flicts arise over access to and distribution of this issue has moved rapidly up the international 26 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities agenda in the last few years. Unless new measures are taken, the damage to the natural environment Box 2.1 The security paradox and the economy caused by global warming will be enormous. If climate change is not slowed down by Globalisation confronts Norway with a new political action on a large scale, all countries risk and complex security paradox: the very same suffering massive socioeconomic losses. There is global forces and interrelationships that are growing awareness that if the problem of climate currently making societies rich, free and change is to be solved, it must not be narrowly secure can also undermine the process and defined as an environmental issue. Climate change harm the societies involved, while at the same not only threatens the environment, it also threat- time weakening the overall governance capa- ens international peace, security, welfare and city of the state. Examples include the steep development. Thus in many countries there is a rise in food prices in the spring and summer growing emphasis on climate in a number of key of 2008, the financial crisis and the deregula- foreign policy dimensions, such as diplomacy and tion of international capital markets, and the international relations, energy policy and energy increased ability of epidemics, like the one security, international trade, international peace caused by the SARS virus a few years ago, to and security/crisis prevention, and development spread rapidly and widely. cooperation. The Arctic is particularly vulnerable to climate change and is therefore an increasingly important part of Norway’s High North policy. Thus globalisation poses a new type of security challenge to Norway: threats caused by external 2.2 The new uncertainty of instability. This does not mean that all crises and globalisation – new security policy disasters everywhere in the world threaten Nor- challenges way’s security. On the contrary, one of the features of the current globalisation process is that a num- Although the threat of a major war has been consi- ber of areas and events in the rest of the world have derably reduced since the Cold War ended, globa- no or only limited relevance for Norwegian secu- lisation is posing new risks. Two of today’s most rity and developments in Norwegian society. serious threats and challenges, the spread of wea- However, in this highly globalised world there is pons of mass destruction and international terro- always a possibility that far-away events that initi- rism, are direct results of globalisation. Another ally appear marginal can have ever-widening ripple negative effect is that national governments have effects that directly touch on Norwegian security. less control over the development of their own Globalisation reduces the significance of geograp- societies. Less developed countries are less able to hical distance and means that a number of new, take advantage of the benefits of globalisation than often unpredictable, factors and relationships well-organised countries. When combined with become relevant to security policy. destructive factors such as ethnic, religious and Afghanistan is a good illustration of the new other politicised internal conflicts, globalisation type of security challenge. The situation in the may lead to economic, social and political instabi- country began with small, locally oriented reli- lity and even the collapse of states. Human suffer- gious groups recruiting young Afghans to fight a ing tends to be more serious in failed states and, civil war in the 1980s and 1990s (admittedly with like Afghanistan under the Taliban and Somalia, support from the West), and developed into a glo- they can easily become a haven for international bal political arena after 2001. Another illustration is terrorist groups. The new threats and problems of the potential relationship between local health poli- today are often transnational; they can arise sud- cies in for example parts of Asia, and the develop- denly and have consequences far beyond the origi- ment of a local epidemic into a pandemic. Similarly, nal site of the conflict. The problems are often dif- the political situation and social developments in ficult to define, and the transition from peace to cri- certain key countries like the US, Russia and China sis to war is blurred. This type of challenge also and in groups of countries like the Middle East includes global environmental and climate challen- may have consequences far beyond their borders. ges and increased competition over strategic raw These new threats and challenges to global materials such as oil, gas, fertile soil and drinking security, together with those that directly affect water. Norway (see Chapter 3), make the threat picture far more complex than before. 2008– 2009 Report No. 15 to the Storting 27 Interests, Responsibilities and Opportunities

2.3 Threats to Norway from global ant areas, cooperation has been replaced by grow- instability ing mistrust and a tendency to go it alone. A number of new challenges have arisen in con- In the years ahead, Norway will face a number of nection with nuclear technology and nuclear wea- different forms of global instability and uncertainty pons: that could pose serious, though not existential, • The nuclear disarmament process has stag- threats to its security. Preventing or weakening nated as a result of the increased tension their ripple effects will be an important aim of Nor- between some of the nuclear powers and the wegian security policy. belief that the terrorist threat does not allow for further disarmament. • New countries and terrorist groups are trying Weapons of mass destruction and long-range to acquire access to nuclear weapons. missiles • Energy shortages and global warming appear One of the most worrying threats in today’s global to have boosted the development of civil landscape is the spread of weapons of mass nuclear power. This is a major challenge to the destruction and ballistic weapons technology non-proliferation regime, since nuclear power (long-range missiles) to new states or non-state technology can also be used to produce actors. The possibility of non-state actors obtaining nuclear weapons. such weapons systems cannot be excluded and is particularly worrying. Developments in this field are putting considerable pressure on the non-proli- Terrorism feration regime. If this regime should break down, International terrorism respects no borders and it could have serious consequences for regional chooses its victims and instruments without com- and global stability. There are no easy answers in punction. The intensity and extent of today’s terror- the efforts to combat proliferation, and a broad ism indicates that this is a lasting threat. Neither approach is needed. One course of action would be Norway nor any other country has any guarantee to continue the non-proliferation and disarmament that it will not be the object of serious terrorist acts. efforts, and another would be to raise awareness It is therefore imperative that national intelligence that diplomatic measures may not be sufficient on services are of a high standard, and the impor- their own. For this reason greater attention is tance of the effective international exchange of being paid to missile defence both in NATO and in information and experience cannot be overempha- a number of capitals. The US plans for a missile sised. However, for all countries, including Nor- defence shield are problematic from the perspec- way, anti-terrorism efforts involve serious choices tive of non-proliferation, disarmament and the and potential dilemmas such as where to draw the need to reduce tension between Russia and the line between legitimate surveillance needs and the Western countries. President Obama’s indication protection of civil liberties. that the plans for a missile defence shield will be reconsidered is therefore a positive step. The first years after the end of the Cold War Civil war, failed states and regional instability were characterised by widespread nuclear disarm- Civil war and conflicts in a number of areas may ament. However, towards the end of the 1990s a have significant global ripple effects. Lasting number of factors arose that reversed this trend. unrest or conflicts in Russia or China, or between There was a higher risk that new countries and ter- countries in South Asia (India and Pakistan) or in rorist groups would gain access to weapons of the Middle East, or internally in these countries, mass destruction and ballistic missiles. India and could have a direct impact on Norway’s strategic Pakistan conducted nuclear tests. The US Senate position and on fundamental global security issues declined to ratify the Comprehensive Nuclear-Test- related to terrorism and the proliferation of wea- Ban Treaty. Problems arose between the US and pons of mass destruction. The challenges in the Russia in the cooperation on arms control and dis- coming years include preventing the failure of states, armament. The terrorist acts of 11 September the spread of zones of anarchy in, for example, 2001, the war in Iraq and other acts of terrorism Somalia, and conflicts between countries and reli- have further reduced interest in disarmament. The gious groups in Pakistan and Iraq. The piracy off level of tension between the US and Russia has Somalia is an example of a situation where a failed risen. Both conventional and nuclear arms control state not only behaves like a black hole in the inter- agreements have come under pressure. In import- national legal order, but also poses a direct security 28 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities challenge. In this case the threat is to Norwegian energy. For example, the EU countries depend on and other shipowners, which requires the Norwe- supplies from outside the EU area to cover 50% of gian armed forces to provide security. their consumption today, and this figure is expec- ted to rise to 70% by 2030. Russia, Norway and Algeria are the main energy suppliers to this area. The consequences of climate change The situation is aggravated by the tendency of cer- Climate change and environmental degradation tain producer countries to exploit their control of threaten the foundations of sustainable develop- fossil fuel supplies for political purposes. As a ment. Some of the consequences of climate result, energy security has been rapidly moved up change, such as migrations of climate refugees and the security policy agenda in the EU countries, the whole populations, and conflicts over scarce US and China. Larger Western countries are seek- resources, can directly threaten security. The ing to secure their supplies without becoming too worst-case scenarios involve melting of the perma- dependent on a single supplier. This will have con- frost and droughts in the South that will alter the sequences for Norway, since the US and key EU global geopolitical centre of gravity, and lead to countries to an increasing degree regard Norway rapid rises in the ocean level, huge waves of migra- as a strategic energy supplier. tion and dramatic shortages of water and food all over the world. In less serious scenarios climate change could result in permanent melting of the Threats to global health ice in the North, making the Northwest Passage There are a number of health-related issues that in the most important waterway between Europe and certain hypothetical situations could have enor- Asia and consequently increasing Norway’s strate- mous consequences both for society as a whole gic position. It is also likely that floods, drought, and for the individual citizen. The most obvious crop failures and increased competition over threat is that of a pandemic such as bird flu. A pan- scarce resources will lead to conflicts and crises demic is the result of a disease caused by an infec- that could affect the regional and global order. The tious agent (such as a virus) to which few people consequences of climate change will depend are immune, that is easily communicable and that largely on the speed and degree of change, and spreads rapidly and widely. Another threat is the according to current assessments the more moder- spread of mutated, antibiotic-resistant bacteria ate security policy scenarios are more likely than strains. In the view of the World Health Organisa- the extreme ones. tion we can expect new pandemics to occur.

Resource and energy security Geoeconomic and strategic uncertainty At the beginning of the 21st century we are witnes- Continued economic growth and development in sing increasing global shortages of strategic population-rich countries like India and China will resources such as drinking water, fish, cereals, move the global geoeconomic and geopolitical cen- metals, fossil energy sources and accessible renew- tre of gravity towards Asia. This will change Nor- able energy sources. Competition is becoming way’s international dependence and increase its harder and is resulting in rising raw material vulnerability to military, economic and other forms prices, in spite of the large fluctuations in the price of instability in Asian countries. Continued econo- of oil, and a more intensive exploitation of remain- mic growth in Asia could further increase the stra- ing resources both on land and at sea. Overfishing tegic importance of Norwegian oil and gas resour- has caused fish stocks to collapse, and attention is ces. A greater degree of bloc formation, new strate- being diverted to the remaining rich fishing areas, gic alliances and ideological tensions in including our northern waters. Demographic international politics, such as new forms of coope- changes and increasing prosperity are exacerbat- ration between Russia and China or a narrowing of ing the global imbalance between supply and the power gap between the US and China, will also demand for a number of strategic raw materials. alter Norway’s security policy position. As a major This is likely to have security consequences in the actor in terms of natural resources (protein and form of increased rivalry between countries and fossil fuel), Norway could find itself in a political the exploitation of access to raw materials for poli- and strategic squeeze between our allies with tical purposes. mutually competitive interests or between Russia The harder competition over strategic raw and Europe in the High North. materials is especially evident in the case of fossil 2008– 2009 Report No. 15 to the Storting 29 Interests, Responsibilities and Opportunities

areas such as immigration legislation, labour stan- International organised crime and human dards, prostitution and sex-based violence, and the trafficking extent of national substance abuse. The example International organised crime has increased as a illustrates the security challenges to Norway caused result of globalisation and the emergence of a glo- by external instability and shows how globalisation bal market. This form of crime is usually operated is blurring the borderline between domestic and by large international criminal networks and foreign policy. includes corruption, human trafficking and traffick- ing in narcotics and weapons. Human trafficking has become an industry Box 2.2 Megadisasters worth billions and is estimated to affect several mil- Scenarios have been developed for existential lion people every year. Children and young women megadisasters that could turn the world as we are particularly vulnerable. Human trafficking know it upside down. With one exception, depends on a market that treats human beings as they all involve accidents or unintentional consumer goods to be used for prostitution, forced effects of human activity. Three scenarios labour or suppliers of organs. Poverty and increas- have been developed of megadisasters that ing global inequality provide the basis for the could immediately or rapidly threaten the growth in human trafficking. However, poverty in existence of all or large sectors of Norwegian itself is not necessarily a primary factor in this type society and erase some of its fundamental fea- of crime. War and conflict, unemployment, gender tures, although there is only a small probabil- inequality, discrimination, ethnic and religious dif- ity that they will occur. These are as follows: ferences and strict immigration regulations, com- • rapidly escalating impacts of climate bined with the increasing resource gap between change, rich and poor countries, urbanisation and minority • unpredictable/unavoidable natural disas- issues, all contribute to the growing volume of ters, human trafficking. • nuclear accidents with widespread regional The UN and other international organisations and global impacts and terrorist attacks in have taken steps to raise awareness of this pro- Norway or Norway’s neighbouring areas blem, and in Europe the EU, the OSCE, the Stabi- involving nuclear weapons or other wea- lity Pact for Central and Eastern Europe, and the pons of mass destruction. Council of Europe are making considerable efforts, which Norway actively supports, to com- bat it. Human trafficking is often part of other seri- ous organised crime such as the international trade in narcotics and weapons. This form of orga- nised crime affects Norwegian domestic policy in 30 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

3 The geopolitical balance of power and the consequences for security policy

3.1 Towards a multipolar world The above-mentioned actors form a substantial power base whose influence can be channelled The state is still by far the most dominant actor in through global and regional organisations such as international politics. States, and especially the the UN and NATO. Developments in the views of major powers, are fundamental in determining the influential states on international issues and the international balance of power and patterns of power relations between the major powers define influence. However geopolitics, or territorial real­ the framework for Norwegian interests in the politik, is no longer the same as it was. There are same way as globalisation does. The challenges three main reasons for this. facing us today are far more complex than they The first reason is that states are, as described were during the Cold War, with its two opposing in Chapter 1, becoming increasingly interwoven blocs. This new complexity must be reflected in through economic, political and social globalisa­ Norway’s security arrangements. tion processes. The following is a review of the development of The second reason is that states are having to relations between key state actors, their conse­ share the stage with a multitude of international quences for Norwegian interests and the direct actors, on the one hand regional organisations, security challenges they pose to Norway. which entail regional integration and cooperation, common rules, principles and agreements, and on the other non-state actors that are in a position to US global dominance continues, but will be set agendas and exert influence. This situation has challenged resulted in a growing number of transnational chal­ Together with the Soviet Union, the US has been lenges that may rapidly escalate and have wide­ the dominant global power in the economic, mili­ spread consequences. tary, political, technological and cultural sectors Thirdly, in the current historical period we are ever since the Second World War. The US made a witnessing the development from a bipolar via a decisive contribution to establishing binding inter­ unipolar to a multipolar world with a number of dif­ national cooperation after the war, and has for most ferent centres of power and influence. This of the post-war period considered that its best inte­ development is a challenge to international order rests are served by active participation in interna­ and established multilateral institutions, and tional institutions and regimes. Although its domi­ results in the spreading of power. However, this nance is declining, the country will continue to be multipolar world also means that new opportuni­ the strongest single nation for the next 10 years at ties for cooperation are emerging. least, and will continue to play a significant interna­ Two major powers in particular are challenging tional role. It will not on its own be able to set the the global position of the US, namely China and international agenda or shape solutions to the India. The global centre of gravity is moving east­ same extent as before, but US leadership and wards, a trend that is being reinforced by the glo­ engagement will continue to be essential to the bal financial crisis. Other major powers such as efforts to solve international problems and pro­ Russia, Brazil and South Africa are also gaining mote stable international order. The emphasis relative power and influence. A special case in this placed by the new US president, Barack Obama, on connection is the EU, which has developed into a international cooperation, and the fact that the US regional and global actor to be reckoned with, due is “ready to lead once more”, but now with an out­ partly to its importance in economic terms and as stretched hand and by setting a good example, will a trading partner, and its common policies and make a difference. However, the US will continue institutions, and partly to the influence of its largest to safeguard its own interests in the same way as member states. other countries do. 2008– 2009 Report No. 15 to the Storting 31 Interests, Responsibilities and Opportunities

Close economic and financial interdependence new geopolitical centres and actors will also have has grown up between the US and China in the consequences for Norway, whose core interests course of a few decades, and the US is also in the have always been linked to the Euro-Atlantic plat­ process of establishing closer strategic coopera­ form and its alliances and partnerships. The US tion with India. However Europe, led by the EU, attitude to and use of NATO, and its relations with will continue to be the US’s closest international the EU and the European security and defence partner. On the other hand, the importance for the policy, have decisive importance for Norway’s for­ US of Europe and transatlantic cooperation will eign and security policy. decline as regional conflicts and global challenges The development of relations between the US outside the Euro-Atlantic area begin to dominate and China, whether in the form of tension or in the agenda, and non-European actors will become terms of cooperation, will also have major impor­ more important in the efforts to address these tance for Norwegian foreign and security policy. challenges. This applies as well to US–Russian relations, which Russia does not have the superpower status as affect both the relations between NATO and Rus­ the Soviet Union used to have, nor the same privi­ sia and the overall relationship between Russia and leged relations with the US. Today the US consi­ Western countries. The ability and willingness of ders Russia a regional power that has substantial the US to agree with the new major powers on the energy reserves and energy exports, an important further development of international institutions regional role, a seat on the UN Security Council and the international legal order also have great and a large number of nuclear weapons. The chal­ importance for Norway. The Middle East policy of lenge for the US, and for Russia, is to achieve rela­ the US towards the Israeli–Palestinian conflict, tions of trust and cooperation based on the new Iraq, Iran and the broader Middle East, including situation and the new realities both countries are Pakistan and Afghanistan, and its policies towards facing, in which Russia has a role as a constructive other countries and conflicts are of great impor­ and responsible contributor to the resolution of tance for Norway and its interests. regional conflicts and global challenges. To summarise, current and future US foreign The question of the broader Middle East has policy is clearly of great significance for Norway dominated Washington’s agenda for the last few due to the primacy of this country as a global actor decades. Conflict and instability, war, terrorism, and to its close transatlantic security policy ties the region’s position as an energy supplier and its with Norway, and to the fact that Norway is not a strategic importance will keep it high on the US member of the EU. All in all, Norway’s room for agenda. Since his inauguration, President Obama manoeuvre in security policy continues to lie within has shown that he gives priority to Middle East a geopolitical triangle consisting of the US, Europe policy. The US will probably take steps to reduce its and Russia. This needs to be clearly reflected in dependence on oil from the Middle East and to pro­ Norwegian foreign policy. mote stability and strengthen regional cooperation that will make it possible to safeguard US interests and maintain its role in the region with a reduced Russia will play a role as regional major power military presence. The issue of energy supplies One of the main goals of Russian foreign policy and the regional conflicts that are creating instabi­ since Yeltsin has been to restore the country’s lity and problems in and outside Africa have caused international position. The country has succeeded Washington to pay more attention to this continent, in putting itself back on the map, and it plays a and the trend seems likely to continue. Latin Ame­ more important international role now than it did rica’s traditionally strong dependence on the US is in the 1990s, a role marked by greater economic declining due to intensified regional cooperation freedom of action and international ambitions. Rus­ and increased integration in the world economy. sia is playing a global role in a number of isolated Economic and social development in the countries issues such as Iran’s nuclear policy, the Middle south of Rio Grande have consequences for the US, East conflict and the question of North Korea, and especially in the areas of immigration, the narco­ overall in disarmament policy. tics trade and other forms of international crime. At the national level there is considerable poli­ tical and economic centralisation, for example in the energy sector, where under Putin the state has Consequences for Norway again assumed total control. Political develop­ The gradual reduction in the power and influence ments, especially in relation to democracy, of the US and the corresponding emergence of freedom of the press and respect for human rights, 32 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities are a matter for concern, particularly as regards partly based on Russian exports of arms and, the situation in the North Caucasus. Conditions for increasingly, of oil and gas. Another Russian aim is NGOs and opponents of the government have also to reduce the country’s dependence on the Euro­ become more difficult. Russia was hit hard by the pean gas markets over the long term. It is also financial crisis and the country appears to be in a important for Russia to maintain a high profile in vulnerable position, but it is too early to predict the East Asia, given China’s increasingly strong regio­ eventual economic and political consequences. nal and global position. However, China’s geopoliti­ Russia’s relations with Western countries have cal ambitions are regarded with some unease in become increasingly tense over the last few years. Russia, and this, combined with the fact that rela­ The tension has come to the surface in a number of tions are also somewhat tense and that both Rus­ issues, such as the question of Kosovo’s status, sia’s and China’s best interests lie in cultivating missile defence, the Georgia conflict and NATO their relations with Western countries, makes it enlargement. The crisis in Georgia has created unlikely that these two countries will form a long- uncertainty about Russia’s further course of action term alliance. and has adversely affected its reputation. Russia’s economy, whose negative aspects have been inten­ sified by the financial crisis and negative demo­ Consequences for Norway graphic developments, makes it primarily a regio­ Norway is best served by pragmatic, close coope­ nal major power compared with the US and China. ration with Russia on addressing common chal­ However, due to the size of its territory, its impor­ lenges in the High North, for example natural tance as a petroleum exporter and its military capa­ resource management and the environment. Our bility, Russia is likely to play a significant role in bilateral relations are good, and in some areas, matters relating to the Caucasus, Central Asia and such as oil and gas extraction, our cooperation is Europe, including the Nordic countries. becoming particularly close. On the other hand, Russian–US relations are more strained than Russia’s new great-power policy is also manifested they were in the 1990s. The US plans for a missile in the High North and includes increased exercise defence shield, Russia’s temporary suspension of activity, which means that cooperation on certain the Conventional Forces in Europe Treaty and lack specific issues can be challenging. of agreement on certain international issues such Russia is an Arctic state and has considerable as Iran and Kosovo have all contributed to this situ­ expertise in Arctic matters, high ambitions, sub­ ation. The active US support for the aspirations to stantial resources and major interests to safeguard NATO membership of Georgia and Ukraine has in the Arctic region. been interpreted by Russia as a threat to its inte­ Norway’s NATO membership is an important rests, and Russian engagement in US-sceptical guarantee in what would otherwise be an asymme­ countries in Latin America is probably a response tric relationship. This means that NATO–Russian to this. Time will show how these relations develop relations have a significant influence on the under President Obama and the new administra­ development of Norwegian–Russian relations. The tion in Washington. same applies to the EU, even though Norway is not Russia’s relations with Europe are marked by a member. Constructive EU–Russian relations are energy interdependence and by the fact that Rus­ in Norway’s interest, partly because Norway and sia has different bilateral relations with individual Russia are not competitors but have certain com­ European countries that are also to some extent mon interests with regard to the development in influenced by energy issues. Russia has a pragma­ EU countries of infrastructure for importing gas. tic cooperation with the EU, but its relations with The trend towards greater discord or new divi­ NATO are more tense and influenced by its scepti­ ding lines, whether real or apparent, in Russia’s cal attitude to NATO enlargement. relations with NATO and the EU is against Nor­ A multipolar world is an explicit goal of Russian way’s interests. Developments in Russia, Russian foreign policy, especially since this is expected to foreign policy and Russia’s relations with key coun­ weaken the superpower status of the US. Russia is tries and organisations such as the US, China, therefore giving priority to its relations with coun­ European countries, NATO, the EU and the West tries like China and India. The country has good as a whole have considerable security policy and relations with India, marked by extensive econo­ foreign policy implications for Norway as Russia’s mic ties, close cooperation on civil nuclear power neighbour. Norway’s best interests lie in good rela­ and certain common interests related to disarma­ tions between Russia and the West, and in Russian ment issues. Russia’s relations with China are involvement in cooperation on addressing regional 2008– 2009 Report No. 15 to the Storting 33 Interests, Responsibilities and Opportunities and global challenges. It is therefore natural for The civil and military EU-led operations within Norway to promote the integration of Russia in the framework of the European security and international cooperation, such as in the WTO and defence policy (ESDP) are the EU’s most concrete the OECD, and to work for close cooperation with contribution to international stability and develop­ Russia in regional forums and in NATO. It is also ment. So far the EU has carried out 16 such opera­ important for Norway to follow the political, social tions on three continents. However, compared with and economic consequences for Russia of the NATO, the Union still has a limited number of tools financial crisis. Thus Russia continues to be a key at its disposal. On the other hand its combination of factor in Norwegian foreign and security policy. civil and military tools makes it an important secu­ rity policy actor. The EU has strategic partnerships and fre­ The EU is the main actor in Europe and has acquired quent summits with the US, China, Russia, Brazil, a more prominent global role India and South Africa, at which international Cooperation in the EU has led to stabilisation and issues are discussed. EU cooperation with the US conflict resolution in Europe and its neighbours. is broad and comprehensive, and reflects the strong This is particularly evident with respect to the for­ historical, cultural and democratic ties between the mer East-bloc countries, where EU membership countries. Previous transatlantic controversies has played an instrumental role in the stable esta­ over the development of the EU’s security and blishment of democracy and a market economy. defence policy no longer occupy a prominent place Through several rounds of enlargement and an in these relations. A security policy challenge for active neighbourhood policy, for example in the the EU member states in relation to the US will pro­ Balkans, the EU has promoted security and bably be the US expectation that member states development in a broad geographical region. should make more substantial military contribu­ The EU’s role as a global actor is largely con­ tions to international operations. Although the poli­ cerned with the development and strengthening of tical role of the EU is becoming more prominent, the UN and the other multilateral organisations. the Union’s military capability is considerably The EU has demonstrated a capacity for action in more limited than that of the US, especially with cases where the UN’s capacity has been limited, regard to its global force projection, i.e. its capacity for example in Kosovo, Sudan, Burma and Iran. An to conduct operations on other continents using its issue that will affect the development of the EU own forces. internally within the Union and at the regional and The EU member states import around 35% of global levels for the next 10 years is the question of their gas from Russia, and in some of the Eastern admitting Turkey as a member. member states dependence on Russian energy is The EU plays a key role in many international almost 100%. Russia, for its part, is dependent on issues such as climate change, the conflict in Geor­ revenues from the European gas market. Although gia, the Balkans, Iran and nuclear power, Somalia the member states are seeking to diversify their and the Middle East. It also plays an important energy supply, there is considerable interest in security policy role in matters relating to the inter­ new gas projects in northern Russia. The conflict national legal order. in Georgia in 2008 had a cooling effect on the cli­ One of the challenges the EU will face if it is to mate of cooperation with Russia, but the EU was continue expanding its role as a global actor is that able to play a role in this conflict that was not pos­ the member states must agree on a common sible for either NATO or any other actors. approach to specific issues under the common for­ The EU’s relations with China and India cover eign and security policy (CFSP). If ratified by all a broad range of fields, due partly to the EU’s the member states, the Lisbon Treaty will improve recognition that these two countries will play an foreign policy coordination and increase its influ­ even more central role in the future, both in Asia ence. However, there will always be some conflict­ and at the global level. In multilateral organisations ing interests and priorities within the EU, and this and negotiations there is an increasing amount of will limit the Union’s voice in certain important direct contact between the EU and third world international issues. The large number of new actors such as the G-77–NAM. The EU’s largest members has resulted in a larger number of com­ member states are discovering increasingly often peting interests, which complicates decision pro­ that they are better served by channelling their cesses. Furthermore the major EU member states interests through the EU than by playing a national appear to experience a continual need to assert card, both in international organisations and in themselves. other contexts. However, in critical issues these 34 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities states tend to give priority to national interests at aligned itself with the EU terrorist list, it has been the expense of the Community’s, for example in able to play the role of facilitator in Sri Lanka and to energy policy issues in relation to Russia. recognise the Palestinian unity government. The climate threat and the WTO negotiations are perhaps the most important issues in which the Consequences for Norway EU can make a difference in relation to the US, EU membership is not on the political agenda and China, Brazil and India. Developments in the EU’s will therefore not be dealt with in this report. As set relations with Russia have a strong influence on out in a white paper on the implementation of Nor­ Norwegian economic and security policy interests. way’s European policy (Report No. 23 (2005–2006) Norway’s approach to India, Brazil and China is to the Storting), the Government engages in well- similar to that of the EU: the focus is on trade and functioning cooperation with the EU through the investment, climate and the environment, clean existing forms of association in most areas of technology, human rights, research, cultural importance for Norway’s interests. Good relations cooperation and public diplomacy. As an EEA have been shown to be in the interests of the EU as country, it is in Norway’s interest that the EU well. At the same time, Norway has to make active further develops its broad engagement in matters efforts to safeguard its interests vis-à-vis the EU, relating to India and China, and gives priority to its which naturally gives priority to the concerns of its human rights dialogues, climate and environmen­ member states, and safeguards its interests in the tal issues, and anti-terror measures. same way as all international actors do. It is in our Norway’s interests are best served by esta­ interest that the EU should be strong and effective blishing predictable, long-term relations, both bila­ in regional and global affairs as long as it supports teral and multilateral, with other countries. Regio­ the international legal order and promotes global nal and global integration is thus in Norway’s inte­ peace, security and development. Norway is not rest, and generally speaking the development of bound by the EU’s foreign or security policies, stronger and broader strategic partnerships between which is an important factor with regard to our the EU, the US, China, Russia and other major Middle East and peace and reconciliation policies. powers provides better framework conditions for For example since Norway has not automatically

Figure 3.1 China Sources: UN, SIPRI, FAO, REN21, IEA, FT Global 500, internetworldstats.com, IEA Key World Energy Statistics 2008– 2009 Report No. 15 to the Storting 35 Interests, Responsibilities and Opportunities

Norwegian foreign policy, as long as Norway is not a range of matters, from global economic fluctua­ left outside the channels of communication. tions and environmental issues to international Norway could run into difficulties both in cases military engagement in Africa and the international where aspects of EU–NATO relations are unclari­ efforts to prevent the spread of weapons of mass fied and in the event of closer co-operation between destruction to countries like North Korea and Iran. these two organisations. The same applies if the In the next few years the international commu­ EU member states choose to conduct security nity should aim to strengthen and support China’s policy discussions that are relevant to Norway role as a responsible international actor, and seek within an EU framework instead of in NATO, for to ensure that China assumes an international example in the EU dialogue with third countries responsibility commensurate with its economic such as the US and Russia. power. Traditionally, China has given priority to its bilateral relations rather than working multilater­ ally, and its foreign policy has been based on the The emergence of Asia is the most important principles of regional stability and non-interfer­ geopolitical development today ence in the internal affairs of other states. China’s The most important development in the interna­ rapidly increasing engagement in Africa is a key tional geopolitical picture is the emergence of element of its foreign policy expansion. The coun­ China and India as major powers. Since the begin­ try aspires to be a responsible major power, and ning of this century, the general view has been that this intention could come into conflict with the non­ the BRICS economies (Brazil, Russia, India, China interference principle of its foreign policy. and South Africa) would dominate the world econ­ India’s landing of a lunar probe in November omy in a few years’ time. However, these countries 2008 to obtain three-dimensional images of the form a very heterogeneous group, as illustrated by moon was a high point in its space programme, and the fact that China’s current gross domestic pro­ confirmed its position in the global arena and its duct, measured both in dollars and in purchasing ambitions for the time ahead. Over the last few power, is almost as large as that of all the other years the world’s largest democracy has experi­ BRICS countries together. enced economic growth accompanied by gradually Since the start of its reform process in 1978, increasing political awareness and a willingness to China has experienced economic development use its influence in steadily broadening geographic that is unprecedented in the history of the world. circles. India is seeking a permanent seat on the China alone has been responsible for 75% of world Security Council and is one of the largest contribut­ poverty reduction during this period. Today it is ors to UN peacekeeping operations. The Govern­ the world’s third largest economy and at its current ment in New Delhi is aware that global problems speed of development could become the leading such as climate change, international security chal­ economy in the next few decades. Thanks to its lenges and poverty reduction cannot be solved with­ economic importance, the country has the poten­ out India’s active participation and is maintaining a tial to be a global actor at the same level as the US. high profile, indicating that the country is able and Global problems like the financial crisis, climate willing to become involved in developing tomor­ change, energy supply and disarmament can no row’s political agenda. longer be solved without Chinese cooperation. India is strengthening its political, technologi­ China’s growing need for energy has had an cal and economic cooperation with other Asian impact on the global energy market and global major powers such as Japan and China, which is greenhouse gas emissions, and it has increased giving added impetus to the eastward movement of Norway’s oil revenues. the global centre of gravity. The country is also One of the main considerations in China’s for­ conducting a more formalised dialogue, based on eign policy is the question of access to resources. It common interests, with Brazil and South Africa. Its is pursuing a policy of caution and predictability, ties with the US have been strengthened, as indica­ but at the same time its objective is to increase its ted for example by the recently concluded India– global influence. In military terms, China is a US Civil Nuclear Cooperation Agreement. At the regional power and it will be many years before it same time India is continuing its close cooperation has the same global force projection capability as with Russia on development of defence materiel, the US. However, due to the size of its economy, and is intensifying its political dialogue and trade China’s outlook is becoming increasingly global, relations with the EU. and this is having both economic and political con­ Although China is expected to move up to the sequences. Beijing exercises a strong influence on position of the world’s second largest economy, 36 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Japan will continue to be an important economic actor that can challenge the economic and military actor and global driving force for research and hegemony of the US. Thus relations between these innovation. Cooperation between Japan and the US two countries will be a determining factor in future is close, and their bilateral security alliance is, next global power constellations, and allies and partners to NATO, one of the main elements of US security will probably shift their geopolitical and security and defence policy. The threat of North Korea’s policy focus away from Europe and towards Asia. nuclear and missile programmes has brought the The relations between the US and China will US and Japan together to cooperate on establish­ also have consequences for the Western security ing a missile shield over the Japanese islands, and system and therefore also for Norwegian security. there is growing debate in Japan on the necessity Global security is best served by closer coopera­ for strengthening its defence in view of the broader tion between the US and China, even though this regional trend of increasing armament. could increase the challenges to the transatlantic Indonesia has the world’s fourth largest popula­ cooperation. In the opposite case, a higher level of tion and is the third largest democracy. The coun­ tension between the US and China would initially try’s international importance is likely to grow, and draw the Western countries together, although it is in recent years it has gradually increased its engage­ possible that the EU’s views on such a challenge ment in foreign policy issues. With its geostrategic might differ from those of the US. position, its emphasis on dialogue and democracy, From Norway’s perspective, China’s growing a constitution based on diversity and freedom of prominence must also be seen in the context of the religion, and the largest Muslim population in the development of our own relations with the US, the world, Indonesia is an interesting and strategically direction of the processes shaping Euro-Atlantic important cooperation partner. The country plays security, the future of NATO, our relations with the an active role in global affairs such as disarmament, EU as the Union plays an ever stronger role in the non-proliferation and trade, and aims to act as security policy arena, and the development of mul­ bridge-builder between Islam and the West. This tilateral institutions and the international legal aim must also, however, be viewed in the context of order. Given China’s vital importance as a factor Indonesia’s domestic political situation and its scep­ that increasingly affects almost all foreign and tical attitude to the US and Israel. The global pro­ security policy areas in which Norway is engaged, blems relating to climate change cannot be solved the country must be given greater weight, and without Indonesia’s active participation. Norway must promote the country’s integration Tomorrow’s geopolitical pattern will to a large into the international community as a responsible extent be influenced by developments in Asia. actor. There is great potential for instability in this region Because India has become a factor to be and there are a number of unresolved conflicts, reckoned with, it is in Norway’s interest to streng­ such as the question of Taiwan and the Korea then and further develop its already broad coopera­ issue. The tension is reinforced by the lack of effec­ tion with this country, especially on security policy, tive regional security mechanisms. So far the US trade and climate issues. Norway has concluded has been the dominating power in the Asia–Pacific bilateral research and technology agreements with region. China’s relations with countries like Japan both China and India. and India will be a decisive factor in regional stabi­ Indonesia’s increasing importance in geopoliti­ lity. China will be a major driving force in the event cal terms and as a bridge-builder makes the coun­ of increased rivalry and competition, both region­ try an interesting cooperation partner for Norway. ally in Asia and at the global level, especially in rela­ In the last few years cooperation has been devel­ tion to the US. However, China and the US have a oped on a media dialogue, including international high degree of interdependence, and solutions to conferences on Bali and in Oslo as a follow-up to many of the main problems we face today depend the Mohammed cartoons controversy in 2006, on on cooperation between these two countries. the UN Millennium Development Goals, on inter­ national health issues and on climate issues. Consequences for Norway The increasing importance of the Asian region is The broader Middle East is characterised by an opportunity and a challenge for Norway. This instability applies particularly to the growth of China and The high oil prices since the US invasion of Iraq in India as major economic powers and new geopoli­ 2003 have resulted in enormous transfers of tical centres of gravity. Today China is the only resources from Western and Asian consumer coun­ 2008– 2009 Report No. 15 to the Storting 37 Interests, Responsibilities and Opportunities tries to energy producers in the region, a develop­ mental global security issues relating to terrorism ment that has strengthened the position of the and the spread of weapons of mass destruction. Arab Gulf countries in particular as actors in inter­ Political, social and economic development in the national financial markets. However, the increasing Middle East will directly affect Norway in a num­ economic importance of these Arab countries does ber of areas, and the conflicts in the region have not seem to have been matched by a correspon­ political and economic consequences for almost ding growth in political influence, due to political every country in the world. Lasting unrest in the fragmentation and internal discord. In other words, region could increase global competition over there are few prospects of an independent Arab scarce energy resources, intensifying the need to pole on a level with the other emerging centres of exploit resources in the High North and thereby power that are creating a multipolar world. having significant consequences for Norway. On the contrary, the Middle East will primarily In view of the above consequences, and the remain an arena for geopolitical rivalry between relations between the US and Israel, a key task for external powers. China has now also entered the Norway is to seek to ensure active, balanced US arena owing to its increasing energy needs. Russia engagement in the Israeli–Palestinian negotiations is reviving its former position as an important arms with a view to finding a comprehensive solution to exporter to the lucrative market in the region. the conflict. Thus the US’s overriding dominance in the Middle East since the end of the Cold War is being chal­ lenged in the areas of both energy and security Africa’s global and geopolitical importance is policy. At the same time the US, Israel and the pro- growing US Arab regimes are meeting stronger opposition Although there are still a large number of major from their own peoples and from regional powers challenges on the African continent, there are also and non-state actors, first of all from Iran in alliance grounds for optimism. Never have there been so with Syria and Lebanese Hezbollah, including the few wars, so many peaceful transfers of power or Palestinian Hamas. such persistently high economic growth in the However, the US will continue to be the most countries of Africa. Social and economic develop­ important actor in the Middle East. Through its ment, a new generation of heads of government special relationship with and potential influence and improved governance in most of the countries over Israel, it plays a key role in the efforts to have made Africa an increasingly important global achieve a solution to the Palestine question and a actor. This can be seen in the growing influence of broader Arab–Israeli peace. Thus the international regional and subregional actors, with the develop­ community needs to persuade the US to place the ment of the African Union (AU) showing the way. Israeli–Palestinian conflict high on its list of priori­ One of the main reasons for Africa’s increasing ties. Nor will it be possible without direct US enga­ importance is the presence of rich natural resources gement in the Iran issue to ascertain Iran’s inte­ and other international actors’ interest in seeking rests and role in the Middle East in a way that pro­ cooperation in order to benefit from these resources. motes regional stability. Correspondingly, in the Africa is an increasingly important supplier of oil to absence of a grand bargain between the US and countries like the US, China and India, and given Iran it will be difficult to ensure the peaceful with­ the increasing focus on liquefied natural gas, inter­ drawal of the US military presence in Iraq. Last but est in the energy resources in for example Angola, not least, without a US–Iranian agreement it will be Nigeria, Algeria and Libya is becoming even almost impossible to prevent Iran from developing greater. The Congo Basin is the world’s second a nuclear weapons capability and from arming, largest rainforest, and protection of the rainforest which in the worst-case scenario would trigger a is a vital part of the efforts to halt global warming. nuclear arms race throughout the region. The food crisis in 2008 is creating problems for a number of African countries, but it also illustrates the great potential that lies in African agricultural Consequences for Norway and private-sector development. Due to the progress of globalisation and the gro­ However, Africa’s resources and potential are wing interdependence between countries, there is also a cause of the continent’s serious problems. an increasing focus on the situation in the Middle War, conflict and poor economic and political East in Norwegian foreign policy. Constant unrest development are often related to competition over or conflict in the Middle East and adjacent regions natural resources and the enrichment of the elite at affects both Norway’s strategic position and funda­ the expense of the population as a whole and its 38 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities access to economic assets. The international com­ way to further develop its cooperation with South munity has a strong interest in supporting the posi­ Africa on strengthening Africa’s own capacity for tive forces that are working to reduce the poverty peace operations with an emphasis on civilian com­ and deep-seated conflicts that are still prevalent in ponents. Norway plays an active role in many inter­ many African countries. Economic and political national contributions to conflict resolution and progress in Africa’s oil-producing countries will be peace-building in African countries such as Sudan increasingly necessary if they are to make impor­ and Burundi, on the Horn of Africa and in the tant contributions to global energy security. Cli­ Congo Basin. Norway’s contribution is based on mate change is having a strong impact on Africa, expertise and long experience of these conflict but African countries also have great potential for areas, gained for example through development helping to solve the climate problem. War and cooperation, broad experience of working with anarchy in many parts of Africa are resulting in these issues through the UN and other multilateral large flows of refugees and increasing the global institutions, and its access to economic resources level of conflict. based on broad support among the Norwegian South Africa’s foreign policy rests on the coun­ population for its policy of engagement (see Chap­ try’s strong economic position in the region – it ter 13). Climate and the environment is another accounts for 40% of the total gross domestic pro­ potential area for cooperation. duct for sub-Saharan Africa – and its ambition is to Norway also has important commercial inte­ expand its position in Africa and in the world has a rests in connection with development in African whole. The EU is the country’s most important countries, and in 2007 the Norwegian business sec­ trading partner, and South Africa gives priority to tor had investments worth more than NOK 40 bil­ developing its political and economic relations with lion in Africa. More investment and trade between the Union. South Africa has strong economic ties Norway and Africa is in the interests of both par­ with both the US and China, and gives priority to ties and would increase sales of both Norwegian cooperation between countries in the South, for and African products. Africa is an important mar­ example through its strategic cooperation with Bra­ ket for the Norwegian oil and supplier industries, a zil and India. The country is a driving force in the market that is becoming even more interesting as efforts to develop the African Union into a more new discoveries are made in countries such as efficient body for regional economic and political Ghana, Uganda, Tanzania and Madagascar. Nor­ development and integration, and is deeply way’s economic interests and profits from its engaged in a number of peace operations on the cooperation in the petroleum field entail obliga­ continent, especially in the Democratic Republic of tions, especially in the light of the conflicts and Congo and in Burundi. However, many African poor development following from petroleum activi­ countries have reservations about South Africa’s ties in African countries. This is one of the reasons strong economic and political position, and the for the Government’s Oil for Development pro­ country will only be able to achieve its objective of gramme, under which Norway cooperates with becoming Africa’s international voice if it follows a several African countries on strengthening general political line that is broadly in keeping with the poli­ petroleum management. For the same reason Nor­ tical mainstream in the rest of Africa. The challenge way supports African countries’ engagement in the here is that the assessments underlying these Extractive Industries Transparency Initiative and a mainstream policies often differ from those of West­ number of other development cooperation policy ern countries. South Africa is a strong advocate of initiatives to promote better governance in African multilateral cooperation, and UN reform is high on countries. its agenda. The country loyally supports the views of the African Union and G-77 with respect to UN reform, which is partly linked with its ambition to Latin America, with Brazil in front, is gaining self- occupy a permanent seat on the Security Council in confidence the event of the Council’s enlargement. While the US under President Bush focused on other parts of the world, great changes were occur­ ring in Latin America. After a period of higher raw Consequences for Norway material prices, economic growth and democrati­ Norway’s interests coincide with those of South cally elected centre-/left-oriented presidents, the Africa in key multilateral issues, especially in countries in the region seem to be gaining in self- humanitarian issues and those relating to peace confidence and independence. and security. This provides opportunities for Nor­ 2008– 2009 Report No. 15 to the Storting 39 Interests, Responsibilities and Opportunities

Other countries have taken advantage of the 3.2 Challenges and direct threats to vacuum in the region left by the US. This applies Norwegian security interests particularly to Russia, but also to China. The EU, on the other hand, has not increased its influence During the first 10 years after the end of the Cold to any appreciable extent. War, the main security policy challenges were linked Latin America’s integration efforts have been with violations of human rights, regional instability more successful in recent years. The establish­ and conflicts within rather than between states. In ment of the Union of South American Nations and addition 11 September 2001 has made asymmetric of a new development bank, Banco del Sur, are threats in the form of international terrorism even signs that Latin America intends to become an more serious. All these challenges are still with us, independent region, with a greater focus on and were discussed in Chapter 2. Throughout this democratic and social development and without period, however, the Western countries, led by the being influenced too heavily by the US. Although US, were the undisputed global centre of gravity. President Chavez of Venezuela has received a good As mentioned in Chapter 2, this picture is changing deal of attention in this context, the pragmatic driv­ with the emergence of new major powers like ing force in the region is President Lula of Brazil, China and India and the growing regional strength who has demonstrated his ability to moderate of former major powers like Russia. These geopoli­ emerging political crises. Owing to its size and tical developments, whose effects we are already importance as a leader in the organisation of feeling, will lead to changes in the global balance of developing countries, G-77, Brazil plays a key role power and will have consequences for Norwegian in the negotiations on a new WTO agreement and security. has a strong influence in issues such as climate change, poverty reduction and social inequality. Brazil has also succeeded in attracting a large No direct existential threats to Norway amount of foreign direct investment and is the Norway is not currently facing any existential threats, country outside the EU and the US where Norwe­ even though the spread of weapons of mass gian investment is greatest. destruction and long-range missiles means that Norwegian territory could, in the worst case, once again be very seriously threatened. However, this Consequences for Norway does not mean that all classical territorial security From a Norwegian perspective, a peaceful, respon­ threats and challenges other than those posed by sible and self-assertive Latin America will make a such weapons have disappeared, or that traditional positive contribution to the international legal defence policy measures have become irrelevant. order and Norwegian business interests, especi­ Among the most serious potential threats are ally in the petroleum sector. Since Norway’s inte­ future global resource shortages, a possible rests generally coincide with those of many Latin increase in the strategic importance of the High American countries, policy coherence between North and Norway’s asymmetric relations with these countries is an advantage, for example Russia. In addition, an isolated terrorist attack because it paves the way for cooperation with the could occur in Norway and Norwegian lives or other G-77 countries. In cases where the Latin interests abroad could be threatened. Although American countries decide to address challenges Norway’s security interests are no more vulner- through the medium of regional organisations, Norway will need to find opportunities for con­ ducting a dialogue with the relevant organisations. Box 3.1 Asymmetric threats Brazil’s emergence as a more equal partner on a par with other traditionally influential countries An asymmetric threat is a threat from a rela­ makes it an important partner for Norway in cli­ tively small, weak state or a non-state actor mate cooperation, in the efforts to negotiate a new directed at a larger, more powerful one. In WTO agreement, and in the International Mone­ such cases unexpected, non-conventional tary Fund and the World Bank. Norway and Brazil means are frequently used. For example, are engaged in strategic cooperation on preventing instead of trying to take on the US with high- deforestation of the Amazon rainforest, under technology weapons, the terrorists of 11 Sep­ which Norway has given substantial support to the tember used cheap, low-technology instru­ Amazon Fund. ments. 40 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities able than before, these possibilities, taken together and added to the global and indirect threats and Direct, serious but not existential threats against challenges outlined in Chapter 2, make the threat Norway picture Norway is facing more complex than ever There are four direct, serious but not existential before. threats that will be relevant for Norway in the time As regards potential existential threats against ahead. Norway from other states or organised groups, there are obviously a number of dramatic scen­ arios. Furthermore the past century of European – A weakening of Norway’s position in important history is a reminder that it would be over-confi­ sea areas dent to dismiss the possibility of rapid changes Norway is responsible for large sea areas where taking place. Every country needs to have an emer­ the country has special rights. To a considerable gency response system for territorial threats that degree Norway’s renewable living resources, energy cannot be excluded even though they are highly supply, revenues, business activity, research, improbable. However, there are no obvious scen­ settlement and general social development are arios of direct threats to Norwegian national secu­ directly linked with Norway’s position in these sea rity in existential terms. areas. This gives rise to many opportunities, but it Weapons of mass destruction, especially nuclear also involves certain challenges. In a long-term weapons, will continue to be a serious long-term perspective, any weakening of respect for the law international challenge. In some regions, especi­ of the sea regime could be a source of isolated ally the Middle East, there is a real danger of the threats and would probably constitute the major further spread of nuclear technology and a regio­ challenge to fundamental Norwegian interests and nal arms race. Nuclear terrorism or an accident at Norwegian security. The increasing shortage of a civilian nuclear power facility are continual living and non-living resources, and the increas­ threats, but the risk of an imminent nuclear threat ingly clear need for responsible coastal state mana­ against Norway by another state is small. gement that respects the freedoms of other states The same claim can be made for terrorism. As under the law of the sea will give rise to further long as Norway takes an active part in the Interna­ challenges for Norway and other states. Lack of tional Stabilisation Force in Afghanistan or in other respect for international law accompanied by a conflicts with high symbolic value for a terrorist higher level of tension between the major powers group, the country cannot be excluded from the would undermine the clarity and predictability on group of countries that require an emergency which a number of state and non-state actors are response system against the threat of terror. completely dependent, and eventually this would However, the probability that Norway will be the threaten Norwegian security. At the Ilulissat Con­ site of a spectacular large-scale terrorist attack is ference in Greenland in May 2008, the five coastal small, and terrorism does not qualify as an existen­ states bordering on the Arctic Ocean stressed the tial threat against Norwegian security. importance of respecting the provisions of the law The only direct, international security threat of the sea in this matter in the Ilulissat Declaration. that in the next few decades could have existential Given the vulnerability of the international commu­ implications and substantially change the security nity and international institutions, disregard for the policy framework is the spread of weapons of mass existing legal regime would represent a potential destruction and long-range ballistic missiles. In the fundamental, long-term source of insecurity (see course of the next few decades there is no guaran­ Box 3.2). tee that Norway, or other European countries, will not be faced with threats from long-range missiles or other ballistic weapons of attack from a hostile – Disputes related to resources and the increased state. strategic importance of the High North It should be emphasised that we are speaking Norway could be faced with new episodes and per­ here of existential threats. The next level down in haps also new situations that could escalate and the hierarchy of threats, non-existential threats, become security policy crises.1 These could be includes an attempt by another state to obtain related to Norway’s rights and responsibilities in advantages in the High North at Norway’s sea areas and to specific issues related to fisheries expense. These threats require carefully planned emergency response systems. 1 See Official Norwegian Report 2007:15 on the strengthening of the Norwegian Defence 2008– 2009 Report No. 15 to the Storting 41 Interests, Responsibilities and Opportunities

combat terrorist groups, and could thus be Box 3.2 The international community is regarded by some as a party to certain conflicts. Norway’s first line of defence Norway’s involvement in peace, mediation and reconciliation processes could also make it a target “Today, Norway lives on activities in sea areas for attack by isolated terrorist groups. Secondly, a over which we have jurisdiction because we terrorist attack could be launched against targets have been good at taking advantage of interna­ in Norway that are associated with international tional law and have been a driving force in its actors or other states. Logically, to avoid attracting development. The Norwegian Mare Nostrum terrorist activity Norway will have to match other is not based on military power, but on interna­ tional law. If it had been possible and desirable countries as regards security measures around to recover oil and gas from the sea in 1910, potential terrorist targets. Bearing in mind what 1920 or 1930, Norway would not have been has happened in other European countries, Nor­ able to do so. The greatest maritime power of way cannot exclude the risk of Norwegian citizens the day, the Royal Navy, would have ensured being recruited to ideological, religious or politi­ British control. … The international commu­ cally motivated terrorist activity. nity is interlinked. We cannot count on the sur­ It is important to remember, however, that the vival of parts of it if large and important institu­ actual threat to Norway and the impact of terror­ tions break down. Thus it is in Norway’s inte­ ism on Norwegian society will be determined by rest, in the sense of pragmatic realpolitik, that the way the country responds to and deals with a the international community is maintained terrorist attack. Terrorism is not in itself primarily and further developed. The international com­ munity is Norway’s first line of defence.”1 a threat to security. The most important measures for combating terrorism in Norway are not mili­ 1 Ståle Ulriksen, Norwegian Institute of International tary or security policy tools; broad involvement Affairs and dialogue are more important. Aspects of Nor­ way’s policy of engagement could have positive ripple effects, including a general preventive effect on terrorism, although many would argue that this and oil and gas extraction. Factors that could policy should not be linked too directly with the increase Norway’s security challenges in the High efforts to combat terrorism. North include the following: Climate change and ice melting that opens up new sea routes in the Arctic Ocean, increased com­ – Threats to Norwegian lives and interests abroad mercial traffic and the presence of military vessels, In the winter of 2006, the Norwegian embassy in which would increase the strategic importance of Syria was burned down in connection with the con­ the area. troversy over the Mohammed cartoons. Later Given the asymmetric relations between Nor­ Telenor’s offices in Pakistan were also attacked in way and Russia, the development of an (even) less connection with the controversy, and Norwegian democratic and more nationally oriented political oil workers were kidnapped in Nigeria. This under­ regime in Russia. lines a serious challenge to and a new feature of Increased competition over scarce energy security policy in a highly globalised society: some resources, serious, long-term gaps in the supply of of Norway’s security interests are being exported oil and gas to international markets, for example and privatised. This means that Norwegian inte­ owing to war in the Middle East, which would rests, lives and property must be safeguarded out­ increase the strategic importance of the High side Norwegian territory as well. There is no guar­ North. antee that Norwegian interests and a Norwegian presence outside Norway will be safe from attack. In many places around the world, most people –Isolated terrorist attacks in Norway do not distinguish between Norway as a state and There is no reason to believe that Norway is a spe­ Norwegian companies and business interests. cific target for large-scale, repeated terrorist There is therefore a two-way relationship between attacks, but an isolated terrorist attack in Norway official and civil Norway abroad. Since 2001 Nor­ or against Norwegian interests abroad cannot be way has been an actor in military confrontations excluded. There are at least two reasons for this. with global militant jihad groups in Iraq and Afghan­ Firstly, Norway plays an active political and mili­ istan, and in UN efforts to combat terrorism. tary role in the international arena in efforts to These groups and movements operate, and attack 42 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities targets, in large areas of the Middle East and parts order to safeguard the overall security of Norwe­ of Africa and Asia. The developments in Iraq and gian society. Afghanistan are a reminder that terrorism elimina­ Norway should be extremely alert to these tes the distinctions between civil and military, and challenges. Because of its important economic and between private and public/state interests. Norwe­ political role in connection with the oil and gas gian nationals and Norwegian companies are industry, Norway is strongly represented in potential terrorist targets, both because of their regions where the terrorist threats are greatest, own activities and because they are symbols of particularly the Middle East and North Africa. In Norway. these regions, private and public Norway have the In the foreign policy context, private Norway same security interests, and it is important that the and official Norway are held accountable for each two have an overall view of how Norway’s political, other’s conduct. The actions and decisions of the economic and security interests are related. Norwegian state have consequences for the secu­ Piracy in the Gulf of Aden off the coast of Soma­ rity of individual Norwegians and private interests, lia, including the kidnapping of entire ships and and the actions of private companies have conse­ crews off the coast of Nigeria and in parts of South quences for the Norwegian state. There is there­ East Asia, is another threat to Norwegian lives and fore a need to coordinate the “public” and “private” values, and forms part of this picture. areas of Norwegian foreign policy engagement in 2008– 2009 Report No. 15 to the Storting 43 Interests, Responsibilities and Opportunities

4 The vulnerability of the UN and global organisations, and Norway’s dependence on an international legal order

4.1 Globalisation and geopolitical to the UN. The idea behind such an organisation is change are a challenge to make it easier for democratic countries to reach agreement and take action without such agree- The increased pace and complexity of globalisation ment constantly being watered down to a mea- means that efforts to ensure a well-organised ningless “common denominator” by non-democra- world are now more important, and more difficult. cies. If, for the sake of discussion, we agree that The world is facing more global challenges than that it would be easier for democracies to reach ever before: climate change, terrorism, nuclear agreement among themselves than for democra- proliferation, epidemics and poverty, the food cri- cies and non-democracies to do so, we must ask sis and the financial crisis. These challenges ourselves the following question: what is best – to require global solutions. consolidate agreement between like-minded coun- An international architecture and international tries or to attempt to build a fragile agreement that order are much more fragile and vulnerable than cuts across existing differences? An alliance of domestic political institutions. We must, therefore, democracies would not be seen as legitimate by be cautious about taking the existing international countries that are not allowed to join such an alli- order for granted. In the years ahead, foreign ance. This highlights another dilemma: who defines policy will be largely concerned with maintaining which countries are sufficiently democratic? Replac- and developing the international order between ing the UN with an arena for like-minded demo- states that, despite everything, actually character- cracies would be tantamount to giving up global ises the world today, and avoiding a return to the dialogue. periods of chaos that have dominated large parts of the preceding centuries. International political sta- bility and order are a fundamental precondition if 4.2 The response of the multilateral we are to have any chance of dealing with the glo- system bal challenges that lie ahead. The current trend towards greater multipolar- Norway has strong interests in the future of the ity and complexity is putting pressure on multila- multilateral system. How will the multilateral insti- teral institutions. Differences in interests and tutions, spearheaded by WTO, the IMF, and World values will make it more difficult to agree on com- Bank and UN agencies, tackle the major economic mon binding decisions. Russia’s and China’s and technological changes at the global level and vetoing of sanctions against Zimbabwe and Burma, shifts in the world’s political centre of gravity? Will China’s and Russia’s opposition to operations in the there be increasing regionalisation in the form of Balkans, the US vetoing of a number of UN resolu- more tightly organised groups of states on the tions relating to the Middle East, both in the past model of the EU? decade and previously, and disagreement about The degree of organisation and institutionalisa- Iran’s nuclear programme are all examples of how tion in the world is increasing rapidly. New and geopolitical differences make international agre- more tightly organised networks are being formed ement more difficult to achieve. The SARS epi- to solve the challenges the world is facing. But a demic also demonstrated the importance of mutual high degree of institutionalisation also entails the trust and cooperation between countries in effect- dispersal and fragmentation of power and interna- ively managing such crises, and how little it takes tional governance instruments and increases prob- for suspicion and conflicts to derail necessary initi- lems of coordination. atives. In 1980, there were approximately 12 000 inter- This has now gone so far that influential voices governmental organisations and international in Europe and the US are advocating the establish- NGOs in the world. In 2006, there were more than ment of an alliance of democracies as an alternative 31 000. A great deal of the increase is due to the 44 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Figure 4.1 International organisations and their member states The extent of the EEA area is not shown directly in the figure, but it encompasses all the EU member states plus Norway, Iceland and Lichtenstein. 2008– 2009 Report No. 15 to the Storting 45 Interests, Responsibilities and Opportunities growth in the number of NGOs. This poses major A large part of the challenge relating to the challenges to the formal multilateral organisations. future world order lies in making international Many political processes and decisions are being organisations relevant to globally important coun- shifted to new arenas and actors such as the G8, tries. It is important to ensure that organisations the G20 and informal summit meetings in Davos that were established in a world dominated by and elsewhere. There are often very many differ- Western countries and the Soviet Union reflect the ent actors involved in the various international changes in global power structures, including the processes, and they are pulling in different direc- eastward shift of power that has taken place, and tions. When the WTO multilateral trading system that they are able to safeguard the interests of new fails to deliver, many countries become impatient emerging major powers without being used as and seek bilateral agreements outside the frame- instruments against them. There are clear chal- work of the WTO. And, perhaps most importantly, lenges involved here, given that one of the most today’s global trends highlight many new chal- important tasks for many multilateral organisa- lenges for which there is no established effective tions is to promote values and social systems that, framework for addressing. from an Asiatic or Islamic point of view, are often Some argue that the main problem facing the perceived as individualistic and Western. UN today is whether or not the major powers choose to use the organisation and its principles, as in connection with the Iraq war in 2003. This is too 4.3 Finding the right balance between simplistic, however. The UN’s problem is not just a legitimacy and effectiveness matter of the US’s willingness to involve itself in the multilateral system and to use what is termed The current multilateral system is being chal- the “UN track”. All countries have a collective lenged by two main aspects of international poli- responsibility for getting the UN to work. Both tics. One is the unequal distribution of influence Western countries and developing countries have between countries and regions. Western major failed to demonstrate genuine willingness to powers play a dominant role, both formally, as in achieve multilateral cooperation and reform. the Security Council, and more informally, in orga- However, the UN’s problem is also more internal to nisations such as the World Trade Organization the UN: the UN, as an intergovernmental organisa- (WTO), the International Monetary Fund (IMF) tion, has demonstrated considerable problems in and the World Bank. From the point of view of the terms of effectiveness. It needs to be reformed in Global South, existing international organisations order to reflect changes in the global distribution often serve as a mechanism for maintaining and of power and important new challenges. As an strengthening the influence of the major powers of organisation, the UN was designed to meet the 1945. The emergence of the BRICS countries and challenges facing the world in the years before and Asia’s growing dominance at the expense of the US after World War II. The distribution of power in the and major European powers are beginning to have UN Security Council, with its five permanent mem- an effect, but there is still a large gap between the bers, also reflects this. Repeated attempts to imple- formal arrangements and the new reality. ment necessary UN reforms, for example the work The other important challenge concerns the of the High Panel on UN Reform in 2004 and 2005, fact that global problems and challenges have assu- have resulted in improvements, but much remains med different and more demanding forms than to be done. was the case when many of today’s international The challenges we are facing are important to organisations were founded. The question is the future of international cooperation. If the coun- increasingly being raised of whether the chal- tries of the world fail to adapt the UN system to the lenges of climate change, the ongoing Doha round global changes, or are unable to deal effectively of trade negotiations and the global financial crisis with what appear to be the most important collect- can be successfully dealt with in the formal multila- ive tasks, individual countries and groups of coun- teral arenas. tries will either be forced, or will choose, to seek In other words, we face a double challenge in solutions outside the formal collective organisa- relation to reforming the global organisations. tions. This is probably a relevant scenario for emerg- There is a need for an internal redistribution of ing major powers such as India, China and Brazil in power and for greater representativeness, while at particular. Those who will suffer most as a result of the same time enhancing the international commun- such a development will be small countries with ity’s ability to control and regulate new, more limited power. complex, and probably also more pressing, global 46 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities problems. Can the current generation of multilate- also on the political agendas they promote. It is not ral organisations succeed in dealing with these a given that organisations that have been perceived challenges given the apparent contradiction until now as promoting interests in line with Nor- between growing demands for legitimacy and wegian positions will always continue to do so. democracy, on the one hand, and expectations of New major powers bring new ambitions and new greater global effectiveness and problem-solving, political goals to international forums. A key ques- on the other? tion in this context is what authority the UN and There is no easy answer to this dilemma, but related institutions should have in relation to states Norway and other countries have a strong interest that violate human rights and/or where the secu- in intensifying their efforts along both these rity and integrity of individuals is threatened. Who tracks. It will also be important to invest a great or what should take precedence in such matters? deal of political energy and wisdom in handling the Should it be the state and its security? Or should conflict between these two tracks – for example the individual, and the principle of universal rights, when 200 countries demand to sit around the same take precedence over the state? In other words, table to negotiate texts about complex global what should we be most concerned about: that the issues. This could, for example, be seen as an argu- state is sovereign and has borders, or how people ment in favour of taking a fundamentally positive, are actually faring within those borders? but not uncritical, attitude to the emergence of Historically, international politics has always more informal regional and global initiatives out- put the state and national security first and the indi- side the formal multilateral structures. The pro- vidual second. An important change took place in cess leading up to the Convention on Cluster Muni- the 1990s, and it originated in many different tions is a good example of a positive initiative places. It came from the war in the Balkans, from where an attempt was made to negotiate agree- Rwanda, from the Rushdie affair, from the US and ment under UN auspices, but where progress from Nelson Mandela. But the challenge came pri- proved to be much easier to achieve outside this marily from the very core of the UN system, which framework. opened for intervening in states’ territory to While better representation, and thereby better protect individuals from government abuse or democratic global governance, is an important abuse by non-state militia or other groups in coun- goal, it is important not to exaggerate, and not to tries torn by civil war or where the apparatus of the perpetuate, the differences between rich countries state has broken down. This happened for the first in the North and developing countries. In the WTO time in connection with a humanitarian operation context in particular, interests and conflicts increas- aimed at protecting Iraqi Kurds during the weeks ingly cut across the old dividing lines between following the first Gulf War in 1991, and it has sub- North and South. Individual countries define their sequently been repeated in connection with seve- interests in the light of their own economic and ral so-called humanitarian interventions. The social structures and the country-specific balance Rwanda tragedy in 1994 shook the world and spur- between export industries and actors who need red the development of what has been called the various forms of protection. In one respect, these principle of “responsibility to protect”. According new lines of cooperation and conflict, which run for to this principle, if national borders are to be example between different developing countries respected, the state must safeguard the fundamen- with conflicting interests, make negotiations even tal needs of all its citizens. more complex as they involve many new and rela- This principle was referred to in the final docu- tively fluid ad hoc alliances. At the same time, ment from the UN summit in 2005. For Norway, it however, the weakening of established ideological has been important that the principle is not con- dividing lines means new room for manoeuvre and strued as amending the provisions of Chapter VII new opportunities for bridge building that can lead of the UN Charter on the Security Council’s mono- to common solutions to global problems. poly on power. According to Chapter VII, the use of armed force by states for purposes other than self- defence must be authorised by the Security Coun- 4.4 The international community’s cil. This constraint on the use of armed force was norms and rules possible under the particular political conditions that prevailed when the UN was established after Globalisation and global change make it increas- World War II, and it is a core element of the inter- ingly important for Norway not to focus only on the national legal order that it is in Norway’s interests structure and function of global institutions, but to maintain. While Norway supports the view that 2008– 2009 Report No. 15 to the Storting 47 Interests, Responsibilities and Opportunities the legitimate exercise of power depends on the which the vast majority of countries adhere. The safeguarding of citizens’ fundamental needs and, UN Convention on the Law of the Sea of 1982 is of conversely, that various forms of preventive inter- crucial importance to Norway. Modern law of the national intervention may be justified in the case of sea, which was largely developed through multilat- states that fail to meet these needs over time, it eral negotiations in the 1970s, establishes Nor- adheres to the principle that the use of armed force way’s right as a coastal state to establish 200-mile requires a mandate from the UN Security Council. zones, and its exclusive right to explore and exploit This is, and will remain, a major bone of conten- living and non-living resources on the continental tion in international politics. The question has been shelf. somewhat overshadowed by the war on interna- However, an international legal order is not tional terrorism, but it will re-emerge. And it will be something that can be taken for granted, neither complicated, because there is fundamental dis- historically nor within the framework of interna- agreement between the major powers about these tional politics. What we now call the international key ethical and human rights issues, and between community is rooted in important principles relat- China, Russia, the US and the EU in particular. ing to the sovereignty of the state and the UN Moreover, these questions are just a small part Charter, and it was the result in particular of the of another, more comprehensive question related realisation by major powers and small states after to values in international politics. There is consider- World War II that their interests would be best able disagreement between different parts of the served by having a predictable international arena world about fundamental social values, and the governed by the rule of law. The US in particular level of conflict is growing. It should also be under- played a key role and was a driving force behind lined that the values on which Norwegian society the new international institutions and rules that is based may be less universally valid than we tend were developed. The strength and robustness of to think, and that there is considerable global vari- the international community have always been a ation when it comes to religious and individualistic matter of contention. What appears to be indisput- values. This means that we must expect tension able is that an international legal order is to a certain and conflict about value-related issues in future, extent contingent on the power and interests of the and we must live with uncertainty about which way major powers, and that it is more fragile than what the pendulum will swing – towards transnational we generally associate with the national legal and universally valid human rights or back to the order. It would therefore be unwise and ahistorical nation state’s absolute and sovereign position in to take the international legal order for granted or international politics. to assume it to be static and forget to focus on the continual maintenance and improvements that are necessary in order to preserve and develop these 4.5 Norway’s great dependence on an institutions and arrangements in an effective man- international legal order ner. There are good reasons why Norway should constantly remind itself that its Mare Nostrum is Norway is a small country in terms of land area. not based on Norwegian military power, but on However, if we include Norway’s 200-mile zones international law, and that, if it had been possible and the continental shelf in the High North, Nor- “to recover the oil from the sea in 1910, 1920 or way is actually a large country, the thirteenth larg- 1930, Norway would not have had any of it.” (Ulrik- est in the world. Oil and gas alone account for a sen, see Box 3.2) quarter of Norway’s value creation. As much as If we look at the figures for the part of the Nor- three quarters of Norway’s total export revenues wegian economy that is related to marine petro- in recent years have come from marine economic leum and protein resources, the importance of activities and marine resources – oil, gas and fish international law is self-evident. In the Norwegian products. public debate and political discourse, Norway’s These resources are often taken for granted. need to safeguard and further develop the interna- Today, most people in Norway grow up with a tional legal order is often portrayed as the result of strong sense that Norway is a major manager of its internationalist outlook and generosity. In real- petroleum and fisheries resources. While this is ity, it is a key objective of Norway’s interest-based true, it is also important to remember what this policy and is linked to fundamental aspects of Nor- wealth is founded on. A great deal of Norway’s wegian society and to how important it is to Nor- wealth is a direct result of the existence of an inter- way that international politics allow as little room national legal order and international norms to as possible for the use of force and the erosion of 48 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities international law. Norway is, far more than we well-regulated international community. This is generally realise, in a unique position internation- because of Norway’s specific territorial, resource- ally in terms of its dependence on a robust interna- related and economic features. As a small and open tional legal order. And we need this legal order if economy that is dependent on extensive trade with we are to address many of the major challenges of the rest of the world, Norway also benefits greatly our time, such as climate change, disarmament from the existence of a framework for international and regulation of tax havens. economic cooperation in the form of international All of the 15 to 20 countries in the world that agreements and organisations such as the WTO, have comparable social systems to Norway are the IMF and the OECD, as well as the EEA Agree- deeply dependent on global parameters. Multila- ment. Preventing the erosion of the international teral agreements, international law, rules and regula- legal order and multilateral systems of governance tory frameworks are all crucial to meeting soci- and regimes should therefore be defined as Nor- ety’s needs and pursuing its goals. However, Nor- way’s primary and highest priority foreign policy way is completely dependent on, and thus has an interest. enduring, pragmatic interest in, a well-functioning, 2008– 2009 Report No. 15 to the Storting 49 Interests, Responsibilities and Opportunities

5 The High North will continue to be of special importance to Norway

5.1 Major changes in the High North rest of China and other Asian countries, and other since the end of the Cold War potential sea routes through the Arctic Ocean (see Fig. 5.1). An increase in the transport of oil and gas The challenges facing Norway in its neighbouring as a result of expected oil and gas development will areas are also increasingly influenced by interna­ increase the risk of accidents and acute pollution in tional developments. We see this clearly in relation areas with vulnerable fish stocks and biological to the increasing global shortage of strategic diversity. resources such as oil, gas and fish, which is inten­ In many cases the shortest route from produ­ sified in the High North by conflicts of interest cer to market runs through the Arctic Ocean basin. relating to jurisdiction issues that have yet to be Increased accessibility as a result of there being clarified. Global climate change is especially evi­ less ice is a factor that influences the general level dent in the Arctic, and this will make the extraction of activity in the region, at the same time as this is and transport of energy an even more important also part of the global challenge of climate change. issue in future. Climate change could also lead to The sea areas around Greenland and Svalbard will changes in the migration patterns of fish stocks, be challenging for the shipping industry because which may come under even greater pressure. of extensive drift ice and pack ice. New and increas­ The end of the Cold War and the division of ing activity in the Arctic Ocean could lead to a greater East and West into two opposing blocs heralded a need for search and rescue and pollution response fundamental change in the geopolitical situation in systems in the area. Together with other commer­ the High North and the Arctic. During the Cold cial activity in the Arctic Ocean, an increase in ship­ War, the High North was of great military and stra­ ping, for example in the form of cruise traffic and tegic importance, particularly in connection with fisheries, could increase the importance of search strategic weapons systems. Since then, the political and rescue preparedness in Svalbard. Greater importance of this dimension has greatly dimin­ activity in the Arctic Ocean could put more pres­ ished. The marked increase in Russian military activ­ sure on the natural environment in Svalbard in the ity in recent years following a period of relative long term.1 passivity does not recreate the Cold War situation. All the Arctic states are facing major challenges The most important change since the turn of in relation to the development of their High North the millennium is the new, more concrete interest areas, challenges that are largely the same for all in business activity and research we can observe in these countries. The entire region is sparsely popu­ all the Arctic states, as well as among other actors. lated and characterised by vast distances, and the This interest is also reflected in a more conscious infrastructure – railways, roads, air routes, etc. – is exercise of sovereignty on the part of the coastal not adapted to the needs of tomorrow. The sparse states. In the long term, we can expect this trend to population also means that qualified labour could intensify. The main reasons for this are the global be in short supply. The development of the subsea shortage of energy resources combined with oil and gas deposits requires enormous invest­ assumptions about large deposits of oil and gas in ments, and new advanced technology will have to the High North, as well as increased demand for be developed. At the same time, it will be neces­ renewable living resources (fish in particular) and sary to define the relationship between economic other resources. In terms of research, the Arctic is development, on the one hand, and considerations becoming increasingly important in connection of sustainable development and protection of the with climate change and environmental issues. environment, on the other. Necessary standards The importance of the area in relation to intercon­ will also have to be established for health, safety, tinental transport infrastructure is expected to increase, as illustrated, for example, by the plans to 1 The Government will present a white paper on Svalbard in utilise the Northeast Passage, which is in the inte­ spring 2009. 50 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Figure 5.1 Ice melting in the High North and transport routes 2008– 2009 Report No. 15 to the Storting 51 Interests, Responsibilities and Opportunities the environment and emergency preparedness. Even though we see a marked new dynamism in Changes in Norway’s relations with Russia in the the High North, the progress we envisage will take High North time. The emergence of new opportunities for coopera­ All of these challenges can best be solved tion with Russia as a result of the end of the East- through close international cooperation, and there West divide represented a historic change in the is a great need for such cooperation in the High High North. North. The Russian interest in foreign financial Norway enjoys good relations with Russia, and and technological participation in the development we are partners in several areas. For instance, Nor­ of the gigantic Shtokman gas field in the Barents way and Russia have cooperated constructively for Sea is based on a genuine need, and the same will more than 30 years on the management of com­ apply to the development of the entire the region. mon fish stocks. At the same time, however, Rus­ The industries we envisage as being important in sia’s renewed status as a major power is also being future are all fully internationalised. This also felt in the High North, particularly through the applies to Norway’s extensive sea areas. It is in our country’s assertion of its national interests in interest to encourage, not discourage, the incipient resource and sovereignty issues. Seeking to solve international interest in the High North. It is not the many challenges in the High North by military correct to describe the growing interest in the means is not an expedient strategy. Broad-based High North as a race. It is through international civil cooperation is required. However, we cannot cooperation that we can achieve the best results in exclude the possibility that conflicts of interest in the High North. these areas could have consequences for security The five coastal states in the Arctic Ocean – and defence policy. Moreover, the High North is Canada, Denmark, Norway. Russia and the US – still of great military and strategic importance as agree that the current instruments of international the home base for Russia’s nuclear fleet. It is becom­ law (i.e. conventions and other legislation) govern ing increasingly important as an area for military the conduct of states in and around the Arctic exercises. Russia has resumed its military pres­ Ocean. The melting of the ice in the Arctic Ocean ence off our coastline and this presence is increas­ does not affect this. This was confirmed in the ing. For example, there were more Russian flights ministerial declaration issued at the Ilulissat confer­ off the Norwegian coast in 2007 than during the ence on 28 May 2008. The basic principles set out entire period from 1991 to 2006. This military pres­ in the UN Convention on the Law of the Sea are ence does not constitute a direct military threat to universally recognised, even though the US has Norway, but it underlines the military and strategic not acceded to the convention, and the conven­ importance of the area and means that Russia tion’s mechanisms for determining the outer limit remains an important factor in Norway’s security of the continental shelf are faithfully used by all the policy. states concerned. However, the increased activity necessitates further development of policy and legislation, and underlines how important it is that 5.2 The High North will continue to be all five coastal states around the Arctic Ocean a major security policy challenge undertake to be bound by existing conventions and agreements. This will be a key foreign policy The High North will continue to be a main chal­ challenge for Norway in the time ahead. There are lenge, or rather set of challenges and opportuni­ also other agreements and recognised rules and ties, in Norway’s security policy. The most prob­ principles in the fields of shipping, environmental able direct challenges to Norway’s security, sove­ protection and resource management that clarify reign rights, exercise of sovereignty and interests important issues related to the Arctic Ocean. The in the years ahead will come from minor violations main challenge is to ensure adherence to existing of Norway’s territorial integrity, individual inci­ international rules and principles and ensure their dents and attempts to limit our political freedom of effective implementation. At the same time, action. These challenges differ qualitatively from however, the extensive changes that are currently those Norway faced during the Cold War, although taking place make it necessary to continuously they are not necessarily less demanding. A wide assess the need for further measures, cooperation range of instruments within national, allied and arrangements and rules within the framework of other regional frameworks will be required to deal the law of the sea. with them. 52 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

5.3 A greater role for the EU and the ment. One of the main reasons for this increased Northern Dimension interest is climate change, which has had especi­ ally visible effects in the vulnerable High North There is a growing interest in the High North in while at the same time giving rise to expectations the EU. This is also in Norway’s interests as part of of increased access to resources, more transport its efforts to secure a firm regional and interna­ options and a growth in business activity in the tional foundation for its High North policy. The region. These interests were summarised in a increased interest from EU institutions and the report on Arctic questions issued by the European EU’s member states is accompanied by new oppor­ Commission in November 2008. Norway provided tunities and new challenges. input to the Commission during its work on the The EU’s interest in the region is related to report, which forms a good basis for closer contact research and environmental policy, but also to fish­ with the EU on the High North. At the same time, eries and fisheries resources, energy, maritime the Commission’s report reflects the fact that the transport, climate change and industrial develop­ member states’ interests in the High North vary

Box 5.1 Security policy aspects of Norway’s energy interests in the High North Oil and gas extraction on the Norwegian conti­ interest relating to the exploitation of the petro­ nental shelf has moved gradually northwards. leum resources in future. The best guarantee This poses particular challenges in terms of that any conflicts of interest will be dealt with in Norway’s need to develop systems for the moni­ a responsible manner is to pursue a consistent toring and control of various maritime activities and clear policy based on international law, in these areas in cooperation with neighbouring including the law of the sea, which has clarified countries. Efforts will also be made to safeguard important aspects of the division of responsibil­ the substantial Norwegian investments and inte­ ity at sea in important areas. From a security rests through close cooperation with Russia, policy perspective, it will be important to which is the world’s largest exporter of gas and emphasise transparency and sound control pro­ one of the largest exporters of oil. As an energy cesses on the part of the authorities, on the one supplier, Russia is in a stronger position globally hand, and the international legal order, on the than during the Soviet era. An increase in Rus­ other. sian interests and level of activity in the High Climate change and ice melting may open North is only to be expected. This must be seen new sea routes in the Arctic Ocean and increase in conjunction with the increased interest in the options for the transport of oil and gas (LNG) energy resources in the High North and our between east and west, involving many different asymmetrical relations with Russia. commercial actors. Such a scenario would mean Russia is Norway’s neighbour and we coope­ that both old and new markets could be reached rate in a number of areas, while at the same time more quickly and more cheaply. While this being competitors in the oil and gas context. would improve energy supply security, it could Norway and Russia may have divergent views also increase the risk of accidents and environ­ and practices as regards the division of roles mentally harmful discharges. between private enterprises and the authorities A combination of a growing global demand in the High North. In the security policy con­ for fossil fuel and a higher level of activity in the text, it will be important to define which tasks High North as a result of new discoveries and a should be handled by the private and public sec­ more advanced offshore industry will result in tors, nationally, in cooperation with NATO more countries taking a greater interest in unre­ allies, within a Nordic framework, or by relevant solved sovereignty issues in the region. At the EU bodies and, not least, in which areas steps same time, it will take time for countries that do should be taken to facilitate close cooperation not have direct participatory interests in the with Russia. High North to realise and accept the security Predictability and a long-term perspective challenges involved. This in itself poses a general are important elements in the Government’s security policy challenge from an allied and High North policy. At the same time, we must European perspective. be prepared to deal with international conflicts of 2008– 2009 Report No. 15 to the Storting 53 Interests, Responsibilities and Opportunities greatly. EU fisheries nations must be expected to 5.4 International law issues give priority to fisheries interests, while other member states will focus on other resources and Some of the most important international law several will attach importance to conservation inte­ issues Norway has been dealing with in recent rests. years have been related to our sea areas. A number The reform of the EU Northern Dimension of these issues have been clarified through agree­ policy was launched in 2006, with the EU, Iceland, ments of great significance. They include the Norway and Russia participating on an equal foot­ agreement with Russia of 11 July 2007 on maritime ing. The Northern Dimension has become an inte­ delimitation in the Varangerfjord area, the agree­ resting arena for cooperation, for example on ment with Denmark/Greenland of 26 February health, the environment and transport. 2006 on delimitation of the continental shelf and In recent years, both EU countries and the the fisheries zones in the area between Svalbard Commission have shown interest in the interna­ and Greenland, and the agreed minutes of 20 Sep­ tional law issues relating to the sea areas around tember 2006 from the negotiations with Denmark/ Svalbard. No secret is made of the fact that this is the Faroe Islands and Iceland concerning the deli­ the result of considerations of national interest. In mitation of the continental shelf beyond 200 nauti­ Norway’s view it is important to abide by the rules cal miles in the Southern Part of the Banana Hole of the law of the sea and other provisions of inter­ of the Northeast Atlantic. However, there are still a national law that provide a firm basis for the exer­ number of outstanding issues related to the geo­ cise of Norwegian authority. The European Com­ graphical scope of Norway’s rights and obligations mission shares this view. as a coastal state under the law of the sea. There In its relations with the EU, Norway has long are also divergent views on the limits on Norway’s been perceived as an important actor in the exercise of authority in the Fisheries Protection resource management context. The EU’s growing Zone around Svalbard. interest in the High North is further strengthening Norway’s stewardship role. In recent years, Nor­ way and the EU have cooperated closely on combat­ The limits of the continental shelf ing illegal fishing. This primarily involves fisheries According to the 1982 UN Convention on the Law in the High North, where Norway allocates annual of the Sea, coastal states with a continental shelf fishing quotas to the EU within the framework of that extends beyond 200 nautical miles from the the bilateral cooperation on fisheries. However, the coast must submit documentation to this effect to EU’s growing interest in the High North may the Commission on the Limits of the Continental result in increased pressure on living marine Shelf. On the basis of the recommendations of the resources and the marine environment, and it Commission, a coastal state may establish the could potentially put Norwegian management regi­ outer limits of its continental shelf with final and mes under pressure. It will be necessary for Nor­ binding effect. In November 2006, Norway submit­ way to establish infrastructure that provides a suf­ ted documentation of the limits of its continental ficient overview, control and information about shelf in the Banana Hole in the Norwegian Sea, the maritime activities in these large sea areas. It will Loop Hole in the Barents Sea and in the Arctic also be demanding to meet the great expectations Ocean. of future oil and gas activities, and the monitoring and control requirements in that context. The challenge for Norway is to continue its dia­ Delimitation of the Barents Sea logue with the EU and key member states, to pro­ Norway and Russia have overlapping claims in a mote greater understanding of Norway’s interests sea area measuring approximately 175 000 square in the High North and inform about Norway’s key kilometres in the Barents Sea and the Arctic role in relation to resource and knowledge mana­ Ocean. The parties agree that there will be no gement in the High North. Our goal must be to exploration for or exploitation of oil and gas depo­ have partners with whom we can cooperate, as well sits until an agreement on a delimitation line is in as channels through which we can pursue our inte­ place. A delimitation agreement would release con­ rests if conflicts of interest arise in the High North. siderable potential for cooperation, not least in con­ nection with any future oil and gas activities. 54 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

5.5 Cross-border and innovative The Fisheries Protection Zone around Svalbard cooperation in the High North Views differ somewhat about what constraints there are on Norway’s exercise of authority in the Cooperation in the Euro-Arctic Barents Region Fisheries Protection Zone around Svalbard. Some (the Barents Cooperation) was established in argue that the provisions of the Svalbard Treaty response to a Norwegian initiative in 1993. The also apply in the Fisheries Protection Zone. Nor­ European Commission, in addition to the Nordic way has always submitted that the Svalbard Treaty countries and Russia, also participates in this applies to the archipelago and the territorial cooperation. The name Barents Cooperation has waters, and thus not to the areas beyond 12 nauti­ become a trademark in the four countries that cal miles from the baselines. This is also in accor­ make up the Barents Region. Through concrete dance with the wording of the treaty. Russia, Spain, cooperation on joint projects, the northernmost Iceland and the UK are among the countries that counties of the four countries have developed a have expressed disagreement with the Norwegian common cooperation arena where the region’s view, but these countries also disagree among own interests and priorities are in focus. It has themselves. There have also been occasional pro­ become an important regional actor in the High tests against Norwegian enforcement measures in North and an arena and channel for cooperation. respect of foreign fishing vessels that have violated The Barents Cooperation is also a prime example the fisheries regulations that apply in the Fisheries of the progress being made in important Protection Zone.

Box 5.2 Culture in the High North The Arctic Ocean Culture has been an important priority area in Climate change has resulted in a substantial regional cooperation in the High North. reduction in the ice cover in the Arctic Ocean. This Cross-border cultural cooperation covers a could provide opportunities for new activities. The wide spectrum, ranging from small-scale local Arctic Ocean is currently the subject of consider­ cooperation projects and sporting events to able international attention, and various forces are large-scale international festivals. Cultural seeking to influence developments. As one of the projects have a central place in people-to-peo­ five coastal states around the Arctic Ocean, it is ple cooperation in the Barents Region. The important for Norway to seek to enhance clarity “New Winds in the Barents Region” pro­ and predictability in relation to the international gramme for 2008 to 2010 focuses on the cultu­ legal framework in this area, and to take part in ral diversity of the Barents Region and the cooperation on responsible management of the High North. Barentskult is a new Norwegian area. cultural programme for innovative cross-bor­ der culture in the High North. Svalbard Barents Spektakel is an annual festival that brings together a wide range of voluntary Norwegian sovereignty over Svalbard is recog­ organisations and professional artists from all nised by the entire international community. fields of the arts in the Barents Region. The Under the Svalbard Treaty of 1920, the Norwegian festival highlights diversity of the region. authorities have undertaken, for example, not to There are four countries in the Barents discriminate against nationals and enterprises of Region, but it is home to an even greater num­ the contracting parties in specified industries. Rus­ ber of peoples and ethnic groups, including sian interests have indicated that they are con­ three indigenous peoples. The Norwegian sidering new activities of various kinds in the archi­ Broadcasting Corporation’s Sami radio station pelago. New activities on the part of Russian com­ (NRK Samí Radio) enjoys a unique position panies or nationals will have to be carried out in and cooperates closely with the other Sami accordance with Norwegian law. radio and television stations in Sweden, Fin­ land and Russia. The Riddu Riddu Festival plays an important role in cultural coopera­ tion. 2008– 2009 Report No. 15 to the Storting 55 Interests, Responsibilities and Opportunities

tries. The long-term objective is to facilitate greater Box 5.3 Indigenous peoples in the High mobility with a view to meeting the demand for North and worldwide labour that is anticipated in connection with the large-scale development expected in Finnmark and The global role of the Norwegian Sami people northern Russia, both onshore and offshore. This as a leading indigenous people has made could be of great importance to the whole region. them role models for indigenous groups the Norway and Russia cooperate closely on fisher­ world over. The Sami people’s engagement is ies. A joint fisheries commission sets annual fish­ a global engagement. There is great interest ing quotas and decides other resource manage­ in their experience and knowledge of indi­ ment and regulatory measures. The commission genous peoples’ and cultures’ prospects of has succeeded in institutionalising cooperation in a survival in many forums, and they play an broad range of areas, and has produced good important role in stimulating interest in the results in the form of sustainable and productive knowledge to be found in the High North. In fisheries. the Barents Region, the Norwegian Sami peo­ ple are actively promoting better standards of living for the Sami population in northwestern 5.6 Increasing interest in the polar Russia and for the Nenets and Vespians in the areas and the Arctic Council same region. The Sami are an important source of inspiration throughout the High There has been a marked increase in interest in North and an important partner for indi­ the High North, the Arctic and the polar areas, genous peoples in North America and Green­ which has also revitalised and strengthened the land. Arctic Council. Due to developments in the Arctic, the Arctic Council is taking on a more important role in a number of issues. In addition to the Arctic coastal states, the Arctic Council includes Sweden, dimensions of Norway’s relations with Russia Finland and Iceland. Many states, including China within a multilateral framework. and other Asian countries, are interested in being The active participation and involvement of permanent observers. The same applies to the county authorities, local institutions and individu­ European Commission. Norway welcomes such als has laid the foundation for a broad network of applications. They confirm the position of the Arc­ people-to-people contacts. This cooperation covers tic Council as the key political forum for discussing a wide range of areas such as trade and economic issues relating to the Arctic. affairs, fisheries, energy, culture, education and As is the case with the Barents Council, indi­ research, cooperation between indigenous genous peoples also participate in the Arctic Coun­ peoples, youth issues, health, the environment, cil. In 2007, an international secretariat for the Arc­ rescue cooperation, transport and communica­ tic Council was established in Tromsø. During its tions, and tourism. One of the main goals has been chairmanship of the Council from 2006 to 2009, to promote regional stability and development. Norway has strongly emphasised issues relating to Perhaps the most successful thing about the integrated resource management, climate change cooperation is the way it has normalised and issues and the strengthening of the Council’s role demystified relations between ordinary people. as a political organisation. Under the auspices of While there were less than three thousand border the Arctic Council, extensive information is being crossings annually at Storskog border crossing collected about issues such as the retreat of sea ice, point 15 years ago, there are now more than the melting of the Greenland ice sheet and the 100 000. reduction in permafrost and snow cover. If the Arc­ More than 40 Norwegian companies are now tic as we know it today is to be protected for future established in Murmansk. The Norwegian and the generations, we need agreement on a global cli­ Russian authorities are cooperating on measures mate regime to bring about deep cuts in man-made to facilitate border crossing between the two coun­ greenhouse gas emissions. 56 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 5.4 Management plan for the Barents Sea The ecosystems of the Barents Sea–Lofoten In 2006, the Government presented an integra­ area are of very high environmental value and ted management plan for the Barents Sea–Lofo­ are rich in living natural resources that are the ten area. The purpose was to provide a basis for a considerable level of economic activ­ framework for the sustainable use of natural ity. There are major stocks of cod, herring and resources and goods derived from the Barents capelin in the area, and large cold-water coral Sea–Lofoten area, while at the same time reefs and seabird colonies of international maintaining the structure, functioning and pro­ importance. It is very important to safeguard ductivity of the ecosystems of the area. The plan the basic structure of the functioning of the eco­ is intended to clarify the overall framework for systems of this sea area in the long term so that both existing and new activities in these waters. they can continue to be clean, rich and pro­ It emphasises the importance of encouraging ductive. broad-based and varied industrial development The area has major potential for value crea­ in North Norway. It is therefore important to tion in the future. Traditionally, the primary facilitate the coexistence of different industries, users of the northern seas, including the particularly the fisheries industry, maritime Barents Sea, have been the fishing and mari­ transport and the petroleum industry. There are time transport industries. This situation is now certain parts of the area covered by the plan changing radically. There is growing activity in that are considered to be particularly valuable new fields such as oil and gas extraction, trans­ and vulnerable in environmental and resource port of oil – mainly from Russia – along the terms, and it is emphasised that activity in these coast, cruise traffic along the coast and around areas requires special caution. The plan also Svalbard, and marine bioprospecting. Such activ­ emphasises that precautionary measures must ities must be regulated and coordinated with be adapted to the characteristic features of each more traditional activities, and a balance must area, such as why it is vulnerable and how vul­ be struck between the various interests nerable it is. involved. The management plan will be updated in 2010.

Source: Based on Report No. 8 (2005–2006) to the Storting, Integrated Management of the Marine Environment of the Barents Sea and the Sea Areas off the Lofoten Islands (management plan). 2008– 2009 Report No. 15 to the Storting 57 Interests, Responsibilities and Opportunities

6 Europeanisation and Nordic cooperation

6.1 The importance of the EU bership of the Mediterranean Union can also help to promote integration. Developments in Norwegian society are closely In parallel with the increase in the number of interwoven with those taking place in other Euro­ member states, the agenda for political coopera­ pean countries. Four-fifths of all Norwegian tion has also become more wide-ranging. New imports and exports come from or go to EU coun­ challenges relating, for example, to the financial tries. Consequently, developments in Europe are crisis, climate policy, energy security, health policy important to Norwegian interests and are a key and immigration are increasingly part of EU coope­ point of reference for Norway’s domestic and for­ ration. The great majority of policy areas have eign policy. acquired a European dimension, and the distinc­ Extensive changes are taking place in the poli­ tion between foreign and domestic policy is gradu­ tical landscape of Europe. Cooperation across ally becoming blurred. As the significance of terri­ national borders is intensifying and increasing, and torial boundaries changes, new dividing lines and new forms of problem-solving and conflict resolu­ lines of conflict are emerging at the European tion are emerging. The EU has a central place in level, for example along the right-left axis in the these developments, both as an organisation with European Parliament. supranational aspects that guides and effects As the EU grows in size and scope, it is becom­ change and as an arena for dialogue and coopera­ ing increasingly difficult to develop legitimate and tion between sovereign member states. Over time, effective tools of governance. In recent decades, the EU has come to play a more important role in the EU has undertaken a number of major institu­ the overall fabric of European and Euro-Atlantic tional reforms. Over time, treaty amendments have cooperation. changed the balance of power between the differ­ Previously, the EU was a forum for cooperation ent EU institutions (the European Commission, between a limited number of Western European the Council of the European Union and the Euro­ states. Today, the Union is much larger, with 27 pean Parliament), between the EU and the mem­ member states and a population of almost half a bil­ ber states, and between member states. The lion. The neighbouring European countries that Treaty of Lisbon has been ratified by the vast are most important in terms of Norway’s interests majority of member states, but two countries have – Sweden, Denmark, Poland, Germany and the UK yet to do so (the Czech Republic and Ireland). All – are members. Several countries are currently 27 member states must ratify the treaty before it engaged in negotiations, while others have applied can enter into force. The issues of transparency, for membership. The EU’s successive enlarge­ democracy, participation and identification have ments have helped to promote stability and solidar­ been at the heart of much of the criticism and ity in Europe. debate about the EU system of governance. These EU assistance and the clear conditions it sets issues have also been central to the reform proces­ for membership and other forms of association ses. have been an important stimulus for candidate countries and contributed to the implementation of reforms in the desired direction in areas such as Norway’s form of association with the EU economic development, democracy, the rule of law, It is in Norway’s interest to have a form of associa­ administrative capacity and the protection of minor­ tion with the EU that functions well and ensures ity rights. An increasing number of countries are good cooperation with the European institutions aspiring to become members and to have a closer and member states. Norway is not a member of the association with the EU. In Turkey and all the Bal­ EU. The Government’s policy is built on the pre­ kan countries, most people see European integra­ mise that Norway’s relations with the EU will con­ tion as an important precondition for stability and tinue to be based on its current form of association. economic development. Cooperation in and mem­ 58 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 6.1 The EEA Financial Mechanisms help to promote security and solidarity in Europe One of the objectives of the EEA Agreement is education and implementation of the Schengen to reduce social and economic disparities in acquis. Europe. Norway is participating in this coopera- Norway has given high priority to streng­ tion with a view to creating a secure Europe thening civil society in the beneficiary countries. based on solidarity. Through the EEA Financial Special funds have therefore been established Mechanisms (EEA grants), Norway is helping for NGOs in most of the beneficiary countries. to achieve these goals while strengthening its They are used to support measures relating to bilateral relations with the beneficiary states. the environment, human rights, democracy and The EEA EFTA countries – Norway, Iceland social inclusion, and capacity building. Gender and Lichtenstein – contributed a total of EUR equality is an essential consideration that must 1307 billion during the period May 2004 to April be ensured in all projects that receive support. 2009. Norway’s contribution is approximately The total support amounts to close to EUR 85 97% of the total, which is equivalent to EUR 61 million. per Norwegian per year. Norwegian actors may participate as part- The EEA grants are provided to investment ners in the projects. So far, an average of 15 to and development projects in the twelve new EU 20% of the projects have been supported by a member states, and in Greece, Portugal and Norwegian partner. The EEA Financial Mecha- Spain, in areas such as environmental protec- nisms help to establish closer contact and tion, climate change, energy, sustainable cooperation between Norway and the bene- development, conservation of the European cul- ficiary countries. They also help to enhance tural heritage, health and childcare, research, Norway’s positive image.

See Report No. 23 to the Storting (2005–2006) on the implementation of Norway’s European policy. Norway’s interests in Nordic and European countries The EEA Agreement is the cornerstone of Nor­ Our relations with our closest neighbours and way’s relations with the EU. It ensures Norway’s European partners are characterised by: participation in the EU internal market, with its • An overriding common interest in achieving free movement of services, persons and capital, economic and social development and and cooperation on a number of related areas. Ice­ cohesion in Europe. This is also important in land, Lichtenstein and Norway comprise the EFTA terms of building trust and security. Norway side in the EEA cooperation. The EEA Agreement also benefits from EU enlargement in that its has led to closer cooperation with the EU over the enlargement to 27 countries has enhanced last 15 years. democracy, political stability and economic Norway has developed a number of new coope­ development in more parts of Europe. The EEA ration arrangements as cooperation with the EU Financial Mechanisms are a tangible contribu­ has expanded into new areas. The most extensive tion that provides opportunities for even closer of these are related to the area of justice and home cooperation in many areas (see Fig. 6.1). affairs (the Schengen Agreement) and to EU for­ • Economic cooperation with the countries in eign policy and defence policy cooperation. Nor­ the EEA area is crucial to maintaining the Nor­ way and the EU also cooperate extensively on fish­ wegian economy and standard of living at their eries management. current level. Through the EEA Agreement, Norway takes • A shared interest in cooperating on meeting part in EU research cooperation, where Norwe­ the challenges posed by environmental pro­ gian enterprises and researchers have full access blems and climate change (cf. Chapter 16). to research activities and programmes. Through • The EU is our most important market for oil the EEA Financial Mechanisms, which are gover­ and gas, and Germany, the UK and France are ned by grant agreements with new member states our largest export markets (cf. Chapter 15). in particular, Norway contributes substantial funds • The EU is Norway’s most important market for promoting social and economic cohesion. for the export of seafood. France, Denmark 2008– 2009 Report No. 15 to the Storting 59 Interests, Responsibilities and Opportunities

Figure 6.1 Norway’s economic interests in Nordic and European countries There is considerable uncertainty attached to the figures for Norwegian foreign direct investment. Direct investment only includes holdings that represent more than 10% of a company’s share value. Figures for the Government Pension Fund – Global are therefore not included. Sources: Statistics Norway and Menon Business Economics

and Poland were the largest individual markets together – historically, culturally and socially. in 2008. Norwegian artists have always sought know­ • Many shared foreign policy and security policy ledge and inspiration through contact with the interests, and cooperation with the other Nor­ major cultural currents in Europe. This is also dic and European countries on the develop­ true today. Germany, for example, plays an ment of a common foreign, security and important role in the internationalisation of defence policy (cf. Chapter 3). Norwegian art and culture – literature in parti­ • A common interest in exploiting the opportuni­ cular – and serves as a bridge to the global ties offered by integrated cooperation in scene. Nordic cultural cooperation is very Europe, for example through the EEA Agree­ much alive in all areas. There is great interest ment and the market access and open labour in Nordic and Norwegian culture in the Baltic market it provides, but also in relation to deal­ countries. These countries are natural part­ ing with challenges such as social dumping, ners as there is a clear tendency to regard Bal­ corruption and organised crime. tic culture as part of a Nordic mode of • A European free-travel area through the expression. Schengen cooperation where internal border controls have been lifted. It is in the interests of all the Schengen countries that control of 6.2 Further development of the EU the common external border takes place in manner that is effective, but also humane and In discussions concerning the EU, the question is fair. often raised of whether the Union is growing in • Strong cultural ties to our neighbouring coun­ breadth or in depth. Through a series of enlarge­ tries. The Nordic countries are closely linked ments, the EU has clearly grown in breadth, and it 60 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities will continue along this track. As regards the 6.3 Europeanisation defines the deepening of the cooperation, progress has undoubt­ framework edly been slower than many foresaw in the 1990s. Cooperation is nevertheless gradually – often in Under the EEA Agreement Norway is obliged to stages – also becoming deeper, for example in rela­ actively incorporate EU legislation into Norwegian tion to defence cooperation, justice and home law in areas covered by the Agreement. Policy affairs, and the environment, and it will continue in areas that were previously dealt with within a this direction, especially if the Treaty of Lisbon is national framework have become “Europeanised”, ratified by all the member states. and the development of policy and legislation in The EU shows no signs of becoming federalist many traditionally domestic policy areas now or a “superstate”. The intergovernmental aspects largely takes place within a European framework. of the cooperation, which are coordinated in the According to the Norwegian Association of Local Council of the European Union and at meetings of and Regional Authorities, between 50 and 70% of all the European Council, are being strengthened. matters dealt with in the local government sector National leaders prioritise on the basis of their can be traced back to legislation incorporated into respective countries’ interests and take domestic Norwegian law through the EEA Agreement. This opinion into consideration. The EU is character­ Europeanisation blurs the distinction between for­ ised by continuous negotiations and a culture of eign and domestic policy to a much greater extent compromise, but the willingness to compromise than traditional international (intergovernmental) varies when interests and priorities conflict. With cooperation. 27 member states and institutions that are under Even though Norway is not a member of the pressure, the EU will continue in the years ahead EU, it is affected in a wide range of areas through to be characterised by alliance building between the EEA Agreement and other European coopera­ national capitals. Alliances will continue to be made tion. This results in challenges and opportunities in all directions, depending on the interests involved of a new kind for Norwegian interests: how to in the various issues. Joint solutions are chosen achieve good integration with European processes when the member states consider this to be in their that are important to Norwegian interests, how to interests. coordinate at political and expert level in Norway The development of the EU will probably conti­ in order to ensure that a good balance is struck nue to be characterised by processes that are lack­ between different considerations when defining ing in transparency and by many Europeans’ grow­ Norwegian interests and formulating Norwegian ing distrust of European leaders and the EU positions, and how and in which phases Norway bureaucracy. In addition to fear of and opposition to can participate in or try to influence EU institu­ economic globalisation, distrust is an important tions, European organisations and member states. reason why the deepening of the cooperation has Specific qualification requirements are a general slowed down in recent years. The French and challenge, as they often call for a combination of Dutch “no” to the EU Constitutional Treaty in 2005 knowledge about technical matters and experience and the Irish “no” to the Treaty of Lisbon in 2008 of EU and EEA processes. are examples of this. The financial crisis and its consequences may also increase tensions in Euro­ pean countries. In spring 2009, many countries, 6.4 Agreements and cooperation especially in Central and Eastern Europe, are expe­ riencing a deep economic crisis. The EEA Agreement is of great importance to European countries are not identical, and their Norwegian interests political cultures differ greatly. A majority of the French, for example, want a more social and politi­ The EEA Agreement is the most comprehensive cal Europe, while the British and the Central Euro­ agreement Norway has ever entered into. Among pean countries want the EU to concentrate prima­ other things, it ensures that Norwegian enter­ rily on the internal market. prises enjoy the same conditions of competition in The development of the EU in the years ahead the internal market as enterprises in EU countries, will probably reflect such conflicting tendencies. and it gives Norway access to EU cooperation in a number of areas that are important to Norwegian interests, such as education, research and environ­ mental protection. The EEA Agreement is also the most important Nordic cooperation agreement 2008– 2009 Report No. 15 to the Storting 61 Interests, Responsibilities and Opportunities ever entered into by Norway. It was through the – More than 125 000 Norwegian pupils have EEA Agreement that the Nordic countries finally taken part in educational cooperation through achieved a common domestic market. the Comenius programme since 1994. EU cooperation in the internal market is con­ stantly developing, through the adoption of new legislation and the establishment of cooperation on The EEA Agreement does not cover: projects and programmes. Thus, the EEA Agree­ – the European Customs Union, which has a ment has become increasingly important to Nor­ common customs tariff and a common trade way. policy vis-à-vis third countries Under the EEA Agreement, Norway is entitled – the EU common market for agricultural pro­ to participate in part of the EU’s preparatory work ducts and the Common Agricultural Policy prior to the submission of draft legislation concern­ – the EU Common Fisheries Policy ing the internal market to the European Commis­ – EU security and defence policy cooperation sion. However, Norway does not participate in – EU cooperation in the field of justice and home decision-making processes in the Council of the affairs European Union or the European Parliament, – other new fields that have been included in EU although it seeks to contribute to good solutions by cooperation since the EEA Agreement was actively informing and lobbying the EU system and concluded, such as European Economic and EU countries. This is challenging and requires the Monetary Union and the single currency use of both formal and informal channels. Experi­ (euro). ence shows that Norway’s opportunities for parti­ cipation may be greatest in areas in which it has resources, expertise and experience. The Schengen Agreement and growing European cooperation in the field of justice and home affairs The European free-travel area created through the The EEA Agreement covers: Schengen cooperation is in many ways a necessary – Participation in the internal market, i.e. the free supplement to the free movement of persons that movement of goods, persons, services and applies throughout the EEA area. It is therefore capital. natural that Norway and the other Nordic coun­ – Harmonisation of rules and requirements for tries are included in this cooperation, not least goods and services in order to safeguard because a passport has not been required to travel health and safety considerations and consumer between the Nordic countries since 1957. Origi­ interests. nally, the Schengen cooperation primarily involved – Common rules of competition and rules con­ rules intended to compensate for the abolition of cerning state aid. border controls between member states, but it has – Programme cooperation, including research now evolved into a much broader cooperation on and development. Between 2003 and 2006, 850 common challenges relating to organised crime, European project contracts were signed in terrorism, illegal immigration and other types of which Norwegian participants were involved. migration. Norwegian disbursements to the programme In recent years, cooperation in the field of crim­ were around NOK 1 billion in 2008. They will inal justice and home affairs has been one of the gradually increase to NOK 1.6 billion in 2016. fastest growing and politically most important This amounts to 75% of Norway’s payments areas of cooperation in the EU. Under the Schen­ under the EEA Agreement. Project contracts gen Agreement, Norway participates in important awarded to Norwegian enterprises involve parts of the EU cooperation in this field, but the return payments for approximately the same rapid EU integration in this area also means that amounts. Through their partners, Norwegian some questions that are important to Norway fall participants gain access to important know­ outside Schengen and our bilateral cooperation ledge and networks. with the EU. This applies, for example, to parts of – More than 14 000 Norwegian students have the EU cooperation between the police and crimi­ participated in exchanges through the Eras- nal justice authorities, the processes for harmoni­ mus programme. Approximately the same sation of legislation and mutual recognition of deci­ number of foreign students have studied at sions, EU asylum policy and practice, and EU Norwegian educational institutions. cooperation with third countries as regards efforts 62 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Figure 6.2 Visa applications to the Schengen area received by Norwegian diplomatic and consular mis- sions, 2003 and 2008. The figures show the number of visa applications received by the seven Norwegian foreign missions with the largest number of applications in 2008. Source: Directorate of Immigration to control migration flows and attract qualified slation on enhanced police cooperation, set out in labour. what is known as the Prüm Treaty. Norway takes part in the formulation and Norway faces the same challenges as the EU in implementation of all acts of Community law and the field of justice and home affairs. Given our measures covered by the Schengen cooperation. responsibility for our part of the common external This includes nearly all initiatives relating to con­ border, i.e. Norway’s border with Russia, and for trol of the common external border and to legisla­ all airports and ports where travellers arrive tion and practices for crossing this border (visa directly from countries outside the Schengen area, rules). In addition, Norway has several other agre­ we are influenced both directly and indirectly by ements with the EU in the field of justice and home EU justice and home affairs policy. It is therefore affairs. Norway participates fully in the coopera­ challenging to follow developments in the EU clo­ tion under the Dublin Convention, which sets out sely. rules concerning which member state is to exa­ mine applications for asylum. Norway also has cooperation agreements with Europol (the EU cri­ Examples of challenges to Norwegian interests minal intelligence agency) and with Eurojust (the affected by the Schengen Agreement EU judicial cooperation unit). Moreover, Norway – Because of its geographical location, Norway is has an agreement with EU on the surrender of shielded from much of the direct immigration offenders, is affiliated to the European arrest war­ to Europe from third countries, including ille­ rant and has an agreement with the EU on mutual gal immigration. One issue is what we should assistance in criminal matters. Agreement has also do to help to control those parts of the border been reached on Norwegian affiliation to EU legi­ that are under particular pressure. 2008– 2009 Report No. 15 to the Storting 63 Interests, Responsibilities and Opportunities

– Practical police cooperation within the EU is In recent decades, Norway and the EU have expanding rapidly. In order to prevent Norway cooperated closely on resource management, and from becoming a haven for organised crime, it this cooperation has gradually been expanded to is important that we take part in this coopera­ include new areas. In order to ensure sound tion, for example under the rules of the Prüm management and contribute to stable framework Treaty. conditions for the industry, Norway and the EU – Like the rest of Europe, Norway is finding that have agreed on management strategies that it can be difficult to return illegal immigrants govern the annual determination of quotas. to their countries of origin. How can we make Control of catches and measures to combat cooperation on return more effective? overfishing have an important place in the coope­ – The connection between migration and ration. Illegal, unreported and unregulated fishing development is attracting growing attention, (IUU fishing) is the greatest challenge to sustain­ also in Norway. The EU focuses strongly on able and profitable fisheries. We are in dialogue with this aspect and, as a major development policy the EU about how to prevent illegally caught fish actor, Norway, with its experience and exper­ coming onto the market. It has been particularly tise, will be in a position to influence policy important in this context to establish agreements development. that ensure that the EU countries control catches landed there. In 2006, Norway and the Commis­ sion signed an agreement that ensures better 6.5 Fisheries policy monitoring and control of fisheries, and in 2007 the new regime for port state control entered into The fishing industry is Norway’s second largest force in the whole North Atlantic area, including export industry and is an important source of jobs the EU. This regime ensures that both flag states and employment along the coast. The value of first­ and port states take responsibility for monitoring hand sales of farmed and wild-caught fish is landings. The figures for overfishing show that this approaching NOK 20 billion, which is almost 1.5% measure has been highly effective. Overfishing of Norway’s gross domestic product. The export was halved in 2007 compared with the year before. value is approximately NOK 40 billion, which is The legislation for the landing of fish has not around 4% of Norway’s total exports. Approxi­ been harmonised between Norway and the EU, mately 60% of this goes to the EU market. In terms and it is important to Norway that a regime is intro­ of value, slightly less than 20% of the fish consumed duced that replaces the current system of man­ in the EU comes from Norway. The EU is the most datory discards with a general obligation to land important market for Norwegian fish and fish pro­ catches. The EU discard policy means that large ducts. Both the EU Common Fisheries Policy and amounts of fish are returned to the sea and are European trade policy are very important to Nor­ thus not registered in the catch statistics. This way’s fisheries interests. Despite the fact that Pro­ practice makes sound management of joint stocks tocol 9 to the EEA Agreement covers trade in fish difficult. In the quota agreement for 2009, Norway products, Norwegian exports can still be subject to and the EU agreed on a number of measures to anti-dumping measures and other measures by the deal with this problem. EU aimed at regulating competition. While Proto­ col 9 stipulates zero customs duties and customs duty reductions for a number of important Norwe­ 6.6 Broad Nordic cooperation gian fish products, around 60% of Norwegian sea­ food exports to the EU market are still subject to Nordic cooperation will continue to be of funda­ customs duties. mental importance to Norway. It is based on a The fisheries cooperation between Norway and large degree of shared understanding and experi­ the EU is based on the bilateral fisheries agree­ ence, and common values and interests. ment of 1980, agreements with the Scandinavian Norway attaches great importance to political EU countries and the exchange of letters of 2 May dialogue with the other Nordic countries. There is 1992 on the development of bilateral fisheries scope for developing this cooperation further, for cooperation. Under the bilateral framework agree­ example in connection with issues related to Euro­ ment, the parties undertake to cooperate on the pean cooperation. The formal cooperation consists management and protection of living marine of the Nordic Council, which is a body made up of resources. Norway and the EU enter into annual parliamentarians, and the intergovernmental quota agreements on the basis of the agreement. cooperation in the Nordic Council of Ministers. 64 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

The system whereby the chairmanship rotates Council and the Council of the Baltic Sea States. It every year means that all the countries have an is in Norway’s interests to take a coherent appro­ opportunity to put their political stamp on the acti­ ach to these regional forms of cooperation in its vities of the Council. Iceland is chair of the Council neighbourhood policy and to be consistent in its of Ministers in 2009. In 2007, the prime ministers, political priorities. who have overall responsibility for intergovern­ In recent years, the EEA Agreement has mental cooperation, launched a globalisation initia­ brought the economies of the Nordic countries tive that is currently being followed up by the even closer together. The Agreement ensures Council of Ministers. equal conditions of competition in the Nordic coun­ As a region the Nordic countries constitute a tries and promotes economic integration in a way cultural and linguistic community, which means that was previously impossible to achieve within a that they are well placed to meet the challenges of purely Nordic framework. The EEA Agreement a globalised world. The countries emphasise the has reduced the negative consequences for Nordic leading role played by the Nordic region in impor­ cooperation of the Nordic countries having chosen tant areas such as technology development and different forms of association with the EU, and is in research, and strategies for reducing the risk of many ways Norway’s most important Nordic social exclusion. The Nordic countries cooperate cooperation agreement. in a number of important areas such as culture, Our Nordic neighbours are our closest part­ education and research, the environment, energy, ners in a number of areas. This fellowship and part­ business policy, regional policy, and health and nership are based on values, history and culture, a social affairs policy. Great emphasis is placed on common Nordic model in terms of legal traditions, cooperation with their neighbours in the Baltic civil society, the social model, the economy, the countries and in northwestern Russia. Close coo­ labour market, the environment and development peration has been established with other regional policy. The Nordic model is fundamental to how we councils, such as the Arctic Council, the Barents address the challenges of globalisation, but the

Figure 6.3 Europe 1990: Organisations 2008– 2009 Report No. 15 to the Storting 65 Interests, Responsibilities and Opportunities model itself is being challenged by globalisation. gations with respect to human rights, the rule of As illustrated in Figure 6.1 at the beginning of this law and democracy, thus securing fundamental chapter, as economic partners and trade partners, rights in these areas for all the inhabitants of the Nordic countries are in a class of their own. Europe. Norway is a strong advocate of reforming Current developments in Nordic cooperation, par­ the European human rights system and improving ticularly in relation to foreign policy, security policy its effectiveness, intensifying political and intercul­ and defence policy issues, are discussed in Chap­ tural dialogue, cooperating with other European ter 12. organisations (the EU and the OSCE) and stream­ Cooperation in the Baltic Sea Region as a whole lining the organisation’s working methods. has many dimensions, and it will continue to be important to Norwegian interests. This applies, not least, to challenges and opportunities in relation to The Organization for Security and Co-operation in growth and welfare, international crime, the envi­ Europe (OSCE) ronment, energy and business cooperation. Nor­ The OSCE, which takes a broad approach and has way’s relations with the Baltic countries and Nor- a broad membership, is an important instrument dic-Baltic cooperation have been of great impor­ for political dialogue and cooperation with a view to tance since the end of the 1980s and the dissolution preventing and managing conflicts throughout the of the Soviet Union. The cooperation has deve­ OSCE area. The most important task of the organi­ loped in stages. The Baltic countries’ membership sation is to promote security and cooperation. of the EU and NATO has been crucial to this Respect for fundamental human rights, democratic development. For Norway, continued contact governance and the principles of the rule of law, through many different types of cooperation will and an emphasis on economic and social develop­ be very valuable. This also applies to our relations ment are necessary preconditions for lasting secu­ with Poland. rity and stability. The OSCE has an important job to do in addres­ sing challenges relating to ethnic and regional con­ 6.7 The Council of Europe and the flicts, organised crime, trafficking in human OSCE beings, arms and narcotic drugs, and international terrorism. Other important fields include its work The Council of Europe on human rights, promoting the rule of law and issues relating to elections, initiatives in the police The main purpose of the cooperation in the Council sector, police reform including border control, of Europe is to promote democracy, the rule of law small arms and light weapons, and the destruction and respect for human rights throughout Europe. of ammunition. The organisation is seeking to Broad cooperation in these areas promotes peace strengthen cooperation with Afghanistan, with an and security. The Council of Europe is the oldest of emphasis on the security of its borders with the the European cooperation institutions, and it will th Central Asian countries. mark its 60 anniversary in 2009. The fact that Rus­ The OSCE is extensively engaged in fieldwork. sia and other Central and Eastern European coun­ Through its 19 missions to 18 of the OSCE’s 56 par­ tries have become members has had a consider­ ticipating states, the organisation supports able effect on cooperation in the Council of democratic development, human rights and the Europe. When the Berlin Wall fell in 1989, there principles of the rule of law in countries in the were 23 member states. There are now 47. Western Balkans, Ukraine, Belarus and Moldova, The conflict in Georgia in 2008 demonstrated and in the Southern Caucasus and Central Asia. that the Council of Europe faces considerable chal­ The war between Russia and Georgia in August lenges in several of its new member states. The 2008 was a setback for peaceful conflict resolution large number of complaints to the Court of Human in Europe, and Russia’s recognition of the two break­ Rights from new member states is also putting the away regions of Abkhazia and South Ossetia has Council of Europe’s human rights system under led to the conflict becoming even more dead­ pressure. Relations with the EU are also politically locked. This in turn has made it impossible for the demanding, and the organisation is in great need of organisation to reach agreement on an extension reform. of the mandate for its mission in Georgia. Norway Future challenges include securing the effec­ is concerned that the OSCE should continue its tiveness and future of the Court of Human Rights efforts to promote security and cooperation. The and ensuring that all member states fulfil their obli­ organisation bases its work on the comprehensive 66 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities security concept, and thus is the natural forum for OSCE Office for Democratic Institutions and discussing the common security policy challenges Human Rights (ODIHR) is doing a very important facing the participating states. job and has developed an internationally recog­ The OSCE’s election observation system is par­ nised methodology that includes the whole elec­ ticularly valuable as a means of ensuring that mem­ tion process. ber states fulfil their obligations in this area. The

Figure 6.4 Europe 2008: Organisations 2008– 2009 Report No. 15 to the Storting 67 Interests, Responsibilities and Opportunities

7 Challenges facing an environmentally aware energy nation

7.1 International trends way’s policy is to take steps to ensure that the Nor- wegian petroleum industry can succeed internation- Norway’s recent history has been very closely ally, so that value creation can continue as pro- linked to its energy resources. Hydropower duction on the Norwegian continental shelf resources have been playing a central role in the declines. However, internationalisation will not be development and operation of a largely interna- able to replace the resource rent that accrues to tionally-oriented manufacturing sector for more Norway from the extraction of the petroleum than a century now. With the discovery of petro- resources on the Norwegian continental shelf. leum on the continental shelf, Norway was able to Changes in energy markets and energy policy lay the foundation for a new era of industrial primarily affect Norway’s interests through their development and increased prosperity. effect on revenues from the petroleum sector. 2009 marks the 40th anniversary of the first oil These changes could also have an impact on Nor- discovery on the Norwegian continental shelf. way’s role and position regionally and globally. The Norway has not wavered from the most important following international issues are of particular goals for its petroleum policy during this period. importance to Norway as an energy nation. There was broad political consensus right from the Climate change is a key issue in national and start that the petroleum resources were to contri- international politics. This poses challenges for the bute to value creation in Norway and increased oil industry and for countries where a large propor- prosperity for the whole population, as well as tion of value creation and export revenues come forming the basis for business development. from the production of fossil fuels. The extraction The petroleum sector is now our largest of oil and gas puts pressure on the environment, industry. It has made a substantial contribution to for example through greenhouse gas emissions Norway’s growing prosperity. The sector accounts and releases of other pollutants to air and water. for roughly a quarter of Norway’s gross domestic These matters are strictly regulated. In Norway, product (GDP). Revenues from the petroleum sec- environmental issues have always been high on tor amount to almost a third of the state’s total reve- the petroleum sector’s agenda. The extensive use nues. These revenues have been used to build up a of policy instruments has reduced emissions to air fund, the Government Pension Fund – Global, and water and resulted in environmental improve- which is now equivalent to total annual value crea- ments. However, further technological progress is tion in Norway (GDP). needed to prevent the petroleum sector from con- During the period it has been a petroleum pro- tinuing to be one of the most important sources of ducer, Norway has experienced several periods of greenhouse gas emissions. strong price fluctuation and uncertainty in the Strong fluctuations in oil prices. We have seen international energy markets. As an oil exporter, huge fluctuations in oil prices in recent years, from Norway has always been affected by developments USD 70 a barrel in autumn 2007 to USD 147 a bar- in international framework conditions for the rel in summer 2008, falling to less than USD 40 in energy sector. Throughout the Cold War, there early 2009. Large fluctuations in oil prices give rise was great interest in the petroleum policy pursued to uncertainty about future price developments. by Norway. We followed our own, independent They cause problems for the oil industry and the energy policy course during this demanding authorities and make long-term planning very period. demanding. Low prices make it less attractive for One important goal Norway set itself was that the private sector to develop renewable energy. its oil and gas resources were to contribute to the Uncertainty about future prices increases risk and establishment of a competitive industry. Norway’s results in lower investments in new oil and gas pro- petroleum industry consists of both oil companies jects. Rapid changes in oil prices can have major and an internationally-oriented supplier industry economic effects, globally and for individual coun- with broad expertise. An important part of Nor- tries. Combined with an increase in food prices, 68 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Figure 7.1 Oil production and demand Sources: International Energy Agency (World Energy Outlook 2008 Reference Scenario) and Ministry of Finance high oil prices in early 2008 led to a difficult situa- term, demand for oil and gas is expected to tion for many developing countries. Major political increase substantially. Many countries are now ripple effects could follow in the wake of such becoming increasingly dependent on imports of oil changes. and gas, particularly oil. The production of conven- Concerns about energy security. Several factors tional oil outside the OPEC countries is declining, have once again pushed the question of energy so that OPEC’s market share is increasing once security higher up the political agenda. In the long again. Gas reserves are also concentrated in a few 2008– 2009 Report No. 15 to the Storting 69 Interests, Responsibilities and Opportunities countries outside the OECD. Limited spare pro- these countries. At the same time, its expertise is duction capacity in OPEC combined with political needed for the resources in many of these coun- unrest and fears of a fall in production in some tries are to be recovered efficiently. In order to countries has contributed to a rapid increase in meet the world’s energy needs in the medium prices. The conflict between Russia and Ukraine term, substantial investments are needed in the has created corresponding uncertainty about petroleum sector in these countries. supply security. Concern about energy supply This illustrates that energy policy has impor- security may lead to energy-importing countries tant foreign policy aspects. Energy policy relations introducing measures to reduce their consumption are often characterised by mutual dependence of oil and gas in favour of coal or other fuel. Nor- between countries. Norway’s position and policy as way’s response must be to act as a predictable an energy nation give it influence and a high profile energy supplier. in many important international arenas. This is a The relationship between producers and consu- foreign policy resource that has considerable mers. High prices have resulted in the renegotia- potential, but where failure may have serious con- tion of agreements with international oil compa- sequences. The result is considerable public inte- nies. It has become more difficult for these compa- rest, nationally and internationally, in what kind of nies to gain access to petroleum resources. Many a balance Norway strikes between its energy inte- fear that this will reduce the pace of exploration rests and other political considerations. and recovery at a time when energy security consi- derations mean that the demand for resources is greater than ever. The situation is also compelling 7.2 Challenges for Norway the international oil industry (including the Nor- wegian industry) to develop new forms of coopera- Global energy issues must be high on the agenda tion, with the emphasis on contributing to the of any government with responsibility for securing development of local industry. The fall in oil prices reliable energy supplies for its population. Norway from the end of 2008 could be important in this is in a favourable position in that context, being context in the time ahead. self-sufficient in renewable hydropower. The high Greater focus and pressure on the High North. oil prices in recent years have resulted in record The current focus on Russia as an energy actor, revenues. Predictable and sustainable develop- and on ice melting and the increase in ice-free sea ment of the Norwegian continental shelf will thus areas as a result of climate change, has led to remain Norway’s most important energy policy increased attention being paid to developments in interest for a long time to come. the energy-rich High North and Arctic. According What, then, are the most important challenges to the US Geological Survey, the Arctic may con- we are facing? Why does the current turbulence in tain up to 30% of the world’s undiscovered oil and the global energy situation affect important Nor- gas resources. This means that there is a potential wegian foreign policy interests when we are basic- for considerable economic activity in the region. At ally self-sufficient in energy? The answer is closely the same time, however, there is widespread con- related to globalisation and geopolitical change. In cern that conflict will arise between the need for terms of foreign policy, this opens up opportunities environmentally sound development of vulnerable for further value creation, revenues and positive areas in the Barents Sea and the Arctic and the grow- spin-off effects in other policy areas, but there are ing pressure to develop new fields as rapidly as also problems and risks that must be dealt with possible and transport energy resources out of the wisely if we are to succeed in safeguarding Norwe- area. gian interests. The following factors are part of the The “natural resource trap”. A large proportion overall picture: of the remaining oil and gas resources in the world are in countries with undemocratic systems of government, where there are widespread viola- The threat of climate change and Norwegian energy tions of human rights and a lack of transparency. interests Corruption scandals involving the oil industry and The continued growth in demand for fossil energy a lack of socioeconomic progress in countries with forms the backdrop to the problem of climate substantial oil revenues demonstrate how impor- change. Energy use has increased by almost 40% tant it is that the oil companies take corporate since the previous white paper on the main fea- social responsibility seriously. The international oil tures of Norwegian foreign policy was submitted to and gas industry is dependent on succeeding in the Storting in 1989. Two thirds of this growth has 70 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities taken place in countries outside the OECD, where casts show that demand for fossil fuels will per capita energy use is generally low. The growth increase in the period up until 2030 (not least in energy use is primarily due to a rise in the because of the expected growth in developing volume of transport and an increase in electricity countries), substantial cuts must be made in emis- consumption as a result of economic development sions from fossil fuels during the same period in and strong population growth. This development order to address the problem of climate change. has lifted many hundreds of millions of people out Resolving this dilemma will be a challenge for all of poverty. There is still a great unmet need for countries and all energy actors, just as much for more energy. 40% of the world’s population do not energy importers as for energy exporters. have access to electricity or gas for cooking and One main approach to making a successful heating purposes. More than one and a half billion transition to more environmentally friendly energy people have no access to electricity whatsoever. production and use is to focus on energy efficiency Per capita energy use remains low even in and strong investment in renewable energy sour- countries that have experienced significant econo- ces. Norway is in a good position to contribute to mic growth in recent years. Roughly 40% of the the quantum leap that is required in connection world’s population live in India and China, but with renewable energy, particularly in areas where these countries still only account for 20% of global Norway’s energy expertise is already well-deve- energy use. In the long term, therefore, the growth loped: hydropower, solar power and, in the long in energy use is expected to continue. The Interna- term, offshore wind power. Norway should also set tional Energy Agency (IEA) has estimated that, if a good example by reducing energy use and intro- today’s policy continues, energy consumption will ducing energy-efficient solutions in industry, in increase by almost 50% by 2030. Oil, gas and coal buildings and in the transport sector. account for 80% of global energy use. The other main approach for a climate-consci- The world needs to find ways of producing and ous oil and gas nation is to invest heavily in interna- supplying enough energy to meet demand while at tional cooperation and technology development in the same time safeguarding the earth’s climate. It the decarbonisation of fossil fuels – coal, oil and is difficult to achieve a rapid change in the energy gas. The Government is therefore focusing mix without this having major economic, political strongly on the efforts to develop technology for and social consequences. The projected growth in carbon capture and storage through several large- energy-related greenhouse gas emissions is scale CCS projects. almost exclusively related to expected economic growth and population growth in developing coun- tries. The growth in transport and in electricity Important to Norway’s reputation consumption are expected to contribute most a Norwegian energy issues have attracted interna- rise in carbon emissions. If we do not succeed in tional interest for many decades. The communica- making the necessary changes, we risk serious cli- tion revolution that has accompanied globalisation mate change, high and unstable energy prices and has given Norway a much higher profile as an a continued lack of development in poor countries. energy nation. The higher the oil price and the With today’s technological solutions, the current greater the concern about the price of imports and energy mix is not compatible with the necessary supply security, the greater the focus on Norway’s reduction in greenhouse gas emissions. A climate management of resources and revenues from the policy with ambitious energy goals is therefore Norwegian continental shelf. Norway’s manage- necessary, and must include goals for energy effi- ment of resources and revenues must be seen in ciency, carbon capture and storage (CCS) and conjunction with the democratic tradition of strong renewable energy. institutions and lively public debate. The Govern- Norway’s electricity supply is based almost ment Pension Fund – Global, for example, has fil- entirely on renewable hydropower and therefore led many column inches in quality international has little impact on the climate. However, this media during the last two years. The slant of these means that we have fewer options for reducing articles has been positive, focusing on the success greenhouse gas emissions than other countries, of Norway’s policy and on Norway as a role model which makes it more difficult to achieve deep cuts as regards transparency in the management of in emissions. The dilemma from an international sovereign wealth funds. energy perspective is that while all energy fore- 2008– 2009 Report No. 15 to the Storting 71 Interests, Responsibilities and Opportunities

international markets. While the industry creates Threats to energy security affect Norwegian thousands of jobs along Norway’s coast, a substan- interests tial proportion of its revenues already come from The war in Georgia in summer 2008 fuelled fears abroad. The role of the global markets is rapidly among Russia’s neighbours, particularly about the becoming more important to StatoilHydro and a security of energy supplies. The war also under- growing number of smaller Norwegian oil compa- lined the vulnerability of the vital network of pipe- nies. Oil is traded on exchanges in global markets, lines from energy-rich countries in the Caspian and now that Norway has started liquefied natural region via Georgia to Europe. The same applies to gas (LNG) production, Norwegian gas exports are the recurrent conflicts about gas between Russia also being partially globalised. and Ukraine, most recently in January 2009. Nor- It is not just in the petroleum sector that Nor- way is a special case because of its privileged posi- way is making its mark internationally. Norway is tion as regards energy resources. Nevertheless, the world’s sixth largest hydropower power produ- relations between Russia and various groups of cer and the largest in Europe, and has already countries in Europe and Asia affect Norway’s inte- developed most of its own hydropower power rests and its political room for manoeuvre in neigh- potential. Norwegian power companies and con- bouring areas. Our main strategy towards Russia sultancy firms have therefore increasingly focused as regards energy is one of engagement and coope- on contracts abroad. There is also growing interest ration based on our different, but not incompatible, in investing in hydropower plants abroad. Statkraft strategic platforms. If our close allies adopt strate- has grown strongly in recent years, outside Nor- gies entailing confrontation with Russia, Norway way as well, and is now Europe’s leading producer would have to maintain a careful balance, as we of renewable energy. SN Power, which is owned by have a clear interest in cooperation and reaching Statkraft and Norfund, is engaged in extensive ope- agreement on solutions. rations in Latin America and Asia, and it is involved in a rapidly increasing number of hydropower pro- jects. Both opportunities and demanding challenges in It is an important foreign policy task to assist the High North the Norwegian energy industry in its endeavours We have important but also complex energy inte- to internationalise. The combination of expertise, rests in the High North. Energy security for the technology and resource management experience major powers and local business interests are argu- from more than a century of hydropower develop- ments in favour of rapid development of oil and gas ment and 40 years’ experience of petroleum activi- fields on both the Norwegian and the Russian con- ties on the Norwegian continental shelf is a strong tinental shelf. Environmental considerations indi- selling point for Norway’s globalised energy cate that a cautious approach is needed in relation industry. Promoting Norwegian business interests to climate change and to ensure that the pressure in this area is an important task for the foreign ser- on sea and land areas that are considered to be vul- vice, the Ministry of Petroleum and Energy and nerable is not excessive. The integrated manage- Norwegian Oil and Gas Partners (INTSOK). Nor- ment plan for the Barents Sea–Lofoten area identi- wegian politicians have an important role as door fied particularly valuable and vulnerable areas that openers in these markets. Several embassies have contain some of the world’s largest populations of been opened in recent years that have cooperation seabirds, fish and marine mammals and unique with the oil industry as an important task (Algeria, cold-water coral reef complexes. In these areas, Kazakhstan). The embassies in Moscow, Baku, special caution will be required and special consi- Luanda and Abuja work in close cooperation with derations will apply to the assessment of standards the Norwegian energy industry and promote its for and restrictions on activities. It is also impor- interests. tant to clarify the remaining maritime delimitation If states introduce measures to protect national issues with Russia. industries and markets in response to the current financial crisis, this will have negative effects on the Norwegian supply industry in the renewable Globalisation of the Norwegian energy industry – energy and petroleum sectors. It is therefore important tasks for Norway’s foreign policy clearly in Norway’s interests to endeavour to The Norwegian petroleum industry is being global- ensure that the crisis does not fuel growing protec- ised at an unparalleled rate. In 2007, the supply tionism in the energy sector or in the rest of the industry recorded a turnover of NOK 95 billion in economy. 72 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

The “resource trap” is a challenge for both the countries that control the world’s large remaining Norwegian authorities and for companies in a oil and gas resources and the key consumer coun- number of oil countries the world over. How far tries – the EU countries, China, India and the US. should we pursue Norway’s economic interests in There are large oil reserves in countries that lack countries that are undemocratic and where human the expertise, technology and in some cases also rights violations are widespread, or where oil reve- the resources to step up the pace of exploration nues do not seem to be contributing to economic and production. The international oil companies and social development for the population as a have technology and motivation, but they control whole? Norway’s basic approach, with respect to less than 20% of the reserves in question. Actors both the oil industry and other industries, has been with legitimacy in both camps are therefore to maintain a socially responsible presence in the needed to act as bridge builders. countries involved and to engage in international Stable, reasonably high prices are important in cooperation on norms and ethical issues, rather order to secure investments and increase energy than restricting investments and supporting boy- security. They also act as an incentive for energy cotts. Among the reasons for this approach are i) efficiency measures and investments in renewable the difficulties involved in establishing clear crite- energy. A key element of Norway’s energy policy is ria for what is and is not acceptable, ii) doubt about promoting transparency and dialogue between what Norway can achieve through unilateral mea- actors in the energy market. This is a way of reduc- sures, and iii) a belief in dialogue and cooperation ing uncertainty, thereby helping to make energy with countries with significant governance pro- markets more stable and improve supply security. blems rather than confrontation and exclusion. In response to the very high oil prices in summer The main goal of the Norwegian Oil for Develop- 2008, Saudi Arabia and the UK have each held mee- ment initiative is to assist developing countries to tings between exporters and importers of petro- improve resource management, financial manage- leum in order to contribute to greater stability in ment and environmental management in the petro- the energy markets. Mexico plans to organise a leum sector. The recent white paper Corporate ministerial meeting on oil cooperation in 2010. Social Responsibility in a Global Economy (Report Norway has played and can continue to play a No. 10 (2008–2009) to the Storting) discusses key role in the dialogue between producer and con- these issues in more detail. sumer countries. We are trusted because we are a small, stable and politically predictable country, and an important exporter of oil and gas. Norway Norway’s role as a go-between for oil producers and enjoys close relations with both the EU and the US, consumers and shares a border and interests with Russia. Net energy importers fear high oil prices and unre- Moreover, Norway is a Western OECD country liable supplies of oil and gas. Important invest- that enjoys considerable respect in the Middle ments in future production are under threat East, the Gulf region and in developing countries because of uncertainty and extreme price fluctua- with oil economies. We are also fully integrated tions. Geopolitical change is fuelling resource nati- into the global economy, but our management onalism and threatening to put the brakes on model entails strong national control over the Nor- important investments and the development of wegian continental shelf. We have a majority state- new fields that are of great importance to impor- owned company (two-thirds of the shares), but all ting countries (and their oil companies). There is a the major international oil companies also operate lack of transparency and dialogue between the on the Norwegian shelf. 2008– 2009 Report No. 15 to the Storting 73 Interests, Responsibilities and Opportunities

8 Increasing migration entails both opportunities and challenges

The increase in migration flows is closely related to Today there are almost two hundred million globalisation. This is also a policy area where the migrants in the world. The number has doubled distinction between domestic and foreign policy is since 1980 and tripled since 1960. At the same time, becoming blurred. Combined with poverty, violent however, the percentage of the world’s population conflicts and human rights violations, people’s that are migrants remains stable, at 3%. According desire for work, education and to be with their fam- to OECD Migration Outlook 2008, the foreign- ilies is leading to migration across national borders born population amounted to 12% of the total popu- and between continents. Deregulation, economic lation in the OECD countries in 2006. Most of the liberalisation and demographic changes are migrants are employees and their families. Less among the factors that contribute to the increase in than 10% are refugees. Migrants are often in a vul- migration flows. nerable position and risk becoming victims of In many ways, the most important difference crime and abuse. Half the world’s migrants are between Norway 20 years ago and Norway today is women. It is important to be particularly aware of the composition of its population – the new “we”. the difficult situation of women and children, both This has provided new room for manoeuvre and in flight situations and in relation to exploitation opened up new foreign policy perspectives. This and crime, including human trafficking. new “we” gives us access to expertise, networks Figures from the World Bank show that migra- and links with countries and local communities in tion from the South to the North accounts for more other parts of the world. This is both demanding than a third of all international migration. For the and at the same time an opportunity for the public inhabitants of the world’s poorest countries, migra- administration and the foreign service. Norway’s tion represents an attractive, though limited, role as a global actor and our ability to safeguard opportunity to escape from poverty, but people Norwegian interests in a globalised world are from these countries only account for a small pro- dependent on our ability to utilise this expertise. portion of migration flows. Per capita voluntary The increasingly multicultural nature of Norwe- migration (as opposed to refugees and asylum gian society should therefore be seen as a resource seekers) is highest from middle-income countries that can be utilised both by the foreign service and such as Mexico, Morocco, Turkey, Egypt and the the rest of the public administration, and by the pri- Philippines. As a rule, people from the most impov- vate sector, to ensure a generally high level of glo- erished countries migrate to other developing bal expertise and diversity of perspectives. More- countries. Migration can contribute most to reduc- over, aging populations and low population growth ing poverty when unskilled surplus workers emi- mean that it is in the self-interest of countries in the grate from poor countries, but it can have a nega- North to accept migrants. tive effect if it is mainly skilled workers in short supply who emigrate. There are therefore many indications that the benefits of migration are 8.1 Global migration unevenly distributed. The migration of unskilled labour from the poorest countries is very limited, There are many complex reasons why people but poor countries are overrepresented among migrate across national borders. Some are fleeing countries that have experienced large-scale emi- from war, persecution or a disaster, but the vast gration of highly educated citizens. majority migrate in order to find work or obtain an The proportion of women and men among education. A considerable proportion also seek migrants varies from region to region. Figures reunification with family members who have from the World Bank show that migration flows already migrated in order to obtain employment or from Africa, South Asia and the Middle East are an education, or who have fled their country or left dominated by men, while flows from East Asia, for purposes of marriage. Europe, Central Asia, Latin America and the Carib- 74 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

ognition that the diaspora, which consists of com- Box 8.1 Global migration munities with ties to their own or their parents’ or grandparents’ countries of origin, has an important place in economic and political cooperation • 200 million migrants worldwide between Norway and these countries of origin. • Around half the world’s migrants are While lack of development may be a reason for women. migration, migration policy measures can also be • 16 million refugees, approximately 4.6 mil- used actively to achieve development. Those with lion of whom are Palestinian refugees the highest qualifications are the most mobile. under UNWRA’s area of responsibility. Migration will continue to increase in step with glo- • Approximately 20–30 million illegal balisation. It is therefore something of a paradox migrants in the world. that globalisation has enabled money, goods and • Remittances sent by migrants to their services to move very freely across national bor- countries of origin amount to several hun- ders, while there are still substantial restrictions on dred billion US dollars. The World Bank people moving to other countries. estimates that between USD 200 and 300 billion is sent back to developing coun- tries every year. The importance of the brain drain and remittances • One-third of the world’s migrants live in In development terms, it is important to provide Europe. greater opportunities for migrants to be granted Source: IOM/UNHCR/UNWRA lawful residence in recipient countries, obtain decent work and gain better access to money trans- fer and other financial services. It is particularly important to ensure that migrants may return to bean are dominated by women. Female migrants, their countries of origins for varying lengths of for example, are part of what is known as the global time. Seasonal work is a type of temporary employ- care chain. They fill gaps in the health sector in ment that can facilitate circular migration. Norway rich countries, where they work as qualified labour also has legislation that allows Russians in the Bar- as doctors or nurses, and in private homes where ents Region to work for up to two years in the three they work as domestic servants, childminders and northernmost counties of Norway without special cheap labour. Highly educated people in poor qualifications being required. In the white paper countries migrate because of unemployment and Labour Immigration (Report No. 18 (2007–2008) to low wages in their home countries. Women largely the Storting), the Government stated that it migrate in order to provide for their children and intends to examine the possibility of allowing give them educational opportunities and a better unskilled workers from developing countries to future. This is particularly difficult in the case of work temporarily in Norway in connection with aid labour migration. For many women in poor coun- projects. tries, the prospect of an income and being able to The need for labour in Western countries has provide for their families is often decisive. resulted in the migration of qualified workers from many developing countries, in what is known as the brain drain. Migration increases in step with The nexus between migration and development the level of education, and some occupational There is increasing focus on the nexus between groups are more attractive than others. Engineers migration and development. There are several rea- and maths and science graduates, for example, are sons for this. Money sent by migrants to their in short supply in many European countries. The home countries amounts to almost three times as consequences of this brain drain are greatest in the much as all aid. Work experience and the knowl- health sector. There is a dramatic shortage of edge gained while staying in another country have health personnel today in all parts of the world. a positive effect in relation to the establishment of The white paper Labour Immigration and the white businesses, research and public service provision paper Climate, Conflict and Capital (Report No. 13 in the home country. In the longer term, the (2008–2009) to the Storting) on development pol- demand for labour in Western countries will icy deal with various challenges relating to the increase, and this has already led many countries brain drain and the consequences for Norway’s to recruit very actively, particularly among health policy. Figures from the UN Development Fund for personnel in poor countries. There is growing rec- Women (UNIFEM) show that more women than 2008– 2009 Report No. 15 to the Storting 75 Interests, Responsibilities and Opportunities men with higher education migrate in all regions except North America, and that 10% more women Box 8.2 Immigration. Key figures for than men emigrate from Africa. Thus, the brain Norway drain also has consequences for gender equality and for the possibility of recruiting women to lead- There are 381 000 immigrants in Norway and ing positions in developing countries. 79 000 persons born in Norway to immigrant It is important to facilitate cheaper, more effi- parents. Together, these two groups make up cient and more transparent money transfer mecha- 9.7% of the population. nisms in both humanitarian and development There are immigrants and Norwegian- terms. At present, up to 30% disappears in various born persons with immigrant parents living in charges, depending on where the money is sent. all the municipalities in Norway. Oslo has the Internationally, private remittances to developing largest proportion, with 140 000 person, or countries amount to two or three times total alloca- 25% of the population. tions of official development assistance. Remit- Half the immigrants come from Asia, tances from migrants to their countries of origin Africa or Latin America. and investments made by these communities One in five immigrants has lived in Nor- amount to very large sums of money that are way for more than 15 years, and two in five important to development in many countries, both have lived here for four years or less. in terms of growth and poverty reduction and in Three out of every five Norwegian-born terms of the possibility of migrants returning to persons with immigrant parents have back- their home countries. Among other things, they grounds from Asia, and 15% are 20 years old finance health services, education and business or older. activity. Here, too, there are gender differences. Source: Statistics Norway According to World Bank figures, as a general rule more women than men send money over time, and they send larger amounts to distant relatives. ment policy in Norway, the EU and globally. This is a response to the combination of an aging popula- 8.2 Immigration to Norway tion and the need for labour in order to ensure con- tinued economic growth and social services. This As in other countries, immigration and emigration applies not only in Norway, but throughout the have fluctuated in Norway. Statistics Norway EEA area, the US and Canada, and increasingly in (SSB) has published figures for foreign-born per- China. In recent years, predictions of a gradual sons ever since the 1865 census, when 1.2% of the increase in global competition for labour and an total population of 1.7 million was foreign-born, increase in the importance of immigration to eco- most of them in Sweden. By 1920, this group had nomic growth have led many countries to advocate grown to 2.8%. There was little immigration during a policy of promoting migration, particularly of the interwar years, and in 1950, 1.4% of the popula- highly qualified labour. The white paper Labour tion was foreign-born. Refugees came from East- Migration presents measures that will draw on the ern Europe after World War II, and labour immi- resources of the foreign service, for example in grants later came from both Europe and the rest of connection with public diplomacy, information acti- the world. After most of the immigration of vities and the administration of immigration mat- unskilled labour from outside the Nordic countries ters. In the present economic downturn, however, came to a halt in 1975, the number of refugees from some of the migrant labour may be superfluous, at countries in Asia, Africa, Latin America and Europe least for a period. In the short term, the challenge outside the EEA area has increased. Since the last may be more a matter of maintaining employment EU enlargement, there has been a marked than of increasing the supply of labour. increase in immigration from the EU countries in The labour market is becoming increasingly Eastern Europe. During the period 1990 to 2007, a international as a result of globalisation, which total of 328 000 nationals of non-Nordic countries means that employees and employers have access immigrated to Norway and were granted resi- to a wider labour market. At the same time, it dence here. heightens the demand for international expertise Migration policy is being linked to develop- and diversity in the Norwegian labour market and ment policy and to health, education and employ- leads to more competition between countries for certain types of labour. 76 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Both the growing number of refugees and the large numbers of internally displaced persons pose The new “we” a challenge for Norwegian foreign policy. The chal- International developments are also being felt in lenge is related to our political responsibility for Norway. As a proportion of the population as a protecting civilian victims of conflicts and Nor- whole, Norwegians with immigrant backgrounds – way’s UN obligations. It is also related to the possi- i.e. persons who have either themselves immi- bility of reaching those in need of protection, and grated or who have two parents born in another how this can best be achieved. country – increased from 2.3% in 1980 to 9.7% in Migration policy is becoming more closely 2008. Those who had themselves immigrated intertwined with foreign policy. Norway’s immigra- amount to 8% of the population, As regards the pro- tion policy must be seen in a larger European con- portion of the population with immigrant back- text. Norway cannot pursue a policy that differs grounds, Norway is now slightly lower than the radically from that pursued by neighbouring coun- OECD average. Population projections from Statis- tries and the EU. Thus, the European perspective tics Norway and analyses from the OECD indicate is crucial. In 2009, the Government will present a that this trend will continue in the years ahead. white paper on Norway’s refugee and immigration Norwegian society has thus become much policy in a European perspective, which will pro- broader and more diverse, both in religious and in vide an overview of key aspects of Norway’s policy cultural terms. More and more people are becom- and cooperation with the EU in this area, with a ing used to cultural diversity. There is a great particular focus on cooperation under the Schen- potential for further developing a modern and gen Agreement. The white paper will also outline inclusive community. However, this involves chal- the principles for Norway’s cooperation with the lenges in terms of our ability to include and involve EU in this field in the years ahead.

Figure 8.1 The 14 largest immigrant groups in Norway, 2008. Figures as of 1 January 2008, absolute figures. Source: Statistics Norway 2008– 2009 Report No. 15 to the Storting 77 Interests, Responsibilities and Opportunities immigrants and to build mutual trust instead of nurturing suspicion and fear. The administration of immigration matters is important to more and more people While the administration of immigration matters is The role of migrants in society and integration important to those who wish to come to Norway, it Many factors influence integration and the political is also important to the private sector, tourism, and economic role and potential of migrants. The research and culture, as well as to the many Nor- role played by immigrants depends on the steps wegians with immigrant backgrounds who are taken by the host country to facilitate participation visited by parents, relatives and friends. On 1 Janu- in society, and the extent to which the various ary 2008, Norway had 638 000 inhabitants with diaspora communities make use of the opportuni- such a background, either through their own or ties available to them. There are great differences one of their parents’ countries of birth. Of these, between various migrant and diaspora communi- 57% were Norwegian citizens. This segment of the ties as regards participation in Norwegian society. population will increase in future. This means There is a close correlation between migrants’ more work for those dealing with the administra- rights and the opportunities they have to contrib- tion of immigration matters, not least for Norwe- ute to development. The most important human gian embassies and consulates general (cf. Part III, rights instruments (the International Covenant on Chapter 21). In particular there has been a sub- Civil and Political Rights, the International Cove- stantial increase in the number of applications for nant on Economic, Social and Cultural Rights, the visas, which has been demanding in terms of International Convention on the Elimination of All resources. Forms of Discrimination against Women and the International Convention on the Rights of the Child) and labour standards (the most important 8.3 The national and international ILO conventions) are also relevant to migrants’ value of migration rights. The promotion of decent working condi- tions and prevention of social dumping and exploi- The increase in migration flows and the new “we” tation are important policy areas for Norway, both offer new opportunities. Norwegian society will internationally and nationally. benefit from a policy that utilises the positive effects of migration, for example through increased participation in foreign policy and devel- Diversity provides opportunities for Norwegian opment cooperation. Multiculturalism can be seen foreign policy as a strategic political resource. We must be aware Changes in the composition of the population pro- that, in future, identities will transcend national vide new room for manoeuvre and new perspec- boundaries and that many people will have strong tives in Norwegian foreign policy. As is the case ties to several countries and communities. In a with domestic policy, it is essential that foreign pol- broad global perspective in which the emphasis is icy reflects trends in Norwegian society and the on international cooperation and mutual under- engagement and interests of everyone who lives in standing between countries, this is a trend that Norway. The Norwegian foreign service admini- should be welcomed in the foreign policy context. stration has a considerable way to go before it is Expertise and networks are two keywords able to effectively address the changes caused by describing resources that have yet to be utilised in migration, both globally and in Norwegian society. Norway’s foreign policy. This applies both to recruit- The expertise, networks and links with countries ment to the foreign service and to utilising the and local communities in other parts of the world resources of the diaspora communities in the represented by the new composition of the Norwe- development and implementation of Norway’s for- gian population are underutilised resources. This eign and development policy. So far, dual affilia- has great potential in terms of enhancing Norway’s tions, composite identities and experience of war expertise and reputation, and addressing the dem- and conflict have been regarded more as a chal- ocratic challenge of ensuring that the diversity of lenge to society than as a resource. The fact that the population is reflected in governance systems many people have backgrounds as refugees or and the public administration. have other connections to political processes in their own or their parents’ country of origin is something that we must be aware of if we are to 78 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities succeed in pursuing a balanced policy based on this is that we develop in the direction of a tolerant, sound facts. multicultural and inclusive society where these Migration and globalisation are also about the qualities are reflected in the workplace. This will globalisation of talent. Growth and development also have positive effects on Norwegian activities will be dependent on our ability to attract and abroad and on Norway’s reputation. retain talent and expertise. One precondition for 2008– 2009 Report No. 15 to the Storting 79 Interests, Responsibilities and Opportunities

9 The communication revolution poses new demands

Globalisation is inextricably linked to the current 9.1 The communication revolution and global revolution in information and communica- foreign policy tion technology. Politics, everyday life and the labour market are constantly changing as a result The global mass media and the internet have made of these rapid developments. Media monopolies it more difficult to maintain a monopoly on informa- have been broken up, ties to political parties have tion and have made closed societies and remote been dissolved and foreign radio and television regions much more accessible. This greater open- channels are now widely accessible. Today, a broad ness is a challenge to regimes that have traditionally range of actors can rapidly communicate their mes- controlled the flow of information in order to steer sages through new media and information chan- public opinion. Groups and individuals who have nels. In the modern communication society, with previously had no access to traditional media can its diverse range of global media channels, new now publish their messages directly. Thus, freedom technology and high pace, the information culture of speech has taken on an added dimension. and the broadcasting of news know no boundaries. Greater access to information has also high- These changes pose a challenge in terms of the lighted the fact that more people are able to take content of foreign policy, its implementation and part in the foreign policy debate. Global networks the way it is communicated. The pace is changing, are being formed that communicate at a speed and as is the mix of issues that dominate the foreign on a scale that challenge established structures of policy agenda at any given time, and thereby also power and influence. The constant emergence of the administration and conduct of foreign policy. new arenas and networks makes it difficult to keep Foreign policy must increasingly strike a balance up with and participate in the debate, which is between the assertive, communicative approach increasingly taking place outside established that often characterises the news media’s coverage organisations and political structures. Access to and the traditional need for a long-term perspec- virtually all areas of policy is almost unlimited, tive, consistency and predictability. However, which means that it is crucial to sort and analyse developments in technology and communication the content of information, the sender and the con- also provide considerable opportunities that a text. News of a disaster on the other side of the modern foreign service must make better use of world reaches Norwegian television viewers in the when developing and implementing policy. Greater space of a few minutes. Global media channels access to information places increasing demands therefore have an important role in setting the on the foreign service’s ability to analyse both the political agenda. Together with other actors they content of information and the sender. influence public debate and make it possible to In addition, today’s media and technology soci- reach a wide audience. The focus of the Norwegian ety, combined with the increasing complexity of media’s news coverage is largely on the political the international community, reinforces the need debate and parallels the foreign affairs coverage of for public diplomacy. There is a growing need for the dominant global news providers. However, dialogue with different groups, including in con- there is no evidence, that the media have the power texts outside formal political structures. Moreover, to influence foreign policy decisions. At the same foreign policy now has a new external audience, time, the importance of the media and communica- which raises other demands in terms of articulat- tion technology should not be underestimated. ing what kind of actor Norway is and communica- Another parallel phenomenon is the emergence ting Norway’s interests, values and priorities. The of social networking websites and media, such as communication revolution requires us to be more Facebook and Twitter. It is becoming increasingly open in our diplomacy and more sensitive in our common for extraordinary events, or “breaking communication, at home and abroad, in order to news”, to be announced first on the internet or via promote and safeguard the whole range of Norwe- mobile phones by non-journalists. In autumn 2008, gian interests – from trade to security. for example, up- to-the-minute reports on the terror 80 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities attack in Mumbai were posted on the social net- working website Twitter long before the main- Box 9.1 Telenor: The mobile sector’s stream media started to report from Mumbai. Infor- contribution to the economy mation, images and film are referred to by other media with no possibility of verifying the sources. From Telenor’s report on the economic con- The problem is that false and inaccurate information tribution of the mobile sector in selected can be circulated about highly complex and danger- countries in which Telenor has companies: ous situations. This can have direct consequences Bangladesh: 6% of GDP in 2007. The for the resolution of conflicts and for how the author- mobile sector is estimated to have created ities and the international community respond to 111 700 jobs (directly and indirectly). the situation. On the other hand, this form of direct, Pakistan: 5.1% of GDP, 247 000 jobs unedited reporting has important advantages Thailand: 4.9% of GDP, 150 000 jobs because it democratises news coverage and gives the public more rapid access to news.

world’s most important communication channels. Consequences for the foreign service This increase has largely been driven by what are This new information world has at least three con- known as the BRICS countries, which, together, sequences for the foreign service. are home to a third of the world’s mobile phone Firstly, there is a growing need for new exper- subscribers. China alone has 600 million subscrib- tise. Analysing the content and sender of information ers. Africa experienced an increase of 39% between is becoming more crucial, but also more complex. 2005 and 2007; 90% of telephone subscriptions in Secondly, as a knowledge-based organisation Africa are mobile subscriptions. Mobile broadband responsible for shaping policy, the Ministry of For- technology is being developed in many places, eign Affairs is subject to new requirements as although this still applies mainly to rich parts of the regards transparency and dialogue. The Ministry world. needs to take a more outward-looking approach to Telecommunication is thus very important in a communication, with a clearer division of roles and development context. For example, mobile phones responsibilities and closer internal coordination. can be used to transfer money or to gain access to Thirdly, the new global information world pro- price information for agricultural produce in local vides new opportunities for engaging in public markets. The Consultative Group to Assist the diplomacy and reputation building, for example, Poor (CGAP) is an organisation engaged in micro- through channels such as the web portal Norway – finance, whose motto is “Advancing financial the official site. All Norwegian diplomatic and con- access for the poor”. One of its projects, “Mobile sular missions now have their own websites, based banking for the poor”, examines how mobile tech- on a common template, where the content can be nology can be used to provide population groups adapted to specific needs and target groups. Post- with access to financial services they were previ- ing audio files and live images on regjeringen.no ously unable to use. The International Telecommu- also makes it possible to reach new target groups. nications Union is seeking to “connect the uncon- nected” to ensure that everyone has access to tele- communication by 2015. This will also be Consequences for global economic development important in relation to other Millennium Develop- There are currently around 1.4 billion internet ment Goals such as health, education, employment users in the world, fourteen times as many as there and combating poverty. were ten years ago. The number of mobile phone subscribers is estimated to be around four billion. 60% of the world’s population has, or has access to, New security threats and requirements a mobile phone. In today’s communication world, our traditional per- In spite of this, there remains a “digital divide” ceptions of time and distance no longer apply. News in the world between rich and poor. For example, of isolated incidents can be spread around the world even though internet use in Africa increased by in the space of a few minutes. If information is dis- more than 1000% from 2000 to 2008, developing torted, exaggerated or put in the wrong context, it countries only have 1% of the world’s broadband can provoke unexpected conflicts that it is virtually lines. Mobile telephony is much more widespread impossible to be adequately prepared for. The fre- globally than the internet, making it one of the quent over-dramatisation in the presentation of the 2008– 2009 Report No. 15 to the Storting 81 Interests, Responsibilities and Opportunities

Figure 9.1 Worldwide mobile subscribers. Growth 2000–2008 Source: International Telecommunications Union, ITU World Telecommunication/ICT Indicators (WTI) database news also increases pressure on the authorities to Promoting a clear and positive image of Norway comment on events quickly and to clarify their policy abroad is important for safeguarding Norwegian and views. This leaves less time for carrying out ana- interests in a number of fields. Norway’s reputation lyses, considering alternative courses of action or is primarily the product of the actions of Norway and communicating with other states. At the same time, Norwegian actors at home and abroad, for example there is a growing need for emergency preparedness in relation to development policy, humanitarian and the ability to maintain constant contact with per- efforts, petroleum policy, climate policy, integration sonnel in crisis-affected areas and to communicate policy and the economic activities and ethical behav- messages swiftly through the mass media. iour of the private sector. New forms of communica- There are also growing challenges related to tion pose a number of new challenges, partly the risk of cyber attacks and electronic warfare because the world is becoming more open and bet- against information and communication systems in ter informed. This underscores the need for policy a number of sectors of society. Modern society has coherence, as was highlighted, for example, by the proved vulnerable to attacks in cyberspace, which consequences the cartoon controversy had for Dan- in the worst case could cause the total breakdown ish and Norwegian foreign policy, and the clear link of vital social functions such as energy supply, it revealed between foreign and domestic policy. transport, payment services and food supply. This is also closely related to another issue, namely the challenges and opportunities involved in consolidating Norway’s reputation in the world 9.2 Reputation-building and the need by means of public diplomacy. Public diplomacy for public diplomacy can communicate, reinforce and influence the per- ceptions people in other societies have of Norway. The communication revolution has highlighted the As with other foreign policy tools, it can help to global competition for ideas and social models, and advance Norwegian prosperity, security and the the strategic importance of making one’s values values on which Norwegian society is built. Public and views heard and of exploiting new opportuni- diplomacy, reputation-building and cultural cooper- ties to set the agenda for states and other actors. ation are becoming increasingly important, not just 82 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities in terms of marketing Norway, Norwegian culture between cultures constantly seeks out new chan- and Norwegian products, but also as a means of nels and is expanding, both as regards the number promoting Norwegian interests in their full of actors involved and in terms of the range of breadth, cf. Chapter 22. forms of expression. This dialogue constitutes a new global network that uses new communication channels. It has the ability to challenge established The importance of cultural relations and rules and norms and as such is a potential threat to cooperation on knowledge building any ideology based on absolute truths. Safeguarding Norwegian interests is not solely a Enhancing knowledge and understanding is a matter of concrete actions or measures. All socie- means of preventing conflict, and artists and other ties and cultures are dependent on influence from cultural actors are involved in this. Culture plays an the outside world in order to develop. Encounter- important role in the international context as a driv- ing other cultures helps both to strengthen cultural ing force for argument and persuasion rather than diversity and to raise awareness of our own iden- economic sanctions and military force. Research tity. Cultural differences contribute to diversity and and educational cooperation and researcher and are a strength in any society. At the same time, student exchanges also help to promote know- however, religious, ethnic and cultural differences ledge, understanding and dialogue. However, media exacerbate political and economic conflicts, both channels are becoming increasingly diverse, within and between societies. which is weakening traditionally dominant media Cultural cooperation is based on equal partner- actors in favour of small news channels that are ship between artists and practitioners from differ- accessible via the internet and that target specific ent backgrounds in the fields of sports, architec- groups. This means that efforts to get information ture, design and other cultural fields and can help across will have to be targeted at specific groups, to foster greater understanding, knowledge and that the number of information channels will mutual trust. It can also challenge the perceptions increase and that it will be increasingly difficult to of reality of all parties involved. The dialogue maintain a visible profile.

Figure 9.2 Norway’s brand image The tables show the countries in which Norway’s brand image is perceived to be strongest. Norway’s brand image is generally strongest in its neighbouring countries, while it is weak in countries in Asia and Africa. Example: In Sweden, Norway is ranked third of a total of 35 countries in terms of its brand image, whereas in India it is ranked 21st. Source: Anholt Nation Brands Index 2007 2008– 2009 Report No. 15 to the Storting 83 Interests, Responsibilities and Opportunities

10 Diversity of actors brings new opportunities but also new challenges

10.1 Role of the state tested deeper economic crisis and prevent the recurrence of similar crises. In this way, the crisis could also Up until 1990, the role of the state as the primary revitalise and enhance the legitimacy of estab­ actor in international politics was rarely tested. The lished multilateral institutions such as the World situation is very different today, partly due to glo­ Bank, the International Monetary Fund (IMF), the balisation. As a result of the communication revolu­ World Trade Organization (WTO) and certain UN tion and its continuous coverage of all major inter­ agencies. national events on the internet and through other In any case, the mix of actors involved in inter­ media channels, professional organisations and national politics will become more complex and institutions of various kinds have emerged as key diverse in the time ahead. This will give Norway actors. This applies particularly to their ability to more room for manoeuvre in safeguarding and set the agenda. Non-state actors are now able to promoting its interests, but also presents a chal­ pursue issues and proposals through all stages of lenge for Norway’s foreign policy. However, the international negotiations all the way up to a deci­ advantages and opportunities offered by this sion and implementation in various global forums. increased diversity of actors by far outweigh the These actors, which range from humanitarian disadvantages. For example, the involvement of organisations and large private funds to interna­ both non-state actors and states has made it pos­ tional terrorist organisations, are both increasing sible to reach agreements in a number of important in number and gaining more influence, in step with areas, as illustrated by the crucial role played by the growing complexity of today’s world. What both in the processes leading up to the conventions they have in common is their ability and willing­ on landmines and cluster munitions. ness to engage in global mobilisation and network The interaction between the many interna­ activities, and to take advantage of the greater tional actors and initiatives that is currently com­ opportunities this provides for influencing states’ peting with that which takes place in formal multi­ foreign policy, global institutions and the global lateral institutions is, first and foremost, an exam­ agenda. The focus on corporate social responsibil­ ple of institutional learning. These actors address ity in the wake of globalisation also means that the many common global tasks, often taking a more private sector, both at national and international flexible approach than formal multilateral actors. level, has a role to play in safeguarding a number of Norway’s foreign policy objectives. However, these changes must not be exagger­ ated. Although the role of the state has been signif­ Box 10.1 Quote from French Foreign icantly tested by globalisation in recent decades, Minister Bernard Kouchner on signing the this does not mean it has been weakened. In cer­ Convention on Cluster Munitions tain areas, the opposite is the case. Both the cur­ “I congratulate the Norwegians with all my rent financial crisis and record-high oil prices in heart. Together with the NGOS, Norway has recent years can be said to have strengthened the been the driving force in this process. I am role of the state in a number of ways, particularly in impressed by the way politicians and civil soci­ relation to key market actors in the fields of finance ety have worked together. They have changed and the economy, and in the energy sector. High oil international law, and both the NGOs and the prices and the shortage of oil have led to a situation politicians deserve credit for this. The NGOs where power and influence are being transferred could not have done it alone because only a government may propose amendments to the from private oil companies to oil-rich governments laws that govern international matters.” around the world. The international financial crisis has resulted in extensive efforts to introduce state Source: Morgenbladet, 6 December 2008. regulatory mechanisms designed to avert an even 84 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

At the same time they cooperate with multilateral decade, in step with the growth in the global econ­ institutions and thus also with states. Together omy. They are neither driven by profit nor are part they contribute to more effective global govern­ of the public sector. They have their own, often ance. substantial, financial resources, sometimes In 2007, a new section was established in the together with states or other actors. They support Ministry of Foreign Affairs, called the Section for charitable causes. They are primarily involved in Global Initiatives and Gender Equality. One of its providing services, but, because of their size and tasks is to promote greater exchange of knowledge their potential for forming alliances, they increas­ within the foreign service, and in this connection to ingly define normative and political guidelines for compile and share lessons learned outside the international assistance. Ministry. Given that a great deal of foreign policy The largest and best known of these actors in will be developed outside the domain of the Minis­ the development assistance area is the Bill & try and/or the government in future, Norway must Melinda Gates Foundation, which is presided over have knowledge of how to cooperate with new and by Bill and Melinda Gates, and Warren Buffett. unconventional actors in order to take advantage of Between 1994 and 2006 the foundation allocated the growing diversity of international politics. The USD 26 billion to aid-related initiatives around the best way of safeguarding Norwegian interests in world. At the end of 2007, its assets amounted to many areas is through close dialogue and close alli­ USD 38.7 billion and it had 520 employees. It is a ances with non-state actors and flexible public-pri­ world leader in research on poverty-related vate partnerships, nationally and internationally. diseases. The Aga Kahn Foundation, which has an The Ministry of Foreign Affairs and a number of Asian background and roots in the Islamic world, is other ministries and agencies are already doing another organisation that has cooperated closely this, not least in cooperating with civil society on with Norway in recent years on many projects, for various aspects of our policy of engagement. This example in Afghanistan and Pakistan. form of cooperation is often referred to as the “Nor­ Another type of foundation is the William J. Clin­ wegian model”. ton Foundation, which was established and is run by However, there is still much to be learned. Bill Clinton. Since its inception, the foundation has Greater effort must be devoted to learning about grown into a global NGO with more than 800 and communicating with this broad range of new employees and volunteers at its disposal. In addition actors. The Ministry of Foreign Affairs and other to being an important actor in the development assist­ ministries must continue to give priority to engag­ ance area, Clinton has established the Annual Meet­ ing with external actors. This increased focus on ing of the Clinton Global Initiative, an arena that con­ civil society, the private sector and culture, infor­ sistently attracts influential world figures. Together mation, communication and network building has with the G8 meetings, the World Economic Forum in also led to a greater awareness of the importance Davos and the EU’s recently established European of openness and accountability. This topic is dis­ Development Days, this forum supplements and cussed in more detail in Part III of the white paper, challenges the UN, the World Bank and the OECD which deals with the administration of foreign pol­ as arenas for dialogue in the development policy icy in the future. field, but it may also help to revitalise them. George Soros’ foundations and funds, including the Open Society Institute (OSI), are examples of 10.2 The new foreign policy actors organisations where global philanthropists have taken on a more explicit political role and where Who are the new actors that are challenging the role greater emphasis is placed on directly influencing of the state as architect and executor of foreign policy? political decisions. With annual budgets of between The following are examples of actors that are not only USD 400 and 500 million, Soros is a potential power moving into the realm of Norwegian foreign policy, factor in the growing global network of NGOs. but are also providing new room for manoeuvre. These private actors unquestionably have the resources, expertise and energy required to make a difference. They increase the options available to International private foundations vis-à-vis state aid governments of developing countries and reduce actors other donors’ relative influence. This can create The number of private actors in the humanitarian/ friction and make coordination more difficult, but development field, known as philanthropic founda­ whether this is a problem depends on the ability tions, has increased considerably during the past and willingness of all relevant parties to cooperate. 2008– 2009 Report No. 15 to the Storting 85 Interests, Responsibilities and Opportunities

One potential problem is accountability. These states and other actors. They are brought together actors are influential and have substantial financial by a shared objective and common vision of posi­ resources at their disposal, but they are in principle tive social change, at both the national and the glo­ accountable to no one but themselves. Transpar­ bal level. It is often as a result of initiatives taken by ency is therefore crucial at all stages of interna­ civil society actors that issues appear on the politi­ tional development cooperation and why the docu­ cal agenda. These issues are then often taken up by mentation of results is essential. interested states, which formalise processes that may result in international agreements. Norway has played an active role in many of these proc­ NGOs are setting the global political agenda esses, as have Canada, the UK and the other Nor­ While we previously made a distinction between dic countries. These initiatives are often developed voluntary aid organisations and political organisa­ far away from formal UN arenas, but as more tions such as Amnesty International and Nei til actors become involved and the need for global Atomvåpen (Norwegian campaign against nuclear legitimacy increases, they gradually become more weapons), the vast majority of NGOs are now polit­ closely associated with the UN. ical operators and lobbyists as well as operational The above-mentioned EITI, which is a partner­ aid actors. Funds that are raised are used in close ship between states, extractive industry compa­ cooperation with the media and international nies/ the private sector and civil society, is an media celebrities in order to maximise visibility example of such an initiative. Although it is a vol­ and political influence. At the same time, NGOs are untary and loose partnership, it has the ability to cooperating more and more closely and increas­ ingly frequently with the authorities and the pri­ vate sector. Globalisation and the accompanying Box 10.2 Ban on cluster munitions media and communication revolution have sub­ stantially enhanced the ability of these actors to In 2006, the Norwegian Government invited build networks and engage in political lobbying the UN, the Red Cross movement and other across borders and vis-à-vis different actors. humanitarian organisations to attend an inter­ The organisations behind the Extractive Indus­ national conference in Oslo, following the fai­ tries Transparency Initiative (EITI), which was lure of the States Parties to the Convention on established to promote greater transparency in the Certain Conventional Weapons (CCW) to payment and receipt of natural resource revenues, agree on a mandate to start negotiations to are examples of actors that have gained consider­ address the humanitarian problems caused able influence in international politics. Global Wit­ by cluster munitions. Norway thereby took a ness, the Revenue Watch Institute and Transpar­ leading role in the process that led to a ban on ency International played an important part in the use, production and transfer of cluster putting the issue of transparency in transactions in munitions. However, this was also the result the oil and mining industries on the international of the work of humanitarian and human rights agenda. These organisations convinced the British organisations, which for many years had authorities of the importance of the issue and were, sought to put the issue on the agenda. The and continue to play a key role in the EITI, which process rapidly gained the support of a large was launched by the UK in 2002. number of states the world over, and when For these actors building coalitions between the Convention on Cluster Munitions was the public sector, the private sector and civil soci­ adopted in Dublin on 30 May 2008, 107 states ety is a fundamental aspect of their work. Such coa­ took part. litions have played an important part in setting the The prohibition includes all types of clus­ agenda in a number of political processes that have ter munitions that are known to have created led to government-level agreements, including the humanitarian problems, and is thus viewed as bans on landmines and cluster munitions, the EITI having set a new standard in international initiative and the Kimberley process (an initiative humanitarian law. The Convention was signed to stem the flow of conflict diamonds). by 94 countries in Oslo in December 2008. The Convention also enjoys the full support of the international community through the UN, Closer contact between states and other actors humanitarian and human rights organisations In recent years, we have witnessed a rapid growth and the International Red Cross movement. in the number of cooperation initiatives between 86 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities exert influence through new alliances. At the same time, the EITI derives its legitimacy both The private sector, corporate social responsibility from its agenda and effective operation and from and foreign policy its broad-based membership, which includes gov­ The Norwegian private sector is becoming more ernments in the North and the South, private and more internationalised, and the Norwegian companies and civil society actors who all have an authorities are helping to create framework con­ equal voice. Because of the political sensitivity of ditions that facilitate the globalisation of the pri­ the issues involved, i.e. exposing corruption in vate sector. This increasingly includes coopera­ governments and the business community, and tion with companies on participation in develop­ the need for close cooperation on an equal footing ment initiatives, such as in the field of between some, but not all, states and a number of microfinance and hydropower development, other types of actors, formal global forums like where Norwegian actors have valuable expertise the UN are not very well suited as an organisa­ to contribute. In addition, the agenda for corpo­ tional framework for the initiative’s activities. The rate social responsibility is constantly evolving. EITI can thus be said to create new room for This means that the private sector is gaining a manoeuvre that existing forums could not have more important role in the achievement of certain provided. foreign policy objectives. The conduct of the pri­ The Kimberley Process Certification Scheme vate sector is being monitored by a growing (Kimberley Process) is another international ini­ number of NGOs and consultants who have devel­ tiative in which the private sector has a promi­ oped standards, indexes and rankings to measure nent role. The Kimberley Process was initiated the gap between what companies say and what to break the link between trade in rough dia­ they do. A number of international standards for monds and armed conflict. The process was for­ corporate social responsibility have now been estab­ mally launched in May 2000 on the initiative of lished, such as the OECD Guidelines for Multina­ the South African authorities and several other tional Enterprises, which provide recommenda­ diamond-producing countries in southern tions as to how the authorities can promote and Africa, including Botswana, following prolonged follow up responsible business conduct in their efforts by civil society actors to put the issue on own private sectors. There are also various UN the agenda. The Kimberley Process now has initiatives such as the UN Global Compact, which more than 70 participants. The UN has taken is a voluntary network organisation with around part in the Kimberley Process since its inception 5000 members, and the UN Principles for Respon­ in 2000, and Norway has done so since the end sible Investment, as well as a number of industry- of 2001. Norway became a full participant in the specific principles, including the Equator Prin­ process when the Certification Scheme was ciples for Financial Institutions, which are admin­ implemented in Norwegian law in 2004. istered by the World Bank. These various stand­ In the health policy area, the range of new types ards, together with the fact that companies are of international actors has increased considerably now under increasing scrutiny from the media, in recent years, in step with the growing focus on can play a part in influencing corporate policy and health issues that has accompanied the follow-up the reputation of companies. This, in turn, can to the UN Millennium Development Goals. The have an effect on the reputation of states, includ­ Global Alliance for Vaccines and Immunisation ing Norway. (GAVI) is a good example of this. GAVI is an alli­ The increasing importance of CSR will open up ance of states, UN agencies, the World Bank, new opportunities for the Norwegian authorities in research institutions, NGOs and the private sector. the foreign policy context, but it is not without its Its objective is to achieve results in the field of vac­ challenges. When the authorities indicate that they cination and immunisation that no existing actor or have expectations in relation to CSR, companies group could achieve on its own. Norway partici­ immediately want to know which guidelines the pates actively in GAVI and is engaged at high level authorities use to assess CSR performance. KOM­ in a joint effort to ensure that all children in the 75 pakt – the Government’s Consultative Body for poorest countries in the world have access to the Human Rights and Norwegian Economic Involve­ vaccines recommended by the World Health ment Abroad – was established by the Ministry of Organization (WHO). The new institutions in the Foreign Affairs in 1998 as a forum for promoting health field, including GAVI, usually work in close understanding and cooperation between the vari­ cooperation with UN agencies such as UNICEF ous actors involved in issues relating to corporate and WHO. social responsibility. The new white paper 2008– 2009 Report No. 15 to the Storting 87 Interests, Responsibilities and Opportunities

Corporate Social Responsibility in a Global Economy takes this an important step further. Foreign policy implications of sovereign wealth funds Sovereign wealth funds have made big headlines in international media in recent years. In a short Box 10.3 Corporate social responsibility space of time, they have become major actors in abroad international finance. There is an international debate about the extent to which sovereign wealth Norwegian companies have become increas­ funds have a hidden agenda when they acquire ingly important for Norwegian foreign and major ownership interests in large companies in development policy in recent years. The white Europe, the US and elsewhere in the world. Many paper Corporate Social Responsibility in a Glo­ countries, including France and Germany, have bal Economy (Report No. 10 (2008–2009) to expressed scepticism and concern that such funds the Storting) sets out guidelines for Norwe­ are seeking to acquire holdings in strategic indus­ gian enterprises and emphasises the impor­ tries, particularly when they do so on behalf of tance of companies for Norway’s reputation. their respective governments (China, Russia, Corporate social responsibility (CSR) involves Saudi Arabia, etc.). There has been less criticism of companies integrating social and environmen­ sovereign wealth funds since the onset of the finan­ tal concerns into their day-to-day operations, cial crisis, but the issue could rapidly resume its as well as in their dealings with stakeholders. place on the agenda when the economic situation Corporate social responsibility means what changes. companies do on a voluntary basis beyond With more than NOK 2000 billion at its dis­ complying with existing legislation and rules posal, the Norwegian Government Pension Fund – in the country in which they are operating. Global (GPF-G) is the world’s second largest sov­ The white paper is based on the premise ereign wealth fund. Based on general guidelines that the main objective of the private sector is laid down by the Storting, the GPF-G is run as an value creation. However, companies play an independent fund that may only own limited hold­ increasingly broader role in society. Compa­ ings in a given company (maximum 10%). Thus it is nies should promote positive social develop­ very different from the type of fund that is arousing ment regardless of where in the world they concern in a number of countries around the operate. Human rights, workers’ rights, envi­ world. The GPF-G has also been held up as a model ronmental considerations and anti-corruption of transparency among sovereign wealth funds. efforts are the main elements of the social However, the fund risks being subject to more or responsibility of companies operating abroad. less protectionist measures that are currently The Government will promote the use and fol­ being considered, and that could become applic­ low-up of the OECD Guidelines for Multinati­ able to all sovereign wealth funds. Therefore, gain­ onal Enterprises, and support work on ing acceptance for the GPF-G’s objectives and corporate social responsibility in the UN, investment profile in important markets around including the UN Global Compact. Compa­ the world, particularly in the US and many EU nies are expected to be aware of corporate countries has also become an important foreign social responsibility within their own “sphere policy objective. of influence” and to ensure that they are not There is also an increasing focus on the ethical complicit in unethical practices. This also guidelines for the GPF-G in connection with lobby­ applies to suppliers and sub-contractors. ing activities vis-à-vis the authorities and the world Rather than advocating the introduction of of finance. These guidelines have become an specifically Norwegian legislation, Norway sup­ important part of Norway’s image as a responsible ports the establishment of international obliga­ manager of both petroleum resources and financial tions that can then be implemented and revenues. If the GPF-G should choose to withdraw enforced at national level. As regards legal from a company on the basis of the ethical guide­ instruments for strengthening corporate social lines, this could also affect private sector actors responsibility, the white paper proposes that the other than the company concerned. The same is scope of the Accounting Act should be extended true of the alternative to withdrawal, i.e. active to include information on what companies are ownership. In 2008, Norges Bank (Norway’s cen­ doing to implement ethical guidelines. tral bank) endorsed the Carbon Disclosure Project, which compiles and publishes information 88 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities about companies’ greenhouse gas emissions. This could lead to a significant improvement in corpo­ New constellations pose a challenge to Norwegian rate environmental reporting. The GPF-G is impor­ foreign policy tant for Norway’s visibility and reputation abroad. For a long time informal constellations of countries have been coming together in various contexts to discuss matters of mutual interest and to prepare Non-state actors pose a challenge to Norway’s positions prior to multilateral negotiations. The G8 security and engagement policy is the most established of these constellations and Globalisation has led to a broadening of the secu­ the one that has the highest media profile. It con­ rity concept, as was illustrated in particular by the sists of the seven leading industrial nations: terrorist attack on the World Trade Center on 11 France, Japan, Germany, the UK, the US, Italy and September 2001. It has expanded the reach of Nor­ Canada, as well Russia. The EU Presidency and the way’s peace and reconciliation policy. One impor­ European Commission also attend. The G20 is tant consequence is that Norwegian authorities emerging as a competitor to the G8, as China, must now deal with a number of new armed actors, India, Brazil and others take on a more central role some of whom are considered to be terrorist in international politics. When the financial crisis groups by Norway’s allies. Many of them use glo­ became a reality in autumn 2008, the US and the bal networks to promote their causes. Actors such EU chose to convene a meeting not of the G8, but as Hamas in the Middle East, the LRA in Uganda of the G20, to discuss how the crisis should be and the LTTE in Sri Lanka are regarded as poten­ dealt with and resolved. tial security threats by many countries, but for Nor­ In many ways, the financial crisis has speeded way they are also actors we must be prepared to up a process where an increasing number of new deal with, for example in connection with complex and emerging major powers expect to be heard peace processes. and listened to when global issues are discussed. Moreover, private security companies have The process has also been accelerated because the emerged as a new type of actor in the security pol­ natural authority enjoyed by some G8 countries as icy arena. These companies offer services that leading economies is fading in the wake of the were previously performed by national armed financial crisis, which was caused primarily by cap­ forces. The market for such companies is growing italism spiralling out of control in key Western rapidly. For example, almost all embassies and aid countries. agencies in Iraq use their services. They have It is too early to foresee how influential the G20 adapted to current international security needs will become in the years ahead. The G8 is by no arising from the threat of terrorism and provide means defunct, and the P5 – the five permanent security services for companies operating in members of the UN Security Council, which have unstable regions. They are also frequently the power of veto – continue to dominate by virtue employed in military missions in the Balkans, Iraq of the role they were assigned after World War II. and Afghanistan. Their clients include govern­ Nonetheless, the G20 (or its equivalent) is likely to ments, private companies, humanitarian actors and play a central role in international politics in the NGOs, the media and the UN. time ahead. A number of foreign policy documents Private security companies are playing an drafted in preparation for the change of president increasingly important role. Even though they do in the US in autumn 2008 were based on the not challenge governments’ monopoly on power as assumption that the G20 would be an important such (they are recruited and paid to strengthen arena for the next US president. that monopoly), the emergence of these compa­ Even a moderate strengthening of the G20 as a nies raises many issues, such as immunity from forum in relation to its current informal and ad hoc prosecution, human rights issues, sovereignty and agenda will pose a challenge to Norwegian foreign accountability in relation to abuses of the civilian policy. Norway can never aspire to membership of population. This applies to closed countries in par­ a forum of this kind. As was originally the case with ticular, where there is no judicial, state or civil con­ the G8, the G20 has primarily concentrated on eco­ trol and where the media are prevented from nomic issues. In this respect, organisations such as reporting abuses. However, one of their advan­ the OECD and the International Monetary Fund tages is that they provide cost-effective services. (IMF) – of which Norway is a member – are in a They challenge the UN where it is unable to put an good position to set the agenda. This also gives end to violence, genocide and civil wars. Norway an opportunity to play a part. Since we are not a member of the EU, which has a relatively cen­ 2008– 2009 Report No. 15 to the Storting 89 Interests, Responsibilities and Opportunities tral role vis-à-vis the G20, we must rely on informal tilateral organisations. Norway’s opportunities to discussions with G20 countries in order to gain exert influence given this new diversity will insight into and provide input to the agenda. It is depend not least on our expertise and visibility in also a challenge for Norway’s UN policy that the areas in which we are qualified and have an inter­ UN appears to be in a weak position in the new G20 est in playing a role. Our ability to understand and structure, while the Bretton Woods organisations take advantage of this diversity of actors even and the World Trade Organization have more cen­ though it poses a challenge to established struc­ tral roles. The UN may have an opportunity to take tures is important if we are to succeed, as was illus­ on a more prominent role when issues other than trated by Norway’s role in the cluster munitions the financial crisis are on the agenda. initiative discussed earlier in this chapter. These However, it is important to keep things in pro­ challenges call for greater focus on what serves portion. Norway has a strong interest in better glo­ our interests and on how we can highlight and bal governance, including in contexts in which strengthen our ability to make a difference. The Norway, for obvious reasons, does not participate. more complex the global network of actors and alli­ The G20 may succeed in creating the momentum ances becomes, the more important it is for us to needed to move both climate negotiations and be able and willing to set priorities. trade negotiations away from the North-South con­ The new actors often encroach on the domain flict and other conflicts that are impeding progress. of states and formal multilateral organisations such The G20 countries cannot, however, operate on as the UN. However, they primarily perform func­ their own on issues related to climate policy and tions for which formal actors are less qualified. trade policy. In both cases, genuinely multilateral Moreover, they bring much needed momentum solutions and agreements are required. At the and energy to global cooperation. In some cases it same time, however, there is no guarantee that the may be a challenge for Norway that actors with G20 or similar forums will develop into more per­ which we have no formal association move into the manent organisations. It is more probable that they realm of organisations of which we are a member. will continue to function as loose and relatively Such situations require a careful analysis not only non-binding discussion forums that may become of how Norwegian interests are affected, but also larger and more permanent if they succeed in of how such challenges can be turned to advantage effectively coordinating key globalisation issues. in necessary reform processes in multilateral organisations. In the field of international health, for example, there are many positive examples of 10.3 How can we best exploit the new this, where formal (WHO) and more informal political potential? (GAVI, the Gates Foundation) actors exploit the interdependence and strengths of the various The diversity of new actors in the foreign policy actors for the common good. Therefore, one of our arena primarily opens up new opportunities and key objectives must be to promote more effective creates greater room for manoeuvre in interna­ forms of cooperation between formal multilateral tional politics, sometimes in the place of static mul­ actors and this wide range of new actors. 90 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities 2008– 2009 Report No. 15 to the Storting 91 Interests, Responsibilities and Opportunities

Part II Foreign policy priorities for safeguarding Norwegian interests 92 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities 2008– 2009 Report No. 15 to the Storting 93 Interests, Responsibilities and Opportunities

11 Focus on interests

The primary objective of Norway’s foreign policy ety and its interface and links with the surrounding is to safeguard Norwegian interests. In the world. In the Government’s view, current and Government’s view, an interest-based foreign pol- future globalisation processes will require that we icy is one that is designed to systematically pro- revitalise our approach to Norway’s foreign policy mote the welfare and security of Norwegian soci- interests. This applies particularly to the three ety and the political values on which it is based. cross-cutting areas below: There are several reasons why it is important to take a more interest-based approach to foreign pol- icy. Firstly, it is important to focus on interests in Increasing need to set strategic priorities in foreign order to clearly define our foreign policy objectives policy and the basis on which our policy and priorities Due to the globalisation of Norwegian society and should build. Secondly, interests are fundamental the dismantling of national borders, there is an in relations and negotiations between countries. increasing need for foreign policy priorities. The Unless our own and other countries’ interests are main reason for this is that a vast array of factors in made explicit, it quickly becomes unclear why we all parts of the world can be of relevance to or affect are negotiating and what we are negotiating about. Norwegian society. The number of possible meas- Some interests are given. Others are in a state of ures, aims, actors and priority areas is virually flux and must constantly be clarified and explained. unlimited. In order to pursue a strategic, effective Our foreign policy must always be guided by and focused foreign policy with clear priorities awareness and debate about the fundamental between minor and major issues, it is necessary to needs, opportunities and distinctive features of ensure that our policy is consistent with a clear Norwegian society. Otherwise it could easily lose understanding of Norway’s key interests and its focus and direction. We also risk governing on objectives. the basis of old reflexes, established perceptions and short-lived contributions from a variety of more or less vociferous participants in the public Increasing need to see Norway’s interests in a global debate. It is therefore also necessary to focus on political perspective interests in order to set priorities between objec- As a result of globalisation, Norwegian society has tives. Such a focus emphasises the degree to which become much more dependent on the global com- foreign policy is about making choices and setting munity. Changes of a political, technological, priorities between alternative solutions and strate- social, ecological, military or humanitarian nature gies. in all parts of the world are having a direct and complex impact on Norwegian society. It is not pos- sible for a Norwegian government to protect the 11.1 Globalisation and interest-based interests of Norwegian society without at the same policy time helping to safeguard global public goods. The ongoing globalisation processes, which Norway is Focusing on interests in foreign policy is nothing part of and which are likely to play a prominent new, neither in Norway nor in likeminded coun- role in the foreseeable future, are expanding Nor- tries. A large number of white papers presented by way’s foreign policy interests into new geographi- various Norwegian governments have discussed cal and political areas. how Norway can best manage and promote key Norwegian interests. However, in our view there are now particularly good reasons for undertaking Increasing need to abandon a narrow a new, comprehensive review of Norway’s foreign interpretation of Norwegian interest-based policy policy interests. This is because a variety of globali- As a consequence of globalisation and Norway’s sation processes are transforming Norwegian soci- heavy dependency on global public goods, it is nec- 94 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities essary to abandon a narrow interpretation of Nor- rial, political motives based on political, ethical or wegian interest-based policy. Globalisation has religious convictions. If you ask Norwegians what increased the range of tools at Norway’s disposal is important for them in foreign policy and what in the field of realpolitik. The traditional distinction interests it should promote, nearly all the answers between “soft” idealpolik and “hard” realpolitik has will include some reference to values. Our security become less meaningful. When the priorities for policy is intended not only to ensure the physical Norwegian foreign policy are being set and in the integrity of the individual citizen and protect the implementation of this policy, Norway’s expertise country against attack by foreign powers, but also in the areas of peacebuilding, civil society building to safeguard the political and democratic values on and development of international governance which Norwegian society is built – for example uni- structures should be considered as valuable versal human rights. Economic value creation in resources in the sphere of realpolitik. Further- sectors that are important to Norway such as more, current global developments are resulting in energy, shipping, fisheries and finance secures our a marked increase in the number and types of rele- welfare, but not if we pursue our economic interest vant actors and arenas in international politics. A at any cost and thereby risk undermining Nor- sensible and forward-looking approach to the way’s credibility and the respect it enjoys in the needs of Norwegian society requires that our for- international community or jeopardising sustain- eign policy is adapted to these developments and able global development. A healthy economy thus goes beyond the traditional government-to- secures our welfare and income, but it relies on government relations that are the traditional basis institutional and political mechanisms that are of foreign policy. largely value-based. There is often a close connection between inter- ests and values in foreign policy, and they will be 11.2 Interests inextricably linked in the implementation of tomor- row’s foreign policy. Our High North policy is a It is legitimate and necessary to promote interests good example of this. Here there is a lot of tradi- that are generally considered to derive from tional interest-based policy, such as exercising sov- national self-interest: ensuring the basic security of ereignty and jurisdiction over territory and natural the Norwegian people, providing framework con- resources, facilitating value creation in an area that ditions that are conducive to Norwegian value cre- offers great opportunities for Norwegian business, ation and economic growth, for example through and developing our neighbourly relations with Rus- international trade negotiations, and promoting sia. At the same time, many of the associated chal- the welfare of the Norwegian people in a world lenges have a value dimension, such as in the economy that is becoming increasingly globalised development and normalisation of relations through and unpredictable. people-to-people cooperation with particular However, there is always a potential for conflict emphasis on culture. The 2006 integrated manage- between interests, for example between offensive ment plan for the Barents Sea and the sea areas off and defensive interests in the WTO negotiations. the Lofoten Islands provides the overall framework The time aspect is also crucial to the understand- for activities in these areas. The challenges related ing and discussion of interests. For example, seek- to climate change may determine the parameters ing to maximise economic growth without taking for activities in the entire Arctic area, including the into account the problems related to climate Barents Sea. Norway’s rights in the High North change can undermine economic activity in the are based on international law, an extensive body long run. Similarly, immediate victories in interest- of codified norms intended to ensure (particularly based disputes can be to the detriment of our for small states) that right prevails over might in deeper interests in maintaining good neighbourly international politics. relations and a robust multilateral global order that ensures that right prevails over might. 11.4 Norway’s broader interests

11.3 Values Due to globalisation and geopolitical change, inter- ests and values are becoming increasingly closely Values have always had a place even in the most intertwined. Furthermore, the intertwining of the callous and pragmatic interpretation of national institutions of society across the globe is making interests. Here values are understood as non-mate- Norwegian society directly dependent on socio- 2008– 2009 Report No. 15 to the Storting 95 Interests, Responsibilities and Opportunities political developments and events in many parts of iii) Our extensive commitment to the UN and the world, often with immediate effect. For exam- World Bank development agenda promotes ple, in 2009 NATO’s most important operation is in altruistic goals, but it also helps to further Afghanistan, a mountainous country in Asia, and as develop global governance bodies that are NATO is Norway’s most important security policy important to Norway, and enhances Norway’s platform, Afghanistan is a central theme in the Nor- image among countries that are gradually gain- wegian foreign policy debate. Success in Afghani- ing greater influence in international politics. stan is important to alleviate the situation of the iv) Norway’s motives for participating in peace long-suffering Afghan people, control international processes are basically altruistic, but at the drug trafficking, fight terrorism and the motivation same time we are providing public goods behind it, and strengthen cohesion within NATO. together with other actors. Norway’s increased Something similar can be said about how develop- visibility means that we also gain access to ments in China and Norway are becoming inter- important actors in the international political twined. In recent years China has contributed to arena that it would otherwise be difficult for a the welfare of the Norwegian people by helping to small country like Norway to engage with. maintain the price of oil at a high level and the price of imported goods at a low level, thereby reducing Finally, globalisation and the expanded scope of pressure on Norwegian interest levels. On the Norwegian foreign policy have further increased other hand, some Norwegian municipalities are Norway’s reliance on a robust regional and inter- having to cut back on welfare services due to national legal order and a range of effective global unsuccessful investments in failed financial institu- institutions to maintain and further develop this tions in the world’s largest economy. legal order. This has long been a core interest for The extended scope of Norway’s interest-based Norway, with its open, trade-based economy, its policy can also be illustrated by looking at another rich energy resources, its long coastline, and its key area of Norwegian foreign policy: the exercise border with Russia. Globalisation and geopolitical of and rationale behind Norway’s policy of engage- change make this all the more important because ment (development aid, humanitarian policy, peace the world is becoming even more complex and and reconciliation, promotion of human rights and unpredictable, the level of conflict higher, the democracy). From the start, the main rationale threat picture more complex, the major powers behind our policy of engagement has been the more numerous, the alliances more fluid, and the altruistic desire to improve the lives of people in Norwegian economy and our welfare even more other parts of the world. However, globalisation closely intertwined with global processes. It is there- and other geopolitical changes are providing a fore an extremely important foreign policy task to renewed, stronger rationale for our policy of engage- promote Norwegian interests more effectively by ment, as it is helping us in various ways to achieve making active use of the mechanisms provided by goals that are in Norway’s interests. The following the international legal order, not least in our efforts are some concrete examples: to address the problems caused by climate change i) The global communications revolution has and make global economic institutions more effec- brought the world into our homes and is increas- tive in the light of the financial crisis. ing Norwegians’ desire to be respectable glo- bal citizens, help to reduce human suffering, and work in companies that uphold key values 11.5 Norway as a foreign policy actor (or do not undermine them). It is moving human rights and freedom of expression ever Globalisation and geopolitical change are also closer to the core of Norwegian interests, highlighting Norway’s role and identity as a for- understood as the political values that make eign policy actor. We are faced with a combination Norway a civilised society. of continuity and change. Geography, history, eco- ii) As illustrated by the challenges in Afghanistan, nomic structures and culture are instrumental in the policy of engagement and the efforts Nor- shaping who we are and how we perceive our iden- way takes part in to promote development in tities and roles in the world. The Government Afghanistan are if anything more important as attaches great importance to identifying and draw- tools to reach the international community’s ing on characteristics of our country that give us objectives in the country than NATO’s military influence in areas where we can make a difference presence. in the international economic and political arenas. These areas, many of which are linked to Norway’s 96 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities coastal and sea areas, include oil and gas, fish and tural and other expertise that Norwegians from fish products, shipping, Norway’s new role as a immigrant backgrounds have to offer. However, a major financial actor due to the Government Pen- new international trend of uncompromising sion Fund – Global, and the High North with its emphasis on identity, combined with identity- resources, challenges and opportunities. The Gov- based backlashes against globalisation, could give ernment will give priority to strategies and meas- rise to new conflicts that would be difficult to ures that enable us to make better use of our address due to the complex patterns they form advantages in these areas, to achieve both across countries and regions. The cartoon contro- increased value creation at home and abroad, and versy in 2006 was an example of this. greater political visibility and results in areas where Norwegian expertise is in demand world- wide. 11.6 The need for priorities As a result of globalisation, the global, national and local levels are becoming more intertwined, A thorough discussion of Norwegian interests is and for our foreign policy this increases the impor- also a good political starting point for setting prior- tance of how Norwegian society is organised. The ities between Norwegian foreign policy tasks. Glo- Norwegian model is characterised by well-func- balisation has increased the number of tasks and tioning collective solutions, dialogue and negotia- choices, as well as the risk of the political agenda tion in political processes and between the social being defined by random events and actors in the partners, a high degree of welfare, equitable distri- media, without regard for overall political strate- bution and a focus on gender equality and non-dis- gies. The ability and will to set priorities between crimination. A good safety net and free access to efforts and for the use of resources are therefore health care and education are important to the indi- becoming increasingly important. The Govern- vidual citizen, and have also made it easier to gain ment has two simple criteria for setting these prior- acceptance for necessary restructuring. Norway is ities in its foreign policy: one is the degree of among the industrialised countries that have had importance and relevance for Norwegian society, the highest rates of economic growth during the and the other is the extent to which Norway has past 15 years. This is the case even when petro- the opportunity and ability to make a difference. leum activities are excluded. Our flexible economy Any major Norwegian foreign policy initiative has ensured high value creation and made us bet- should be assessed against both of these criteria. ter able to tackle the current economic turmoil. There are frequently political tensions and dif- Equitable distribution and a fair tax system are also ferences of opinion as regards Norwegian foreign crucial in maintaining support for the welfare state. policy interests, objectives and priorities. Globali- In addition, welfare schemes and an active gender sation is exacerbating a number of dilemmas and equality policy facilitate a high labour market par- difficult choices. These should always be subject to ticipation rate. The Government will encourage the the broadest possible democratic debate. At the exchange of ideas and debate on how these aspects same time, one of the main tasks of foreign policy of the Norwegian model can be used more actively is to steer a safe middle course where conflicting in our cooperation with other countries and actors, interests can be reconciled and to make judicious and thus help to promote Norwegian foreign policy choices in cases where interests and/or values are interests. incompatible. Examples of such choices are: i) At the same time, our identities and our under- between (material) interests, such as in the WTO standing of Norwegian values and views, and of negotiations, where Norway has defensive inter- how they are perceived in the world, are facing ests as regards tariffs on agricultural goods and new challenges and opportunities as a result of offensive interests when it comes to tariffs on migration and the increasingly heterogeneous industrial goods; ii) between interests and values, composition of Norwegian society. Through migra- for example between Norwegian business inter- tion, popular culture and new technology, globali- ests and Norwegian positions and Norway’s visibil- sation is creating a diversity of individual and ity in the human rights area; and iii) between val- group identities. Ideas are channelled and ampli- ues, for example when considerations related to fied through the internet and global media. The Norwegian peace diplomacy come in conflict with distinction between foreign and domestic policy is Norway’s desire to maintain a clear profile in the blurring. Globalisation is thus expanding our room fight for human rights and the efforts to for manoeuvre in the field of foreign policy, for strengthen the role of the International Criminal example by making available the linguistic, cul- Court. 2008– 2009 Report No. 15 to the Storting 97 Interests, Responsibilities and Opportunities

A focus on interests increases the effectiveness will continue to be one of the main motives under- and relevance of Norway’s policy of engagement. lying Norway’s development policy and other Concern has been expressed from various quar- aspects our policy of engagement. The arguments ters that focusing on Norway’s interests could that focus on our interests are supplementary. undermine the altruistic and ethical fundament on They serve to enhance and strengthen the motiva- which Norwegian aid and other parts of our policy tional basis, scope and effectiveness of a policy that of engagement have built. This is an important is primarily altruistic. debate. The Government underlines that solidarity 98 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

12 Promoting Norwegian security in our neighbouring areas and globally

In order to safeguard our security interests and sector, to other states’ interests in this area and to define our aims and priorities on the basis of those the protection of oil and gas installations. They are interests we have to take into consideration a com­ also connected with international rules and princi­ plex picture of challenges and threats, as described ples relating to freedom of the seas and manage­ in Part I, Chapters 2 and 3. ment of marine resources. The UN Convention on the Law of the Sea confirms Norway’s rights as a coastal state on the continental shelf and in the 200­ 12.1 Security policy to safeguard mile economic zone and and provides a comprehen­ Norway’s security interests sive framework for Norway’s management and exploitation of marine resources. A very large pro­ The aim of our security policy is to safeguard Nor­ portion of Norway’s revenue, business and indus­ way’s fundamental security interests. Those inter­ try, research, settlement patterns and general social ests therefore need to be clearly defined, particu­ development is directly related to the sea areas. larly in the light of a changing external environ­ Much of Norway’s wealth is the direct result of the ment and changing security challenges: existence of an international legal order and inter­ National Security – The fundamental security national norms to which most countries adhere, and need relating to the existence, sovereignty and of the establishment of norms and cooperation integrity of the state. Safeguarding our sove­ through international institutions. Promoting a reignty, territorial integrity and political freedom of stronger international legal order and multilateral action is a fundamental Norwegian security inte­ systems of governance is not only Norway’s most rest. important foreign policy interest, it is also a funda­ Public safety – Since the end of the Cold War mental, long-term security policy interest. new security challenges have emerged that do not Norwegian security interests are connected to directly threaten the existence of the state. The the development of an international legal order that very fabric of society has become a potential target ensures peace, stability and security, upholds the for non-state actors, particularly terrorist groups. principles of the rule of law, and safeguards our eco­ There is therefore a need for an increased focus on nomic security and living environment as well as safeguarding the safety of the population and on key values such as human rights and democracy, protecting key social institutions and critical infra­ within a regional and a global framework. In addi­ structure from damage or attack. tion, Norway’s contribution to a multilateral world Human security – Since 1990 international order under UN leadership, with its emphasis on developments have also led to an increased need international law and human rights, is an expression for the protection of individuals, where human of international solidarity. It is a fundamental and rights, the right to life and personal security and a long-term Norwegian security interest because it is safe environment are the main focus. in the interests of small and medium-sized countries In addition, protection of our economic security to establish international rules. The Government is and welfare and of our living environment are also therefore actively advocating the strengthening of fundamental security interests. This is closely con­ the UN’s role in conflict resolution by increasing nected with the vast resources that Norway mana­ Norway’s contributions to UN-led operations. ges on the continental shelf and in our large sea Maintaining the transatlantic community of areas. The resources in these areas are essential to shared interests through NATO is a key Norwe­ value creation and social development in Norway. gian security policy interest. The Alliance, with its Moreover they are of strategic importance to other underlying principles of collective defence and states. cooperation with close allies, is a cornerstone of Thus, important Norwegian interests are Norwegian security policy. Norway considers it closely linked to global developments in the energy important to maintain NATO’s traditional role with 2008– 2009 Report No. 15 to the Storting 99 Interests, Responsibilities and Opportunities regard to defence of its members. Since 1990 we have also seen an increase in transnational threats An international legal order is the mainstay of and insecurity arising from global instability. Nor­ Norwegian security policy way’s security interests must therefore also be The single most important future threat to Nor­ safeguarded by promoting stability outside the way’s security and territorial integrity is a weak­ Euro-Atlantic area. Global challenges connected to ening of the current international legal order and regional conflicts, human rights violations, interna­ multilateral systems of governance. Other aspects tional terrorism and the proliferation of weapons of of Norwegian foreign policy, choices of course of mass destruction can often only be solved through action and orientation should be considered in the the direct intervention of the international commu­ light of this fundamental premise of Norwegian nity. Norway’s global engagement is broad in national security. Assessments and measures scope and involves participation in operations led aimed at preserving and further developing the by NATO, the UN and the EU. international community and the international It is in Norway’s interests to participate in and legal order should be explicitly justified on security promote the rapidly expanding security and policy grounds. Maintaining and developing the defence policy cooperation in Europe, through par­ international legal order and international multilat­ ticipation in European security and defence policy eral governance is a primary objective of Norwe­ cooperation and global engagement (ESDP) and gian foreign policy. It is therefore important to eval­ through cooperation with neighbouring countries uate both known and new areas where this could in the Nordic region. be strengthened. Engaging Russia in fruitful bilateral relations An important goal for Norway in this respect and encouraging Russia to cooperate with the West will be to consider measures of its own at any given is a fundamental security interest for Norway. It is time to help to ensure that major powers and important both in terms of international develop­ emerging major powers prioritise multilateral ments in general and in terms of stability in our cooperation based on international law. neighbouring areas. Cooperation with Russia is an important part of Norway’s High North policy. The High North is the Government’s most important strategic priority area 12.2 Norway’s security policy aims The challenges Norway faces in its neighbouring areas are largely associated with its main interna­ According to Proposition No. 48 (2007–2008) to tional challenges and can only be resolved within a the Storting, A Defence for the Protection of Nor- broad international framework. The challenges way’s Security, Interests and Values, Norway’s secu­ affect Norway’s economic and political interests rity policy aims based on our fundamental security and the security and safety of Norwegian society. interests are: They can be prevented and dealt with using a • To prevent war and the emergence of threats to broad range of measures within the framework of Norwegian and collective security. the Government’s High North policy, which • To promote peace, stability and the further devel­ involves most ministers’ area of responsibility. At opment of a UN-led international legal order. the same time the possibility that challenges in the • To safeguard Norwegian sovereignty, Norwe­ High North could have ramifications for security gian rights, interests and values and protect policy and defence policy cannot be excluded. The Norwegian freedom of action in the face of armed forces therefore have an important role to political, military or other pressure. play in the High North. • To defend Norway and NATO against attacks together with our allies. • To ensure the security and safety of society Participation in global crisis management against attacks from state and non-state actors. operations vital Global challenges related to regional conflicts, As an extension of these aims four specific priori­ weak states and asymmetrical threats from non- ties of Norwegian security policy can be high­ state actors give rise to a risk of insecurity caused by lighted: external instability, i.e. incidents that take place far away and that might initially appear to be of little significance to us could escalate to a much greater extent than previously, with direct consequences 100 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities for Norwegian or regional security. This is part of take steps to encourage our most important allies the rationale behind the clear Norwegian aim of to focus more attention on areas close to Norway. promoting peace, the fight against poverty, stabil­ The Government has emphasised the importance ity and the further development of a UN-led inter­ of keeping the Alliance and Norway’s allies national legal order. In this respect Norwegian informed about developments in the north, and we security will require national civil and military are currently seeing greater interest directed resources and national competence as well as inter­ towards our neighbouring areas than was the case national structures in order to deal with a broad just a few years ago. NATO is still the cornerstone spectrum of global instability. of Norwegian security policy and will be vital in dealing with all kinds of security challenges that are not dealt with within a purely national frame­ Norway should develop a regional security network work. One challenge will be to develop a web of Our alliance policy and membership of NATO will complementary ties and allegiances, including continue to be the undisputed cornerstone of Nor­ Nordic cooperation and bilateral contacts in the way’s security policy. European capitals and in the EU. Norway’s aim should be to help to develop and The security challenges in the north not least position itself inside a multifaceted and tightly underline the importance of prioritising coopera­ woven security network, i.e. a network of different tion with Russia, including defence cooperation, in forms of defence policy, economic, technological order to build trust and break down differences. and institutional cooperation, with a view to creat­ Other forms of cooperation with Russia also have ing stable ties, reducing vulnerability and minimis­ security policy aspects in that local, regional and ing the potential for conflict in connection with par­ international cooperation plays a part in building ticularly susceptible aspects of Norway’s geo­ confidence and preventing differences from aris­ graphical and resource-related areas of interest. ing. Different forms of bilateral and multinational cooperation with neighbouring Nordic countries, the EU and important allies, and Russia will be cen­ – Safeguarding Norwegian rights in the north tral pillars that supplement Norwegian alliance pol­ The Government attaches great importance to icy and the transatlantic community. Examples of continuing and strengthening Norway’s proactive this are military cooperation with neighbouring role in the implementation and further develop­ countries, Nordic arrangements and cooperation, ment of the international legal framework for the broad and deep participation in the EU’s common sea areas. Norway has long and extensive experi­ foreign and security policy (CFSP) and in the Euro­ ence of multilateral and bilateral processes associ­ pean security and defence policy cooperation ated with these tasks. Through this we have devel­ (ESDP), and close cooperation with Russia that is oped broad expertise in this field. This is a sound specifically focused on the High North. foundation for safeguarding Norwegian interests and for seeking internationally agreed solutions. One of the primary objectives of Norwegian 12.3 Security policy priorities maritime policy is to consolidate and implement the law of the sea in a way that ensures stability, Safeguarding Norway’s security in the north responsible utilisation of resources and protection of the marine environment. This is also important The nature of a number of the challenges related to from a development perspective. It is important to resource management that do not activate NATO participate actively in and support international security mechanisms and guarantees is such that organisations and forums, both regional and glo­ they must be dealt with at the national level. The bal, where issues relating to the law of the sea are armed forces have an important role to play in dealt with. Negotiations are being carried out with terms of surveillance and intelligence, the exercise neighbouring states to establish clear and predict­ of sovereignty and authority and Norway’s contri­ able conditions for exercising authority and utilis­ bution to incident and crisis management. Main­ ing resources. At the national level, measures taining an appropriate military presence in the related to areas under Norwegian jurisdiction are High North will continue to be important for also being implemented. enhancing stability and predictability. NATO is The delineation of the outer limits of the Nor­ important as a stabilising factor and as a frame­ wegian continental shelf will be an important step work for the military defence of Norway. We must forward in efforts to create clarity and predictabil­ 2008– 2009 Report No. 15 to the Storting 101 Interests, Responsibilities and Opportunities ity in the management of the sea areas close to solved. High priority is being given to continuing Norway. This work has been carried out in close efforts to find a comprehensive solution on the consultation with our neighbouring countries in basis of the law of the sea. order to achieve a common understanding of the Sound management of living marine resources issues involved. The remaining part of the process, and efforts to combat illegal, unregulated and including the formal establishment of boundary unreported fishing are key components of Norwe­ lines with our neighbouring countries, will be car­ gian policy, both nationally and internationally. ried out with a view to ensuring that Norway enjoys Effective control to ensure that existing regula­ the rights and fulfils the obligations ensuing from tions are complied with is an essential measure for the law of the sea. achieving these aims. Non-discriminatory checks The delimitation of the continental shelf and of both Norwegian and foreign vessels are carried the 200-mile zones continues to be the most impor­ out in the Fisheries Protection Zone around Sval­ tant outstanding issue in our bilateral relations bard. In case of violation of existing regulations, with Russia. Considerable progress has been made appropriate measures will be imposed. Possible since negotiations began in 1970, but there are reactions will not affect Norway’s implementation nonetheless difficult issues that remain unre­ of such measures. At the same time importance is

Box 12.1 Norway’s engagement in Afghanistan Norway is participating actively in the broad The fragile security situation in Afghanistan con- international effort in Afghanistan to promote tinues to require a military presence, but there stabilisation, reconstruction, democracy-build- will be a greater chance of success if more ing and growth. Afghanistan is one of the largest resources and attention are directed towards recipients of Norwegian development aid, with political and civil initiatives, including providing support totalling NOK 750 million per year dur- support to the national civilian police force. ing the period 2008–2012. Encouraging and supporting broad participation In addition to a military presence and the in reconciliation inititiatives is also important as training of Aghan security forces, Norway is a means of promoting long-term stability and engaged in a broad-based, long-term civil effort security. Such inititiatives must be based on in Afghanistan whose primary focus is on devel- Afghan traditions, principles and priorities and oping the rule of law (which also includes the must be led by Afghans themselves. fight against corruption), capacity building, edu- For far too many years the main strategy cation and local development. Moreover, Nor- towards Afghanistan has been dominated by the way is taking part in a large-scale humanitarian military efforts to combat terrorism. For a long effort designed to meet the fundamental needs time the international community failed to rec- of an impoverished population. ognise the full importance of state building, Norway attaches particular importance to political reform, development efforts, national supporting Afghan plans and priorities and to reconciliation or measures aimed at involving ensuring Afghan ownership of the development neighbouring countries in efforts to stabilise the effort (“Afghanisation”). Only the Afghans country. A politically stable and economically themselves can build and develop their country. sustainable Afghanistan will also be dependent Our task is primarily to help the Afghan people on responsible and constructive engagement on develop their own expertise and capacity so that the part of its neighbouring countries, especially they can do the job themselves. Pakistan. Pakistan’s development could be just The United Nations Assistance Mission in as important for the stability of the region as for Afghanistan (UNAMA) has been assigned the the development of Afghanistan. Broader agree- important task of ensuring the effective coordi- ment between India, Pakistan, Afghanistan and nation of the international development effort in Iran that prevents these states from using local Afghanistan. In Norway’s view, it is important and regional conflicts against each other could that UNAMA is provided with the resources and enhance stability and create new opportunites qualified personnel needed to achieve this. for economic cooperation in the region that pro- Security is a prerequisite for stability, recon- mote development. struction, development and faith in the future. 102 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 12.2 Weapons of mass destruction, disarmament and non-proliferation The Government believes that it is possible to international law to promote nuclear disarma­ achieve greater security for all at considerably ment. This process now needs to be revitalised, lower levels of armaments than those that exist and the USA and Russia, as the dominant today (cf. Report No. 27 (2007–2008) to the nuclear powers, have a particular reponsibility Storting, Disarmament and Non-proliferation). to show leadership in this area. Furthermore, extensive disarmament would Most of the nuclear powers have undertaken free up substantial resources that can be used to not to carry out new nuclear tests. Our collec­ promote development and combat poverty. tive security will be strengthened if such inten­ The threat of weapons of mass destruction is tions are translated into binding commitments a special case. At the same time it is small arms through the ratification by the countries in ques­ that take the most lives (see Chapter 13.5 on tion of the Comprehensive Nuclear-Test-Ban humanitarian disarmament). Treaty. Global security would also be enhanced Biological and chemical weapons belong in by the start of negotiations on prohibiting the the past and serve no practical purpose in terms production of fissile material for weapons pur­ of security or defence policy. The Government poses. Furthermore, it is important to prevent a cannot accept a situation where some countries possible missile defence system from leading to are allowed to retain the option to use weapons a new arms race. of this kind as deterrents in regional conflicts. The development of civil nuclear power Therefore the two conventions that prohibit the plants is not part of Norway’s energy policy. use of such weapons must be ratified by all However, we must accept that the large majority countries. All existing stores of biological and of countries do not share our views on this chemical weapons must be destroyed as soon as issue, and many of them use, or want to make possible. This is particularly important because use of nuclear technology in energy production, such stores are a permanent source of tempta­ as they are entitled to do under the terms of the tion for groups that would not hesitate to use Non-Proliferation Treaty. Given that this tech­ illegal weapons in terrorist attacks. nology can also easily be used for the purposes As regards nuclear weapons our aim is total of producing weapons, the increase in the con­ elimination. Through the Non-Proliferation Treaty struction of civil nuclear power plants poses a (NPT) the nuclear powers are obliged under major challenge to non-proliferation.

attached to building trust by explaining the issues related to the Arctic Ocean. Norway partici­ grounds and necessity for Norwegian measures. pated actively in drafting the Ilulissat Declaration, The Svalbard community is constantly develop­ which is an important political platform for dealing ing and currently consists of more nationalities with future challenges connected with the Arctic than ever before. This is partly due to the Ocean. The Government considers it important increased international interest in the polar areas, that Norway continues to play an active role in dis­ e.g. in connection with climate-related research. As cussions about and cooperation efforts related to a result of this development new regulations are the Arctic Ocean. needed, partly to safeguard the unique environ­ ment of the archipelago. The Norwegian authori­ ties attach great importance to loyal compliance Assuming global responsibility by contributing to with the provisions of the Svalbard Treaty in their global security exercise of authority. One of the Government’s key security policy prior­ As one of the five coastal states bordering the ities is global security. Today our participation in Arctic Ocean (Canada, Denmark/Greenland, Nor­ international operations under the auspices of the way, Russia and the US), Norway has a particular UN and NATO, and also the EU, though we are not responsibility for developments in the Arctic. At a member, is an integral part of Norwegian defence Norway’s invitation, the heads of the legal depart­ and security policy. Norway participates only in ments of the foreign ministries of the five coastal military operations that have a UN mandate. Nor­ states met in Oslo in October 2007 to discuss legal way’s military participation abroad is an expres­ 2008– 2009 Report No. 15 to the Storting 103 Interests, Responsibilities and Opportunities sion of international solidarity, and we have a long our interests are best served when international tradition of engagement in international efforts to security challenges are solved on the basis of inter­ promote stability and peace. A pragmatic recogni­ national law and multilateral security arrange­ tion of the fact that, in today’s globalised world, ments. Norway will work actively to strengthen the Norwegian security is closely bound up with inter­ role of the UN. No other organisation has the same national security is equally important, as is recog­ range of instruments at its disposal or the same nition of the fact that in some cases challenges degree of global legitimacy. The challenge will be must be dealt with where they originate. Global to help to ensure that UN programmes are better instability threatens many of our security needs coordinated and integrated with long-term, coher­ and there is broad international agreement today ent peacekeeping and peacebuilding efforts. An that resource-rich countries should contribute to internationally recognised legal order based on the international peace operations. As a country with UN system is a cornerstone of our security policy. business interests that span all continents, it is also Norway has increased the level of its police par­ in our own interests to promote global security. ticipation in UN operations in Africa, in accordance Norway’s participation in efforts to combat piracy with the Government’s inaugural address (“to in the Gulf of Aden off the coast of Somalia is an increase civil and military participation in UN oper­ example of our engagement in this area. ations”). Norway currently has military, police and Our security policy orientation is reflected by prison personnel in UN operations in Liberia the fact that we give high priority to participation in (UNMIL) and Sudan ( UNMIS and UNAMID), as operations under the auspices of the UN and in well as in the Middle East (UNTSO, UNIFIL and NATO operations that have a UN mandate. In this TIPH) and Afghanistan (UNAMA), see figure 12.1. way we are helping to ensure the continued rele­ In addition, we are about to deploy personnel in vance of these organisations. Norway hopes to be Chad (MINURCAT). If all goes according to plan, able to increase its participation in UN-led opera­ the whole contingent will be in place by 1 June tions. Norway’s policy of engagement (develop­ 2009. The Government is, moreover, in regular ment assistance, peace and reconciliation, humani­ contact with the UN regarding possible future con­ tarian aid and efforts to promote human rights and tributions to the UN peacekeeping mission in the democracy) must be understood as a contribution Democratic Republic of Congo (DRC). to global security, stability and justice and as such In addition to contributing personnel to interna­ both an expression of solidarity and of Norway’s tional operations, Norway is a key partner in own national interests. Norway’s policy for human­ efforts to strengthen the UN’s ability to plan and itarian disarmament (see Chapter 13.5), including implement operations. Norway has also played a our contribution to the processes that led to the part in supporting the UN in its efforts to develop Mine Ban Convention in 1997 and the Convention the concept of integrated operations, based on on Cluster Munitions in 2008, demonstrates that political, military, humanitarian and development- Norwegian security policy and our policy of related assistance measures. The important prior­ engagement are two parts of a coherent whole. ity areas include: security sector reform, strength­ The fight against international terrorism ening African peace operation capacity by support­ requires a nuanced approach. A long-term strategy ing the training of African civilian personnel and must promote economic and political development police to enable their participation in operations, in those countries where this phenomenon largely integrating the gender perspective, protecting originates. At the same time, because of the trans­ women and preventing sexual violence. Norway national nature of terrorism, military forces must plays a proactive role in efforts to strengthen coop­ play a part in the international community’s fight eration between the UN and regional organisa­ against terrorist groups in those countries where tions, such as NATO, the EU and the AU. Norway’s they have bases, such as in Afghanistan. broad-based engagement helps to enhance the legitimacy of the UN and the world order that is based on the UN Charter. 12.4 The pillars of Norwegian security – a security network NATO is the cornerstone of Norway’s security policy Norway’s security is underpinned by participation Norway has played an active role in NATO opera­ in a broad range of international organisations and tions in the West Balkans region and in Afghani­ cooperation arrangements and dialogues. The stan and, in terms of population size and military challenges described in Part 1 demonstrate that resources, has long been one of the main contribu­ 104 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities tors of personnel to NATO-led operations. In in dialogue with other organisations. NATO has recent years Norway has attached great impor­ also grown in size and expanded its structure. In tance to the stabilisation of the countries of the addition to 12 new member countries, NATO now former Yugoslavia and has spearheaded efforts to includes a network of partnerships, practical ensure that no countries are excluded from the reform measures and a council that serves as an Alliance’s cooperation mechanisms. The last coun­ arena for dialogue and consultation between tries in the region, Bosnia and Herzegovina, Mon­ NATO countries and partners (the Euro-Atlantic tenegro and Serbia, have now joined the Partner­ Partnership Council, EAPC). NATO membership ship for Peace. remains an attractive prospect to new countries. There is no doubt that NATO has been the As an organisation, NATO has demonstrated a most important instrument and pillar of Norway’s considerable ability to renew itself and adapt to security policy since World War II. This is still the changes in the global security environment. It is case, but the global reality in which it operates has probable that NATO will maintain its position as changed, as have the challenges it faces. NATO long as it is in the interests of key actors to further survived the Cold War and has undergone a proc­ develop the Alliance. US experiences in Iraq and ess of change and expanded its membership. Polit­ Afhanistan, where it has encountered its own mili­ ically and strategically, NATO has developed from tary limitations, and thus rediscovered the impor­ being a purely North Atlantic defence organisation tance of formal alliances, has in turn led to into a political and military security organisation. increased US interest in NATO. The real needs of Since 1999, it has also engaged in operations out­ most European countries, independent of the side the territory of its members, such as that cur­ development of European security and defence rently underway in Afghanistan. The focus of the cooperation, have also generated increased inter­ Alliance has expanded beyond the realm of mili­ est in further developing the Alliance. tary and defence policy to encompass democracy NATO is a completely different organisation building and development in partner countries and today from the one it was during the Cold War.

Figure 12.1 Norwegian participation in international operations, 2009 Source: The Ministry of Defence and the Norwegian Police Directorate 2008– 2009 Report No. 15 to the Storting 105 Interests, Responsibilities and Opportunities

Figure 12.2 NATO’s international operations, January 2009 Source: NATO

However, NATO will remain the fundamental competence on its own territory. One of the main defence guarantee for its member countries and a objectives of the core area initiative is to highlight forum for security policy discussions, even if the NATO’s relevance in its member countries, for EU countries decide to conduct some political dis­ example by conducting more exercises on allied cussions internally within the EU. The Georgia cri­ territory and establishing closer ties between sis in 2008 reinforced the NATO countries’ focus NATO’s command structures and national defence on the Alliance as a defence guarantee. This has structures. led to a recognition that greater emphasis needs to Independent of the core area initiative and in be placed on the Alliance’s traditional role as guar­ line with its High North strategy, Norway has also antor of collective defence. These issues are also focused more attention on developments in the relevant to Norway in the light of the challenges High North by initiating High North dialogues we face in our neighbouring areas. with a number of countries, and also with the EU and NATO. This Norwegian policy focus has been met with interest in NATO. – Norway’s core area initiative In connection with discussions on the need to strengthen NATO’s core tasks and focus greater – The NATO Response Force attention on challenges relating to defence of allied The NATO Response Force (NRF) is designed for and adjacent territory, Norway has put forward rapid deployment on a range of missions as a stand­ what is known as the Norwegian core area initia­ alone force for a period of up to 30 days before the tive. The initiative has won the support of a number arrival of follow-on forces. For Norway NATO pro­ of other member countries. In recent years a large vides a guarantee that our national defence capabil­ portion of the member countries’ resources has ity will be strengthened in the event of a tense situ­ been used on operations that in geographical ation, and the NRF is a tool that can rapidly be terms lie outside allied territory, first and foremost deployed. in Afghanistan. The initiative therefore has an Together with several other allies Norway has important part to play in defining the tasks of the emphasised the need for the NRF to increase its Alliance and raising NATO’s profile and level of level of exercise activity. We contribute equipment 106 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities and personnel to the NRF on a regular basis, which pin Norway’s security. This applies to the UN and reflects our solidarity with the Alliance. However, it NATO, of which we are a member, and to an has proven difficult to provide enough personnel increasing extent to the EU, where we contribute and equipment to ensure that the NRF always has forces and participate in defence materiel coopera­ its full contingent. This is due in large part to the tion. The EU is increasingly important to global fact that most of the member countries have con­ security and thus also to Norwegian security. siderable resources tied up in ongoing operations. The Government is working to promote the There have also been discussions at NATO over further development and strengthening of the the past few years about whether the NRF, or parts transatlantic community of interests. Support of it, should be deployed to difficult areas of opera­ from, and cooperation with, the US continues to be tion such as Afghanistan. However, it has been dif­ crucial to Norway’s ability to find sustainable solu­ ficult to reach agreement on this within the Alli­ tions to its security policy challenges. This applies ance. both to stabilisation tasks far from our borders, and The new focus on the Alliance’s core tasks to multilateral cooperation at the UN and NATO, as must not undermine NATO’s ability to conduct well as to the challenges we face in our neighbour­ operations in other parts of the world. In today’s ing areas. For this reason the Government is seek­ world, there is a close connection between our par­ ing to develop a broad dialogue with the new US ticipation at home and abroad. Our expectation administration under President Obama. The Gov­ that our allies will become involved to defend Nor­ ernment recognises the intrinsic value of being wegian interests if the need arises is closely related able to participate in peacekeeping operations with to our willingness to participate in NATO-led oper­ the US and the rest of the international community, ations abroad, based on the UN Charter and with a within the framework of the UN, NATO and the clear UN mandate. EU. Such joint operations lend greater legitimacy to a multilateral system based on international law. The power shift towards the east raises both – NATO’s strategic concept challenges and opportunities. The US will have to It is likely that NATO will begin revising its strate­ deal with China and India as partners if it is to be gic concept in 2009. This could provide an opportu­ able to implement policies that create legitimacy nity for a broader discussion about the role and and ensure support for stabilisation tasks, recon­ tasks of the Alliance with a view to adapting NATO struction and international cooperation. to new challenges. Norway supports the initiation of this process. We are concerned about finding the right balance between NATO’s tasks abroad The EU and Norwegian security and at home (cf. the core area initiative) and a The future relevance and significance of NATO as stronger, more visible commitment to disarma­ a cornerstone of Norway’s security policy will also ment and arms control. Tension and differences of be influenced by the development of the EU’s com­ opinion are to be expected in the discussions mon security and defence policy, and the relation­ ahead. ship between NATO and the EU. Since 1998, EU Norway has been working particularly closely defence cooperation has developed rapidly, both in with Germany on a separate initiative within NATO political and in operational terms, despite the fact to integrate the disarmament dimension more that the development of a common EU foreign and closely into the Alliance’s efforts. security policy has also suffered a number of polit­ One challenge has been to encourage the US to ical setbacks. In all likelihood the EU will continue see the benefit of employing NATO in crisis to develop and will acquire increasing importance management operations, based on the Alliance’s in the the Euro-Atlantic security architecture. The consensus principle, instead of seeking “a coalition EU’s role in relation to global security is also grow­ of the willing” based on new interpretations of ing through its civil and military involvement in a international law. It is in Norway’s interests to number of areas, and by virtue of its being the most ensure that the US and Western countries together important international supporter of the UN, mul­ maintain international legitimacy. Future chal­ tilateral solutions and the international legal order. lenges and crises can best be dealt with on the This was demonstrated by the conflicts in Georgia basis of broad international support. Therefore a and Aceh. key challenge for Norway is to strengthen interna­ The EU now has experience from a consider­ tional recognition and the legitimacy of the global able number of large- and small-scale civil and mil­ and regional multilateral organisations that under­ itary operations, and it can be regarded as having 2008– 2009 Report No. 15 to the Storting 107 Interests, Responsibilities and Opportunities

Figure 12.3 International EU operations, 2008 Source: Ministry of Defence of France a more comprehensive set of instruments at its dis­ In other words, the EU is becoming increasingly posal than NATO (which still has much greater relevant in terms of addressing both the implica­ military capability and a greater capability for plan­ tions for Norwegian security of external instability ning and leading operations). (cf. Chapter 2) and the greatest single threat to There is now substantial agreement that the Norway, namely a weakening of the international two organisations should supplement each other legal order (cf. Chapter 3). and cooperate. The most important actors – includ­ Norway has a fundamental interest in well-func­ ing the US – take a pragmatic view of the relation­ tioning cooperation between the EU and NATO. ship between them. Despite this, the relationship The Government attaches importance to broad- remains a difficult one, primarily because of the based and active engagement with the EU in the disagreement between NATO member Turkey field of security and defence policy. Our involve­ and EU member Cyprus. The tension between ment makes Norway a credible and constructive these two countries has always been a challenge partner that supports European interests and val­ for Norway. ues. However, unlike in NATO, there are no mutual The EU’s security policy is highly relevant to defence commitments within the EU – not even Norway, and its relevance will probably increase. between the member states. Nevertheless, Nor­ This is due to three factors: firstly, increasing Nor­ way has benefited from the development of a wegian participation in EU defence cooperation, defence concept and important technological which is becoming more important in the Euro- advances by our European neighbours. We have Atlantic security architecture; secondly, the EU’s contributed to the EU’s crisis management capabil­ extensive contribution to global security through ity, which has brought us recognition from our non-military engagement, based on a policy partners in Europe and the opportunity to cooper­ approach that closely resembles Norway’s policy ate with our Nordic neighbours. Norway has taken of engagement; and thirdly, and most importantly, part in a number of EU-led crisis management the relevance of the EU to Norway’s security policy operations, including the civil operations in by virtue of its being the most important interna­ Afghanistan and Kosovo. tional supporter of the global legal order and glo­ As the EU’s role in the field of security and bal governance through multilateral institutions. defence policy increases, so does Norway’s inter­ 108 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities est in taking part in EU security and defence policy in the Nordic region remain, but today the coun­ cooperation. Norway’s involvement in this area is tries are increasingly involved in mutually benefi­ limited to the rights we have as an allied, non-mem­ cial cooperation within the framework of the UN, ber state in connection with participation in EU-led NATO and the EU. The main cause of this positive operations. Our participation in the EU Nordic Bat­ development, which Norway has actively pro­ tlegroup is also important in this context because it moted, is the change in the strategic landscape enables us to support and participate in the devel­ since 1990. This has resulted in close cooperation opment of EU security and defence policy coopera­ between Sweden and Finland and their partner­ tion. Norway only takes part in EU-led operations ship with NATO, Norwegian participation in EU- that have a clear UN mandate. led operations, and the accession of the Baltic countries to NATO and the EU. The result has been the development of a common understanding Nordic cooperation of a strategic community of interests based on The other Nordic countries are Norway’s closest geography, values and cooperation, despite the dif­ partners in the international political sphere, such ferent forms of association with various organisa­ as at the UN and in the High North. Close cooper­ tions. ation on foreign policy between the Nordic coun­ The new momentum in the cooperation tries has developed over time. The end of the Cold between the Nordic countries is particularly evi­ War created opportunites for closer Nordic cooper­ dent in practical defence cooperation, particularly ation on security policy and defence, which had not in areas such as peace operations under the aus­ been possible previously. The Government is seek­ pices of the UN, NATO, the EU and the OSCE, sup­ ing to coordinate its participation in a number of port for security sector reform, and to an increas­ NATO and EU operations with the other Nordic ing extent also defence materiel cooperation. The countries. Moreover, the countries are planning to Nordic Coordinated Arrangement for Military establish a joint force for participation in UN oper­ Peace Support (NORDCAPS) is an important tool ations in Africa and to assist African countries in for coordinating planning and participation in developing expertise in peace operations. peace operations. With the accession of the Baltic Nordic cooperation primarily involves five countries to NATO and the EU, Nordic coopera­ countries, but other constellations are also pos­ tion has been expanded to include Nordic-Baltic sible when appropriate. The Government aims to defence cooperation. expand cooperation on common challenges in the In June 2008, the Nordic foreign ministers com­ High North and in the North Atlantic and the Arc­ missioned Thorvald Stoltenberg to produce an tic, with regard to new challenges such as climate independent report on how Nordic cooperation on change, energy and the environment and relations foreign and security policy could be developed dur­ with neighbouring Russia. This is also consistent ing the coming 10–15 years. The report was pre­ with the Government’s aim of raising awareness of sented to the foreign ministers in Oslo in February the particular challenges we are facing in the High 2009. North in NATO and among the allied countries. In the report Stoltenberg sets out 13 specific The Swedish, Finnish and Norwegian chiefs of proposals. One of the proposals is that the Nordic defence presented a report early in 2008 contain­ countries together assume more responsibility for ing a number of proposals for cooperation in the surveillance of Nordic airspace and sea areas. field of defence. They pointed out that modern Stoltenberg proposes that, as a first step, the Nor­ defence technology is becoming increasingly dic countries should take responsibility for air sur­ expensive, and that this calls for cooperation. A veillance over Iceland, and that Norway should number of projects that cannot be implemented invite Denmark and Iceland to be partners in the within a national framework can be realised if dif­ development of a maritime surveillance system in ferent countries work together. An article written the northwestern Atlantic Ocean (“Barents by the chiefs of defence in the summer of 2008 Watch”). states: “More and more countries are now facing a Stoltenberg also recommends the establish­ choice between reducing their capabilities or ment of a Nordic amphibious unit that can be establishing mutually reinforcing cooperation with deployed in international operations, and that other countries.” should have specific Arctic expertise. In addition The past few years have seen a considerable the report proposes that a Nordic maritime strengthening of Nordic dialogue and cooperation response force be established to patrol the Nordic on security policy. The institutional dividing lines sea areas, consisting of elements of the Nordic 2008– 2009 Report No. 15 to the Storting 109 Interests, Responsibilities and Opportunities countries’ coast guards and rescue services. The and the OECD, and to promote the continuation report also recommends that the Nordic countries and further development of cooperation within the work together to establish a stabilisation force that NATO–Russia Council. Excluding Russia from can be deployed under a UN mandate to fragile or international forums as a response to violation of failed states. According to Stoltenberg, a force of obligations and international norms would in most this type should have both military and civilian cases be counterproductive and could strengthen components. antidemocratic, anti-Western forces and encourage The report includes a separate section on pub­ Russia to become more inward-looking. lic safety. It proposes that the Nordic countries Norway’s interests in relation to Russia are not develop joint expertise in defending the Nordic purely economic, or limited to concrete issues countries against cyber attacks and establish a sep­ related to cooperation in the north, and they arate Nordic disaster response unit and a Nordic clearly extend far beyond the realm of security pol­ investigation unit for war crimes committed by per­ icy, cf. Chapter 15 on Norwegian energy interests. sons residing in the Nordic countries. It is of great importance to Norway as a neighbour­ The report also points out that, as Nordic ing country and a member of the international defence cooperation develops, we could reach a community that Russia moves towards greater pre­ point where one or more Nordic countries special­ dictability, more democracy and greater respect ise in certain tasks, and fulfil different, but comple­ for the rule of law and human rights. A society with mentary roles. Stoltenberg proposes that the Nor­ weak democratic institutions and inadequate safe­ dic governments issue a mutually binding declara­ guards for the rule of law and human rights will be tion of solidarity in which the countries clarify in less stable and will constitute a latent risk. As a binding terms how they would respond if a Nordic number of Norwegian companies have discovered, country were subject to external attack or undue corruption, lack of transparency and openness and pressure. The proposals set out in the report will an arbitrary judiciary also pose problems for be reviewed by the individual countries and will be investment and economic cooperation. Coopera­ formally considered by the Nordic foreign minis­ tion and dialogue at all levels can have a positive ters in the spring of 2009. effect in the long term. Civil society in Russia is weak and operates under difficult conditions. It is important that Norway continues to provide fund­ 12.5 A policy of engagement towards ing for project cooperation with Russia, in order to Russia promote cooperation between NGOs, even if no radical change can be expected in the near future. Norway’s relations with Russia will always have During the last decade Norway has achieved a two dimensions: Norway and Russia are neighbour­ qualitatively new, deeper level of cooperation with ing states with a wide range of concrete issues that Russia. Political ties between the two countries are need to be addressed, and at the same time Nor­ close and constructive, and contacts in nearly way is integrated into the Western security struc­ every area – people-to-people, in the cultural ture (NATO) and into key areas of institutionalised sphere, in research and education, and trade and cooperation in Europe (the EEA, Schengen, the industry – are developing in a positive direction. Nordic region). Tasks, challenges and opportuni­ Norwegian-Russian cooperation on important ties associated with our policy towards Russia must tasks in the sea areas in the north is of mutual be considered in the light of how we can fufil these interest to both countries. One example where this two roles – how we can develop our neighbourly cooperation has been successful is in the fight relations with Russia while at the same time secur­ against illegal, unreported fishing. The challenges ing our interests in a multilateral framework. in the Barents Sea connected to oil and gas produc­ In order to balance the asymmetrical relation­ tion, the preservation of a clean marine environ­ ship between Norway and Russia, it is important to ment, rescue and emergency preparedness and Norway that Russia also participates in interna­ sustainable management of the fish stocks can tional organisations and processes. Closer integra­ only be solved through cooperation and engage­ tion into international structures and accountabil­ ment. As regards oil and gas production at sea, ity when it comes to international legislation and Norway has technology and experience that could obligations could in the long term also lead to more be of use to Russia. At the same time it is in Nor­ predictable behaviour on the part of Russia. It is in way’s interests that the development of the Russian Norway’s interests to continue to support Russian sea areas proceeds in an environmentally sound membership of organisations such as the WTO manner. As regards cooperation on the develop­ 110 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities ment of the Shtokman field it is Norway’s aim to 12.6 Focus on China and Asia in ensure that high standards of health, safety and the Norwegian security policy environment are given high priority. At a time when a stronger, more assertive Rus­ The rapid security policy developments in Asia sia appears to be more willing to confront interna­ over the past few years are also having implications tionally accepted norms, and to allow tension for Norway. Norwegian foreign and security policy between Russia and the Western countries to needs to be continuously adapted to meet the chal­ increase, the question has been raised as to lenges of a rapidly changing world order. Political whether it is possible to further develop relations and military developments in the region are having with Russia without compromising what we and a greater impact in an increasing number of areas. our allies stand for. However, there is no contradic­ This applies particularly to developments in China, tion between participating actively in NATO and including within security and defence policy. To exploiting the potential for cooperation with Russia enhance the Government’s China strategy in this as far as possible. Responding to Russian actions area, the Ministry of Foreign Affairs, the Ministry that we do not agree with by limiting channels for of Defence and our diplomatic and consular mis­ dialogue would be counterproductive. The Alli­ sions in the Asian region are cooperating with ance’s policy towards Russia should also be one of research institutions in Norway and abroad to openness and engagement. Although Russia engage China in ways that are realistic, but also sought to distance itself from cooperation with ambitious. NATO in the aftermath of the invasion of Georgia, A more assertive China in the UN Security Norway’s approach is based on the fact that Nor­ Council would have consequences for Norwegian way and Russia still have a fundamental common foreign and security policy. The fact that China is a interest in preserving and developing good neigh­ neighbouring country of Afghanistan and Pakistan bourly relations. As before, Norway continues to and a major investor in the two countries makes work towards constructive, mutually beneficial China an interesting dialogue partner. As the cooperation in all areas where it is appropriate and world’s fifth largest nuclear power, China also has fruitful. an important impact on security and defence policy As Russia’s neighbour, it is important for Nor­ developments in the region. This has implications way to counteract tendencies that give rise to ten­ for the Government’s efforts to strengthen the glo­ sion between Russia and the EU and NATO. In bal disarmament and non-proliferation regime. general it is important to take a firm, long-term During the past few years the Government has approach towards Russia. It is just as much in increasingly engaged in fruitful dialogue with NATO’s interests to cooperate with Russia on new other key countries in Asia besides China, includ­ global security challenges. In the same way it is in ing India, Japan and South Korea, with a view to our interests that Russia participates together with understanding their way of thinking, seeking dia­ the rest of the international community in efforts logue on key security policy issues and exploring to deal with difficult global issues such as Iran’s the potential for cooperation. Nuclear disarma­ nuclear programme and the Middle East conflict. It ment and non-proliferation, peace operations, is also in Norway’s interests that Russia enjoys energy issues, maritime security and not least Arc­ good cooperation with the EU. tic issues have been questions of common interest. At the same time it is important to recognise The increased political, economic and military that the extent to which Russia can be included in focus of the US on alliance partners in Asia also European and other Western cooperation efforts, reflects its desire to enhance its ability to address and the extent to which antagonisms arise will the challenges of the region. This has conse­ depend on Russia itself – on how the country quences for Washington’s strategic thinking on defines its own geopolitical role through the Europe and Norway, and innovative thinking and courses of action it chooses and its conduct in engagement will be required to safeguard Norwe­ regional conflicts and other situations involving dif­ gian interests. ferent interests. According to the long-term plan for the armed forces (Proposition No. 48 (2007–2008) to the Stor­ ting), the rise of Asia will have far-reaching implica­ tions for security policy. In addition to increasing the political staff, a defence attaché was stationed in Beijing in the winter of 2009. The Ministry of Foreign Affairs has established a separate project 2008– 2009 Report No. 15 to the Storting 111 Interests, Responsibilities and Opportunities designed to assess the implications of develop­ ments in Asia for Norwegian security policy. Box 12.3 Norwegian defence policy The armed forces must be tailored to meet a 12.7 The armed forces as a security wide range of challenges and complex trends. policy tool – the need for a For this reason we must further develop a coherent approach modern and flexible rapid reaction force that can be deployed in Norway and abroad. This The armed forces are one of the most important will require an operational structure where tools for safeguarding national security, public jointly trained forces work together within a safety and civil society and safeguarding our inter­ common operational framework across the ests. In dealing with the complex security chal­ whole spectrum of conflict. This calls for lenges of the future military capacities will be high-quality military forces that have both viewed in conjunction with other tools. The use of rapid response and sustainable military capa­ military force must always be the last resort or bilities, combined with strategic and tactical must be an integral part of a coherent approach. mobility and the ability to self-protect. Challenges in countries such as Afghanistan The challenges in our neighbouring areas and Kosovo demonstrate that it is impossible to require that the armed forces, supported by bring about the economic and social development society’s other resources, must be able to necessary for lasting stability without security pro­ solve a number of national tasks connected vided by military means. Norway has therefore with surveillance and intelligence, the exer­ taken a leading role in UN efforts to promote the cise of sovereignty and incident and crisis development of multidimensional and integrated management on their own. At the same time peace operations with the aim of coordinating polit­ the armed forces must be dimensioned so ical, military, development-related and humanitar­ that they can participate actively in UN, ian programmes and operations under one overall NATO and EU peacekeeping operations. The strategic plan. armed forces must be able to work together The recognition of the connection between with the civil sector, both in Norway within security and development also explains the height­ the framework of the total defence concept ened emphasis on defence-related security sector and in connection with operations abroad reform and defence reform as security policy tools where there is an increasing demand for civil­ that can be used to enhance stability and good gov­ ian-military cooperation. ernance in conflict areas and fragile democracies. The armed forces must be NATO-compat­ This can be achieved by enabling recipient coun­ ible, i.e. they must be based, as far as possible, tries to exercise democratic control over their mil­ on NATO standards, so that they can operate itary forces and develop them so that they can fulfil in an allied framework across the whole spec­ their tasks effectively, particularly with regard to trum of conflict, both in terms of collective international peace operations. defence in Norway and abroad and in terms In Norway changes in the nature of threats to of participation in NATO-led peace opera­ national security and the increased emphasis on tions. Compulsory military service is essen­ public safety have brought about a change in civil- tial for ensuring that the armed forces reflect military cooperation within the framework of the the diversity of society and for securing concept of total defence. This involves mutual sup­ access to personnel. port and cooperation between the armed forces and civil society on prevention, contingency plan­ ning and operational factors. Support of this kind from the armed forces is broad in scope and encompasses areas such as search and rescue, assistance in connection with accidents, crises and natural disasters and other assistance to the police. 112 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

13 Exercising global responsibility through our policy of engagement

Norway is extensively engaged in the fight against ests. This is illustrated, for example, in the conflict poverty, in humanitarian issues, peace and recon­ in Afghanistan. There are also clear links between ciliation efforts, and in international work to pro­ peace and political development in the Middle East mote human rights and democracy. The main and social and political issues in Norway. objective is to help to improve the lives of vulner­ The process leading up to the ban on cluster able individuals and groups in poor parts of the munitions shows that the policy of engagement can world, enabling them to realise their fundamental also be regarded as a method. Through a combina­ human rights and facilitating peaceful social devel­ tion of political will, diplomatic skill, financial tools, opment. This white paper uses the term “policy of untraditional alliances with NGOs and countries in engagement” to describe both the framework and the South, Norway played a key role in the negoti­ the approach for Norway’s efforts to address ation process that culminated in nearly 100 coun­ important poverty and globalisation issues. It high­ tries signing the Convention on Cluster Munitions lights the values underlying these important policy in Oslo last December. areas, and considers the tasks entailed from the The policy of engagement has traditionally point of view of Norway’s interests. At the same enjoyed broad support in the Storting. It is becom­ time, there are specific challenges and dilemmas ing increasingly relevant in the context of connected to each of the four main lines of the pol­ globalisation policy, i.e. policy to counter the nega­ icy of engagement. tive aspects of globalisation and to enhance the The policy of engagement encompasses key opportunities of developing countries to benefit areas and falls under the constitutional responsibil­ from its positive aspects. This means that it is pos­ ity of both the Minister of Foreign Affairs and the sible to develop policy tools to address a number of Minister of the Environment and International the challenges that were examined in Part I of this Development. In some fields, it also entails closer white paper. Norway has the resources, experi­ cooperation with other ministries. There are ence and expertise to contribute to efforts at global important areas that are primarily the responsibil­ level, and to make a difference. In addition, the pol­ ity of the Foreign Minister, and a large proportion icy of engagement has increasing relevance for of the International Development Minister’s port­ Norwegian interests and developments in Norwe­ folio relates to the policy of engagement. However, gian society in terms of realpolitik. development policy, as defined in the development Financial resources are a decisive input factor policy white paper Climate, Conflict and Capital for implementing a policy of engagement. The aid (Report No. 13 (2008–2009) to the Storting) budget, through which much of this policy is extends beyond the policy of engagement as funded, has more than tripled since 1990 and defined in this white paper, for example in relation amounted to NOK 26 billion in 2009. As of budget to climate change. year 2009, Norway has for the first time achieved The policy of engagement is first and foremost the target of allocating 1% of gross national income motivated by altruism. It is based on core moral (GNI) to development assistance. principles and values that underlie Norwegian Just as important as funding are expertise, the society. These are principles and values that lie ability to learn from experience, strategic focus, behind a large number of Norwegians’ engage­ and cooperation with a range of other actors at ment in international issues and that have been cul­ both national and international level. Multilateral tivated as an important aspect of Norway’s foreign actors, such as the UN and various NGOs, play policy identity. On the other hand, the broad glo­ vital roles in the implementation of our policy of balisation processes and geopolitical changes we engagement. Through targeted efforts over sev­ are seeing today are giving the policy of engage­ eral decades, Norway has gained considerable ment new significance as it promotes the realisa­ experience and knowledge that will be maintained tion of objectives that are also in Norway’s inter­ and further developed in the years ahead. At the 2008– 2009 Report No. 15 to the Storting 113 Interests, Responsibilities and Opportunities same time, the complexity of the challenges facing flicts and crises that seemingly have no connection us means that Norway should concentrate its tech­ to Norwegian society can shape global develop­ nical, strategic efforts on areas where we have ments, with direct or indirect consequences for us. expertise that is in demand and where we are iii) Norway’s unique position and expertise: regarded as a relevant actor. Unlike the world’s major powers, Norway has few A general characteristic of the policy of engage­ strong economic and strategic interests at the glo­ ment is that it is difficult to measure and document bal level. Moreover Norway does not have a colo­ results. This is because the policy is designed to nial past. On the other hand, Norway does have achieve long-term goals and development, because internationally recognised experience as a steward we are seeking to resolve extremely complex prob­ of extensive natural resources, not least in the lems, and because it is more difficult to achieve energy field. In addition, Norwegian society is coherence here than in other areas of foreign pol­ characterised by the rule of law, a mixed economy, icy. In order to compensate for this, the Govern­ an active distribution policy, equal rights, a strong ment therefore attaches great importance to a civil society and the use of consultation and negoti­ strong focus on results within the various policy ation to resolve important issues. For example, we areas. The challenges relating to documentation of have by means of an active family policy, suc­ results must never be used as an excuse for lack of ceeded in combining a positive demographic trend focus on quality and effectiveness. and a relatively high birth rate with a high level of employment among women. Therefore, Norway is the subject of considerable interest, and Norwe­ 13.1 The rationale behind Norway’s gian experience and expertise in these fields are in policy of engagement demand. Another area where Norway is attracting international interest is our work to safeguard the Norway’s policy of engagement is based on three rights of vulnerable groups and the fight against main considerations: racism and discrimination. i) Norway’s global moral responsibility: Norway Thus, in line with our policy of engagement, has a fundamental conviction that all people are Norway should focus its efforts on the fields and entitled to a life of dignity, as is set out in interna­ geographical areas where it has clear moral tional conventions on human rights. As one of the responsibility, where there is great need, and richest and most peaceful countries in the world, where Norway’s expertise is in demand, i.e. where we have a moral duty to help to reduce poverty and Norway is particularly well placed to make a differ­ armed conflict. We have a responsibility to pursue ence. a policy that safeguards the rights of all individuals, by alleviating suffering and ensuring that basic needs are met, regardless of geographical distance 13.2 Aid and the fight against poverty and other political and strategic considerations. This is the main reason for the policy of engage­ As set out in recommendations from the various ment. standing committees to the Storting, aid is to focus ii) Safeguarding Norwegian interests: As a on meeting the needs and promoting the rights of result of globalisation, the rationale behind Nor­ the poor. It is to alleviate suffering and promote way’s policy of engagement must also take account development and economic growth in poor coun­ of the need to safeguard the interests of Norwe­ tries. It is to be recipient oriented, and thus pro­ gian society. Events far beyond our borders have mote recipient ownership and responsibility. taken on greater significance for us, and the policy Women’s rights and gender equality, sustainable of engagement has thus become strategically development and climate change have been on the important for Norwegian welfare and security. A agenda for some time, but are particularly empha­ key factor here is helping to ensure a basis for sised by the present Government. effective global governance, a long-term approach Aid is a key strategic tool and source of funding to promoting global, common interests even where for the policy of engagement. It dates back to the there is no direct and immediate connection period of reconstruction after the Second World between what is happening “out there” and our War. Up to 1990, the policy was to provide aid security and welfare “here at home”. As a country through the UN and the development banks, and with limited means of enforcing its authority, Nor­ increasingly through bilateral country pro­ way has a self-interest in strengthening the coordi­ grammes. During the Cold War, the rivalry nated efforts of the international community. Con­ between the two superpowers had a considerable 114 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 13.1 Climate, Conflict and Capital. Norwegian development policy adapting to change The white paper on international development, the good results that have been achieved. At the Climate, Conflict and Capital. Norwegian same time, economic growth in poor countries development policy adapting to change (Report could increase greenhouse gas emissions and No. 13 (2008–2009) to the Storting), was presen­ thus exacerbate climate change, unless environ­ ted in February 2009. It shows how traditional mentally sound and sustainable development is foreign and development policy aims and tools ensured. These crises cannot be resolved sepa­ have become more closely linked. It also high­ rately. If we try to do so, we risk failing on both lights the importance of a coherent policy for fronts. Norway’s most important climate policy development, i.e. that it ensures that the overall effort at international level is related to forest effect of Norwegian policy promotes growth conservation. In addition, a broad effort on and poverty reduction in developing countries. clean energy and the development of carbon The importance of policy coherence was also capture and storage technology is under way. mentioned in the previous white paper on Most of today’s conflicts are taking place in development policy, Fighting Poverty Together poor, fragile states. Violent conflict increases (Report No. 35 (2003 – 2004) to the Storting), poverty and reverses development. Today, more and was deliberated by the second Bondevik conflicts are having spillover effects far beyond the Government, which was in power at the time. areas directly involved; indeed they are having The principle of policy coherence was endorsed international consequences. Norway has a long by a broad majority in the Storting, as reflected in tradition of contributing to conflict resolution and the recommendation of the Standing Committee peacebuilding, and is a longstanding development on Foreign Affairs set out in Recommendation actor. Altogether, this gives us a good starting No. 93 (2004–2005) to the Storting. The second point for pursuing a policy that highlights the links Stoltenberg Government followed this up by between security and development. appointing the broadly based Norwegian Policy Many poor countries have rich natural resour­ Coherence Commission in 2006. The Commis­ ces, but have serious problems with corruption, sion submitted its report Coherent for develop- organised crime and exploitation. Seven times as ment? (NOU 2008:14) in September 2008. much money disappears out of developing coun­ The new white paper sets out that Norway tries through illicit financial flows as is received as will seek to influence the factors that promote or aid. At the same time, trade, remittances, invest­ impede development at both global and national ments and loans are sources of revenue that total level. It discusses the global framework for far more than aid. The white paper highlights the development in poor countries, and the opportu­ importance of steering these large financial flows nities and responsibilities that countries have in in a more development-friendly direction. The relation to their own development. fight against tax havens, as well as efforts to The white paper also underlines the impor­ improve national management of natural resour­ tance of global public goods, such as a stable cli­ ces and ensure better control of the revenues they mate, international peace and security, control generate, will be the Government’s top priority in over infectious diseases, and a well functioning this respect. global financial market. The issue of funding Aid is a unique source of income as donor will be a major challenge in the years ahead, as and recipient can work together to steer funds the global nature of these goods makes it diffi­ towards clearly defined targets. Norwegian aid cult to apportion responsibility and costs. constitutes only 4% of total international aid. It is The white paper emphasises that addressing important to see our efforts in the context of climate change, resolving violent conflicts and contributions made by other donors, and to improving the management of financial flows will ensure that the various aid channels are used be of crucial importance for the future of develop­ more strategically. The Government will there­ ing countries. These are also areas where Nor­ fore increasingly focus government-to-govern­ way can take particular responsibility. ment aid on areas where Norwegian expertise The climate and poverty crises are the two is particularly sought after and gives added most serious global problems. They are closely value, while aid to other sectors will be channel­ related. Climate change could threaten the long- led to a greater extent through multilateral initi­ standing efforts to promote development and atives. 2008– 2009 Report No. 15 to the Storting 115 Interests, Responsibilities and Opportunities effect on aid efforts. However, globalisation and very many poor countries. Norway’s experience of the geopolitical shift that has taken place since the welfare state and the importance it attaches to 1990 have led to a new approach to development human rights form the basis of the Government’s policy. The volumes have increased significantly, extensive efforts to promote women’s rights and focus has shifted to recipient responsibility, coordi­ gender equality in international development pol­ nation, untying and effectiveness, state-building icy, as reflected in the white paper On Equal Terms: and achievement of the Millennium Development Women’s Rights and Gender Equality in Internatio- Goals. Education and health are still priority sec­ nal Development Policy (Report No. 11 (2007–2008) tors, but now greater importance is attached to sus­ to the Storting). tainable management of these sectors in the coun­ Another example is the experience we have tries concerned. gained from the management of our oil sector. This State-building has become a critical develop­ forms the basis of the Oil for Development initia­ ment policy (and security policy) task. Aid is a vital tive, under which more than 20 countries are now tool, but it is also necessary to focus on security working together with Norwegian experts in this and to strengthen state institutions in order to area. The combination of effective government create a basis for development. This challenges tra­ control and good framework conditions for the pri­ ditional perceptions of aid, and calls into question vate sector is critical, and there is great interest in the harmony that is frequently presumed to char­ our experience. Norwegian expertise in resource, acterise efforts to promote stability, peace, democ­ financial and environmental management in the oil racy, human rights and poverty reduction. Experi­ sector is unique and can help to make many poor ence gained from attempts at state- and peace- countries less aid dependent by enabling them to building in post-conflict situations has revealed avoid what is often referred to as the “resource that different development policy goals may come curse”. A vital factor for success in these efforts is into conflict with one another. Ensuring local own­ effective utilisation of cross-cutting expertise and ership and building on existing institutions and capacity, involving various ministries, the private local actors has proved to be decisive. sector and other relevant sectors of society. Norwegian aid efforts are being challenged by Another reason why it is important to target an increasingly complex range of actors in the efforts carefully and focus on relevance is that aid countries in which we are involved (see Chapter is only one of several factors that influences a coun­ 10). Certain Asian countries (China in particular), try’s development. Exports from developing coun­ a number of Gulf states, major private funds and a tries provide around 30 times as much revenue as growing number of NGOs have now joined the tra­ aid, while direct investment in developing coun­ ditional bilateral and multilateral actors. Partner tries amounts to three times the total allocated to countries thus have more choices open to them. aid. Moreover, remittances from migrants are This has many advantages, but can also increase believed to amount to twice as much as total global the administrative burden and reduce the opportu­ aid allocations. The international development nities for a donor country such as Norway to exert white paper attaches great importance to helping an influence. In any case, it makes us think along developing countries make better use of these new lines about both where and how we focus our large financial flows. It draws particular attention efforts in various parts of the world. to illicit financial flows from developing countries, which can amount to seven times a country’s total aid, and discusses strategies for limiting this drain Relevance and results on poor countries’ resources. It also points out that A logical consequence of this is to focus Norwe­ the private sector in developing countries has a gian efforts even more closely on countries and crucial role to play in any development process, areas where we are already well established, and and therefore increases focus on value creation where we can make a difference through substan­ and on how development policy can promote the tial financial contributions, carefully coordinated private sector in poor countries. cooperation with other actors and our particular This increasingly complex situation also poses expertise and experience. Expertise, experience challenges with regard to effectiveness and results and relevance are becoming increasingly impor­ in various areas of Norwegian aid. The measure­ tant in the complex situation we are facing where a ment and documentation of results are vital both large number actors are involved. In this connec­ for the recipient and for the Norwegian taxpayer. tion, the Norwegian/Nordic model has proved to At the level of individual projects, this may seem an be attractive both as a resource and as a model for easy task. However, the goal of recipient owner­ 116 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities ship and the desire to influence complex social India and Russia have strengthened their global processes over time, in close cooperation with a position. As a result of the globalisation of the Nor­ number of other actors, makes it difficult to focus wegian private sector, they are also becoming on results. It is therefore necessary to carry out increasingly important for Norway. China’s grow­ through analyses of economic, social and political ing involvement, for example in Africa, is an impor­ conditions for development alongside more tant part of this picture. As a consequence, the explicit measurement and documentation of leading role played by Western countries in the results. Norad’s new Results Report system is an human rights area has been considerably weak­ important step forward in this work. ened. This shift in the international balance of power in the human rights field is one of the most serious 13.3 Human rights – obligations and challenges to our efforts to promote human rights challenges and democracy. We must have the courage to stand up for our principles at the same time as we Human rights and democracy are two of the core respond pragmatically to a new political reality. We values on which Norwegian society is based. Pro­ must defend fundamental universal principles. We moting respect for universal human rights has long must continue to work with our traditional part­ been a high priority and integral part of Norwegian ners, but we must also engage new states in coop­ foreign policy. Our overriding long-term goal is to eration and promotion of human rights. Our ensure general respect for universal human rights response must be to initiate more strategic and and fundamental freedoms, regardless of race, focused efforts vis-à-vis new alliances of countries gender, language, religion or other status. In the and closer cooperation with non-state partners. long term, a stable international legal order can only be developed by countries that respect funda­ mental human rights. This is also in Norway’s Words and action in the human rights field interests. This is why Norway’s foreign policy Another challenge is the gap between the obliga­ focuses on the vulnerable, the oppressed, the tions and promises states have made in interna­ weakest in society. And it is why our foreign policy tional forums and the realities on the ground. This is designed to ensure respect for the inviolability of gap is often dramatic, and all states should seek to the individual. reduce the gap in their own case. Our efforts to During the six decades that have passed since support human rights defenders and independent the Second World War, we have seen increasing media are targeted at this problem. Human rights global recognition that the individual has inalien­ defenders, such as journalists, human rights law­ able rights and that the legitimate exercise of state yers and spokespersons for weak groups, are power must be based on respect for these rights. essential to any democratic society. Support for The fact that 162 countries have so far become their efforts is an investment in the rule of law and party to the International Covenant on Civil and democratic processes, and will continue to be a pri­ Political Rights, and that only two countries have ority for Norway. not ratified the Convention on the Rights of the In these efforts it is vital to that we do not lose Child, speaks for itself. The growing recognition of sight of the goal. In some cases, explicit protests the principle of the inviolability of the individual against abuses can save lives; in others such pro­ has also brought about a clear change in percep­ tests can shut down channels of communication tions of a state’s absolute sovereignty. There is now and put lives at risk. We must therefore use a wide greater expectation that the international commu­ range of foreign policy tools and select the best nity will intervene when a state subjects its citizens approach for the particular task in question. to gross, systematic abuse. No other organisation can give human rights The fight against international terrorism since efforts the same legitimacy as the UN and its vari­ 2001 has been a challenge in this respect. A ous bodies. The UN is our most important platform number of countries have set aside protection of in this work. In 2006, the UN Human Rights Coun­ core human rights principles, and sacrificed impor­ cil was established to take over from the discred­ tant principles of the rule of law. This also applies ited Human Rights Commission. The need for a to countries that have previously cherished these global human rights body and the importance we principles. At the same time, there has been a attach to multilateral solutions form the basis for regional shift in power that has also had signifi­ our commitment and involvement. It is against this cance for human rights. Countries such as China, backdrop that Norway is a candidate for member­ 2008– 2009 Report No. 15 to the Storting 117 Interests, Responsibilities and Opportunities ship of the Human Rights Council in 2009. Norway Experience shows that new working methods, is at the forefront of efforts to promote the rights of openness and cross-regional alliances can enable women, children and minorities, and in efforts to those in a minority position to exert considerable combat discrimination in general. Many look to us, influence. At the same time, we see that there are and as a member of the Council, we would have several areas where it is possible to build bridges greater opportunity to exert an influence. and ensure broad support for universal principles. At the same time we are aware that member­ An important new initiative introduced by the ship of the Human Rights Council would entail a Human Rights Council is the Universal Periodic number of challenges. The Council is the first UN Review of human rights performance. The fact that entity whose composition reflects the world as it is it is universal is significant in the face of the criti­ today. This means, for example, that African and cism directed at the former Human Rights Com­ Asian countries are in the majority. When these mission that countries in the South are subject to groups take concerted action, the Council can disproportionate criticism from countries in the sometimes be an arena for questioning principles North. Norway is to submit its report on the that are key elements in our own value base and human rights situation in Norway in the autumn of that of other liberal states founded on the rule of 2009, and will be reviewed on the same basis as law. We must work to prevent this. other countries. In this process, we will be open

Figure 13.1 Human rights dialogues Norway’s human rights dialogues with China, Vietnam and Indonesia are an important element of our work in this field. The pur­ pose of these dialogues is to strengthen the dialogue partner’s implementation of international human rights norms. The dialogues entail annual meetings and a number of cooperation projects between Norwegian organisations/institutions and organisations/insti­ tutions in the dialogue countries. These dialogues are characterised by reciprocity and considerable openness regarding sensitive issues. Experts from both countries meet in thematic working groups, and in connection with project cooperation, to ask questions, give explanations, exchange experience and suggest changes. The annual dialogue meetings also provide a platform for political talks with countries that are important for Norway. Source: Ministry of Foreign Affairs 118 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities about the challenges we are facing in the human 13.4 Peace and reconciliation rights area, and respond to criticisms or questions we have previously received from international Since the early 1990s, Norway has invested increas­ treaty bodies. The process has the potential to ing financial and human resources in peace and strengthen our own efforts to promote human reconciliation efforts. Today, Norway is engaged rights internationally and can be used as part of the in peace efforts in some 20 countries and geogra­ basis for embassies’ dialogues with authorities, phical areas. The allocation for peace and reconcili­ NGOs, national human rights institutions and ation is also used to fund interreligious dialogue human rights defenders. and efforts in relation to political Islam. Good governance, transparency and participa­ Norway’s peace and reconciliation policy is an tion are key factors for rights-based development. integral part of our long-term, comprehensive Today, around 3.5 billion people live in countries security policy. Norway’s efforts to promote peace, that are rich in petroleum resources, timber or reconciliation and development are based on a minerals. With good governance, these resources sense of solidarity and respect for human dignity. can provide a basis for poverty reduction and Conflicts can be resolved. Norway has the exper­ development. However, Norwegian investments in tise and resources to be able to make a difference petroleum operations and other areas in countries in several (but not all) conflict areas, and hence a with authoritarian regimes can entail challenges moral duty to do its part. This is our main motiva­ for Norway in its efforts to promote democracy, tion. human rights and development. In particular, the However, in line with the main perspective in activities of companies where the state is part- this white paper, our policy in this area is also an owner can give rise to dilemmas. In such cases we important tool for safeguarding our overriding may be faced with conflicting interests, both of interests in peace and stability. Helping to bring which are important for Norway. This is a situation about peace agreements between parties or to that will probably increase over the next ten years extend or maintain peace processes that reduce or so as the Norwegian petroleum industry the violence caused by parties at war is also an increases its international activities, and thus has extremely effective and cost-efficient way of reduc­ to deal with a number of difficult regimes. For it is ing human suffering and promoting social develop­ a fact that most of the world’s known petroleum ment. This can only be done by actors who have reserves are in parts of the world without demo­ systematically developed these particular skills cratic governance, and where there are significant over time. Peace and reconciliation must therefore violations of human rights. At the same time, we be seen as a strategic and long-term priority for are gaining experience of this type of issue. The Norway, and caution should be exercised in evalu­ recent white paper on corporate social responsibil­ ating this policy in the light of short-term expecta­ ity, Corporate social responsibility in a global econ- tions in relation to individual conflicts. Our peace omy (Report No. 10 (2008–2009) to the Storting), and reconciliation policy is also of great impor­ discusses this topic in detail. tance in terms of acquiring knowledge and devel­ The white paper points out, among other oping vital international networks; it also opens things, that the presence of the Norwegian busi­ doors for Norwegian partners. ness sector in countries with low CSR standards can create greater opportunities for promoting human rights and democracy. One example in this Box 13.2 The Norwegian Government’s context is the work to increase transparency in action plan for the implementation of UN transactions in the petroleum industry. Disclosure Security Council resolution 1325 and transparency are vital for good governance. Transparency increases accountability, reduces Norway will work for the increased participa­ the risk of corruption, and fosters democratic tion and representation of women in local and debate. The Extractive Industries Transparency international peacebuilding processes. This is Initiative (EITI) is an important global actor in this based on the recognition that the participa­ respect. Its secretariat is in Oslo, and Norway is tion of women is essential in order to secure actively involved in its work. More than 20 coun­ lasting peace. tries are in the process of implementing a set of cri­ Source: The Norwegian Government’s Action Plan for teria for transparency in company transactions the Implementation of UN Security Council Resolution with host country authorities. 1325 (2000) on Women, Peace and Security 2008– 2009 Report No. 15 to the Storting 119 Interests, Responsibilities and Opportunities

The Government gives high priority to peace ties to a conflict. We seek to promote stable and and reconciliation efforts. A number of Norwegian durable peaceful solutions, particularly in coun­ NGOs and research institutions are also involved tries that are in the process of reconstruction after in various ways in several important peace and rec­ violent conflict. onciliation processes. The close cooperation There have only been a few conflicts where between the Norwegian authorities, NGOs and Norway has acted as third-party facilitator for for­ research institutions is a distinctive and important mal negotiations. The best known are the Middle feature of Norway’s policy of engagement in this East, Sri Lanka, Colombia and the Philippines. Nor­ field. The same applies to our cooperation with a way’s engagement is generally in close cooperation number of international organisations in this area. with other actors, particularly various UN organi­ Norwegian peace and reconciliation efforts are sations. In addition, importance has been attached characterised by a broad geographical engage­ to developing strategic partnerships with both ment and a range of different tools. These include: Norwegian and international organisations and facilitating negotiations and dialogue processes; research institutions, and to drawing international identifying the parties to armed conflicts and other attention to protracted conflicts. Norway very useful contacts; analysing conflict patterns and the rarely acts alone. On the contrary, Norway’s parties involved; providing humanitarian aid; pro­ impact will depend to a great extent on our ability moting human rights and democracy; develop­ to influence others, work with others, and take ment cooperation and research; and support for responsibility in cooperation with others. UN peacekeeping operations. Norway’s engage­ Not all Norwegian initiatives and processes are ment is thus long-term and process-oriented, and is discussed in public or are generally known. Expe­ very often initiated at the direct request of the par­ rience has shown that it is often difficult to per-

Figure 13.2 Norway’s engagement in peace and reconciliation processes This overview is not exhaustive. Source: Ministry of Foreign Affairs 120 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities suade the parties to a conflict to state openly that certain cases, Norway could help to resolve the they are taking part in a dialogue as there may be conflict. Networks and experience are necessary intense conflict between various groups, and some in this context in order to assess which situations may have difficulty accepting a peace initiative. could benefit from active measures. In recent There may also be groups that believe that contin­ years, Norway has devoted resources to building ued conflict is in their own interest, and these may up relevant networks, and consults regularly with take countermeasures if it is publicly known that other actors to ascertain the type of measures that the parties are taking part in meetings facilitated could be initiated. by Norway. One of Norway’s advantages in peace and reconciliation efforts is our ability to keep a low profile where the situation calls for it. Important goals and considerations The Government has emphasised three key fac­ tors in its peace and reconciliation efforts: The challenges dialogue entails Firstly, that the process is an important objec­ Norway also seeks to foster greater understanding tive in itself. In other words that initiating and between different religions and political systems maintaining peace processes, regardless of the out­ through dialogue. However, dialogue can be very come, is the first step towards settling a dispute. In difficult in situations where, on the one hand, it is many cases, the process will help to get the parties desirable to influence a party to comply with uni­ to take responsibility for their actions. Peace talks versal values and, on the other hand, it is neces­ are a learning process in which the participants are sary to establish a profile as a neutral actor, and forced to consider political alternatives to contin­ thus win the party’s trust. However, it should be ued violence. Even in the absence of a final solu­ underlined that we do not put moral principles on tion, lives will be saved as long as the parties are the back burner in our peace and reconciliation sitting at the negotiation table. Negotiations can efforts, neither do we moderate or relativise them. also reduce the risk of minor conflicts escalating. Norway’s approach as a third party and a facilitator At the same time, it is important to constantly con­ is based on the principle of impartiality, but we are sider whether the parties are using a deadlocked not neutral in terms of the parties’ actions and peace process as a cover for their unwillingness to behaviour. reduce the level of conflict or seek peace. Norway is not a member of the EU, and has Secondly, Norwegian policy should seek the decided not to automatically align itself with the right balance between breadth and focus. It is EU list of persons, organisations and entities set important not to spread efforts too thinly. At the out in the Common Position on the application of same time, restricting efforts to a limited number specific measures to combat terrorism (the EU ter­ of geographical areas and processes could lead to rorist list). However, the Government has since Norway losing its relevance, as it may not then aligned itself with the UN’s terrorist list. Given that have the flexibility and expertise needed to we cannot influence decisions on which states and respond to a broad range of conflicts and to serious groups should be included on the EU list, align­ new conflicts as they arise. This is also a question ment with the list would make Norway’s work as a of contributing to the international debate on the neutral facilitator difficult in certain peace proc­ major conflicts of our time. The “war against terror­ esses. It would be problematic if one of the parties ism”, for example, has increased focus on a mili­ involved was included on the EU list, and the tary approach to preventing international terror­ opportunities for contact were thus restricted. ism from gaining a foothold in conflict areas. How­ Such a situation arose when Norway decided to ever, developments in areas such as the Middle engage with the Palestinian Unity Government, East, Iraq, Afghanistan and Somalia show that mil­ which included Hamas, which is on the EU terror­ itary approaches have their limitations. There ist list. This is also relevant to Norway’s role as should now be greater focus on dialogue and facilitator in Sri Lanka, where LTTE (Tamil Tigers) national reconciliation in these areas, and Norway is included on the EU list. As a member of the EU, should help to bring about such a shift in focus. Norway would have had to align itself with this list. Thirdly, we must bear in mind that peace and Norway’s role in peace and reconciliation reconciliation efforts require a long-term approach efforts must be considered in terms of the results and entail risk. The fact that successive govern­ achieved. The various conflicts in different parts of ments have continued our engagement in peace the world must be monitored on an ongoing basis processes in which Norway is playing a role is a to determine whether the UN, other actors or, in considerable advantage; indeed it is vital in efforts 2008– 2009 Report No. 15 to the Storting 121 Interests, Responsibilities and Opportunities such as these. Deep commitment and a long-term of donors will also have to be substantially engagement are essential if Norway is to exert a expanded. real influence and make a significant difference in As long as the international humanitarian sys­ peace processes. Peace and reconciliation efforts tem is dominated by a few, mainly Western, donor depend – more than in any other foreign policy countries, it will be unable to meet the humanitar­ area – on personal relations and expertise, and on ian challenges looming ahead. A major task, there­ building networks with various individual actors fore, is to globalise humanitarian policy efforts on over time. Moreover, willingness to take risks is the basis of universal humanitarian principles. absolutely necessary for any actor that becomes Countries that are vulnerable to humanitarian dis­ engaged in conflict situations and peace processes asters and have experience of major humanitarian between warring parties. It is therefore essential to operations will be valuable partners in efforts to gain broad acceptance of the fact that engagement further develop the humanitarian system. in peace is not without conflict. The increasing political and economic influ­ ence of the G20 countries should mean that they take greater responsibility for reducing poverty 13.5 Humanitarian aid and policy in and vulnerability. Through humanitarian diplo­ the face of new challenges macy, Norway can help to develop new alliances with a view to fostering greater understanding of Norway’s humanitarian efforts have changed in humanitarian values and the humanitarian space. recent years and now face a number of challenges Humanitarian engagement is not just a matter in the years ahead. Several global trends are affect­ of responding to humanitarian need; it also entails ing our work in this area. The world is becoming preventing abuse and humanitarian suffering. increasingly multipolar and new major powers are Together with our partners, Norway is seeking to emerging. We can expect an increase in the change the framework conditions for humanitarian number of humanitarian disasters, due to factors work. Efforts must therefore be targeted at the such as environmental and climate change causes, as well as the consequences of, crises and (drought, flooding and hurricanes) and pandem­ conflicts. ics. Worldwide, 25 million people are internally dis­ placed as a result of natural disasters. Migration and the fight over limited natural resources will Prevention increase. Urbanisation and the emergence of mega- Humanitarian crises require political solutions. cities with huge slum areas will give rise to com­ International humanitarian efforts must not be a plex humanitarian problems. The conflict picture is substitute for peace negotiations, effective adapta­ also becoming increasingly complex. According to tion to climate change or better protection of civil­ UNHCR, in addition to 16 million refugees, there ians. Peace and reconciliation efforts, political dia­ are 26 million people who have been displaced due logue with affected countries, contributions to to conflict in more than 50 countries. The parties to international peace operations, development conflicts are increasingly fragmented, especially in cooperation, the fight against climate change, sub-Saharan Africa. We must expect new conflicts humanitarian disarmament and efforts to promote to arise as a result of competition over natural human rights are all important for preventing resources and climate change. At the same time, humanitarian suffering. many existing conflicts will remain unresolved. Preventive efforts are even more important An important consequence of the increased given that conflicts can extend over many years, need for humanitarian assistance is that Norway, indeed over many decades, such as in the Palestin­ together with other countries, must help to ensure ian Territory, Colombia, Sudan, DR Congo, Iraq, that far more resources are invested in prevention, Somalia and Afghanistan. The political, social and adaptation to climate change and humanitarian psychological effects of chronic crises can have emergency response than is the case today. This other, unforeseen consequences. poses new dilemmas and challenges to Norway’s Adaptation to climate change, disaster risk policy of engagement. Certain elements in the pol­ reduction and preparedness should as far as pos­ icy of engagement – development cooperation, sible take place at local level in cooperation with local peace and reconciliation efforts and humanitarian and national authorities, NGOs and other local assistance – will have to be considered in relation partners. Norwegian long-term assistance must to each other and developed in parallel. The group focus to a greater extent on adaptation to climate change and reducing the vulnerability of groups 122 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities and communities that are particularly at risk, on viding assistance when the state or the local com­ the basis of the country’s own priorities. munity is unable or unwilling to provide the protec­ tion and life-saving help needed. Norway’s aim is to be a good humanitarian The humanitarian space donor by ensuring rapid, flexible and effective The humanitarian space is under constant pres­ response to changing humanitarian needs in both sure because of conflicting political interests. In acute and protracted crises. In connection with the many of today’s conflicts, humanitarian activities implementation of Norway’s Humanitarian Policy are taking place alongside peace and reconciliation and the follow-up of the Office of the Auditor Gen­ efforts, development cooperation, international eral’s performance audit of Norway’s humanitarian police activities and military peace operations. One aid efforts, the Ministry of Foreign Affairs will of the greatest challenges in this type of complex introduce a number of changes to the administra­ operation is to provide coherent, well-coordinated tion of humanitarian aid. For example, there will be assistance while safeguarding humanitarian princi­ greater focus on multi-year cooperation agree­ ples. ments with selected partners and on the reporting Promoting respect for fundamental humanitar­ and follow-up of results. ian principles and international humanitarian law is The Government also attaches importance to a key aspect of Norway’s policy of engagement, using gender-sensitive analyses as a basis for and Norway will advocate a clear division of roles humanitarian efforts. Better reporting of results between humanitarian organisations, other civilian and experience in this field is needed. Norway will actors and military forces in increasingly complex give priority to the protection of women and child­ situations. Norway will work to strengthen and fur­ ren against sexual violence. ther develop humanitarian law, as we did for exam­ ple in connection with the Convention on Cluster Munitions in 2008. Humanitarian disarmament Humanitarian disarmament is disarmament as humanitarian action. This is a different perspective Norway’s policy of engagement in the from that of traditional arms control. By taking into humanitarian field consideration the humanitarian and development Norway’s aim is to be a leading political and finan­ consequences of the use of arms when setting pri­ cial partner in humanitarian efforts and help orities and implementing measures in the field, ensure that the international community is as well and at the same time advocating this approach in equipped as possible to meet future challenges. the multilateral processes we take part in, we can The main objectives of the Government’s humani­ make an effective contribution to humanitarian dis­ tarian strategy, which was launched in September armament efforts. It was just such an approach 2008, are to: that culminated in the Mine Ban Treaty (1997) and • ensure that people in need receive the neces­ the Convention on Cluster Munitions (2008). sary protection and assistance, These have been important steps in strengthening • finance humanitarian assistance based on the international humanitarian law and human rights, principles of humanity, impartiality and neutra­ at the same time as they provide a sound frame­ lity, work for effective implementation in the field. • equip the international community to meet Humanitarian disarmament is a method and future global humanitarian challenges, and strategy for dealing with problems caused by • prevent, respond to and initiate the recovery of armed violence. “Armed violence” is a general communities after humanitarian crises. term that encompasses the use of small arms and light weapons, explosives, mines, cluster muni­ Humanitarian assistance is essentially a matter of tions and other conventional weapons. According saving lives, alleviating suffering and safeguarding to the United Nations Development Programme human dignity, regardless of gender, race, religion (UNDP), more than two million people are killed or political affiliation. Fulfilling the humanitarian or maimed as a result of armed violence every imperative is a vital aspect of Norway’s policy of year. States’ and non-state actors’ use of, or threat engagement. While every state is responsible for to use, armed violence constitutes a gross violation protecting and helping its own citizens when they of fundamental human rights. The majority of are affected by a humanitarian crisis, the interna­ those who are affected are poor. The countries tional community also has a responsibility for pro­ with the most serious problems are, or have 2008– 2009 Report No. 15 to the Storting 123 Interests, Responsibilities and Opportunities recently been, engaged in warfare or other forms weapons. However, many important activities are of conflict. Disadvantaged and unstable communi­ being carried out through regional initiatives and ties are hardest hit. institutions. There are three main initiatives at the A common factor in all the various issues relat­ multilateral level: the Arms Trade Treaty (ATT) ing to armed violence is the unacceptable suffering process, which is working towards the establish­ caused to civilians in terms of human rights abuses ment of universal standards for trade in conven­ and violations of international humanitarian law, tional weapons; the UN Programme of Action on and the humanitarian suffering and lack of devel­ the Illicit Trade in Small Arms and Light Weapons; opment caused by the use of violence. In other and the Geneva Declaration on Armed Violence words, armed violence is a serious humanitarian and Development, of which Norway is one of the and development problem. The UN considers core group members. Norway attaches particular armed violence to be one of the main obstacles to importance to processes that improve the situation achieving the Millennium Development Goals. of individuals and communities that are affected by There is still no international agreement prohib­ violence in a way that violates human rights and iting or regulating the use of small arms and light impedes development. 124 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

14 Safeguarding economic and social interests in a globalised world

Norway’s economy and welfare are heavily 14.1 Promoting the interests of dependent on the outside world. This has been the Norwegian economic actors case ever since forestry, shipping and fisheries cre­ ated a basis for trade hundreds of years ago. This The impact of globalisation on Norway’s economy brought Norwegian products to the rest of the and welfare has implications for a wide range of world and generated income that could be used to policy areas. Fiscal policy is affected because glo­ increase production and consumption and improve balisation makes it easier for companies to move welfare in Norway. The profit from our production operations between countries, for example in order is saved and invested abroad through the Govern­ to avoid tax. Business policy is affected because ment Pension Fund – Global and in other ways. many industries have new markets and new com­ Without stable foreign markets for our oil and gas, petitors that require more innovation and adapta­ offshore industry, aluminium, fish, telecommuni­ bility. Labour market policy is also affected cations, shipping, etc., Norway would not be one of because labour immigration makes it necessary to the most prosperous countries in the world. With­ integrate those who join the labour market. Social out access to raw materials, intermediate goods and health policy is being tested because new eth­ and services and consumer goods and services nic groups with different health problems are set­ abroad, we would not have all the goods needed to tling here, placing new demands on the national meet the demands of the Norwegian population. insurance service. Justice and home affairs policy Without jurisdiction over the economic zone in our needs to be renewed since we are continually hav­ own waters, we would not have had our petroleum ing to amend legislation in order to comply with and fisheries resources. And without global efforts international agreements. Moreover, new kinds of to prevent serious climate change, living condi­ transnational crime mean that the police have to tions in Norway could deteriorate considerably. change their priorities. These are but some examples of the extent to But what is the connection between foreign pol­ which Norway’s economy and welfare are linked icy and globalisation, the economy and welfare with the global economy, and this has an equally issues? Traditionally, our foreign policy has played great impact on foreign policy. The UN Convention an important role in safeguarding Norwegian eco­ on the Law of the Sea, the EEA Agreement, the nomic interests. The foreign service was estab­ WTO agreements and the Kyoto Protocol, lished to safeguard Norwegian business interests, together with security policy and stability in the initially with a particular focus on shipping. Our High North, all play a part in securing Norway’s embassies and Innovation Norway have been, and economic interests and welfare, directly or indi­ continue to be, key points of contact and door open­ rectly. Of course, these and other aspects of our ers for Norwegian business, and this is particularly foreign policy involve more than just our economy important for small enterprises that are venturing and welfare, and in many people’s eyes they weigh into foreign markets. Trade policy has always been more heavily and are more important. The point is given high priority by the Ministry of Foreign that because Norwegian society has been so Affairs, and today this is true not least due to the closely integrated with the rest of the world as a importance of the WTO and the ongoing Doha result of globalisation, there are few aspects of our Round for Norwegian economic interests. Norway foreign policy that do not affect Norway’s economy has taken on a key role in the ongoing negotia­ and welfare. The responsibility for international tions. Cooperation with the EU under the EEA economic issues is shared between several minis­ Agreement is perhaps the most important aspect tries. Close cooperation between them is therefore of Norwegian foreign policy in terms of safeguard­ vital. ing Norwegian economic interests. At the same time, global trade issues in particu­ lar illustrate that foreign policy and economic inter­ 2008– 2009 Report No. 15 to the Storting 125 Interests, Responsibilities and Opportunities

Figure 14.1 The five countries that account for the largest numbers of migrant workers (with valid work permits) in Norway, as of 1 July 2008 Source: Norwegian Directorate of Immigration ests are closely linked and becoming more and development policy in that one of the goals of the more closely integrated. To a large degree, trade negotiations is to integrate developing countries policy is foreign policy. Our trade policy has a bear­ more closely into the global economy and the ing on all aspects of Norway’s economy and wel­ WTO multilateral trading system; environmental fare, in the sense that all Norwegian trade policy is policy due to the important links between environ­ concerned with Norwegian interests in the broad mental regulation and international trade; and tra­ sense, whether in relation to the WTO, regionally ditional foreign policy in that it will help to improve in relation to the EEA, or bilaterally and multila­ and develop a more stable framework of rules- terally in relation to EFTA and free-trade agree­ based multilateral agreements and institutions. ments. National, regional and global processes are The developing countries have entered a interlinked. This of great importance to an open number of arenas that were previously the domain and relatively small economy like Norway’s. For of more developed countries. These include global example, the ongoing round of WTO negotiations products (cars, electronics, mobile telephony, – the Doha Development Agenda – has a bearing etc.), agricultural products (fruit, vegetables, flow­ on policy in a number of different fields: economic ers, tropical foodstuffs) and labour. China is now a policy in that it affects Norwegian economic inter­ market for Norwegian salmon, and Brazil for Nor­ ests related to agriculture, manufacturing of wegian offshore technology. This means that Nor­ machinery and other equipment, fisheries, ship­ way’s commercial relations with developing coun­ ping, energy, telecommunications, and insurance tries are being “normalised”. We can no longer and other services; welfare policy in that it touches regard the world economy as divided into two on key labour-related issues such as decent work­ parts, North and South, or split into industrialised ing conditions and the supply of foreign labour; and developing countries. In the years ahead it will 126 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities become even clearer that we must assess each country on its own terms, and not lump some of Foreign investments in Norway them together into one category labelled develop­ In the past few decades there has been a consider­ ing countries. Even among the least developed able increase in the number of foreign companies countries, we find many important trading part­ operating in Norway. GE Health is investing in ners and countries that are increasingly attracting large-scale production facilities in Lindesnes, giv­ Norwegian private investments. Bangladesh is a ing Norway a global role as a producer of medical good example. Already at this stage we see that the contrast media. The US oil company Conoco Phil­ countries’ economic interests and influence vary lips is establishing its regional headquarters in greatly, including the relevance they thereby have Norway, and Yahoo has decided to set up a devel­ for Norway’s foreign policy. The following are opment centre in Trondheim in order to take part some examples of countries where Norway has in further developing the city’s unique expertise in real interests: search engine technology. High quality Norwegian • China, India, South Africa and Brazil are major research institutions attract foreign investment. global actors. We aim to use our research policy to ensure that • Chile, South Korea and Thailand are important we remain a preferred partner for international trading partners. companies. These companies bring with them key • Bangladesh, Qatar, Azerbaijan, Algeria, Angola know-how and important international networks and Namibia are countries where Norway has that enable Norwegian suppliers to grow in new, substantial investments. big markets abroad. Policy instruments that previ­ ously targeted enterprises here in Norway are becoming increasingly important in relation to Norwegian investments abroad large foreign companies with operations in Nor­ The globalisation of the economy is not just about way, thereby de facto turning domestic policy tools more extensive trade, investment and migration into elements of our foreign policy. Norwegian pol­ between countries. Globalisation means that more icies that were previously regarded as being of lit­ and more countries are being drawn into the inter­ tle interest to other countries can take on a new national community through transnational cooper­ role because they affect important foreign actors ation. Not least China and India play an important on Norwegian soil. role here. Countries in Latin America and Africa and former Soviet states are also increasingly becoming part of the global economy. It is there­ 14.2 The EU/EEA as a key economic fore not just trade in goods and services that ties us framework condition closely to other countries. Over the last few dec­ ades, Norwegian companies have increasingly The EEA Agreement ensures that Norwegian found it profitable to set up operations abroad. Pre­ enterprises and citizens have access to the EU viously, most of the operations of companies such internal market on the same terms as those of EU as Telenor, Norske Skog, Elkem and Aker countries. The internal market is based on com­ Kværner were located here in Norway. Today, mon rules. Norway’s rights in this market are these and many other companies are mainly therefore contingent on EU legislation being incor­ expanding outside Norway’s borders, and for porated into the EEA Agreement as it evolves. many of them Norway has become a marginal mar­ The rules-based cooperation in the EEA pro­ ket. These companies have become global actors. vides a greater degree of predictability and equal When new Norwegian enterprises are estab­ treatment for enterprises and citizens. It is no lished in sectors such as oil and gas, ICT, maritime longer necessary to deal with the legislation of 30 services, seafood and alternative energy, they think different countries, as one set of common EEA in global terms. The energy company REC and the rules now applies both in the domestic market and IT company Opera are examples of what we call in our major export markets. “Born Globals”, and they represent a development The EEA Agreement also makes it safer to that is making new demands on Norwegian policy. invest in jobs in Norwegian businesses that to a Promoting Norway’s economic interests and wel­ large extent rely on exports or production abroad. fare is an important task for the Norwegian foreign The EEA Agreement has increased trade and service, and the location of Norwegian embassies other economic ties between Norway and the EU. and consulates general and the definition of their However, it is difficult to assess the effect the agree­ tasks must be seen in the light of globalisation. ment has on economic development in Norway. 2008– 2009 Report No. 15 to the Storting 127 Interests, Responsibilities and Opportunities

Box 14.1 Areas where Norway is of particular interest as a cooperation partner for the EU Maritime policy. Norway was involved in devel­ Energy. Both the European Commission and oping the EU’s integrated maritime policy, the EU member states consider Norway to be which was finally approved at the meeting of the one of their most important strategic energy European Council in December 2007. Like the partners. EU, Norway stresses the importance of an inte­ The EU imports around half of the energy it grated approach to maritime issues. We have consumes, and this share could rise to 70% in close contact with the EU on maritime policy the next 15 years. Norway supplies 18% of the implementation, particularly in connection with gas imported by the EU, whereas Russia the Commission’s maritime transport strategy, accounts for 25%. Energy security is at the top of which was presented in January 2009. The strat­ the agenda. The EU is therefore showing great egy sets out various measures aimed at main­ interest in developments in the High North. taining and further developing Europe’s leading Social justice, employment and economic role in global shipping in an environmentally development in Europe. The EU is increasingly sound manner. This corresponds closely with showing an interest in “Nordic solutions”, i.e. the goals set out in the Government’s maritime solutions in which we have successfully com­ strategy of October 2007. The aim of the policy bined a flexible labour market with security for is that Norway is to be a world-class maritime the individual by demonstrating trust, showing nation that uses forward-looking, innovative and consideration for each other’s interests and environmentally sound solutions. At the same seeking to ensure equal opportunities for all. time, Norway will work to put an end to subsi­ Gender equality. Norway has participated in dies in the maritime sector that distort competi­ the EU’s gender equality efforts since 1996, par­ tion. In this connection, it is particularly ticipating in Community action programmes to relevant to seek to contribute to the process of promote gender equality and serving as lead revising the EU guidelines for state aid in this country or partner in a number of cooperation field, which is to be concluded by 2011. projects. The Ministry of Children and Equality Reform of the EU common fisheries policy. has for example led a project on women and The EU has initiated the process of reforming business ownership, and the University of Ber­ its common fisheries policy. This is based on the gen is now coordinating FEMCIT, an EU-funded acknowledgement that the 2002 reform was not project on the role of women’s movements in sufficient to ensure the sustainability of the fish­ social change in European countries since the eries. The EU’s aim is to provide predictable 1960s. Norway also participates in two networks framework conditions for the sector, as well as of experts, on gender equality in family and for coastal communities that depend on fisher­ working life, and on legal matters and legislative ies. Norway is the EU’s most important partner developments, respectively. Norway has one in the field of fisheries. Given the well estab­ gender equality expert in the European Com­ lished bilateral cooperation between Norway mission and is represented both in the Euro­ and the EU, Norway’s contributions to the pean Advisory Committee on Equal Opportuni­ reform process will be of great importance. ties for women and men, and in the Programme Sustainable aquaculture. The EU wishes to Committee. This enables us to influence the cooperate with Norway, which is a leading fish development of EU gender equality policy. farming country, on developing appropriate cri­ Knowledge, effort, networks and engagement teria for environmentally sustainable aquacul­ are required if we are to influence developments ture. These need to address, for example, in Europe. We need to define on a case-by-case genetic interaction between farmed and wild basis how ambitious Norway’s information and fish, including in connection with escapes from lobbying efforts should be, depending on how fish farms, prevention and cure of disease, important the issue is for Norway. reducing releases of pollutants and the use of feed based on sustainably managed fish stocks. 128 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

This is mainly because the Norwegian economy their own. In such cases Norway has to negotiate has also been affected by a number of other fac­ specific adaptations with the EU before the legisla­ tors. It is impossible to isolate the effects of the tion in question is implemented in Norway. EEA Agreement from the effects of other factors in EU legislation on the production of foodstuffs any meaningful way. This makes it difficult to cal­ has been incorporated into the EEA Agreement, culate in monetary terms what the result would be and trade between Norway and the EU in proc­ if the agreement were terminated. Such an assess­ essed agricultural products (pizzas, pastas, jams, ment would also depend on the nature of any alter­ soups and bakers’ wares, etc.) is regulated by Pro­ native arrangement for market access that might tocol 3 to the EEA Agreement. The parties to the replace the agreement: the more limited our EEA Agreement also have an obligation to review access to the EU market in any given alternative, the conditions for trade in basic agricultural pro­ the greater the economic loss. However, the EEA ducts (meat, dairy products, fruit, vegetables, etc.) Agreement constitutes the main framework for the every second year with a view to achieving a gra­ rules that apply to trade between Norway and its dual liberalisation, yet within the framework of the most important market. parties’ agricultural policies and on a mutually ben­ Our trade with EU countries has increased con­ eficial basis. It must be expected that the EU will siderably since 1994. However, our trade with vari­ continue to exert pressure on Norway to improve ous other countries has increased even more, access to its market. Any future outcome of the which should be seen in the light of the higher eco­ Doha Round of the WTO negotiations will have a nomic growth rates in certain parts of the world great impact on trade in agricultural products outside Europe. Nevertheless, exports of goods between Norway and the EU. and services to the EEA area account for 76.6% of all Norwegian exports. The EEA Agreement also covers cooperation in Important lobbying efforts vis-à-vis the EU other areas, for example the environment. This Norway uses both the formal channels provided by cooperation is based on recognition of the fact that the EEA Agreement and informal channels to pro­ most environmental challenges are transboundary mote its interests vis-à-vis the EU. There are many in nature, and that pursuing an effective and ambi­ factors that affect our ability to influence EU proc­ tious environmental policy requires broad cooper­ esses. The most important are expertise, experi­ ation. Ever since the EEA Agreement was con­ ence, resources, the ability to formulate and cluded, it has been a political aim for Norway to present well-defined, clear positions at an early participate on a broad basis and as actively as pos­ stage of a process, and how strong the interests of sible in EU environmental cooperation. Norway EU countries are in the matter concerned. Gener­ has therefore implemented most of the EU’s envi­ ally speaking, if Norway is to have a say in EU proc­ ronmental legislation in Norwegian legislation. esses, it is necessary to maintain a strong, persist­ This has, both directly and indirectly, been instru­ ent focus on EU/EEA matters at a high political mental in raising environmental standards in Nor­ level. way. It is also in line with Norway’s active Euro­ Our lobbying efforts vis-à-vis EU institutions in pean policy (cf. the Government’s policy platform Brussels are still the most important, but they are and the white paper on the implementation of supplemented with similar efforts in EU capitals. European policy (Report No. 23 (2005–2006) to the The importance of direct contact between capitals Storting). It is important for Norway to ensure that has increased, particularly after the EU enlarge­ the EEA Agreement continues to be a flexible and ment from 15 to 27 members. The EU forums in effective European policy tool. Brussels are not sufficient as an arena for identify­ In most areas, Norway only has limited influ­ ing positions, building alliances and clarifying ence on the development of EU legislation that will issues. In order to safeguard Norwegian interests subsequently be incorporated into the EEA Agree­ effectively, we need to engage in active lobbying ment. Nevertheless, accepting the outcome of efforts vis-à-vis EU capitals. these EU processes is rarely a problem, as they In addition to the Norwegian authorities, many generally improve the legislation. Norwegian companies, the social partners, inter­ However, there are a few areas where Nor­ est organisations and local/regional authorities way’s situation is so different from that of all of the are working to safeguard their interests vis-à-vis EU member states that we cannot expect that any the EU. A number of these actors have established of the countries involved in the process will in prac­ offices in Brussels. Many of them are involved in tice defend Norway’s interests when defending EU processes through participation in broader 2008– 2009 Report No. 15 to the Storting 129 Interests, Responsibilities and Opportunities

European associations. The views of the Norwe­ services, and providing access for imports of for­ gian authorities and other Norwegian actors on eign goods and services that we need, and on the how EU/EEA-related issues should be dealt with other, a wish to protect production in certain sec­ and resolved do not always coincide. But in gen­ tors. eral, they are likely to overlap. Norway’s prospects The bulk of Norway’s foreign trade is with of being included and exerting an influence are Europe, mainly the EU. This applies to most goods greatest when all Norwegian actors pull in the and services, and to both import and export. Nev­ same direction through their respective channels. ertheless, Norwegian trade policy is essentially The Government has drawn up an action plan global – with a firm basis in the WTO – both with a for the follow up to the white paper on the imple­ view to safeguarding the offensive interests men­ mentation of European policy (Report No. 23 tioned above and to ensure that our trade policy (2005–2006) to the Storting). The ministries have continues to be an integral part of our overall for­ followed the action plan systematically, and most of eign policy. There are a number of economic and 96 measures it contains have now been carried out. trade policy arguments for maintaining a global In order to ensure that clear European policy focus: priorities are set and that the authorities’ activities • The most important Norwegian export prod­ are coordinated, work programmes for the EEA, ucts and services are sold on the global market. foreign and security policy, and justice and home The recipients may be located physically in affairs are developed annually. Each ministry is to Europe, but pricing is global. It is the world develop its own strategic plan for its EU-related economy, not just the European economy, that work. These plans are published on the Govern­ determines the temperature of the markets we ment’s European portal (www.europaportalen.no). operate in. An EEA database was launched on the same site in • Growth in the world economy has been and the autumn of 2008 to further increase openness will continue to be centred on Asia, Latin about the Government’s European policy. America and, to a lesser degree, Africa, even in the downturn we seem to be heading into. • With time, Norwegian export will focus on 14.3 The importance of trade policy for more distant markets. The largest Norwegian Norway companies (for example Hydro, StatoilHydro, Telenor, Norske Skog and Yara) have already Trade with other countries is of fundamental turned global. Salmon export to markets out­ importance to Norwegian welfare. It makes it pos­ side Europe is increasing, and the markets for sible for Norwegian producers to specialise, and offshore technology are also found elsewhere, thus to optimise their use of resources. Participat­ and the list could be continued. ing in international trade also means that Norwe­ • Norway, particularly through the Government gian producers of goods and services encounter Pension Fund – Global, is a global investor competition from producers abroad. Thanks to a with small blocks of shares in a large number high degree of adaptability, this competition has of companies in most sectors in all parts of the led to significant productivity gains and improved world. welfare in Norway. At the same time, trade has • The EEA Agreement is a well-functioning given Norwegian consumers and enterprises regional trade agreement that ensures Norwe­ access to better or cheaper goods and services gian businesses access to the EU market and from more efficient producers abroad. Norwegian enterprises’ and consumers’ access For a variety of political reasons, the Norwe­ to goods and services from EU countries. gian authorities have sought to protect the produc­ Exceptions apply to parts of the fisheries and tion of certain goods and services from foreign agricultural sectors. competition. For goods, this applies to the majority • The free-trade agreements concluded by Nor­ of agricultural products produced in Norway, way together with its EFTA partners Iceland, whereas for services, it applies mainly to sectors Liechtenstein and Switzerland are also impor­ connected with Norwegian culture or other dis­ tant supplements to the global, multilateral tinctive features of our society. trade policy pursued through the WTO. Origi­ Norway’s trade policy must therefore continue nally, the purpose of such agreements was to to balance two concerns: on the one hand, Nor­ prevent discrimination in the broader Euro­ way’s interest in gaining better access to foreign pean market. Gradually, this has changed, and markets for most Norwegian-produced goods and there is at least as much, if not more, focus on 130 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Asian, African and Latin American markets • Seeking to ensure better and more stable mar­ that are of interest to one or more of the EFTA ket access for Norwegian industrial goods (pri­ countries. There are 16 such agreements in marily seafood, machinery and equipment) force today. We are currently negotiating with and services (primarily shipping, energy, tele­ India and Peru through EFTA, and prepara­ communications and insurance services), tory work is being done with a view to a pos­ while at the same time recognising that the sible agreement with Russia. In addition, we are developing countries, which are the new big engaged in bilateral negotiations with China. markets, to which the Norwegian business The responsibility for these agreements lies sector is also interested in gaining access, are with the Ministry of Trade and Industry. entitled to open up their markets gradually, just as we have done. In this connection the Concluding the ongoing round of WTO negotia­ Government has waived all demands that tions, the Doha Round, which started in 2001, is developing countries should liberalise basic the top priority of Norway’s trade policy, and will welfare services. be its main focus in the short and medium term. • Concluding a set of agreements that secure a We need to balance a number of interests in these sufficiently regulated and well-functioning, negotiations. It is not realistic to raise additional open world economy, even in the current issues in the multilateral trading system until this downturn caused by the financial crisis. It is eighth round of WTO negotiations has been con­ important to maintain a high level of ambition cluded. A number of fundamental issues will be put and conclude this round of negotiations so that on the agenda, such as climate policy and more tra­ the governments of the WTO member states ditional environmental policy, access to raw materi­ can demonstrate to the markets that they are als, export restrictions, intellectual property prepared to resist the protectionist forces trig­ rights, decent work and workers’ rights and, not gered by the financial crisis. The Government least, the ongoing process of maintaining the role will make use of all relevant forums to fight of the trading system in integrating the developing increasing protectionism. countries into the world economy. In the years ahead, some of the key issues in These five main issues will continue to figure the Doha Round that are most important from a prominently in Norwegian and global trade policy Norwegian point of view will continue to be topics in the future. The goal is a well-functioning, rules- of discussion and future negotiations. These based, open multilateral trading system that is include: based on the principles of sustainable develop­ • Ensuring the legitimacy and effectiveness of ment, that includes all key economic actors, and the multilateral trading system. that gradually covers more sectors of the global • Adapting the multilateral trading system and economy: agriculture, services and markets in the rules that govern it to the situation of developing countries. If the WTO system is to live developing countries, so that they have a real up to these expectations, it needs to be sufficiently opportunity to develop their economies and adaptable to also deal with new issues and power enhance their prosperity, while at the same structures, including concerns related to decent time gradually taking on, according to their work, to which the Government attaches great level of development, the obligations imposed importance. by the multilateral trading system. • Maintaining sufficient protection and support for Norwegian agriculture, in order to ensure 14.4 The state’s role as an investor and that it is possible to maintain agriculture in all investment manager parts of the country, while at the same time reducing tariffs substantially, introducing new The Government Pension Fund belongs to the tariff quotas, and modifying agricultural subsi­ Norwegian people and future generations of Nor­ dies so as to not distort trade. This will be wegians. The prosperity enjoyed by the present extremely challenging for the Norwegian agri­ population entails obligations. The assets in the cultural sector, but it will nevertheless be nec­ Government Pension Fund – Global stem from oil essary as part of the process of developing a and gas revenues. Our oil and gas reserves will future agricultural trade regime in which not eventually run out. Since these resources are lim­ least many developing countries have strong ited, it would not be fair if this wealth were only to interests. benefit the few generations that happen to be living 2008– 2009 Report No. 15 to the Storting 131 Interests, Responsibilities and Opportunities at this time. These assets must be safeguarded for As a financial investor, it is natural to seek the posterity. We have an ethical obligation to ensure best possible access to information about matters good returns on the fund over time. This is an that may, in the short or long term, have a bearing important contribution to securing the future of on the correct pricing of a company’s shares. Infor­ the welfare state. mation about the environmental impact of a com­ The Government Pension Fund – Global had pany’s operations may be relevant in that context. assets of NOK 1 992 billion on 30 June 2008. The In 2008, Norges Bank became a signatory investor Government Pension Fund – Norway had assets of in the Carbon Disclosure Project (CDP), an inde­ NOK 113 billion. The Government Pension Fund pendent organisation that compiles and publishes thus had combined assets of NOK 2 105 billion. information about companies’ greenhouse gas emissions. As a signatory investor, Norges Bank urges the companies it invests in to be transparent Social responsibility and ethical guidelines in their environmental reporting and to take a Since the fund manages a large proportion of the proactive role in the efforts to reduce greenhouse assets belonging to Norwegian society for current gas emissions. and future generations, it is both important and In November 2008, Norges Bank announced necessary that the Norwegian people have confi­ that it is taking part in a campaign launched by 135 dence in its management. This is largely built on funds calling on rich countries to cut their green­ transparency about investments, results and the house gas emissions by 25% to 40% compared with fund’s strategy. 1990 levels by 2020, in accordance with the recom­ The ethical guidelines for the Government Pen­ mendations of the UN Intergovernmental Panel on sion Fund – Global set out obligations concerning Climate Change. responsibility towards future generations of Nor­ wegians and co-responsibility for the people and the environments affected by the companies in The importance of transparency which the fund invests worldwide. There are, how­ The Government Pension Fund is managed with a ever, many problems that cannot be solved high degree of transparency. The Ministry of through the management of the fund, but that are Finance presents an annual report to the Storting best dealt with through the usual foreign policy on the management of the fund. channels, through development policy and envi­ Norges Bank also submits an annual report on ronmental policy. its management of the Government Pension Fund Different investors work under different insti­ – Global, including its exercise of ownership tutional frameworks, which, in turn, determines rights. It has more than 7000 companies in its port­ which methods and tools are best suited to dealing folio, and information is provided about specific with ethical issues. In the management of the Gov­ investments in individual companies. Norges Bank ernment Pension Fund – Norway, the emphasis is also publishes information on how it votes in the largely on selecting sound companies and main­ various companies, down to the level of specific taining a close dialogue with these companies after agenda items.1 This must be regarded as a high investments have been made. This is possible degree of transparency compared with many other because the fund has invested in a limited number investors. Dialogues with individual companies or of Norwegian companies, roughly 50, and because groups of companies are also reported as far as the fund’s ownership interests in – and thereby its possible. While a process is ongoing, it is often pos­ ability to influence – individual companies are rela­ sible to exert most influence if those involved are tively large. confident that the details of the dialogue will not be Increasing attention is being paid to investor made public. responsibility in general, and to the ethical guide­ Management of the Government Pension Fund lines for the Government Pension Fund – Global in – Global includes a mechanism for excluding indi­ particular. This means that the ethical guidelines vidual companies. The threshold for applying this could have an effect that extends beyond the effect mechanism is high. According to the criteria for of the actions of the fund itself. And although this exclusion, grossly unethical activity must be effect was not necessarily intended, it is nonethe­ involved. This applies to companies that produce less very positive. Raising awareness is a first, inhumane weapons, companies that are complicit important step in the direction of making investors and companies broadly accountable. 1 In 2007, Norges Bank voted on almost 40 000 matters at approximately 4200 general meetings. 132 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities in gross or systematic human rights violations, and how much. About 90% of the fish stocks Nor­ serious violations of individual rights in war or way harvests are shared with other countries. Nor­ other conflict situations, serious environmental way considers international cooperation to be damage, gross corruption or other particularly essential for the sound management of these serious violations of fundamental ethical norms. stocks. Norway must therefore work actively to The Council on Ethics for the Government Pen­ ensure that key principles of sound resource man­ sion Fund – Global makes recommendations con­ agement are implemented internationally. It is cerning screening and exclusion. The Ministry of important for us that countries’ obligations to Finance decides whether a company should be cooperate on the management of the resources of excluded from the fund’s investment universe on the high seas and coastal, port and flag states’ ful­ the basis of these recommendations. filment of obligations and exercise of rights are fur­ There is also a high level of transparency in the ther developed within the framework of the law of work of the Council on Ethics for the Government the sea. Pension Fund – Global and its recommendations to Fish will be a vital source of food for future gen­ the Ministry of Finance. The Ministry of Finance erations. Sound and effective management is announces decisions to exclude companies on the therefore required. Huge sums of money are at basis of the Council on Ethics’ recommendations. stake. The World Bank has estimated that excess As of December 2008, 29 companies had been capacity in the fisheries sector and illegal, unre­ excluded from the investment universe of the Gov­ ported and unregulated fishing result in an annual ernment Pension Fund – Global, most of them loss of revenue amounting to about USD 50 billion. because of involvement in the production of In addition to the considerable reduction in oppor­ nuclear weapons, cluster munitions or landmines. tunities for economic growth for both us and the Two companies have been excluded because of the rest of the world, this poses one of the greatest risk of complicity in serious or systematic human threats of our time to the sustainable use of living rights violations and seven because of the risk of marine resources. complicity in serious environmental damage. Norway is an important maritime nation in glo­ The Government has initiated an evaluation of bal terms, and it is therefore essential for us that the ethical guidelines for the Government Pension sustainable models and international solutions on Fund – Global, which will be based on a broad con­ which there is broad consensus can be developed sultation process. The result of the evaluation will that take account of different and in some cases be presented to the Storting in the annual report conflicting interests and values. We must balance on the management of the Government Pension sustainable use with conservation of resources and Fund in spring 2009. sea areas and environmentally sound maritime transport. As a coastal state and shipping nation endowed with rich marine resources, Norway has 14.5 An integrated Norwegian a strong interest in helping to further develop the maritime policy international processes that determine which sea and coastal areas may be used by whom and in Norway’s prosperity is to a great extent based on what way. goods and services related to the sea, for example The management and use of the sea must be fisheries and aquaculture, shipbuilding, shipping, carried out in a way that safeguards the sustainabil­ offshore activities and marine biotechnology. ity of its ecosystems. This requires knowledge There is an increased focus on new energy sour­ about the diversity of marine ecosystems and ces, the monitoring of environmentally hazardous biotopes as a basis for improved monitoring of cargo, new, safe transport routes, marine biopro­ resources and the marine environment, which in specting, offshore mineral deposits, deep sea fish­ turn provides a basis for improved management. ing on the high seas, and marine protected areas. Increasing use of marine resources and maritime Norwegian maritime policy in the broad sense services necessitates improved, integrated therefore has a major impact on our ability to pro­ national and international monitoring of economic mote our national interests. activities and the marine environment. The devel­ Climatic changes and changes in the marine opment of international maritime transport corri­ environment could give rise to new management dors is a key element in a sustainable maritime pol­ challenges. For fisheries resources this could icy, ensuring safe transport that provides environ­ include changes in distribution patterns and pos­ mentally sound access to international markets. sible conflicts over who should have the right to fish 2008– 2009 Report No. 15 to the Storting 133 Interests, Responsibilities and Opportunities

The increasing degree of globalisation is evi­ dent in the trade in seafood as well. Norway A predictable and integrated Norwegian policy exports more than 95% of the fish it produces. Both Norway has long been instrumental in setting the the authorities and the market have strict require­ international agenda in the field of marine manage­ ments as regards healthy, safe and traceable sea­ ment, including the development of effective man­ food. Norwegian seafood has been subject to trade agement regimes for fish stocks. These regimes policy countermeasures in important markets. We have a high degree of legitimacy. are therefore dependent on an appropriate and In areas where we have special expertise and a well-functioning international trade regime that solid reputation, we should take advantage of this ensures sustainable management of marine to develop fruitful cooperation strategies together resources. with other countries. Norway must be clear, pre­ An integrated maritime policy touches on all dictable and consistent about its own interests and aspects of how we use the sea. Sector interests and values. There should be a clear link between what policies must therefore be seen in a wider context we do at home and abroad. This entails balancing that makes it possible to define goals and actions interests and priorities in the various sectors. Nor­ that are sustainable and that are in line with long- way’s ability and capacity to exert an influence term Norwegian, regional and global interests. In should guide our priorities. the future it will to an increasing degree be neces­ We therefore intend to ensure that sufficient sary to balance interests, and to coordinate and priority is given to fostering national and interna­ regulate these activities at the national, regional tional expertise and innovation. This is necessary and international level. in order to enable us to meet the new maritime pol­ icy challenges and support the further develop­ ment of the international rules-based regime for natural resource management, environment and trade.

Figure 14.2 Marine climate change and Norway’s marine resources Source: the Norwegian Institute of Maritime Research 134 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

We also intend to ensure close coordination benefited Norwegian society, and the use of these between the actors involved at the national level revenues has not undermined growth in the and set the necessary priorities in relevant interna­ onshore economy. tional forums for resource management and mari­ In the Government’s view, the challenges that time matters (including the UN General Assembly, arise as the world becomes more closely inte­ the UN Food and Agriculture Organization, the grated can best be met by further developing the International Maritime Organization and the EU). fundamental characteristics of our social model. We intend to facilitate market access in the broad An active labour market policy and well-designed, sense, for example through the World Trade Organi­ jointly-financed welfare schemes that ensure work­ zation, under the EFTA agreements and in the EU ers’ rights make it easier for us to undertake neces­ market. At the same time we will have to meet more sary restructuring in response to major changes in stringent requirements in the markets regarding sus­ the international framework conditions than it is tainability and healthy and safe seafood. for many other countries. As Norway is an open Moreover, we intend to support development economy, it is also in our interests to work towards and promote more equitable distribution, for exam­ better common rules for global economic interac­ ple through trade, technical assistance and trans­ tion. fer of technology and expertise, and by strengthen­ The Nordic model and its continuous evolution ing developing countries’ capacity and ability to in response to globalisation and other geopolitical benefit from globalisation. change generate considerable social and political capital. For example, there is a growing realisation that a work force that enjoys an effective, universal 14.6 The Norwegian/Nordic model as public safety net is more willing to accept restruc­ a resource turing and job changes. Schemes designed to ensure that the labour force is well qualified have a Norway and the other Nordic countries have been similar effect. We have in various ways provided successful in achieving material wealth, high rates of our experience in this area as input in various labour force participation and equitable distribution forums, particularly OECD-related ones. This of income. Comprehensive, jointly-financed welfare means that Norway’s experience is translated into schemes, high investment in education and extensive potential foreign policy capital. The public diplo­ cooperation between the authorities and the social macy effect of this should not be underestimated: partners are hallmarks of the Nordic model. This, the way we have organised our society in response combined with a strong emphasis on reducing social to global turbulence is attracting international and economic disparities, providing equal opportuni­ attention, bringing international media and politi­ ties for all, and pursuing a proactive and rights-based cians to Norway, and increasing international inter­ gender equality policy, has paved the way for a soci­ est in Norwegian civil society actors. This is all the ety founded on cooperation and trust, and we have more remarkable since Norway as such is becom­ avoided having to dedicate a lot of resources to ing less visible in the global arena. enforcing laws, rules and agreements. Management of the petroleum sector is an area Today Norway has one of the highest living where Norway has a great deal to offer. A number standards in the world. This is mainly because we of countries all over the world are interested in have a productive and flexible economy and a high Norway’s experience and assistance in dealing rate of labour force participation. The massive with their own energy-related challenges. Norway entry of women into the labour market, which has responded by developing the Oil for Develop­ began in the early 1970s, has contributed signifi­ ment programme, which is based on close cooper­ cantly to expanding the labour force and boosting ation between a whole range of Norwegian stake­ value creation. This has made Norwegian society holders, and which is attracting increasing interest more prosperous, more equitable and more able to all over the world. The US, the EU and other major meet the challenges of tomorrow. Rapidly increas­ global actors attach importance to the fact that the ing production and demand and a well-functioning programme is giving Norway access to many coun­ labour market are important factors that explain tries that they find it difficult to cooperate with. Norway’s low unemployment rate. The country’s Interest in the Norwegian model enhances our robust economic growth should also be seen in standing and visibility, and generates interest in connection with its successful management of the political dialogue between Norway and important oil and gas resources on its continental shelf. The global actors, which in turn gives us opportunities revenues generated by oil and gas production have 2008– 2009 Report No. 15 to the Storting 135 Interests, Responsibilities and Opportunities to convey Norwegian views and interests in unre­ cerning labour standards is a key element in the lated fields that are of key importance to Norway. international efforts, and this has a bearing on Nor­ wegian labour market policy, trade policy, develop­ ment policy and foreign policy. The Government Decent work –ensuring that globalisation is socially also considers it important to encourage the devel­ acceptable opment of global meeting places and to support the The current financial crisis shows how bad things efforts to coordinate the engagement on the part of can go when politicians give up trying to control international organisations such as the ILO, the and regulate the global economy. The crisis is WTO and the OECD in issues related to globalisa­ exacerbating the obvious challenge that globalisa­ tion and decent work. The strategy and other tion was already posing to workers’ rights and wel­ efforts to promote decent work are discussed in fare in many countries, as discussed in Chapter 2 of more detail in Report No. 10 (2008–2009) to the this white paper. The International Labour Organi­ Storting. zation (ILO) has estimated that the number of unemployed could rapidly increase by 50 million as a result of the crisis. This could in turn lead to polit­ 14.7 A positive image ical unrest and severe social tension. Decent working conditions and respect for work­ A number of what are mainly domestic policy strat­ ers’ rights are essential for fair, balanced social egies and measures have been developed with a development. The ILO is the most important inter­ view to adapting the Norwegian economy and our national body for developing and monitoring core welfare system to a globalised world. The Govern­ labour standards. Norway has participated actively ment recently presented white papers that explore in the ILO since it was founded in 1919 and has tra­ options and recommend courses of action to safe­ ditionally been one of the largest contributors to guard Norway’s economic interests and welfare in the organisation’s projects in developing countries. the long term. These include Report No. 18 (2007– Combating child labour is a high priority for Nor­ 2008) to the Storting on labour migration (Minis­ way’s ILO-related efforts. Norway has also given try of Labour and Social Inclusion), Report No. 7 priority to strengthening the social partners and (2008–2009) to the Storting, An Innovative and cooperation between them, promoting gender Sustainable Norway (Ministry of Trade and Indus­ equality and women’s rights in the workplace, and try), and Report No. 9 (2007–2008) to the Storting, combating other forms of discrimination. Long-term Perspectives for the Norwegian Economy Norway participated actively in the drafting of (Ministry of Finance). A new white paper on the ILO Declaration on Social Justice for a Fair Glo­ research is under way. Together with the white balization of June 2008. At the same time, Norway paper on innovation, it will address the main chal­ took the initiative for a separate high-level confer­ lenge in connection with globalisation: how to turn ence entitled Decent Work: A Key to Social Justice Norway into a modern and forward-looking knowl­ for a Fair Globalization, which was held in Oslo in edge nation that is able to respond proactively to August 2008. This is the backdrop to the Govern­ globalisation, creating value, new employment ment’s new strategy aimed at strengthening work­ opportunities and new sources of revenue to ers’ rights globally. The strategy brings together finance a robust welfare state. the Ministry of Labour and Social Inclusion, the This is primarily a matter of domestic policy, Ministry of Trade and Industry, the Ministry of but globalisation has the effect of closely linking Foreign Affairs, the Norwegian Confederation of the local and global levels. Domestic policy has Trade Unions (LO) and the Confederation of Nor­ acquired a more global dimension, and foreign pol­ wegian Enterprise (NHO) behind a seven-point icy is more deeply entwined with domestic policy, master plan for a sound policy on globalisation. and must to a greater extent be adapted to national The Norwegian ILO Committee, which consists of challenges and based on national resources than representatives of the main employees’ and used to be the case. employers’ organisations, will play an important Public diplomacy is an example of this. Nor­ role in developing these points in more detail. As a way’s foreign policy is instrumental in shaping step in the implementation of the strategy, Norway Norway’s image abroad and the associations peo­ signed an agreement with the ILO in the autumn of ple have to Norway and things Norwegian. This 2008 under which it will provide support totalling affects how Norwegian enterprises and the prod­ NOK 100 million over a two-year period. Improving ucts and services they offer are perceived abroad, verification and enforcement of legislation con­ and how attractive it is for foreign companies to 136 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities establish operations in Norway. Consequently it wave involved goods, the second capital and own­ has an impact on the Norwegian economy and our ership and the third is related to the globalisation welfare. However, Norway’s image is not deter­ of expertise and talent. Over time, China, India, mined exclusively by the activities and campaigns Russia, Brazil, South Africa and a number of other conducted by the foreign service, but is affected by countries will accumulate expertise that will enable all the activities Norwegian authorities and private them to compete directly with most industries and actors are involved in abroad. sectors in the OECD countries. These countries’ Norwegian companies compete with compa­ capacity for development and growth will then nies all over the world. A positive image of Norway depend on their ability to attract expertise from can help to open doors and to sell Norwegian prod­ other countries. The US is already concerned that ucts and services. If “Norwegian” is associated it will not manage to attract as many good students with positive qualities, Norwegian products can be and experts from abroad as previously. Europe, sold at higher prices than products from other China and certain other Asian countries are attract­ countries, simply because they are labelled “Made ing an increasing proportion of the kind of interna­ in Norway”. Norwegian companies are dependent tional, mobile, highly-qualified labour whose first on having sufficient access to well-qualified labour. choice ten years ago would have been the US. Nor­ A positive image of Norway, both of society in gen­ way must also take serious note of this trend, par­ eral and more specifically of the labour market and ticularly in the light of the approaching age wave working conditions, will have a bearing on how and its future need for qualified labour from easy it is to recruit foreign specialists and other abroad. employees, both to Norway and to Norwegian According to Richard Florida, a frequently companies’ operations abroad. quoted US professor, talent moves to where two Foreign companies that establish operations in other Ts are present: technology and tolerance. Norway bring knowledge and technology, and we Countries, cities and regions that have strong tech­ are therefore interested in attracting such invest­ nology communities and a tolerant environment in ments. An image of Norway as a country with little terms of multicultural understanding, a broad conflict, little corruption, stable framework condi­ range of occupations and political views and a var­ tions, an efficient public sector and a well-qualified ied cultural scene are also highly competitive in labour force with a strong work ethic makes it attracting talented people. Such places are also attractive to invest in Norway. A positive image of characterised by high long-term economic growth Norway makes it easier for Norwegian companies and a dynamic economy. If we are to safeguard that want to set up operations abroad to establish Norwegian interests, we must be able to deal with contact with authorities and businesses in other these challenges. To achieve this, we need to make countries. Attitudes to Norway and Norwegians Norway attractive to capital, technology and talent. will also affect Norwegian companies’ negotiating The Norwegian business sector and the public sec­ position abroad. (Norway’s public diplomacy tor will both require an increasing number of tal­ efforts are discussed in Chapter 22.) ented people from other countries. This means that Norway must become a more tolerant and multicultural, multifaceted and inclu­ 14.8 The need for tolerance and sive society where these qualities are also reflected multicultural understanding in the workplace. This would also strengthen Nor­ wegian activities abroad. This will be one of the Today, many people in the business community, main challenges for Norwegian foreign policy in academia and the public administration are talking the years ahead. about the third wave of globalisation. The first 2008– 2009 Report No. 15 to the Storting 137 Interests, Responsibilities and Opportunities

15 Safeguarding Norwegian energy interests

Norwegian foreign policy in the energy field and where Norwegian investments are made focuses on safeguarding Norwegian energy inter­ abroad. ests. The sea areas where international law entitles • Norway is particularly well qualified to assist Norway to explore for and extract oil and gas are developing countries that have oil and gas or altogether more than three times the size of Nor­ hydropower resources to make use of these way’s land area. Effective exercise of authority by resources in a sound and sustainable manner. Norway is therefore important. Another objective of Norway’s energy policy is to maximise value cre­ ation from oil and gas production and exports to 15.1 Norway will be a climate- global markets, hydropower production and conscious energy nation export to other European countries, and the estab­ lishment of other business activities based on oil, Norway is in the midst of a global climate dilemma. gas and hydropower. Transparent and predictable Developing countries need more energy to lift long-term conditions for actors in the energy mar­ their people out of poverty, but global climate con­ kets are in Norway’s interests. cerns require reductions in greenhouse gas emis­ Briefly, Norway’s energy policy to deal with the sions from the use of fossil fuels. Climate change global challenges that were discussed in Part I of and poverty are the most serious problems the this white paper is based on the following: world is facing today. Norway has therefore set • Norway takes the problem of climate change ambitious climate targets. We intend to play a lead­ seriously, and will be a climate-conscious ing role in efforts to reduce greenhouse gas emis­ energy nation. Norway is an important expor­ sions at both national and international level (see ter of fossil fuels, and therefore has a particular Chapter 16 on Norway’s environmental interests). responsibility to contribute to fossil fuel decar­ An ambitious climate policy also entails obliga­ bonisation and to use our broad-based energy tions, and we have to expect that other countries expertise in efforts to find climate-friendly will keep a close eye on how successful Norway is energy solutions. in finding a balance between its leading role in cli­ • Norway considers it important to promote mate issues and its role as a petroleum nation. In social and economic development in poor this respect, Norway clearly differs from other oil countries. Access to energy is an essential exporting countries, whose goals in international basis for achieving development policy goals. climate negotiations have been far less ambitious. • Norway is and will continue to be a stable and Norway has been a pioneer in the use of CO2 taxes predictable supplier of oil and gas to interna­ in the energy sector. The Government has also put tional markets, thus contributing to regional in place a policy and programmes to support new and global energy security. renewable energy sources. • Norway will work internationally towards a The Government’s approach to the climate suitable framework and good incentives for dilemma is based on the premise that all countries, energy efficiency measures and the develop­ not only producers and exporters of fossil fuels, ment of renewable energy sources. have a responsibility for finding solutions. Norway • Norway has a clear interest in energy markets has adopted strict legislation on releases of pollut­ and an energy policy based on transparency, ants to air and water, and as a result, releases per cooperation and dialogue, both regionally and unit of energy produced on the Norwegian conti­ globally. nental shelf are much lower than the global aver­ • Norway is playing a leading role in integrating age. Zero-discharge targets have been established environmental considerations and finding a for releases of environmentally hazardous sub­ balance between fisheries and petroleum inter­ stances to the sea from oil and gas activities. In ests, both on the Norwegian continental shelf recent years, the industry has taken a number of steps to reduce releases of pollutants. Given the 138 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities strict requirements that apply on the Norwegian Norway’s energy-related technology base and continental shelf, operational discharges from the expertise open up interesting opportunities to con­ petroleum industry are not expected to result in an tribute towards a climate-friendly future. The Gov­ increase in pollution levels. ernment’s carbon capture and storage (CCS) initi­ As long as energy demand continues to rise glo­ ative has also established Norway’s leading role in bally, global energy production will not be reduced. the comprehensive international efforts that are Greenhouse gas emissions may rise if Norwegian now in progress towards fossil fuel decarbonisa­ oil and gas are replaced by more polluting forms of tion. This is a logical strategy for any climate-con­ energy produced elsewhere. Exports of Norwe­ scious country that is also an important oil and gas gian gas can help to reduce coal consumption, and producer. More and more countries, including oil thus greenhouse gas emissions, in other parts of producers in the Gulf, are showing an interest in Europe. this work. Prime Minister Stoltenberg’s invitation to a high-level conference on CCS in Bergen in

Box 15.1 Action to safeguard Norwegian energy interests 1. Ensure effective exercise of authority in con- 8. Work internationally (vis-à-vis the EU, impor­ nection with utilisation of the energy resour- tant EU countries, the US, Canada, Russia) to ces on the Norwegian continental shelf, in increase understanding of Norway’s inter- accordance with Norway’s rights, obliga- ests and positions, for example as regards tions and responsibilities under international territorial claims and issues relating to sound law. environmental and fisheries management in 2. Continue the system whereby Norwegian sea areas where there are petroleum activi­ energy resources are regulated and man- ties. aged by the Government/Ministry of Petro- 9. Promote the interests of commercial Norwe­ leum and Energy on the basis of Norwegian gian energy actors in markets worldwide, legislation adopted by the Storting. including energy companies and companies 3. Ensure that further development of the Nor- in the supply industry. wegian continental shelf boosts value crea- 10. Work through the Oil for Development initia­ tion and maximises income to the Norwe- tive and together with relevant international gian state. actors to improve governance and manage­ 4. Ensure a satisfactory and robust balance ment of petroleum resources in unstable between national control and value creation areas. on the one hand and continued international 11. Work through the Clean Energy for Develop- participation (by commercial actors) in the ment initiative and together with relevant development of the Norwegian continental Norwegian and other actors to promote the shelf on the other. development of renewable energy. 5. Ensure a satisfactory balance between the 12. Work towards an international climate aim of facilitating value creation from petro- regime that i) will provide a cost-effective leum exploration, production and transport means of stabilising greenhouse gas emis­ on the one hand and safety and environmen- sions or reducing them to a desired level, ii) tal considerations and fisheries interests on involves the use of instruments to promote the other. the use of cleaner energy and energy effi­ 6. Work towards greater predictability and ciency measures, and iii) focuses on decar­ transparency in the oil and gas markets. bonisation of oil and gas or other measures to 7. Seek the greatest possible influence over make them sustainable energy sources in a external framework conditions that affect the climate-friendly future. room for manoeuvre available to the Norwe­ gian state and commercial Norwegian energy actors, including decisions made by the European Commission and regulatory authorities in the most important EU mar­ kets (the UK, Germany, France) and the US. 2008– 2009 Report No. 15 to the Storting 139 Interests, Responsibilities and Opportunities

May 2009 was part of a long-term strategy to max­ many actors in the Norwegian energy industry, are imise interest in the subject and create as much heavily involved in this area, and the Government impetus as possible in technology developments plans to encourage further expansion of these with a view to the fossil fuel decarbonisation. efforts. Norwegian solar energy companies are Norway’s technology base and expertise in the showing a growing interest in investments in field of oil and gas open up other interesting cli­ developing countries, which is an encouraging mate policy opportunities. Through the Oil for development. Solar energy has a great deal of Development initiative, we are supporting pro­ potential in rural electrification. grammes to limit gas flaring during petroleum pro­ Norway must also use its knowledge and duction to what is necessary for safety reasons, expertise in the energy sector to develop technol­ including the World Bank Global Gas Flaring ogy and find climate-related solutions in other sec­ Reduction Partnership. Norway has established its tors than petroleum and hydropower. We are in a credibility in this area by restricting flaring on the favourable position to develop both onshore and Norwegian continental shelf. Reducing flaring in offshore wind power. Solar energy, bioenergy and countries such as Nigeria and Angola will consider­ wave and tidal energy can also play an important ably reduce emissions from the oil sector in these part in the energy mix. By investing in energy effi­ countries. Norway is also in a good position as ciency and new renewable energy sources, Nor­ regards initiatives to develop offshore wind power way can develop an even more varied and environ­ solutions, which can both be highly efficient and mentally sound energy system. The Government’s avoid much of the local opposition to onshore wind goal is for Norway to continue to be a leading farms. energy nation. This will require intensified efforts Winds are strong and stable off the Norwegian to promote renewable energy production and coast and further out to sea, resulting in a large energy efficiency. energy potential and considerable opportunities for the development of offshore wind power in Nor­ way. Our expertise and experience from the petro­ 15.2 Norway – a stable and predictable leum and maritime industries give us technological oil and gas supplier advantages in an initiative in this field. Norway also has a great deal of expertise in renewable energy, Norway’s most important contributions to global particularly in hydropower production, electricity energy security are i) sound, active management of transmission and trade in electricity. the Norwegian continental shelf, ii) stable and pre­ Norway has a long history of hydropower pro­ dictable exports of substantial volumes of petro­ duction. It is Europe’s largest and the world’s sixth leum, iii) the growing global engagement of a largest producer of hydropower, which is a renew­ number of Norwegian companies in the oil and able and climate-friendly energy source. Almost supply industry, iv) contributions through the Oil half of Europe’s hydropower storage reservoirs for Development initiative to better governance of are in Norway. The large-scale hydropower pro­ the petroleum sector in developing countries, and duction means that renewable energy accounts for v) intensified efforts at international level to about 60% of Norway’s total energy use, while the ensure good incentives for efficient energy use and EU’s target is to increase the share of energy from the development of renewable energy sources. renewable sources in the energy mix to 20% by Norway’s reputation as an energy actor is prob­ 2020. Norway has sufficient hydropower ably most strongly linked to the substantial vol­ resources to supply the rest of Europe with valua­ umes of oil and gas it delivers to European and glo­ ble peak-load power and become an important bal markets. Norway provides a considerable pro­ European electricity supplier. In addition, we have portion of the total gas supplies to the UK, France already built up extensive experience of interna­ and Germany. In 2009, Norway is supplying 18% of tional investments and aid, especially to the hydro­ the total quantity of gas needed by the EU, and the power sector in developing countries. At least 1.6 volume is expected to increase in the next decade. billion people in the world still lack access to elec­ Gas is largely sold under long-term contracts to tricity and other modern energy services. Many of market actors in individual countries, while oil is to these countries have inadequate power supplies, a larger extent traded on the spot market. and this combined with the threat of climate The management plan for the Barents Sea– change means that it is a win-win strategy for Nor­ Lofoten area identified a number of particularly val­ way to provide assistance in the power sector. The uable and vulnerable areas. Large areas of the con­ Norwegian aid authorities, in cooperation with tinental shelf, particularly in the north, have not yet 140 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities been opened for petroleum activities. It is Nor­ there is every reason to analyse development way’s responsibility to ensure that special con­ trends and maintain an active, continuous dialogue cerns are taken into account when standards for with important countries and actors that influence and restrictions on exploration and production in the framework conditions for future policy and vulnerable areas are being assessed. The energy resource management in the High North. sector is a key element of the Government’s High North strategy, and relations with other countries, for example Russia, are important in efforts to 15.3 Norway does not wish the oil and ensure sustainable development of the northern gas market to become politicised sea areas. Petroleum activities contribute to the development of technology-intensive businesses in Norwegian petroleum policy is founded on the North Norway, and are also important in providing principle that oil and gas are traded on a commer­ sufficient volume for the development of the serv­ cial basis, and this underlies both management of ice sector in this part of the country. With the the Norwegian continental shelf and petroleum development of business clusters that provide a exports. The Norwegian state has always played a basis for employment and growth, the petroleum central role through its policy and legislation for sector can have positive spin-off effects, provided and regulation of petroleum activities on the conti­ that satisfactory environmental solutions are nental shelf, but a number of oil companies com­ agreed for the energy industry in the High North pete for contracts and licences on a normal open within the framework of the current management commercial basis. regime and the planned update of the management In the Government’s view, it is preferable for a plan in 2010. small resource-rich country not to politicise its oil Norway has won respect for long-term sustain­ market power, which it could for example do by able management of its petroleum resources. subsidising sales of energy to selected foreign Energy-importing countries and oil companies are actors or by making contracts dependent on politi­ often interested in the highest possible tempo in cal concessions. Even with the current geopolitical the extraction of oil and gas, but they respect the tensions, it would be difficult to find stable, long- rules set by the Government and the Norwegian term ways of exercising Norway’s oil market democracy through Norway’s oil policy. At the power in practice. It is difficult to find empirical same time, there is reason to expect that there will examples of the use of such power, among other be some international pressure to speed up the things because we need the markets of the EU development of new reserves as a result of higher countries at least as much as they need Norwegian oil prices and a more acute shortage of energy glo­ gas. It is important to remember that although bally. Growing concern about energy security will Norway as a state is responsible for regulating the have the same effect. It will in any case be neces­ petroleum sector, even its wholly and partly state- sary to find a balance between oil and gas develop­ owned companies have a large degree of autonomy ments and environmental concerns for the areas in the energy market. The logic of the market off North Norway and in the Barents Sea. The Gov­ imposes clear limits on what the Norwegian ernment’s views on this balance were established authorities can do in a market where companies in the 2006 management plan for the Barents Sea– must follow normal rules for corporate governance Lofoten area. The plan is to be updated in 2010. and control. Their room for manoeuvre is further The Government will maintain the key princi­ limited by the commitments Norway must honour ples governing the management of Norwegian under the EEA Agreement and as a member of the petroleum resources. It is important for Norway to World Trade Organization (WTO). provide a framework for the sustainable use of nat­ There is also another aspect of this to be con­ ural resources and goods and at the same time sidered. Even if Norway could conceivably use its maintain the structure, functioning and productiv­ petroleum market power as leverage to gain ity of ecosystems. It is precisely its long-term, acceptance for certain Norwegian positions, the responsible management of resources off the coast overall effect could easily be negative. We might that has made Norway a trusted partner for many win a few battles, but still lose the war. This would countries and major energy companies. The ambi­ be partly because opponents could retaliate in tious plans for integrated resource management in areas where we are vulnerable, and partly (and the Barents Sea within the framework of interna­ probably most importantly) because we would rap­ tional law continue an approach that was adopted idly lose our credibility as a stable, reliable supplier early on in Norway’s oil history. At the same time, of energy to competitive markets. Norway’s strong 2008– 2009 Report No. 15 to the Storting 141 Interests, Responsibilities and Opportunities suit in power politics is precisely the respect and The EU is particularly important for Norway as goodwill we achieve through a self-assertive but an energy producer and exporter, both because it cautious approach to the use of oil market power. is our most important export market, and because EU policy, through the EEA Agreement, deter­ mines an important part of the framework for Nor­ 15.4 The EU and Norwegian energy wegian energy policy. One area of interest to Nor­ policy way at present is to contribute to the development of an EU carbon capture and storage regime. With Although it is essential to keep markets separate its new energy and climate legislation, the EU has from politics, the links between energy policy and moved much closer to the Norwegian position on foreign policy are becoming ever closer. Norway’s this. relations with the EU illustrate this. We have for Energy has a prominent place on the EU’s polit­ several decades been involved in negotiations with ical agenda, and the focus is on security of supply, the EU and key EU member states on gas-related competitiveness, climate issues and sustainable issues. The Gas Negotiation Committee, which development. This influences Norway’s work on used to have a monopoly on sales of gas, has been policy development and possible new legislation. abolished to comply with the EU’s liberalisation The EU treaties do not include specific energy requirements. Norway is still working continually provisions. The EU has nevertheless developed to influence EU energy policy. energy cooperation in specific areas on the basis of

Figure 15.1 Important gas pipelines within and to the EU The map shows the most important existing and planned gas pipelines to the EU. Russia, Norway and Algeria are the three largest suppliers of gas to the EU27, and in 2008 accounted for 42%, 25% and 18% respectively of gas supplies to the EU. Sources: International Energy Agency, Gas Infrastructure Europe, Energy Information Agency and Gassco 142 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities a number of different treaty provisions. The provi­ EU and its member states. In certain areas, there sions on the internal market and the environment are similarities between the EU and Norway in the are particularly important in this connection. development of policy and legislation, for example Common rules and minimum standards have in the regional electricity markets. been developed for various fields, including oil, natural gas, energy efficiency, renewable energy, electricity and cooperation on energy technology. 15.5 The importance of energy Because of the dynamic processes of change that security is growing are taking place in the energy field within the EU, it is of great interest for Norway to have some influ­ Apart from Russia, Norway will soon be the only ence on legislative developments. It is important country in Europe that is self-sufficient in oil and for the Norwegian energy sector to have stable, gas, and that will not need to worry about energy predictable conditions for exports and interna­ security for many years. In addition, Norway is tional activities. almost self-sufficient in electricity based on renew­ Important aspects of energy cooperation within able hydropower. This makes for a striking con­ the EU are also of importance for cooperation trast with other European countries. Both the EU, within the framework of the EEA Agreement. In individual EU member states and major powers addition, energy sector authorities and businesses such as the US, China, Japan and India are treating within the EEA must comply with the general pro­ energy security more and more as an urgent visions of the EEA Agreement on matters such as national and foreign policy challenge. The threat of competition, state aid and monopolies. The provi­ climate change is exacerbating the situation and sions on the environment and research are also making it more complicated. Strategies to reduce important for the energy sector. greenhouse gas emissions, for example develop­ The most important tasks for EEA cooperation ing more renewable energy sources, will often in the energy sector are related to the further reduce dependence on imports of fossil fuels, development of new initiatives relating to the inter­ which is positive. On the other hand, there is a risk nal market for gas and electricity, new proposals that there will be an increasing shortage of attrac­ concerning energy efficiency and renewable tive energy carriers during the transition to car­ energy, and other environmental policy instru­ bon-free energy alternatives, which is necessarily a ments and their effects on the energy sector long process, and that competition for scarce through the EEA Agreement. Norway considers it energy resources may in the worst case result in important to make use of the opportunities the serious conflicts and war. EEA Agreement offers to have an influence on new In the time ahead, the Government will be con­ legislation for the energy field as a whole. sidering more closely how Norway is affected by As an energy nation, Norway is also affected by the growing focus on energy security, and how many areas of EU cooperation on energy that do Norwegian interests can be pursued in coopera­ not come within the scope of the EEA Agreement. tion and dialogue with other countries and in Examples are taxation, coal, and nuclear power. regional and global institutions. The challenges EU legislation in these areas is therefore not EEA- are coming closer and closer to home. In the last relevant, but nevertheless have a major impact, for few years, several NATO members have been example because it affects the competitive position advocating the Alliance should play a stronger role of different energy carriers. in efforts to secure energy supplies for its member The EU meets a large proportion of its energy states. Although steps to safeguard energy infra­ needs through imports. This means that the EU’s structure in the NATO area could in certain situa­ interests in the energy field are largely consumer- tions trigger a NATO response, Norway is gener­ and import-oriented, while Norway’s interests in ally very sceptical to any militarisation of energy- oil and gas are largely as a producer and exporter. related conflicts. Non-military international and In addition, Norway’s electricity production is regional organisations are in a better position to dominated by hydropower, whereas electricity pro­ resolve such conflicts. National and international duction in the EU is based mainly on coal, oil and action to fight terrorism are also of key importance gas and on nuclear power. This situation requires a in this context. particularly active Norwegian policy vis-à-vis the 2008– 2009 Report No. 15 to the Storting 143 Interests, Responsibilities and Opportunities

15.6 Transparency, cooperation and make use of a variety of instruments aimed at dialogue building commitment on the part of Russia, Ukraine and neighbouring countries to a joint Norwegian energy policy is becoming more inter­ vision of the energy future of Europe and the whole national because of the internationalisation of the world. Norwegian oil industry, and because globalisation, Close cooperation with other countries also of the threat of climate change and geopolitical key importance in the current talks on the need for change are affecting energy security and drawing global institutional solutions to important energy energy policy and foreign policy closer together. issues (energy security, high oil prices, oil and cli­ This poses a challenge for Norwegian policy, but mate, and so on). We know from experience that also offers many opportunities to promote impor­ there is often reason to warn against a belief that tant interests and values. The latter is particularly new global institutions will automatically be able to the case because Norwegian policy in international solve problems when governments and private forums is – and should be – recognisable and in companies cannot. At the same time, the Govern­ line with key principles underlying the develop­ ment recognises that we must address very seri­ ment of the Norwegian petroleum industry: i) ous challenges in the energy field, and will invest transparency and freedom from corruption in the substantial resources in finding good solutions at management of resources and revenues, ii) exten­ both regional and global level. Global discussions sive and innovative cooperation with companies of such issues should take place within the frame­ and authorities in many countries, iii) dialogue and work of the International Energy Forum (IEF). It is participation in the democratic debate on the also in Norway’s interests to play an active role in future of Norwegian petroleum management, iv) the International Energy Agency (IEA), which is sound environmental and resource management, basically an organisation for energy-importing and v) the principle that oil and gas resources countries. The IEA is an important organisation for should benefit society as a whole. Norway, particularly because of its analytical Norway will be a dependable long-term energy capacity and its work on integrated solutions to supplier. Well-functioning, stable petroleum mar­ energy and climate issues. Norway also plays an kets are particularly important to Norway because active role in the Energy Charter. the country earns such large revenues from oil and At the founding conference in Bonn on 26 Jan­ gas exports. Exporters and importers of energy uary 2009, Norway joined the new International are dependent on each other, and both parties are Renewable Energy Agency (IRENA). Its purpose is interested in predictability and stable markets. to promote the use of renewable energy world­ Transparency and dialogue are key elements of wide, particularly in developing countries. The Norwegian energy market policy, and are intended Government also intends to promote the use of to improve access to information, increase predict­ renewable energy; this is essential if we are to suc­ ability, reduce uncertainty and help to stabilise ceed in reducing greenhouse gas emissions. The markets. We also give priority to bilateral dialogue establishment of IRENA sends a positive signal in with important producer and consumer countries the run-up to the Climate Change Conference in and with international organisations that deal with Copenhagen later this year. Norway wishes energy issues, particularly if dialogue and IRENA to become an effective organisation with exchange of knowledge and information between clear targets. It is natural for Norway to take part consumer and producer countries is part of their in IRENA from the very beginning, since we are agenda. one of the leading countries and the field of renew­ Cooperation and engagement are particularly able energy, and this gives us an opportunity to important in the critical energy security situation a influence the development of the agency with a number of European countries are experiencing view to making it an effective tool for achieving a today. In talks with other countries, Norway greener future. emphasises the need to cooperate with Russia and Dialogue is a key means of promoting Norwe­ draw the country into efforts to find joint solutions gian energy interests in a more and more challeng­ to the energy challenges facing Europe. A clear ing global energy situation. The Government has and closely coordinated response is needed if the intensified its energy dialogue with important integrity and welfare of European countries is countries in recent years, giving high priority to threatened by cuts in energy supplies. But in the explaining and gaining support for Norwegian Government’s view, this is far from the case, and in principles for management of the resource-rich but the current situation it is of crucial importance to environmentally vulnerable High North. The inte­ 144 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities grated management plan for the Barents Sea–Lofo­ 15.7 Better governance of the energy ten area has attracted considerable international sector in developing countries attention, and has been presented to various coun­ tries, including Canada, the US and Russia. Within The Norwegian oil and gas industry considers it the bilateral cooperation between Norway and Rus­ very important to achieve global success as the sia, Russia has indicated its interest in developing expected decline in oil production, and later gas a similar approach to the management of its part of production, takes place on the Norwegian conti­ the Barents Sea. The energy dialogue with other nental shelf. Norwegian energy interests are best countries also focuses on how countries and com­ served by global investment and export markets panies can cooperate on developing technology for that are as transparent, stable and predictable as carbon capture and storage as rapidly as possible. possible. Important parts of this sector are depend­ Countries such as China, India, Brazil and Indone­ ent on a long-term approach. As in the North Sea, sia will be important dialogue partners in the time a horizon of at least 15–20 years is often needed to ahead, particularly given the climate-related chal­ justify major investments. In addition to general lenges we will have to deal with. business promotion, long-term efforts by Norwe­ Our contact with OPEC is based on dialogue gian and other countries’ authorities to promote and the exchange of information. It has never been conflict resolution, development and growth in an option for Norway to join OPEC, nor do we take unstable areas therefore make an important contri­ part in OPEC meetings. However, in exceptional bution to an investment climate that serves Nor­ circumstances, on an independent basis, and as a way’s broader interests and that also improves natural part of its responsibility for natural security of supply internationally. resource management, Norway has regulated oil At the same time, it poses considerable chal­ production as a means of stabilising oil prices. lenges that a large proportion of the world’s the Such steps have been taken on the basis of Nor­ remaining oil and gas resources is in countries with way’s overall interests, in cases where we have con­ undemocratic systems of government and where sidered oil market conditions to be extraordinary there are often serious violations of human rights. in the sense that oil prices have been particularly Many countries are finding it difficult to translate low or there have been signs that prices might oil and gas revenues into economic development drop to a level that would have substantial negative and growth. States that were weak and fragile to impacts on the Norwegian petroleum industry and begin with have proved to be very vulnerable to the Norwegian economy. corruption and misrule in the wake of large oil Transparency, good governance and freedom revenues. According to the IMF, living conditions from corruption are important principles for the for the population have deteriorated dramatically development of Norwegian petroleum manage­ in countries such as Nigeria, which has enjoyed ment. Sound regulation and transparency are as more than 30 years of substantial oil revenues. much in Norway’s interests in regional and global The Government expects Norwegian compa­ markets as on the Norwegian continental shelf. nies to comply with national legislation and in addi­ Norway needs to defend important industrial inter­ tion to follow Norwegian/Western standards for ests vis-à-vis EU member states, EU institutions, good business practice and global norms and con­ the WTO and other international forums. Norway ventions on human rights and corporate social is also an active partner in the Extractive Industries responsibility. There have been oil-related corrup­ Transparency Initiative (EITI), which aims to tion cases involving Norwegian companies in Iran strengthen governance in the oil, gas and mining and Libya in recent years, which illustrate how sector through greater transparency about reve­ challenging it can be to operate in these markets. nue flows in countries that often have considerable The Norwegian Oil for Development initiative, problems with weak governance. The Interna­ which is motivated by development policy goals, is tional Energy Forum (IEF) is receiving substantial expected to result in better, more transparent man­ Norwegian support for its initiative to improve pro­ agement of energy resources in developing coun­ duction and consumption data for oil, something tries. that is needed to ensure more stable and predict­ The initiative draws on the whole breadth of able markets and prices for fossil fuels. Norwegian oil expertise. It takes a broad approach, including capacity-building and institu­ tional cooperation on resource, revenue and envi­ ronmental management. Oil for Development and related Norwegian initiatives have to strike a bal­ 2008– 2009 Report No. 15 to the Storting 145 Interests, Responsibilities and Opportunities ance between several different interests. Norwe­ integrated water resources management and on gian expertise is in demand precisely because Nor­ the links between energy and environment. Since way has so much relevant experience, but as many the early 1990s, Norway has been a world leader in people have pointed out, the initiative also func­ creating a commercial power market. More tions as a door opener for the Norwegian oil indus­ recently, we have also developed expertise in solar try. The distinction between StatoilHydro and the and wind power. Norway has for several decades Norwegian state can easily become blurred in been running aid projects to assist partner coun­ countries that do not maintain such a clear separa­ tries in developing legislation and reforming and tion between politics and business. Many people organising the energy sector. Norwegian experts have therefore asked whether Oil for Development have also been involved in planning in the energy is blurring the distinction further. sector, from overall national plans to planning and The Government recognises these problems. construction of power plants. This type of coopera­ To maintain a clear distinction between business tion is much in demand. Norway has also been an promotion and development policy, Oil for Devel­ active supporter of efforts to strengthen regional opment has drawn up guidelines for using the cooperation in the energy field, for example in the expertise of oil companies and the supply industry Nile basin and southern Africa. in the initiative. At the same time, we have met gen­ In addition to the capacity available in the pub­ eral international acceptance of the fact that pre­ lic sector, NGOs and research and education insti­ cisely oil-producing countries with wide expertise tutions, there is considerable industrial expertise and relevant experience are in the best position to in Norwegian energy companies. SN Power Invest, give advice to new oil countries. A high degree of which is owned by Statkraft and Norfund, has transparency is therefore required in all relation­ invested in and built a number of hydropower ships, including how the Norwegian embassies in plants in South America and Asia, and has showed relevant countries combine business promotion that this can be done on a sound commercial basis with assisting the authorities in their host coun­ by building on Norwegian expertise and experi­ tries with governance of the petroleum sector and ence. Several large Norwegian energy companies providing support for civil society. are also interested in taking part in hydropower developments in developing countries. The Trøn­ derenergi Group, together with Norfund, is cur­ Norwegian initiative for clean energy in developing rently completing the construction of a hydro­ countries power plant in Uganda. About half of all global greenhouse gas emissions As an energy nation, Norway is well placed to are generated by energy production. The growth assist developing countries in their efforts to in thermal power production based on coal and oil address energy-related challenges. In addition, is a major challenge in the fight against anthropo­ such initiatives can bring about direct reductions genic climate change. At the same time, Africa, in greenhouse gas emissions. Intensifying Nor­ Asia and Latin America have a large potential for way’s clean energy efforts will also give an impor­ the production of clean, renewable energy in the tant signal of our willingness to play a part in trans­ form of hydropower, solar power and wind power. fers of technology to poor countries, which may be Lack of access to modern forms of energy is hinder­ important in the climate negotiations. ing economic and social development in many poor This is part of the backdrop to the Govern­ countries. For poor people, prices are too high and ment’s Clean Energy for Development initiative, access to clean energy too limited, so they are which is intended to provide a framework for all forced to make ineffective use of biomass, coal or Norwegian aid in this field. The initiative includes kerosene. For the business sector, unreliable or support for capacity building in the energy sector, limited electricity supplies mean high costs and so that energy resources are used more effectively restrictions on production capacity, discouraging and systematically. Another important component the establishment of new firms. The development of the initiative is to encourage and help Norwe­ of local, renewable energy sources would improve gian firms to invest in hydropower and other clean security of supply and reduce dependence on energy projects in developing countries. Such imported energy in many countries. investments must be made on commercial terms, Norway started to develop its own hydropower but using development funding to provide strategic sector in the early 1900s, and has built up consider­ support, for example for planning, can encourage able expertise in hydropower and energy manage­ firms to decide to implement projects. ment. This includes a high level of expertise in 146 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Many people, particularly in rural areas in poor Bank and the regional development banks, as well countries, will not have access to modern grid- as several global clean energy initiatives. based energy for many decades. The Clean Energy Looking beyond the time frame of ordinary for Development initiative therefore also includes development cooperation, public-private partner­ support for various poverty-related measures such ships in the energy sector is also of interest as a as electrification in rural areas using solar energy, permanent field of cooperation between Norway more effective wood stoves and mini hydropower and countries that have hydropower, solar or wind schemes for local use. Norway is also supporting a energy resources, based on joint political and com­ variety of energy activities through multilateral mercial interests. programmes and projects in the UN, the World 2008– 2009 Report No. 15 to the Storting 147 Interests, Responsibilities and Opportunities

16 Giving priority to Norway’s environmental, climate and natural resource interests

16.1 The international dimension of and the political values Norway wishes to foster Norway’s environmental interests and defend. The Government intends to build on the solid “Sustainable development is development that platform for environmental and climate issues in meets the needs of the present without compro­ Norwegian society, with a basis in the six reasons mising the ability of future generations to meet listed below for taking environmental and climate their own needs.” This was the definition used by interests seriously in the international context. the World Commission on Environment and Devel­ • Unless the world community can shift to more opment in 1987. In 2002, Norway joined the rest of sustainable production and consumption pat­ the world in assuming “a collective responsibility terns, pressure on the environment and ecosys­ to advance and strengthen the interdependent and tem services will continue to increase, ulti­ mutually reinforcing pillars of sustainable develop­ mately resulting in irreversible degradation of ment – economic development, social development the very basis for life, and narrowing choices and environmental protection – at the local, for future generations. national, regional and global levels” in the Johan­ • People have no moral right to destroy the natu­ nesburg Declaration on Sustainable Development, ral environment, and Norway is not entitled to which was adopted at the World Summit on Sus­ accept that species become extinct or to use up tainable Development in Johannesburg. Thus, it is the natural resource base for future genera­ in Norway’s own interests to work towards sustain­ tions or less fortunately situated countries. able development, and we share a global motiva­ • If greenhouse gas emissions are not reduced, tion and have also made a commitment to do so. Norway will suffer serious social, economic Norwegian environmental interests are com­ and environmental consequences. plex. Norway has undertaken to work towards • A strong Norwegian engagement in global international targets such as achieving a signifi­ environmental issues, including those where cant reduction in the rate of loss of biodiversity by difficult choices need to be made, builds up 2010. Such targets are also in Norway’s own inter­ political credibility. This is an important asset ests. Norway’s environmental interests also when seeking to persuade other countries to include safeguarding key assets and meeting key become engaged in the issues Norway consid­ needs, for example related to value creation in the ers to be particularly important, such as cli­ fisheries, agriculture and tourism. Thus, Norway’s mate change, releases of hazardous sub­ environmental interests provide the basis for stances, the loss of biodiversity, the High important elements of the country’s economic North and sustainable fisheries management. development and growth. Decisions to give prior­ • It is in Norway’s own economic interest to pro­ ity to environmental concerns are also value tect the environment and maintain its reputa­ choices. This is an example of the extended scope tion as a clean country, which benefits parts of of Norway’s interest-based policy and of an area the Norwegian export market and Norwegian where Norway has a particularly strong interest in value creation. binding international cooperation. The Govern­ • Norwegians generally consider a clean envi­ ment does not interpret Norwegian interests as ronment and sustainable management of natu­ exclusively economic: they also include acting to ral resources to be important. promote our values internationally. Environmental issues provide a good illustration of the links In a foreign policy context, it is natural to empha­ between interests and values: there are close con­ sise the international dimension of Norway’s envi­ nections between less tangible interests such as ronmental and natural resource interests, focusing opportunities to enjoy the natural environment, a on climate change and other global threats that good quality of life and a secure sense of identity affect Norway, and on Norway’s global ecological 148 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities footprint. It should also be remembered that many continuing rise in the use and releases of environ­ apparently national environmental issues – from mentally hazardous substances are the three most conservation of coniferous forests (the contro­ serious global environmental threats today. Efforts versy over the protection of the Trillemarka area is to address these threats must be given a prominent a case in point) to devising a sound policy for large role in the Government’s international work. carnivores and the establishment of national parks – have an important international dimension, espe­ cially since Norway has made many commitments Climate change under regional and multilateral environmental Norway has set itself ambitious and challenging agreements. Norway’s relations with the EU and climate-related goals. This means that addressing decisions and rules under the EEA Agreement are climate change is one of Norway’s main foreign particularly important. The EU dimension of Nor­ policy tasks, which will involve new foreign policy wegian environmental policy has for a long time challenges in the years ahead. It is important to been blurring the distinction between the local or ensure that efforts in this field are properly plan­ national and the international or global. ned and have a long-term perspective, rather than making quick bursts of effort. Addressing climate change requires international cooperation both on 16.2 Global environmental threats that mitigation measures and on adaptation measures affect Norway to deal with change that is inevitable regardless of the cuts that are made in global emissions. Rising concentrations of greenhouse gases in the The Intergovernmental Panel on Climate atmosphere, the rapid loss of biodiversity and a Change (IPCC) has concluded that global warm-

Figure 16.1 Projected greenhouse gas emissions in 2025 * Russia, Ukraine, the Baltic States, Belarus, Moldova and countries in the Caucasus and Central Asia Source: Baumert, Kevin A., Timothy Herzog and Jonathan Pershing (2005) Navigating the Numbers: Greenhouse Gas Data and Inter- national Climate Policy. Washington DC: World Resources Institute 2008– 2009 Report No. 15 to the Storting 149 Interests, Responsibilities and Opportunities ing must be limited to two degrees Celsius to avoid As an oil and gas nation, Norway will continue dangerous interference with the climate system. to export fossil fuels for the foreseeable future. In Norway’s international climate policy is therefore a future where energy needs are high but emis­ based on the two-degree target. Achieving this tar­ sions must be substantially reduced at the same get will require a high level of participation in a time, the world will need broad-based efforts to future climate change regime. Norway’s national promote energy efficiency and a shift to greater target is to reduce global greenhouse gas emis­ use of renewable energy and deployment of carbon sions by the equivalent of 30% of its own 1990 emis­ capture and storage. These are areas where Nor­ sions by 2020. Furthermore, Norway has under­ way can make a contribution. Norway’s engage­ taken to achieve carbon neutrality by 2030 pro­ ment in the development of CCS is intended to give vided that an ambitious global climate agreement substantial cuts in emissions abroad as well as in is reached. Norway. Norway will also make use of its expertise Dealing with the problem of climate change in the energy sector in other contexts, including will require far-reaching measures in all countries. the development of offshore wind farms and Norway will therefore continue to be a driving hydropower developments in countries where con­ force in efforts to establish a climate regime that is ditions are suitable. as ambitious and universal as possible through the However, regardless of any emissions reduc­ international climate negotiations, with the UN tions achieved, climate change is taking place, and Framework Convention on Climate Change its impacts are already apparent. These include (UNFCCC) and the Kyoto Protocol as the key more intense and more frequent extreme weather framework. A future international climate regime events and drought. More gradual changes such as should include a global emissions ceiling and cost- a rising sea level will entail substantial costs for effective mechanisms for emissions reduction. It society, increasing over time. Norway has the should also provide incentives to speed up the capacity to adapt to the direct impacts of climate deployment of carbon capture and storage (CCS) change, but many vulnerable developing countries, techniques and to limit emissions from deforesta­ which are contributing least to the problem, are tion and forest degradation. To achieve the two- being harder hit and do not have the same degree goal, it will be essential for the new regime resources for adaptation. Norway has a responsi­ to apply to the US and major developing countries bility to help poor countries where the impacts of such as India and China; at the same time, CCS climate change are much more serious. Developed technologies must be developed and deployed. countries must help developing countries to cope In addition to playing an active role in the inter­ with a changed climate. Moreover, it is in Norway’s national climate negotiations, Norway must work own interests to play a part in ensuring that world towards technological change in a variety of other food production is stable, that the population has bilateral and multilateral forums, so that the access to water and that people can continue to live world’s growing energy needs can be met sustain- in their local communities. These are ways of mod­ ably. Climate issues are on the agenda of several erating indirect impacts of climate change, which international organisations in which Norway par­ may include intensifying conflicts and migration. ticipates, for example the OECD, the International In preparing national and international climate Energy Agency (IEA), the International Maritime actions, the Government will also give priority to Organization (IMO) and the International Civil initiatives that will enhance synergies with efforts Aviation Organization (ICAO). As long as the related to biodiversity and other environmental UNFCCC system does not cover emissions from issues. international transport, it is particularly important We have only just begun to understand how cli­ for Norway to work actively towards cuts in these mate change may affect peace, security and health emissions within IMO and ICAO. It is a positive issues. The UN Security Council discussed climate step that the EU has decided to include flights change and its implications for security for the first arriving at and departing from EU airports in its time in 2007, and the EU has started a process to emissions trading scheme from 2012 onwards. clarify how the security policy challenges associ­ Norway will also take an active approach to the ated with climate change can be addressed. Nor­ development of other climate and energy policy way is also seeking to take part in this debate. One instruments within the EU, partly because such problem is that the threat is perceived as abstract, instruments will often have to be implemented in and countermeasures are not well-defined. Climate Norway as well as part of the EEA Agreement. change will not necessarily be the only underlying cause of conflict, but it may exacerbate local and 150 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities regional tensions related to scarce natural There is a potential for increasing cooperation resources and increase the number of refugees between Arctic states and non-Arctic observers. from countries where the impacts of climate Norway intends to focus attention on the links change are severe. Norway is also seeking to raise between trade policy and climate-related mea­ awareness of the humanitarian consequences of sures. Trade policy must not prevent the develop­ climate and environmental change in its follow-up ment of new climate policy initiatives; on the other of the white paper Norwegian Policy on the Preven- hand, climate-related measures must not entail tion of Humanitarian Crises (Report No. 9 (2007– unjustified or arbitrary restrictions on trade. 2008) to the Storting) and as a contribution to the Expertise needs to be built up in this area. It is work of the IPCC. This is also a central element in essential that the international trade and environ­ steps to strengthen bilateral cooperation on the ment regimes rules are mutually supportive. Trade prevention of humanitarian crises with countries policy is an important and relevant part of work on such as China, Vietnam, Bangladesh and Cuba. multilateral environmental agreements, and the In other areas of foreign policy where climate links between different international agreements change is an important factor, the time horizon must be considered more closely. may be much longer. The dramatic changes in the The scale of the challenges posed by climate Arctic are a warning to the whole world. It is not change is such that international efforts must have only polar bears that are endangered by melting of a long-term perspective. The transition to a low- the polar ice cap. Melting of polar land and sea ice emission economy and to a society that is capable masses will have an impact far beyond the region – of adapting to inevitable climate change will the consequences will be global. A reduction in change the basis for international cooperation in a snow and ice cover enhances global warming number of areas and have major consequences for because it reduces Earth’s albedo, which means global distribution policy, and thus also for our for­ that less of the incoming solar radiation is eign and development policy. reflected. At the same time, we will experience growing interest in the High North as previously inaccessible resources become more readily avail­ Loss of biodiversity able. Natural resources in the vulnerable Arctic The loss of biodiversity is one factor in the degra­ environment must be used in a way that is as safe dation of the world’s ecosystems, which is threat­ and environmentally sound as possible. There is ening important ecosystem services. New knowl­ also a possibility that international conflict may edge shows that over the past 50 years, humans arise over raw materials in the Arctic. The Conven­ have changed and damaged ecosystems more rap­ tion on the Law of the Sea provides a legal frame­ idly and extensively than in any comparable period work for peaceful use of the seas which is also of time in human history Species are now being applicable to the Arctic. Nevertheless, we need a lost at a rate that is 100 to 1000 times higher than forward-looking foreign policy that can reveal the natural rate of extinction at any time in the past potential conflicts at an early stage and meet them few million years. This is alarming because ecosys­ with far-sighted action and peaceful solutions. tems produce goods and services on which people The Arctic Council, the only circumpolar depend. These include food, water, fuel, medicines organisation, is playing an increasingly important and building materials. Intact ecosystems also play role. It should be strengthened so that it effectively a key role in climate regulation and in biogeochem­ addresses the impacts of climate change, particu­ ical cycles in water, air and soils, and provide better larly in the Arctic Ocean. The Council’s continuing protection against natural disasters. efforts to develop environmental standards for the The loss of biodiversity is an irreversible proc­ utilisation of natural resources are valuable. It will ess that restricts our future options. Ecosystem also be important to improve the Council’s capacity services are of key importance for people’s living to share guidelines and knowledge with other conditions and for development in all parts of the international forums. Norway and other Arctic world. Everyone will be affected by a reduction in countries have a particularly important role to play the quality of these services. An international in communicating information on climate change study points out that degradation of ecosystem in the Arctic based on research and monitoring services will make it more difficult to achieve the results. China, Italy, South Korea, Japan and the Millennium Development Goals. Norway will take European Commission have been showing grow­ active steps to strengthen global knowledge of bio­ ing interest in the Arctic, and have recently diversity and ecosystem services. requested observer status in the Arctic Council. 2008– 2009 Report No. 15 to the Storting 151 Interests, Responsibilities and Opportunities

The causes of the loss of biodiversity are com­ form such dense stands that they choke water­ plex, but changes in land use are considered to be ways, and animals or plants may outcompete native the greatest threat both in Norway and internation­ species or cause disease outbreaks in farmed spe­ ally. Other threats to biodiversity are climate cies. The costs of dealing with invasive alien spe­ change, the introduction of alien species, over- cies can be high, and experience shows that it is exploitation and pollution. often difficult to eradicate them. The salmon para­ The UN Convention on Biological Diversity is site Gyrodactilus salaris came to Norway with the most important international instrument in this imported salmon smolt in 1975 and now causes field. The Convention has three objectives: the con­ annual losses in the order of NOK 200–250 million servation of biological diversity, the sustainable to the Norwegian economy. Expanding trade and a use of its components, and the fair and equitable growing volume of transport are two of the reasons sharing of the benefits arising out of the utilisation why new species are being introduced to Norway. of genetic resources. Norway has traditionally put In 2004, the International Convention for the Con­ most emphasis on the objective of sustainable use, trol and Management of Ships’ Ballast Water and and this is an important aspect of environmental Sediments was adopted. This is a very important development cooperation. Sustainable use of biodi­ instrument for dealing with the problem of the versity helps to maintain supplies of resources that spread of alien species in the marine environment. are an essential basis for decent living conditions Norway has ratified the Convention, but it has not and development, and to ensure that they are also yet entered into force. available for future generations. Norway has given Norway plays an active part in international high priority to efforts to negotiate a new regime efforts to safeguard biodiversity. This is important for access to genetic resources and benefit-shar­ both for Norway as an environmental nation and ing. A satisfactory result will be important in encour­ because Norwegian interests are directly affected. aging active global implementation of the Conven­ This work is linked both to the international trade tion. Norway is continuing to play a role as a regime and to efforts to combat climate change. It bridge-builder between developed and developing is a high-priority goal to ensure the greatest pos­ countries in the negotiations. sible synergy between solutions adopted by Nor­ Forest is one element of the world’s biodiver­ way in these different fields. sity and provides important global ecosystem serv­ ices, particularly in connection with global climate regulation. Forests store huge quantities of carbon Hazardous substances and buffer rising carbon emissions by absorbing Hazardous substances can be a serious threat to carbon dioxide from the atmosphere. Current people and the environment. This applies particu­ deforestation and forest degradation, for example larly to chemicals that are toxic, persistent (do not as a result of the conversion of forest to farmland, break down easily) and bioaccumulative (build up involve the loss of this important ecosystem serv­ in food chains and the environment), such as per­ ice, which helps to stabilise the global climate. This sistent organic pollutants (POPs) and heavy met­ is the backdrop for the Government’s International als. Once such substances have been released, it Climate and Forest Initiative, which was launched takes a long time before levels in the environment at the Bali summit in 2007. and food chains are reduced again, even if releases Climate change will have direct impacts on bio­ are stopped. The world community has recognised diversity, since changing temperatures affect how that the use and release of hazardous substances is well individual species survive and thus the spe­ not in accordance with sustainable development. cies composition of ecosystems. Higher tempera­ The UN summit in Johannesburg in 2002 therefore tures are likely to result in a northward shift of the adopted a new goal of minimising adverse effects distribution of many species, and the nature man­ on human health and the environment from the agement authorities must be prepared for this. use and production of chemicals by 2020. Cooperation and information exchange with coun­ In addition to national emissions, there are con­ tries further south is important as a way of ensur­ siderable inputs of dangerous pollutants to Nor­ ing that Norway is as well prepared as possible for way and the High North as a result of long-range such changes. transport with winds and ocean currents. Nation­ Invasive alien species that are unintentionally wide advisories to limit the consumption of large introduced into the Norwegian environment may predatory freshwater fish have been issued in Nor­ cause serious damage to naturally occurring spe­ way because of high levels of mercury. Monitoring cies and ecosystems. For example, some plants of the Arctic environment has documented high 152 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities levels of POPs (such as PCBs and DDT) and mer­ ing high priority to combating IUU fishing in cury from sources outside the Arctic. This has par­ recent years. A number of measures such as a pro­ ticularly serious effects on animals high in food hibition against transhipments of catches and chains, such as polar bears, glaucous gulls and stricter port state controls have been introduced in killer whales. In recent years, rising levels of new the North-East Atlantic. Using flags of convenience pollutants such as PFOS and brominated flame and transhipping catches are two of the most retardants have also been documented in the Arc­ important ways in which private companies try to tic. avoid surveillance and control. These issues are International trade in a variety of products also given high priority in Norway’s fisheries and High contributes to the transport and dispersal of haz­ North policy, and Norway is also investing heavily ardous substances. When products that contain in a robust, integrated fisheries management such substances are used or discarded as waste, regime. pollutants are released, and people, animals and The management plan for the Barents Sea– the environment may be exposed to pollution far Lofoten area adopted by the Storting in 2006 conti­ away from the production site. Few of the products nues Norway’s policy for ecosystem-based man­ used in Norway are manufactured in the country agement of marine resources, in line with the 1995 or specifically for the Norwegian market. It is a United Nations Fish Stocks Agreement and FAO’s demanding task for importers to ensure compli­ Code of Conduct for Responsible Fisheries of the ance with special Norwegian rules for chemicals in same year. The management plan is intended to products and for the supervisory authorities to provide a framework for the sustainable use of nat­ enforce them. Furthermore, the international ural resources and goods derived from the Barents trade regime sets limits for the use of policy instru­ Sea–Lofoten area and at the same time maintain ments at national level. the structure, functioning and productivity of the On the basis of an ambitious national chemicals ecosystems of the area. The plan clarifies the over­ policy, Norway has been able to act as a driving all framework for both existing and new activities force and take initiatives in international and regio­ in these waters, and thus facilitates the coexistence nal cooperation on chemicals, for example phasing of different industries, particularly the fisheries out the most dangerous substances, waste man­ industry, maritime transport and petroleum indus­ agement and ship recycling. The Government try. Norway was one of the first countries to wishes Norway to continue to play an active role in present an integrated management plan for a sea this field. A number of international agreements on area. The EU and other countries are adopting sim­ dangerous chemicals and hazardous waste have ilar management criteria. We manage the seas been adopted to deal with these global problems. jointly with other countries, and our neighbours’ Norway is working towards the inclusion of more actions necessarily have an effect on the environ­ substances in the Stockholm Convention on Per­ ment in our own waters – long-range pollution is a sistent Organic Pollutants and the POPs Protocol good example. It is therefore important for key of the ECE Convention on Long-range Trans- actors to reach a common understanding of the boundary Air Pollution. Norway is also working basis for ecosystem-based management of marine actively towards a global instrument to reduce resources. releases of mercury and other heavy metals. For In addition to active, ongoing diplomacy vis-à­ the global agreements to have full effect, it is also vis key countries such as Russia, regional and important to strengthen capacity building and international fisheries management organisations technical assistance to developing countries and are important for enforcement and control. The thus put them in a better position to meet their obli­ Joint Norwegian-Russian Fisheries Commission gations. and the North East Atlantic Fisheries Commission (NEAFC) are the two key organisations. The EU, the International Council for the Exploration of the Illegal, unreported and unregulated fishing Sea (ICES) and FAO are also important forums for Illegal, unreported and unregulated fishing (IUU the development of legislation that affects other fishing) is the greatest threat to sustainable man­ actors’ positions as regards issues that are very agement of fish stocks in Norwegian sea areas. important to Norway. In recent decades, a number Overcapacity in the fishing fleets and high expecta­ of bilateral and regional agreements have been tions of profits put pressure on management concluded for the purpose of sound, sustainable regimes. The authorities both in Norway and in management of fisheries resources. countries with which we cooperate have been giv­ 2008– 2009 Report No. 15 to the Storting 153 Interests, Responsibilities and Opportunities

ural resources that are the basis for a considerable Risk of radioactive pollution from Russia level of economic activity, and it is very important The concentration of nuclear installations and to safeguard the basic structure and functioning of accumulation of radioactive waste and nuclear the ecosystems of sea areas in the long term, so material in northwestern Russia represents a risk that they continue to be clean, rich and productive. of radioactive contamination through releases of Traditionally, the primary users of Norwegian sea radioactivity and accidents. Norway has a clear areas have been the fishing and maritime transport interest in limiting the risk as much as possible. industries. However, this situation is changing rad­ Since the end of the Cold War, substantial political ically. The extraction of oil and gas is one of the and financial resources have therefore been newer activities that must be regulated and coordi­ invested in improving nuclear safety, in coopera­ nated with more traditional activities, and a balance tion with Russia and other countries. In all, Norway must be struck between the various interests has allocated NOK 1.4 billion to these efforts. A involved. In addition, the growing focus on climate great deal has also happened in forums where Nor­ change fuels objections to further development of way does not play a leading role. For example, the the Norwegian continental shelf on environmental Northern Dimension Environmental Partnership grounds, and for the environmental movement, it made EUR 150 million available for nuclear safety gives a new and practical dimension to the debate measures in Russia in 2007. In 2002, the G8 on the pace of Norwegian oil extraction. launched its Global Partnership against the Spread The management plan for the Barents Sea– of Weapons and Materials of Mass Destruction. Lofoten area establishes a framework for petro­ This is relevant in the context of the threats Nor­ leum activities in the area that will protect particu­ way faces in the High North, and the Norwegian larly sensitive areas that are vulnerable to the pres­ authorities are providing funding with a budgetary sures and impacts associated with oil and gas activ­ framework of EUR 150 million over a ten-year period. ities. In addition, new fields in the Barents Sea The most important achievements so far are a must meet stricter environmental standards than considerable improvement in safety standards at existing ones in the North Sea: for example, dis­ the Kola nuclear power plant, a rapid increase in charges of produced water are no longer permit­ the pace at which nuclear submarines are being ted. The risk of a major blowout that pollutes the dismantled, the construction of storage and pro­ shoreline, harms animals and causes environmen­ cessing plants for spent fuel and waste, and safer tal damage remains the greatest concern. Our con­ management of spent nuclear fuel. The importance tinued lack of knowledge about ecological relation­ of the best possible standards for nuclear safety is ships in vulnerable coastal areas complicates the also increasing with the expansion of business discussion on how to strike a sound balance cooperation and the increasing focus in global mar­ between protection and use. kets on safe, environmentally sound products. The international character of the industry is of Russia’s economic growth is resulting in more key importance, but it should be noted that Norwe­ investment in nuclear-powered installations, com­ gian actors (primarily StatoilHydro and Petoro) bined with growing willingness and capacity to account for well over half the activity on the Nor­ ensure safe operations and adequate safety mea­ wegian continental shelf. Norwegian and interna­ sures. Norway and the rest of Europe will probably tional oil and supplier companies are collaborating have to live with a growing number of nuclear ice­ closely on a strategy for opening new areas for breakers, submarines and ships and floating exploration, for instance within the Norwegian Oil nuclear power plants in northwestern Russia in the Industry Association. Russian petroleum activity is years ahead. In response to this, Norway and the a potential threat to the marine environment in EU should give priority to cooperation with Rus­ Norway’s northern sea areas. The formal environ­ sian regulatory authorities on health, environmen­ mental standards are at least as high in Russia as in tal and safety activities in all parts of the Russian Norway, but there have been many complaints that nuclear industry, and to continuing their efforts to Russian actors fail to meet their obligations and deal with the remaining legacy of the Cold War. that monitoring is inadequate. The overall environ­ mental picture is therefore probably much more positive in Norwegian waters than in Russian Environmental risk associated with production and waters. transport of petroleum in Norwegian sea areas Growing international interest in oil and other Norway has a long tradition of utilising the riches resources in the Arctic is raising a whole range of of the seas. Marine ecosystems support living nat­ new environmental issues. There is a great deal 154 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities that is uncertain, but it is wise of Norway to invest mate and the local economy, but can also have heavily in environmental expertise and informa­ adverse environmental impacts locally. Private tion in step with rising geopolitical tension and a Norwegian-owned companies are major actors in growing demand for energy resources from the fish farming globally, and the environmental chal­ north. The Arctic Council is an important arena for lenges involved are, if anything, greater in Chile Norway in this context. The Norwegian chairman­ than in Norway. Imports of tropical timber have ship from autumn 2006 to spring 2009 focused on often been linked to deforestation and unsustain­ the impacts of climate change in the Arctic and able forestry. Under the UN Convention on Biologi­ integrated resource management, inspired by cal Diversity, it has been decided to establish the work along similar lines in the Barents–Lofoten ecological footprint as one of the global indicators area. of sustainable use of biodiversity. Shipping along the Norwegian coast is subject to comprehensive legislation and control and enforcement procedures, but still involves a con­ How do we measure environmental pressure? siderable environmental risk. The technology is How much pressure does Norway put on the glo­ being improved, but the volume of traffic will also bal environment? How can we measure the coun­ increase substantially in the years ahead. It is esti­ try’s performance, and how does it compare with mated that the volume of oil shipped westwards that of similar countries? Not badly, according to from northwestern Russia will rise from 10 to per­ the Commitment to Development Index published haps 50 million tonnes per year by 2015. However, annually by the Center for Global Development in Russia transports far greater volumes of oil Washington DC. The index ranks 22 of the world’s through the Baltic Sea – about 80 million tonnes in richest countries based on their dedication to poli­ 2007. Russian oil tankers operating in international cies that benefit poorer nations worldwide. The traffic are generally of a high standard. Other ves­ environment element includes greenhouse gas sel traffic along the coast represents at least as emissions, climate policy (petrol taxes etc), subsi­ great a risk of oil spills as oil transport. Human dies to international fishing fleets, imports of trop­ error is the most important cause of oil spills (a key ical timber and participation in important multilat­ factor in 80% of all cases), but broad-based efforts eral environmental agreements. In recent years, to build up the oil spill emergency response are Norway has consistently scored very highly on yielding results. Both the Norwegian authorities environmental performance. and the shipping industry are playing an active The Norwegian economy is small in global part in international cooperation to reduce risk, for terms, and the overall pressure Norway puts on example with the International Maritime Organiza­ the environment, or the ecological footprint of the tion (IMO). country as a whole, as opposed to the ecological footprint of each Norwegian, is therefore bound to be fairly limited. Not surprisingly, Norway gener­ 16.3 How much pressure does Norway ally has the greatest impacts in economic sectors put on the environment abroad? where the country is of importance globally: energy (oil and gas, hydropower), fisheries (espe­ Norway’s economy is globalised. Norwegian eco­ cially aquaculture investments) and shipping. A nomic activity creates development, but also puts large proportion of the country’s ecological foot­ pressure on the environment and common global print is caused by commercial Norwegian actors, resources. Norway’s global oil investments have and in principle, the responsibility for this lies with an impact on local environmental conditions, both the companies and not with the Norwegian author­ at sea, and in the case of the extraction of oil sands, ities. However, environmental problems are one of in vulnerable areas on land. The regulatory the most obvious expressions of the activities of a regimes of the countries involved are generally far country’s business sector abroad, so to a certain less strict than on the Norwegian continental shelf, extent they reflect negatively on the country’s gov­ not least as regards the environment. Norwegian ernment, both in practical terms and by tarnishing shipping maintains very high standards, but its its reputation. This is partly because the compa­ sheer size means that it represents an environmen­ nies involved often have substantial public owner­ tal risk in other countries’ sea areas, and growing ship or benefit from export subsidies. At the same attention is being paid to greenhouse gas emis­ time, as we have seen earlier, the distinction sions from shipping. Investments in hydropower in between the Norwegian authorities and commer­ developing countries may be positive for the cli­ cial companies is far clearer in the minds of Norwe­ 2008– 2009 Report No. 15 to the Storting 155 Interests, Responsibilities and Opportunities gians than it is to the authorities and general public tions and the interests of indigenous peoples into in countries such as Iraq, Nigeria, Chile and account as an integral part of their projects, even in Mozambique. developing countries with weak regulatory The Government Pension Fund – Global: the regimes. The work of the World Commission on Fund rarely owns more than 1% of the shares in Dams is an important basis for this development. companies in which it invests (and never more Secondly, a number of African countries have criti­ than 10%), and is thus not one of the main contrib­ cal power supply shortages, which means that the utors to environmental problems in other coun­ burden of proof tends to be more on the opponents tries. However, because of the size of the Fund and of developments. Thirdly, rapidly increasing con­ interest in the influence it can have in an environ­ cern about the environment means that hydro­ mental context, the competent authorities decided power is in a more favourable position, for example to include avoidance of serious environmental in competition with nuclear power. damage as one element of its ethical guidelines. So The Norwegian oil industry and local environ- far, the Fund has excluded about 30 companies in mental problems: StatoilHydro is now operating in accordance with these guidelines, in three cases 25 countries, and Norwegian suppliers in even on the grounds of unacceptable environmental more. These countries often have less strict regu­ impacts. In addition to this disincentive mecha­ latory regimes – including environmental regula­ nism, environmental organisations are advocating tion – than the Norwegian continental shelf. This that the Fund should give priority to investments in can put companies in a difficult competitive posi­ companies whose environmental performance is tion if they themselves are prepared to meet high good. The Fund also makes active use of its influ­ environmental standards, but less responsible ence as an owner in direct dialogue with compa­ companies gain a competitive advantage, for exam­ nies. Importance is attached to good corporate ple by failing to internalise abatement costs. The governance (by requiring that companies also take operators on fields where Norwegian companies due account of the interests of small shareholders) are participating are often not Norwegian, and the and measures to combat the use of child labour by operator generally has most say in the develop­ subcontractors, and companies must not lobby ment and operation of a field. Oil sand projects, against climate-related measures. Norges Bank such as those StatoilHydro is now involved in Can­ (Norway’s central bank) manages the Fund, and ada, often involve serious local environmental has joined the Carbon Disclosure Project, which problems in addition to their global impact on the encourages companies to measure and disclose climate. their greenhouse gas emissions. If they choose to However, as is the case for the hydropower focus on environmental problems that threaten industry, there is considerable political interest in global welfare, the Government Pension Fund and Norway in the environmental standards Norwe­ other like-minded pension funds can put consider­ gian oil companies follow abroad. There is there­ able pressure on companies. fore reason to believe that Norwegian companies The Norwegian hydropower industry: Hydro­ incorporate local environmental considerations power projects in developing countries have been into their operations better than many others. In controversial for many years, and environmental some countries, for example Angola, extensive organisations have been in critical opposition to cooperation has been built up between Norwegian Norwegian companies and public actors, including oil companies, research communities and the auth­ the aid authorities. Norwegian hydropower initia­ orities on projects to ensure a good balance tives abroad are based on experience and exper­ between environmental considerations, fisheries tise built up in the sector in Norway. Norwegian and the oil industry. All in all, there is no reason to actors are now increasing their involvement in the assume that Norwegian oil companies create international hydropower industry. Norway is major local environmental problems in countries already an important actor in hydropower consul­ where they operate. In fact, in a number of cases, tancy and construction, and Norwegian invest­ they are ahead of the field because they can use ments and ownership are now increasing, among expertise and cooperation models and environ­ other things through Statkraft and Norfund’s mentally advanced solutions from the Norwegian engagement, which is partly based on aid funding. continental shelf. In 2009, criticism of international hydropower Norwegian fish farming has become globalised: projects on environmental grounds is being weak­ Ecological impacts and acute environmental prob­ ened by several factors. Firstly, developers have lems have been part of the picture ever since the become better at taking environmental considera­ earliest days of the fish farming industry. These 156 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities are important issues for Norway, both because of tal damage from shipwrecks along the Norwegian the size and economic importance of the sector coast. and because Norway is responsible for about one If we disregard climate, Norway exerts only third of the world’s remaining wild salmon limited pressure on the environment in other coun­ resources. The main problems are related to water tries. This is partly because the Norwegian econ­ pollution in areas around fish farms and the escape omy is small, and partly because there is consider­ of farmed fish, which can spread infection and able and growing environmental awareness in the harm wild fish stocks in other ways. Gene flow sectors where Norway is of global importance – from farmed fish to wild fish can be characterised petroleum, fish farming, shipping and hydropower as genetic pollution. The environmental pressure production. exerted by Norwegian-owned fish farming busi­ nesses in other countries affects Norwegian envi­ ronmental and natural resource interests. In 2006, 16.4 Strengthening global the value of Norwegian farmed salmon and trout environmental cooperation was NOK 17 billion. Norwegian companies are also dominant actors in many of the other impor­ Global environmental problems require global tant fish farming countries in different parts of the answers. Addressing the major environmental world (including Scotland and Chile), and the total challenges we are facing today requires more bind­ Norwegian-owned production in these countries is ing rules and a more permanent form of organisa­ now approaching the volume in Norway. tion for international efforts. Shipping and the environment: Norway controls There are about 500 instruments of interna­ one of the world’s largest merchant fleets and is of tional environmental law within the UN system. the world’s leading shipping nations. International This is a cumbersome body of law to deal with, and shipping carries more than 90% of global trade. not always adequately coordinated. The Govern­ This makes the Norwegian shipping industry an ment will work towards better coordination of mul­ important actor in addressing global environmen­ tilateral environmental agreements so that we can tal challenges in the world’s oceans. Shipping con­ deal more effectively with common environmental tributes to a range of environmental problems problems. through releases to air and water during normal The UN Environment Programme (UNEP) operations and through acute pollution from acci­ plays an important role as a global and regional dents. Certain environmental problems, such as arena for binding intergovernmental environmen­ the spread of alien species with ballast water, leach­ tal cooperation and development of a normative ing of environmentally hazardous substances from and legislative environmental governance system. anti-fouling systems, and spills from cargo and With the exception of the Convention on Climate bunker tanks, are specific to shipping. Norway rat­ Change and the Convention to Combat Desertifica­ ified the International Convention for the Control tion, UNEP has set the agenda and driven the and Management of Ships’ Ballast Water and Sedi­ development of most of the key multilateral envi­ ments in 2007. Compared with other form of trans­ ronmental agreements. UNEP must be given the port, shipping is energy-efficient. Nevertheless, opportunity to take part in the development of new international shipping is responsible for 2.7% of discourses on environment and sustainability. The anthropogenic CO2 emissions and there is great Government expects that UNEP will continue to potential for the sector to reduce its greenhouse play a central normative role in the development of gas emissions. Norway is working towards the international conventions, and that it will continue inclusion of emissions from international shipping its long tradition as an educator in the field of envi­ in a new global climate regime. ronment and climate change. Norway contributes Both the shipping industry and the Norwegian significant funding to UNEP. authorities are working actively to reduce environ­ In the Government’s view, the world needs an mental pressure from the shipping industry and to integrated multilateral framework centred on the improve maritime safety and the oil spill emer­ UN. An environmental policy agenda must be gency response system. Norway plays an active drawn up that can guide environmental efforts role in these issues in international organisations both within and outside the “environmental pillar” such as IMO. In addition to the country’s global of the UN. In addition, there must be room for responsibility, high and effective environmental interaction and cooperation with NGOs. The UN standards in the shipping industry are clearly in needs to succeed in creating sound links between Norway’s interests, given the risk of environmen­ normative work and operational activities in the 2008– 2009 Report No. 15 to the Storting 157 Interests, Responsibilities and Opportunities field of environment and sustainable development. therefore in Norway’s interests to seek to maintain There should be synergies between environmental adequate room for manoeuvre in the multilateral work, the UN’s development efforts, and humani­ trade regime and to ensure that this regime and tarian efforts. the multilateral environmental agreements are Binding environmental agreements are a key mutually supportive. component of the international environmental gov­ ernance system. In the Government’s view, it is essential to continue efforts to improve multilat­ 16.5 Norway’s environmental interests eral environmental agreements and make them within the framework of the EEA more stringent, and Norway must continue to play Agreement and in cooperation an active role in advocating new and more exten­ with the EU sive commitments. Globally, the most important arenas for binding intergovernmental cooperation The EU has an ambitious environmental policy at are the Climate Change Convention and the Kyoto European level, which is implemented through Protocol, the Convention on Biological Diversity extensive legislation on all aspects of environmen­ and the Cartagena Protocol on Biosafety, the Con­ tal policy, including waste water, waste, industrial vention on International Trade in Endangered Spe­ pollution, chemicals, air, sea, water and soil, biodi­ cies of Wild Fauna and Flora (CITES), the Basel versity, climate change and energy. Since Norway Convention on the Control of Transboundary is obliged to implement EU environmental legisla­ Movements of Hazardous Wastes and their Dis­ tion in Norwegian law, it is of crucial importance to posal, the Rotterdam Convention on the Prior take part in the development of the EU’s environ­ Informed Consent (PIC) Procedure for Certain mental policy. Because of the transboundary Hazardous Chemicals and Pesticides in Interna­ nature of environmental problems, internal EU tional Trade, and the Stockholm Convention on environmental standards often have a much greater Persistent Organic Pollutants. direct impact in Norway than domestic measures. Although these agreements together have a A proactive EU that has an influence in regional wide scope, the commitments they entail are only and global forums has more overall effect on the a first step, and they only target a small number of state of the environment in Norway than purely the environmental problems the world needs to Norwegian measures. For example, more than 90% address. When the Kyoto Protocol was adopted, it of the inputs of acid rain, some dangerous heavy was clear that it was only the first step in tackling metals such as mercury, and other pollutants such climate change. The Stockholm Convention only as brominated flame retardants to Norway are a regulates 12 persistent organic pollutants, but result of long-range transboundary transport. Nor­ there are many other substances that threaten the way’s reasons for wishing to play an active part in environment and human health all over the world. the development of EU policy therefore go far There is still no global instrument that regulates beyond wishing to have a say in which national the use and releases of heavy metals. A further obligations we take on through the EEA Agree­ example is that the lack of effective international ment. rules on tropical forests means that deforestation The Government is working systematically to is continuing, and some of the richest ecosystems ensure that Norway participates actively in the in the world are being lost. development of the EU’s environmental policy. In addition, environmental considerations are Under the EEA Agreement, Norway is entitled to included in various agreements that are not prima­ participate in the European Commission’s groups rily designed to address environmental problems, of experts and in management committees. Nor­ for example the Aarhus Convention deals with way is currently represented in about 60 of the access to environmental information, and this is Commission’s groups and committees in the envi­ also included in parts of the multilateral trade ronmental field. The extent to which Norway par­ regime. Such information is essential to allow peo­ ticipates varies widely, on the basis of strict priori­ ple to make informed choices, for example when ties. It ranges from a minimum of participation to buying products that may contain dangerous ensure that EU legislation is correctly imple­ chemicals. The multilateral trade regime is now mented in Norwegian law and is uniformly prac­ very extensive and includes both customs tariffs tised, to extensive participation from expert level and trade rules. These rules determine how much to ministerial and government level, in order to latitude Norway has to take into account priority influence the development of legislation and its policy areas other than trade liberalisation. It is 158 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities enforcement in areas where Norway has special EU develops new Community legislation that sub­ interests. sequently provides a model for further develop­ Decisions on when Norway should seek to ment of international rules in the same area. have a particular influence are taken on the basis of Norway has provided input on its views on an overall evaluation of Norwegian interests and important elements in the development of the EU’s comparative advantages and the prospects of influ­ climate and energy policy, most recently on the cli­ encing the outcome. Influencing decision-shaping mate action and renewable energy package. More­ is a difficult task, and Norway will only have a real over, Norway invested a great deal of time and possibility of gaining a hearing if it can produce effort in seeking to influence the development and sound environmental policy and scientific grounds adoption of the new EU chemicals legislation for its arguments and sustains a substantial effort (REACH), a process which took eight years. In throughout the process from the publication of a addition to extensive participation by Norwegian Commission proposal to the adoption of legislation experts, a wide range of other actors at all levels and any subsequent management regime. In were involved at all stages, from public officials up accordance with this, Norway is currently giving to the Minister of the Environment and Interna­ priority to climate and energy, chemicals and man­ tional Development, the Foreign Minister and the agement of the marine environment in its efforts Prime Minister. Norwegian views have been com­ vis-à-vis the EU. municated, both in writing and at meetings, to key The most important difference between EU actors in the European Commission, the European member states and the EEA EFTA states in the Parliament, the EU Presidency and important environmental field is that the EFTA states do not member states. Active steps were also taken to take part in the discussions when the EU makes its ensure that Norway could participate in the work final decision to adopt environmental legislation. It of the European Chemicals Agency (ECHA) and is not until the legislation has been adopted by the the various committees under ECHA where new EU that Norway as an EEA EFTA state takes a for­ chemicals legislation is developed, and these mal decision on whether to incorporate the legisla­ efforts were successful. tion into the EEA Agreement and whether there in Norway has cooperated closely with the Euro­ that case is a need for special adaptations. On the pean Commission and EU member states on all other hand, if Norway is to participate effectively key environmental issues. In certain areas, the EU and have an opportunity to influence the outcome, has been instrumental in raising environmental it must present its position early in the legislative standards in Norway. On the other hand, Norway process. This means that Norway must engage in has been able to make use of its position outside active dialogue and take part in the EU’s decision- the EU during some processes. For example, Nor­ shaping processes at a stage when the matter is not way has spearheaded the initiative for a legally being discussed in the Norwegian media and the binding global instrument on mercury. Together outcome is still unclear. Thus, a long-term strategic with Switzerland, and with the support and several approach is needed, and resources must be made EU states, Norway has been able to do more than available for participation from an early stage in the would have been possible if bound by a coordi­ decision-making process and all the way up to final nated EU position. In other cases, Norway can adoption of legislation, which may take many seek compromise and play a greater role than years. would be possible within the EU, as exemplified by Norway’s cooperation with the EU extends work on rights to the use of genetic resources and beyond the scope of the EEA Agreement. The EU patenting of genetic resources under the Carta­ is generally an important driver of global and gena Protocol on Biosafety, and by the climate regional environmental efforts, and is for example negotiations. playing a leading role in the international negotia­ tions on climate and on biodiversity. The EU is seek­ ing credibility and influence in the climate negotia­ Norwegian environmental assistance through the tions in Copenhagen in 2009 through an ambitious EEA financial mechanisms climate and energy policy. The EU’s climate action Between 2004 and 2009, Norway is providing fund­ and renewable energy package is a milestone in ing totalling about NOK 10 billion through the EEA European policy and will provide important guide­ financial mechanisms towards efforts to reduce lines for Norwegian policy in this field, partly social and economic disparities in the enlarged through the EEA Agreement. Similar develop­ European Economic Area. Environment and sus­ ments are taking place in several other areas: the tainable development are two of the priority sec­ 2008– 2009 Report No. 15 to the Storting 159 Interests, Responsibilities and Opportunities tors. A similar programme is being planned for the ing will be used on environmental and climate- next five-year period. The new EU member states related projects. In addition, research projects on have serious problems related to the environment the environment and sustainable development and climate change. It is in Norway’s interests to receive support, as do environmental projects run play a part in improving the quality of the environ­ by NGOs. Many of the projects involve Norwegian ment in these countries, and the EEA financial partners. There are more than a hundred projects mechanisms are intended to make an important that will contribute directly to reductions in green­ contribution to this work. house gas emissions, for example through energy Funding provided through the mechanisms is efficiency measures and the promotion of renew­ not earmarked, and it is up to the recipient coun­ able energy. Several projects focus on biodiversity tries to decide which projects to support. Indicative and sustainable agriculture and forestry. allocations show that about a quarter of the fund­ 160 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

17 Promoting a global order to deal with current and future challenges

Norway has strong interests in an international Development Goals have provided a coherent legal order, both social and economic, and in terms framework for UN development efforts. Global of security policy. Norway is a small country, with health and HIV/AIDS-related initiatives in and out­ an extremely open economy, an economically side the UN have achieved a great deal in the fight important and environmentally vulnerable coast­ against infectious diseases. Efforts to establish the line, strategically important northern areas and an International Criminal Court (ICC) met with con­ asymmetrical relationship with neighbouring Rus­ siderable opposition, but with the adoption of the sia. The scope of Norway’s foreign policy interests Rome Statute of the ICC in 1998 and the Court’s is expanding in response to globalisation and geo­ formal establishment in 2003, efforts to promote a political change. This is strengthening Norway’s better international legal order won an important interest in a well-functioning legal order, where victory. The law of the sea has been strengthened relations between states are governed by binding and the International Maritime Organization is norms and conventions. A legal order of this kind evolving and gaining a more important environ­ is dependent on regional and global organisations mental role. The Doha Round in the WTO is meet­ that are effective in dealing with concrete tasks, ing resistance, but the organisation’s dispute set­ that serve as relevant arenas for debating impor­ tlement mechanism is an increasingly important tant questions and that are able to adapt to a rapidly tool for small countries in trade disputes. The Iraq changing world. war did not spell the downfall of the UN as many The end of the Cold War in 1990 ushered in a people predicted; rather the breadth of the period of great optimism as regards international approach of the UN and the multilateral commu­ cooperation. The conflict that had paralysed the nity to conflicts, such as those in Iraq and Afghani­ UN Security Council was a thing of the past. The stan, is now sought after, even in the US. The work destructive knock-on effect of the confrontation of the UN Intergovernmental Panel on Climate between East and West was substantially reduced Change, which laid the foundation for genuine cli­ at UN headquarters in New York, as well as in a mate negotiations in the 1990s, was a good exam­ number of conflicts and wars around the world. ple of how the UN can facilitate the effective man­ The fundamental differences that had impeded agement of extremely complex and politically sen­ progress in international cooperation were also sitive knowledge processes. significantly diminished. The time had finally come However, an overview of international coopera­ to realise the UN system’s inherent potential as a tion over the past 20 years also shows how difficult central hub for efforts towards peace, welfare and it has been to realise the aspirations of 1990. The a more equitable distribution of the world’s goods. wars in the Balkans shattered many dreams in Europe. The genocide in Rwanda, the disintegra­ tion of Somalia, millions killed in prolonged civil 17.1 International cooperation since war in the Democratic Republic of Congo and the 1990 – a complex picture inability to protect the population of Dafur are just some examples of the international community’s Twenty years later we are seeing a chequered pic­ shortcomings. For many people 9/11 ushered in a ture with some successes, some mediocre results new era characterised by more conflict between and some setbacks. On the positive front, today we regions and religions, less respect for human have a UN that despite many challenges has rights and a fear that the global dream of consen­ acquired a more meaningful role as an arena for sus as a prerequisite for effective global coopera­ global negotiations, as a norm-setter and a legiti­ tion that had emerged in 1990 would be destroyed. mising body for everything from peace efforts to The lack of progress in urgent climate negotiations the fight against HIV/AIDS, and as a forum for cru­ and the Doha Round on international trade shows cial climate negotiations. The UN Millennium how little progress the world community has 2008– 2009 Report No. 15 to the Storting 161 Interests, Responsibilities and Opportunities made. The financial crisis that began in 2008 Multilateral cooperation also faces an almost demonstrated the fragility of the global financial permanent crisis of expectation. Member states regulatory system and showed how ineffectual glo­ tend to have inflated expectations as to the ability bal institutions such as the International Monetary of international organisations to solve problems, Fund were when the storm broke. but they are often less willing to wield the political The general atmosphere at think tanks and influence and provide the mandates and resources other foreign policy forums as to what can be needed for the organisations to function effectively. achieved through regional and global cooperation Many issues reach the stage of global negotiations is therefore far more tentative than in 1990. Up to before interests and the willingness to cooperate 2020, we expect to see more instability and less and find a compromise have been established at effective global institutions than we have seen over the national level. The result is that the UN and the past 20 years – not the reverse. Many of the other multilateral institutions are often blamed for conclusions drawn in Part I of this white paper are lack of progress when the causes of this are prima­ consistent with this view, for example that a com­ rily to be found in conflicts and lack of willingness plex multipolar world order with a growing to change at the national level. number of major powers is creating new chal­ These factors also pose challenges to the inter­ lenges in terms of effective global cooperation. At national community in its efforts to develop effec­ the same time the advance of the new actors tive institutions, and to the secretariats that are should be welcomed and is wholly legitimate. A sit­ responsible for much of the work. There is an uation where global institutions actually reflect the inherent tendency for organisations to become set real balance of power in the world, i.e. where the in their ways and to be insufficiently flexible in the map more accurately fits the terrain, could provide face of constantly changing demands and expecta­ greater legitimacy and lead to more effective glo­ tions. International organisations often have to bal governance. deal with uncertainty and unpredictability with regard to tasks and priorities, which intensifies such problems. The multilateral system that has 17.2 Prerequisites for a better global emerged since World War II has become order extremely complex, consisting of a large number of organisations with partially overlapping man­ We therefore have strong interests in ensuring that dates and a great deal of rivalry between them. the current global legal and political order is main­ There is a great need for reform. tained and further developed in areas of great Globalisation and geopolitical change are mak­ importance to Norway. ing cooperation more important but at the same International cooperation is a logical means of time more difficult. An increasingly complex solving both our own and common problems. How­ multipolar global power structure is creating new ever, states often do not have cooperation and par­ room for manoeuvre (as exemplified by the dyna­ ticipation in the global political system as their first mism around the new G20 since the financial cri­ priority. There is a tendency for states to use inter­ sis, and by new actors), but it also challenges estab­ national organisations as tools to further their own lished norms, roles and working methods for inter­ interests. The more those interests conflict with national cooperation. The WTO and the climate the interests of other countries or groups of coun­ negotiations over the past few years show how the tries, the more important it is to encourage cooper­ combination of new major powers and an ever ation and good organisational solutions at the glo­ increasing number of participating countries puts a bal level. However, at the same time these conflicts strain on and almost paralyses the global decision- of interest make it more difficult to get this cooper­ making machinery. ation and the institutions to function effectively. New geopolitical actors also pose challenges in The paralysing effect of the Cold War on the UN terms of the substance of global governance – what Security Council is a good example of this. The les­ it should be about and what it should focus on. son to be learned is that effective international What do we need global governance for if global cooperation should never be taken for granted, institutions no longer promote Norwegian inter­ especially in cases where there is a sharp clash of ests, and if the possibility of Norway’s influencing interests. Cooperation must be nurtured and sup­ developments becomes more and more remote? In ported by incentives. Interests and conflicts of many international negotiations Norway has interest therefore need to be thoroughly analysed adhered to a “Western” agenda where key allies when issues are raised in global organisations. have dominated by virtue of their position in the 162 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities power structures in global institutions. Now that moves towards a G20 structure for informal cooper­ these power structures are radically changing, ation between the world’s largest countries and there is increasing uncertainty about the structural economies. Our interests in more effective global framework for future negotiations and reform governance require that we take a positive approach processes and the political agendas and mandate of to a more representative and effective informal the relevant organisations. Human rights and the actor (than G8) that brings together the major glo­ issue of responsibility for protecting the civilian bal actors. At the same time the focus on how Nor­ population in conflict areas are examples of impor­ wegian interests can be reflected and promoted in tant topics in this respect, and there are and will be this arena must be intensified, as should the focus more such areas. on how the formal forums of which Norway is a member can exploit the momentum that the G20 could conceivably create. This approach assumes 17.3 Reforming the global order: that the G20 (or similar organisation) excludes Norway’s main priorities groups of countries such as the Nordic countries or develops formal decision-making processes that Structural and political challenges to international replace UN bodies or other multilateral institutions. cooperation must be taken into account in the fur­ Norway should continue to intensify efforts to ther development of Norwegian policy for promot­ promote reform of international organisations (not ing a better global order. The Government’s just the UN), and should emphasise the impor­ efforts in this area are based on the following tance of finding ways to combine greater efficiency points: effectively with the legitimate demands of develop­ The UN, by virtue of its universal role and its ing countries/new actors for more democratic genuinely global mandate, is the very foundation of structures of governance. The Government is call­ the current global order, and therefore also of Nor­ ing for the reform of certain organisations, and will wegian policy in this area. There is no alternative to continue to do so on an ongoing basis, and does not the UN. The more multipolar and fraught with ten­ rule out the possibility of reducing its support in sion the world order becomes, the more important cases where multilateral actors persistently fail to it is that the UN brings all countries together under deliver expected results. At the same time Norway a single umbrella for global cooperation. emphasises that pressure of this kind is most effec­ At the same time it is important to have a tive when as many countries as possible cooperate renewed focus on how and how effectively today’s on a common policy towards the organisation in international organisations and conventions serve question. Norwegian interests, and on how Norway can take Global organisations face serious problems of an even more targeted approach to promoting its overload, both as regards the extent of the chal­ interests. It is also important to consider which lenges they are to solve and when it comes to man­ interests and priorities should be pursued in which agement and decision-making structures in diffi­ forums, as a basis for distributing financial and cult areas such as trade and climate change. There human resources. The Government will seek to are no simple solutions, but an increased focus on take an even more strategic approach to defining solving problems in more informal structures and priorities and achieving goals in its multilateral more delegation to regional and sub-regional lev­ cooperation. els are approaches that are increasingly relevant. There are also a number of important coopera­ tion forums outside the UN. Examples of those that are most relevant to Norway are regional insti­ 17.4 The central role of the UN in tutions such as the Organization for Security and Norwegian foreign policy Co-operation in Europe (OSCE), the Arctic Coun­ cil, the Council of Europe and the Baltic Sea coop­ The UN is in an unequalled position among multi­ eration, as well as the EU. The Government has lateral institutions. The organisation is uniquely intensified Norwegian efforts to engage with these placed as a forum for developing global norms and organisations and will further sharpen the focus on conventions (the law of the sea and health), as an how we can use our membership to pursue Norwe­ arena for international negotiations (climate gian interests within a global legal order in which change) and, through the UN Security Council, as the regional dimension has been strengthened. a body for legitimising the use of force. The UN As discussed elsewhere in this white paper, also provides an important broader legitimising Norway should respond positively if the trend now function for international policy development, 2008– 2009 Report No. 15 to the Storting 163 Interests, Responsibilities and Opportunities based on a decision-making structure where all financial resources, including the IMF, the World countries have a vote. UN bodies have important Bank, the WTO and the OECD. In areas of vital tasks to fulfil, both in terms of the coordination of interest to Norway, such as energy and social and joint efforts in crisis-affected countries (Afghani­ economic development, we often find that organi­ stan) and in terms of its operational role at country sations other than the UN are more important. level in developing countries. In these latter areas When it comes to the political goals of the policy of the UN has sometimes had vital tasks to fulfil, but engagement, such as the promotion of women’s the UN’s operational role is not unique in the same rights, good governance and anti-corruption, in way as its normative role. many contexts the World Bank plays a more prom­ Norway is the seventh largest contributor to inent operational role vis-à-vis recipient countries the UN and the fifth largest to the UN’s operational than any of the UN organisations because of its activities (in 2006). In giving such priority to the financial weight. At the same time, through its abil­ UN, Norway is demonstrating to the rest of the ity to adapt and its cooperation with new actors, a world that the UN is important to Norway and that UN organisation such as the World Health Organi­ we want to be an engaged global actor working to sation (WHO) demonstrates the fundamental promote better global governance. Close, strategic value of the UN’s normative role. cooperation with other Nordic countries is impor­ tant in our efforts to achieve this. With its broad global representation, the UN is 17.5 Norway’s policy for reform of the the central arena for developing international law. UN Thus, the UN has managed political processes that have resulted in the establishment of the Conven­ Norway has traditionally been one of the UN’s tion on the Law of the Sea (UNCLOS) and the strongest supporters and at the same time one of International Criminal Court (ICC). In these cases, the main drivers behind efforts to reform the the UN’s relevance, or lack thereof, primarily organisation’s bureaucratic and somewhat unclear reflects the interests of the member states. Criti­ working methods. Over the past few years the cism of the UN for its inability to deal with issues issue of UN reform has received more attention, such as disarmament or climate change is there­ and the Government has been among its most fore first and foremost criticism of its 192 member active proponents. The reforms encompass most states. of the UN’s areas of activity. Different UN bodies also play a key role in the Reform of UN operational activities (develop- collection and analysis of information on global ment, humanitarian assistance, the environment): issues. The UN Intergovernmental Panel on Cli­ Prime Minister Stoltenberg was one of three co­ mate Change (IPCC), established in the late 1980s, chairs of the High-level Panel on System-wide is an example of the successful organisation of a Coherence. Its recommendations are now being politically crucial knowledge process. On the other followed up in different channels, including negoti­ hand, the UN’s inadequate analytical capacity in ations in the General Assembly on the establish­ many areas that Norway considers important, ment of a new gender equality unit, the incorpora­ such as reducing the economic disparities between tion of the “One UN” concept into an overall policy North and South, remains a clear challenge. In for UN development organisations and the testing these contexts, the World Bank is a more impor­ of the “One UN” concept in eight pilot countries. tant and influential actor than the UN. Norway is a key participant in all these processes. At the same time states have delegated author­ Reform of UN human rights work: The resolu­ ity to the UN to solve problems that no state can tion establishing the Human Rights Council was solve on its own. UNDP and UNICEF have played not flawless and its follow-up has been challenging. a key role in efforts to reduce poverty in develop­ But human rights work is essential and Norway ing countries, and UN peacekeeping operations has chosen to be actively involved in this area in have contributed to international peace and secu­ order to achieve the best possible results. For this rity. Nevertheless, it is in its role as an operational reason Norway gives priority to being elected as a actor that the UN has been most heavily criticised member of the Human Rights Council from 2009. for lack of efficiency and relevance. Today the UN Reform of UN peacebuilding capacity: Norway has developed into a complex and often impene­ has initiated and led a major international effort trable multiplicity of organisations and commis­ aimed at strengthening the UN’s multidimensional sions. The result in practice is that the UN com­ and integrated peace operations. The final report petes with many other actors for attention and from this effort, including concrete recommenda­ 164 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 17.1 Reform of the UN Security Council In matters of peace and security, the UN Secu­ • Countries such as Italy, Pakistan, South rity Council may adopt resolutions that are bind­ Korea, Mexico, Canada and others are ing on all UN member states. Sanctions and strongly opposed to the principle of perma­ military intervention are possible courses of nent seats. In their view it is unfortunate that action. major powers cannot be held accountable for Five countries dominated the negotiations their actions through elections, almost that led to the UN Charter: the US, the Soviet regardless of what they do. Would it not be Union, the UK, France and China. These five better to expand the Council with more countries made sure that they alway had the elected seats and instead make it possible to greatest influence and the last word. They were re-elect countries that deserve to be re­ given permanent seats on the UN Security elected? Council, with the right of veto. Without these • The African Union is calling for new perma­ mechanisms there would be no UN. A number nent members to have the right of veto. But of smaller countries also demanded this system, will this help to make efforts to promote fearing that binding majority decisions in the peace and security more effective, when the Security Council could lead to a new world war, right of veto is used to prevent the interna­ which was not what anyone wanted. The right of tional community from acting? veto was intended to prevent this. In addition, • Shouldn’t attention instead be directed the General Assembly elects 10 members of the towards the working methods of the Secu­ Security Council for periods of two years. The rity Council? Should the right of veto be set last time Norway was a member was in 2001– aside in matters related to genocide, ethnic 2002. cleansing and crimes against humanity? It is now generally agreed that the Security • Is it possible to reach agreement on two Council needs to be reformed. Concrete negoti­ countries that could represent Africa on a ations were started in February 2009. However, permanent basis? it is important to ensure that any changes are • If Germany is given a permanent seat, the tailored to today’s world. With the exception of EU will have three permanent members on China, the world power and influence of the per­ the Council. Shouldn’t the EU limit itself to manent member countries are declining. Many one? people believe that India, Brazil, Germany and • Can Brazil represent Latin America against Japan, as well as two African countries, should the wishes of most Latin American coun­ be given a permanent seat. But this raises tries? important questions and illustrates how difficult it will be to implement crucial UN Security Council reforms:

tions for further initiatives, was submitted to the dination at country level are important steps for­ UN Secretary-General in the autumn of 2008. Nor­ ward in this context. way also played a leading role in efforts to establish Reform of UN budgetary and administrative the new UN Peacebuilding Commission. We are practices: Norway has called for greater transpar­ also a major contributor to the UN Peacebuilding ency, access to information and accountability in Fund. Together these reforms will better enable the UN administration. The oil-for-food scandal the UN to provide assistance in post-conflict situa­ and unclear accountability and follow-up with tions and contribute to reconstruction efforts. regard to revelations of sexual abuse by UN per­ Reform of UN humanitarian efforts: Norway has sonnel are clear examples of the need for this. Nor­ played a proactive role in advocating reform of the way is playing a key role in efforts to promote international humanitarian system, for which the transparency and accountability, and is helping to UN has the overall coordinating responsibility. The counter the tendency to turn such issues into dis­ establishment of the UN Central Emergency putes between different member states. Response Fund (CERF) and improved sector coor­ 2008– 2009 Report No. 15 to the Storting 165 Interests, Responsibilities and Opportunities

Norway is engaged in efforts to promote a the UN. That is why Norway is involved in develop­ more effective and relevant UN because we need a ing concrete, realisable and effective measures to UN that can help to prevent and resolve conflicts, improve the UN. build peace, combat poverty and ensure sustaina­ ble development, promote respect for universally accepted human rights, norms and rules, and 17.6 Security serve as a forum for discussion and for finding solutions to common challenges. We need a UN In the field of security Norway is now facing a situ­ that is credible and that itself complies with the ation involving challenges to its sovereignty and high standards set by the organisation. The UN global challenges that could pose a threat both to makes a substantial contribution in all the areas public safety and to national security. On the one mentioned above and demands on it are increas­ hand this has led to a more coherent approach to ing. For this reason Norway makes considerable security in which military and civil measures are contributions, both politically and financially, to the viewed in conjunction with one another. On the UN. There should be a closer correlation between other hand, it has played a part in reducing the the tasks the member states ask the UN to deal divide between global organisations, such as the with and the resources made available to accom­ UN, and regional organisations, such as NATO and plish them. But we expect more of the UN. We the EU. Closer cooperation between the various want the organisation to reduce the amount of organisations (the UN, NATO, the EU and the AU) resources it uses on internal bureaucracy so that will help to enhance security, including for Norway. more resources can be used to benefit the poor, This has also increased the need for Norway to those in need and those affected by crisis, and to view its own security in a broader context. ensure that the effect of the UN’s overall efforts is The UN plays a pivotal role across the whole greater than is the case with the current frag­ range of today’s security challenges. Efforts to mented approach. That is why we want to reform legitimise the use of miliary force in conflict areas,

Figure 17.1 UN peace operations, November 2008 * Political and peacebuilding operations led by the Department of Political Affairs (DPA). ** The United Nations Assistance Mission in Afghanistan (UNAMA) and the United Nations Integrated Office in Burundi (BINUB) are led by the Department of Peacekeeping Operations (DPKO). The remaining operations are peace operations led by the DPKO. Source: UN 166 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities as well as peacemaking and peacekeeping opera­ arise. In such cases Norway finds itself in a tions, are key aspects of this. UN peace operations dilemma between two pillars of Norwegian foreign play an important role in terms of security policy, policy: its dependence on an international legal particularly in Africa, where the UN is the most order and multilateral governance, and its depend­ important peacekeeping actor together with the ence on other security guarantees and alliance pol- African Union (AU), which is gaining a more influ­ icy/NATO. This was demonstrated, for example, ential role in peace operations. This will also bene­ by the issue of Iraq. fit Norway indirectly in that it promotes stabilisa­ In all probability NATO will continue to evolve tion, which will help to curb the growth of interna­ into a collective security organisation with respon­ tional crime and terrorism. It is therefore in sibility both for helping to ensure the stability, Norway’s interests to strengthen defence and security and defence of human rights in areas far security policy cooperation in permanent institu­ beyond the territory of the member states, and for tions such as the UN and NATO and to ensure that securing the defence of member states’ territory. coalitions of the willing are not given an unduly This will place great demands on the member prominent role. states in the years to come, not least in terms of Just as Norway is dependent on an interna­ active participation and burden-sharing in connec­ tional legal order, there are good security policy tion with NATO operations in conflict areas around grounds for supporting the UN; it is not in the the world. interests of smaller states for the world to be dom­ In addition to its dominant regional role, the inated by power politics. We need rules both for EU’s importance for global security is growing as a when and how force can be used more than ever result of its civil and military engagement in a before. It is crucial that the UN has the ability to number of areas, as well as its important role as a take action through the Security Council. Given key supporter of the UN, multilateral solutions and the different values and agendas of the members, the global legal order. The EU is increasingly agreement in the Security Council cannot be taken regarded as the EU’s spokesperson in matters for granted, (see Box 17.1). We saw disagreement relating to Russia, including on questions of signifi­ on UN-led operations in both Srebrenica and Dar­ cance to us in the north. This underlines the fur. The UN also provides limited security in the increasing importance of the EU to Norway. We sense of “hard” security. Other actors, in addition will actively contribute to EU-led operations and to the UN, are also needed today to meet the secu­ activities within the scope of our non-member sta­ rity challenges we are facing. tus, and subject to the general consensus of the NATO continues to be one of the mainstays of Storting. The prerequisite for our involvement will the international security system and is the only continue to be a clear UN mandate. regional political security and defence alliance of which Norway is a full member. Because of its abil­ ity to adapt to new situations, NATO is regarded as 17.7 The financial crisis and the global relevant today, as the main framework for transat­ economic order lantic security cooperation and collective defence. NATO also has a key role to play in international The current downturn in the world economy fol­ peace operations. This, combined with both global lows many years of substantial growth. During this and regional challenges, means that NATO will period of growth, substantial global imbalances continue to be the cornerstone of Norwegian secu­ emerged, involving a considerable increase in the rity policy, as a factor for stability in the north, as a deficit in both the public and the private sectors basis for the defence of Norway and as the main (particularly in the US), matched by a correspond­ framework for our international military engage­ ing increase in other countries’ level of lending ment. (particularly China and Japan). When the turbu­ In principle there is no contradiction between lence in the financial markets was at its height in global multilateral cooperation and NATO. NATO the autumn of 2008, a number of countries worked was set up as a regional security organisation with together to produce a package of measures to sta­ reference to Article 51 of the UN Charter, and bilise the markets. Most of the measures were today NATO operations are undertaken at the coordinated by the central banks, but the crisis is request of the UN and on the basis of a UN man­ also at the top of the agenda for politicians, and date. In efforts to achieve international peace and dominates meetings in forums such as the G8, the stability, the UN and NATO work as mutually rein­ G20, the EU and the IMF. forcing organisations. However, tensions can still 2008– 2009 Report No. 15 to the Storting 167 Interests, Responsibilities and Opportunities

The current financial crisis is affecting the real solidated and legitimised. The rest of the world’s economy. It is now global in scale, and is having countries and peoples must be included. We must repercussions in all corners of the world. The con­ work to ensure that the world’s countries choose, sequences for jobs, welfare and development are as a matter of enlightened self-interest, to dramatic, particularly for the world’s poorest, who strengthen the political cooperation structures and are also experiencing a food crisis. At the same common institutions in all areas where better glo­ time the stability of modern states, including in our bal governance is needed, including climate neighbouring areas, is being threatened. change, finance, health, migration and other areas. The global crisis in the world economy will The UN must play a key role in this. have an impact on the international balance of The international economic crisis has seriously power and the foreign policy landscape. The conse­ called into question the idea of the free market and quences, in the form of recession, rising unemploy­ undermined faith in its infallibility. It shows that ment and deep social tensions, will be severe. better regulation and more effective supervision of According to the International Labour Organisa­ today’s global economy are needed in order to pre­ tion (ILO), there is a danger that an additional 50 vent imbalances and the danger of collapse. We million people could lose their jobs, which in turn must continue our efforts to promote a greater could lead to political instability and greater social awareness of this. The financial crisis has both tensions. In cities as near to us as Reykjavik and weakened and strengthened current international Riga, the recession has led to massive political pro­ financial institutions, weakened them because they tests and discussions about the need for a new neither predicted nor prevented the crisis from course. arising, and strengthened them because the need for strong international financial institutions is now very clear. It is therefore important that we use the Foreign policy challenges and the Norwegian reform processes that have been initiated to response achieve a thorough reform of the financial institu­ For a number of years it has been predicted that it tions. is merely a matter of time before countries such as The composition of many of the world’s major China and India gain more political influence as a cooperation forums was determined in accordance result of their rapid economic growth. With with the distribution of power at the end of the Sec­ Europe and the US now in recession, we are even ond World War. But the world is very different more dependent on the Chinese economy in partic­ today. International institutions may lose their legi­ ular. The financial crisis could accelerate the shift timacy and effectiveness if they fail to reflect con­ in geopolitical power we are currently witnessing. temporary reality, a fact that is highlighted today In 2009, most of the growth in the world econ­ when we look to these organisations for leader­ omy will take place in precisely these countries. ship. There are some signs that changes are Measures to deal with the crisis cannot be discus­ already under way. When the world’s largest econ­ sed unless they are at the table. Nor will there be a omies gathered in November 2008 to discuss inter­ new WTO agreement unless countries like India national measures to deal with the financial crisis, and those developing countries that follow its lead it was not within the framework of the G7 or the feel that a new agreement would be in their inter­ G8. It was at a summit meeting of the G20, where ests. The same logic applies to a future interna­ countries such as Brazil, India, South Africa and tional climate agreement. The developing coun­ China are key members. tries are now in a position to put more weight While it is positive that the G20 is democratis­ behind their demands for more equitable burden- ing global governance and has shown dynamic sharing. This is progress in the right direction. leadership in dealing with the financial crisis, it is And this progress is not the result of a confronta­ important that the results enjoy the broadest pos­ tion, but of a realisation arrived at during a time of sible multilateral support. A key principle is that all crisis. countries should have an opportunity to be heard. This is, in other words, a question of reforming That is why it will be problematic if the G20 is given the international architecture. A shift in the bal­ too much formal authority. Countries such as the ance of power where countries such as India and Nordic countries that are not members of the G20 China are being given a more influential economic need to be brought into the process in an appropri­ and political role is one of the most important ate way. It will be important to ensure that proc­ developments in international politics in recent esses are as transparent as possible and that years. At the same time, such a trend must be con­ results of G20 meetings for example are discussed 168 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities openly in multilateral forums that have a wider est we share with most other countries, including membership. developing countries. It is important that frame­ It is important to ensure that the financial crisis work conditions for economic activity are devel­ does not undermine our efforts to combat global oped that foster openness and predictability. Uni­ poverty. The financial crisis – and the vulnerable versal adherence to a set of multilateral rules is a situation it has put many people in – also highlight part of this. An important aspect of such an the importance of government guaranteed univer­ approach is to make it difficult for special-interest sal welfare schemes, which is in keeping with the groups and lobby groups to change policy in their Nordic social model. Developing countries that are favour at the expense of collective interests. in no way responsible for causing the financial cri­ In addition to adhering to the fundamental prin­ sis are already seeing its negative consequences. ciples of open markets, a future global trade New studies from the World Bank confirm that the regime should therefore build on the following poor are least equipped to deal with the financial principles/factors: crisis, and it is therefore important to uphold previ­ – Legitimacy: the system must be perceived as ous commitments regarding development assist­ democratic, inclusive and accessible, based on ance. respect for the member countries’ different It is also essential to prevent the financial crisis views, political realities and possibilities. All from being used as an excuse to lower our ambi­ countries that wish to do so must be able to par­ tions when it comes to dealing with the climate cri­ ticipate in decision-making processes and sis. We must work to ensure that the economic agreements, and civil society actors must have measures and stimulus packages do not merely access to the process, decisions and decision- recreate structures and regulatory frameworks makers. that existed before the crisis. The new measures – Predictability: the system must be based on must chart a course that addresses the realities of binding agreements that enable economic climate change by advancing new climate technol­ actors in member countries to make long-term ogies, research, more sustainable production and investment decisions. consumption, and stronger incentives for transfer­ – Effectiveness: the system must be able to ring technology to countries experiencing rapid deliver results in the form of new and/or growth. The historic decision made by the EU amended agreements that address important before Christmas in 2008 to implement an ambi­ issues such as sustainable development, cli­ tious climate and energy package illustrates the mate change and labour standards. magnitude of global climate change. – Development: the system must promote the integration of poorer countries into the world economy by legitimising differential treatment The global trade regime of member countries according to their level of One of the greatest threats posed by the financial development. crisis to the world economy is that countries could – Equal treatment: member countries and their establish new protectionist barriers. Such mea­ economic actors must be able to assume that sures could trigger a wave of competitive protec­ they will not be subject to arbitrary discrimina­ tionism all over the world, which would lead to an tion. overall decline in global trade. Norway, which has – Flexibility: within the framework of established an open economy and is heavily dependent on rules and agreed commitments, the system international trade, could be hard hit by such a must give member countries the freedom to development. The Government will therefore work develop and uphold their own national policies in all relevant forums to counter moves towards and legislation. This applies both to the partic­ increased protectionism. We will also continue to ular situation of the developing countries and contribute actively to the successful conclusion of to the need of all countries to have legislation the WTO negotiations. in place in all important policy areas such as Norway has strong interests in an open, stable, health, environment and consumer safety. rule-based, multilateral economic system that ensures equal treatment of all countries irrespec­ The main pillar of this system will continue to be a tive of their size, power or political system, and at set of stable, rule-based, multilateral agreements the same time prevents arbitrary discrimination that ensure equal treatment of countries irrespec­ and restrictions on trade in goods and services. In tive of their size, power or political system. In addi­ today’s globalised world economy this is an inter­ tion, it will continue to be necessary to supplement 2008– 2009 Report No. 15 to the Storting 169 Interests, Responsibilities and Opportunities the global multilateral system with specific, honed negotiating skills, bridges can be built detailed and if necessary more binding multilate­ between bilateral agreements and global multilat­ ral, regional or bilateral agreements and institu­ eral frameworks. However, there is reason to be tions in specialised areas. cautious and to monitor further moves towards The challenge lies in finding a balance between bilateralisation carefully. We must be willing to principles and interests, e.g. a balance between challenge a trend that we ourselves have helped to inclusive democratic processes and effective nego­ create. tiations on complex and economically important agreements, between the precautionary principle and the need to maintain high standards in impor­ 17.8 Global health and foreign policy tant policy areas such as health and the environ­ ment and the developing countries’ demands for Today there is a clearly recognised connection real access to our markets, between the needs of between population health and prospects for devel­ the poorest and other developing countries for opment. Improved health helps to reduce poverty trade preferences and protection and the needs of and at the same time reduces the security threats China and other emerging economies for market caused by poverty. Over the years Norway has access. acquired a leading position in efforts to strengthen In addition to a possible new WTO agreement, global health cooperation, and in particular to there is a considerable increase in the number of increase the focus on Millennium Development bilateral trade agreements being concluded. Nor­ Goals 4 and 5, which aim to reduce child and way is focusing to a large extent on this type of maternal mortality. This has been achieved arrangement and if these agreements come into through the use of development assistance funds force as expected, over 90% of Norwegian trade will and through political initiatives within the frame­ be covered by bilateral agreements. It is claimed work of the UN and a number of the new alliances that bilateral (and also subregional and regional) designed to promote improved global health agreements of this kind play a part in undermining cooperation. multilateralism, but that need not necessarily be In 2006 Norway launched an international initi­ the case. With sufficient political will and well- ative aimed at incorporating the full breadth of

Box 17.2 WTO The GATT/WTO has grown from 23 members tries such as LDCs, the African group, the ACP in 1947 to 153 members in 2008. There are still a countries, etc., are emerging as genuine partici­ number of countries that are not members, pants in negotiations. including Russia, some countries in the Middle The WTO is not an institution or agreement East such as Iran and Iraq, some of the new sta- that regulates the actions of countries in detail, tes in Europe (Bosnia, Serbia and Montenegro) but on the contrary is a system that looks at the and certain developing countries. However, results of countries’ actions more than the way most countries are engaged in more or less the actions are carried out. In addition to funda­ active accession negotiations and it is just a mat- mental principles of equal treatment (national ter of time before the WTO can be seen as a uni- treatment and most-favoured nation status) the versal organisation. system is based on the premise that Unlike the IMF and the World Bank, the – necessary national legislation can be estab- WTO is a consensus organisation, i.e. a one lished and implemented to achieve the country, one vote organisation. In reality, required level of protection in important pol- however, the US and the EU have wielded consi- icy areas such as environment and health. derable influence, but this is due more to their – countries can support and/or protect their position in the world economy as global actors own trade and industry, but not to the extent than to the WTO as an institution. China, India that their actions appear arbitrary, impede and Brazil have also strengthened their role as a trade unnecessarily or are dicriminatory. result of the changes in the global balance of – as a general rule, international standards power. Moreover, it is becoming more evident and rules are to be adhered to where they that, through their spokespersons, groups of coun- exist. 170 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities health issues into foreign policy. This brings the forefront of international efforts to achieve together important strands of development policy, these goals. This is reflected in financial contribu­ foreign policy and specifically Norwegian policy on tions, active efforts to focus more political attention more effective globalisation as a safeguard of fun­ on the international arena and on women’s rights damental human needs. The background to this and gender equality. initiative was the recognition that foreign policy Over the years Norway has acquired a leading measures and tools can have major consequences role in global health efforts. This is important from for public health in the countries concerned. More­ a global health perspective. But it is also an exam­ over, foreign policy measures are often needed to ple of the fact that our engagement in an area in address global health security challenges. The ini­ which we are particularly well placed to make a dif­ tiative was initially supported by the foreign mini­ ference gives us easier access to other countries sters of Brazil, France, Indonesia, Norway, Sen­ and political forums and arenas where we can egal, South Africa and Thailand. make valuable contacts, expand our networks and Health and foreign policy is an extremely broad find new opportunities to promote Norwegian topic with many dimensions. One important con­ interests. sideration is to ensure coherent and effective coop­ eration between the main multilateral health organisation, the World Health Organization 17.9 Challenging and supporting the (WHO), and a number of more recently estab­ system. The EU’s role as a global lished global institutions in the field of health, actor including the Gates Foundation, the GAVI Alliance and the Global Fund to Fight AIDS, Tuberculosis Today’s strong focus on climate challenges places and Malaria (GFATM). In a joint declaration in the EU in a key position in an increasingly impor­ March 2007 the seven countries involved in the ini­ tant global arena. To an increasing extent the EU is tiative drew up a common agenda consisting of a setting the agenda in global and other international total of ten priority areas related to three main organisations that Norway has to deal with. The themes: EU could serve as an example to other regions seek­ • to ensure capacity for global health security by ing to achieve regional representation, legitimacy developing emergency preparedness measu­ and power in global organisations. At the same res, combating infectious diseases and addres­ time the effectiveness of EU cooperation and the sing the global health workforce crisis extent to which EU policy is given prominence in • to confront threats to global health security in different forums varies considerably. The EU also connection with conflicts and natural disasters, encounters opposition in certain forums because and related to the HIV/AIDS epidemic and of its working methods. environmental problems The EU has established itself as a global actor • to make globalisation work for all in dealing in the following areas of importance to Norway: as with health-related challenges in development a promoter of a strong international legal order policy, trade policy and efforts to promote through multilateral cooperation, in the field of good governance. security and defence policy, and as an actor within the areas encompassed by the policy of engage­ These themes recur in a number of different areas ment, as defined in previous chapters. If we include of Norwegian foreign policy. It is crucial to view the development assistance provided by the indi­ foreign policy from a health policy perspective and vidual countries, the EU is by far the world’s most vice versa. This means, for example, that support­ important development actor. However, EU devel­ ing the development of the health sector in Russia opment assistance continues to be relatively poorly is an important part of our High North efforts, that coordinated despite the increased focus on this humanitarian considerations are a decisive crite­ issue over the past few years. The EU is also rion when we reject cluster munitions as a weapons emerging as an increasingly important interna­ category, and that consideration for equitable dis­ tional actor in the areas of migration policy and the tribution and legitimate national interests is a fac­ fight against international crime and terrorism. tor in developing a global influenza pandemic con­ Economic cooperation programmes, trade agree­ tingency plan. ments and cooperation with other regional organi­ Reducing child and maternal mortality are two sations are also relevant in this context. of the UN Millennium Development Goals where Many people regard regional organisations as there has been least progress. Norway has been at challengers of the global order under the auspices 2008– 2009 Report No. 15 to the Storting 171 Interests, Responsibilities and Opportunities of global institutions such as the UN and the WTO. but often without their relationships to formal mul­ The potential for conflict will probably increase in tilateral structures being defined. One important pace with the momentum of regional integration, aspect of the debate on global governance con­ and Norway will in all likelihood experience a cerns the increasing power of large companies, pri­ number of situations in which the EU and the UN, vate foundations, NGOs and certain individual for example, represent competing channels for actors in international politics and how important cooperation. Nevertheless, on the whole, it is more decisions have been moved from formal intergov­ accurate to view the EU and other regional organi­ ernmental forums to networks in which the state is sations as building blocks in a global multilateral just one – and sometimes not even the most impor­ system. The EU is seen as a strong supporter of tant – of several participants. These non-state the UN by its member states. When global institu­ actors promote new norms, possess important tions are experiencing difficulties, there is more knowledge and represent economic power. scope for regional organisation and integration. Norwegian policy has drawn to a great extent Regionalisation can thus be said to promote gov­ on the resources of these new actors – the cam­ ernance by means of rules and multilateral solu­ paigns against anti-personnel landmines, small tions. The EU has taken on considerable responsi­ arms and cluster munitions are one example and bility for leading international efforts, not least in engagement in a number of new global health initi­ relation to climate change and development issues. atives another. However, there is still a need to We must accept that Norway is dependent on develop a coherent foreign policy strategy that sets close cooperation with the EU in areas where key out how the “old” and the “new” actors in global Norwegian interests are involved, such as global governance can best work together. governance and a multilateral order, and the pre­ In efforts to find new solutions to new prob­ vention of insecurity caused by external instability. lems, it is important to operate in ways that pro­ This is first and foremost a positive challenge given mote broad multilateral organisations and proc­ that Norway and the EU share common views in esses. Networks of new actors could play a part in most areas of their global engagement. Norway the necessary revitalisation of multilateral proc­ must accept, and take advantage of, the fact that esses. However, an important prerequisite for this the EU is an important international supporter of is transparency and an agreed division of labour. the UN and a norm-governed, regulated and The initiative to prohibit cluster munitions and the organised community and should consider the pos­ Seven-nation Initiative on nuclear disarmament sibility of cooperation in priority foreign policy and non-proliferation1 are other good examples of areas on an ongoing basis. political initiatives in the margins of the UN that Norway will have opportunities to make itself aim to strengthen international rules, as well as heard in the EU by giving priority to specific areas making multilateral processes more targeted and where important Norwegian interests coincide focused. with EU interests, and where Norway can provide For Norway, this primarily means that it is relevant expertise and resources. Our aim must be important to identify measures and actors that may to work together with the EU in order to achieve a help to revitalise and strengthen multilateral greater global impact. The risks associated with cooperation and global governance. The “Norwe­ cooperation with the EU lie primarily in the greater gian model” of close cooperation between the state, complexity created by extra decision-making lev­ NGOs, research communities and businesses is a els and bureaucratisation. In general, the choice potentially interesting resource in terms of influ­ between openly going it alone and cooperating encing how international organisations relate to with actors such as the UN, the World Bank, the other actors. EU or key NGOs should be made on the basis of an We are seeing that a number of decisions that assessment of the most effective way to realise were previously taken at the national level are now Norwegian interests. being made in international arenas. This increases the distance between the decision-makers and those affected by the decisions, thus creating a 17.10 Diversity, complexity and the democratic deficit. The problem is accentuated by need for transparency the fact that representation and the system of vote

As described in Chapter 10, globalisation has been 1 In addition to Norway, the Seven-nation Initiative involves accompanied by the emergence of an increasing Australia, Chile, Indonesia, Romania, South Africa and the number of new actors in the foreign policy arena, UK. 172 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities weighting in international organisations benefit Transparency and accountability are important rich industrial countries, while their decisions pri­ keywords in this context. One important step marily affect developing countries that have little towards alleviating the problems of democratic def­ influence over the decision-making process. icit and inadequate control of what takes place in Discussions about reform of the UN Security international organisations is to advocate greater Council, about changes to the system of vote transparency and access to information about how weighting and selection of leaders for the World decisions are reached, on what basis they are Bank and the IMF, or about working methods and made and with what kind of justification. Transpar­ informal power in the WTO, can all be seen as ency and access to information enable greater con­ expressions of criticism of international organisa­ trol and greater accountability in international tions and there is every reason to take them seri­ bureaucratic decision-making processes, not least ously. As mentioned above, it is in Norway’s inter­ in relation to the behaviour of states in these ests to support reforms that will result in a more forums. It could be advantageous to upgrade this equitable distribution of rights and obligations strategy of promoting transparency and accounta­ between different countries in international organ­ bility as an important means of reducing the legiti­ isations. macy deficit that can be seen in some parts of the We are unlikely to reach agreement on impor­ world. An active policy in this area is consistent tant reforms in these organisations in the short with Norwegian values, and would provide inter­ and medium term, as the conflicts of interest are esting opportunities for cooperation with non-state too great. At the same time it is possible that the actors. It would also be in Norway’s interests, financial crisis will lead to a greater focus on pre­ among other things because Norway cannot cisely these issues. Norway has a great interest in expect greater formal representation at a time participating actively in efforts to promote reform, when developing countries are gaining a stronger but it should also put forward other, less politically foothold in global organisations. sensitive proposals for reforms in international organisations. 2008– 2009 Report No. 15 to the Storting 173 Interests, Responsibilities and Opportunities

Part III A coherent approach to the promotion of Norwegian foreign policy interests 174 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities 2008– 2009 Report No. 15 to the Storting 175 Interests, Responsibilities and Opportunities

18 Coherence in the public administration

Globalisation presents new opportunities and chal- of Norwegian foreign policy interests, i.e. the for- lenges for foreign policy management and the pro- eign service in a broad sense, is set up and organ- motion of Norwegian foreign policy interests. This ised in the best way possible to safeguard key inter- white paper has shown how the boundaries ests and objectives. Up-to-date tools and an organ- between domestic and foreign policy are being isation that ensures consistency in terms of erased, how most fields are now affected by inter- interests and values, domestic and foreign policy national processes, how a wide range of state and and the actors who act on behalf of Norway inter- non-state actors are taking part in international pol- nationally are crucial to ensuring a coherent itics and how this is affecting Norway’s room for approach to promoting Norwegian interests. manoeuvre in foreign policy. Globalisation poses significant challenges to Globalisation poses challenges for how we deal the promotion of Norwegian foreign policy inter- with the interaction between domestic and foreign ests that can be met by: policy. The increasing diversity of actors involved • Ensuring a coherent and consistent approach is both a resource and a challenge. There is a grow- to dealing with foreign policy issues on the part ing need for greater coherence in cross-sectoral of the Norwegian authorities thinking and better clarification of priorities and • Defining and strengthening the role, contribu- targeting of activities, as well as a higher level of tion and focus of the Ministry of Foreign expertise and skills related to foreign policy issues Affairs and the foreign service and processes. In particular the Europeanisation of • Enhancing expertise on foreign policy issues Norwegian policy as a result of agreements with and processes the EU is increasing the demand for expertise and • Ensuring security and emergency prepared- coordination. The globalisation of security policy ness in response to a complex picture of chal- issues and increased mobility also raise important lenges and threats questions concerning security, emergency prepar- • Providing efficient service and effective assist- edness and service to the general public in Norway ance to the general public in a globalised world and abroad. In addition, an increasing number of • Enhancing Norway’s reputation through the companies, organisations and individuals are increased use of public diplomacy involved in a range of cross-border activities. This raises expectations and places greater demands on In its policy platform the Government states that it the foreign service, but at the same time presents will work to promote a modern and open foreign greater opportunities for openness, dialogue and service. The Government is responsible for the cooperation with a wide range of actors. New tech- organisation of the public administration. The aim nology for communication and improved organisa- in this white paper is to present an overall assess- tion could also enhance the efficiency, quality and ment of how foreign policy administration can be user-friendliness of the public administration. strengthened in order to meet the challenges The Government’s overall objective is for Nor- posed by globalisation and thus to provide a sound way to be better equipped to take advantage of basis for the Government’s future efforts in this opportunities to exert an influence in areas of field. The white paper outlines a number of recom- importance for safeguarding Norwegian interests. mendations for the further development of the for- In order to achieve this, the Government needs to eign service. assess on an ongoing basis whether the promotion 176 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

19 The impact of globalisation on the public administration

Foreign policy involves all sectors of society. As the Bilateral cooperation: various forms of bilateral level of international activity has increased, more cooperation designed to promote Norwegian inter­ and more parts of the Norwegian public admini­ ests through economic, political, cultural or social stration have become engaged in various forms of relations with other countries are another impor­ transnational cooperation. Reforms in most policy tant dimension. Most of the ministries and other areas, such as the environment, education, devel­ administrative bodies are currently involved in opment assistance, transport and communications bilateral agreements and cooperation in a number or the economy, are affected by our international of fields. The diplomatic and consular missions are surroundings, for example through the spread of key actors in the ongoing internationalisation of ideas, experience and knowledge or through coop­ the Norwegian public administration. Cooperation eration on legislation and rules. with the public administration here in Norway The distinction between foreign and domestic (over and above cooperation with the Ministry of policy is therefore becoming increasingly blurred. Foreign Affairs) and with non-state actors will be It is essential to maintain an international outlook an increasingly important and greater part of the and involve international actors if tasks in the pub­ work of many embassies. lic administration are to be dealt with effectively. Multilateral cooperation: multilateral coopera­ Over the past few decades the political agenda of tion within the framework of various international international organisations has also expanded con­ organisations, such as the Nordic Council of Mini­ siderably, and has gradually become an integral sters, the OECD, the UN, the WHO, the WTO, the part of daily problem-solving in the public adminis­ EU and EFTA is leading to the establishment of tration. common norms, rules and standards in a number One consequence of this growing interface of areas. These organisations serve as arenas for between different policy areas is that more of the dialogue, where a common understanding of prob­ knowledge base for our foreign policy is created by lems and possible solutions can be reached. The different parts of the Norwegian public administra­ Ministry of Foreign Affairs represents and coordi­ tion and Norwegian society. Another consequence nates Norway’s interests in a number of these is that the order of priority that should be given to forums. Many other ministries and agencies also different policy areas is less straightforward. participate actively in this work. EU/EEA coopera­ tion is a special case, involving a particularly broad interface with the Norwegian public administra­ 19.1 Increasing diversity of tion and an equally strong need for coordination. international tasks As a result of globalisation all the ministries therefore participate in a wide range of interna­ An increasing proportion of the public administra­ tional activities today. It is difficult to imagine a tion participates in some form of international public administration task or institution that has no cooperation. There is a wide range of international international dimension at all. As a result of the tasks to be dealt with and they vary in terms of internationalisation of politics and the public scope, the extent of commitment required and the administration it is possible to talk about the emer­ type of measures used. gence of a fourth level of government in Norway. Historically, one important aspect of interna­ The international level supplements the municipal, tional cooperation has been connected with learn­ county and central levels of government. Nor is ing across national borders, for Norway often in a there always a clear hierarchy between the differ­ Nordic or European context. There is much to be ent levels. In practice, therefore, the Norwegian gained from learning how other countries system of government is a multi-level system with approach and deal with problems and challenges. rich, diverse and often complex interconnections. Cooperation has led to the exchange of knowledge, The Survey of State Administration (the Minis­ technology and experience. try survey) (Egeberg, Lægreid, Christensen et al., 2008– 2009 Report No. 15 to the Storting 177 Interests, Responsibilities and Opportunities

1976, 1986, 1996, 2006) documents the increase in stration and the ministries. External agencies are the level of internationalisation of the public admin­ also becoming increasingly involved, through vari­ istration between 1976 and 2006. Some three out of ous directorates, supervisory bodies and councils. ten employees in the ministries reported in 2006 More and more of the tasks of the directorates also that a large proportion of or the greater proportion entail some form of binding international coopera­ of their time over the past year was spent working tion, and many cooperate actively with correspond­ on international matters. In some ministries the ing agencies in other countries and with interna­ figure is considerably higher. In 2006 a higher rel­ tional organisations. For example the various regu­ ative percentage of ministry employees stated that latory authorities and supervisory bodies in they worked on international tasks than in 1996, Norway cooperate very closely with correspond­ and the figure was considerably higher than in ing organisations in other European countries and 1976. The survey also shows that an increasing with newly established European or other interna­ number of ministry employees are devoting the tional supervisory bodies. greater part of their time to international tasks, and that fewer and fewer ministry employees remain unaffected by globalisation. As there has also been The international role of the municipalities and a substantial increase in the number of people counties employed by the ministries, it is clear that the total The internationalisation of the public administra­ number of public servants involved in international tion also affects the local government administra­ work has risen considerably. A separate survey tion. Municipal and county agencies participate carried out by the Ministry of Foreign Affairs con­ actively in international tasks and cooperation. firms these figures. According to the Norwegian Association of Local One particularly important component of the and Regional Authorities, between 50% and 70% of internationalisation of the public administration is all matters dealt with in the municipal sector are the EEA and cooperation with the EU. The scope linked to regulations that have been incorporated and dynamic nature of the EEA Agreement have into Norwegian legislation through the EEA Agree­ meant that the EU and the EEA Agreement have a ment. International issues and the need for coordi­ key role to play in the internationalisation of the nation affect the provision of services and policy in Norwegian public administration. A number of new their daily work, and a number of municipalities laws, rules, standards and interpretations have and counties participate actively in international come about as a direct result of the EEA Agree­ cooperation. Many municipalities are involved in ment or as a result of the broad network of cooper­ different forms of international programme ation that has developed within the framework of cooperation, in our neighbouring areas, in Europe the Agreement. The EEA Agreement also provides and in international solidarity efforts. A number of an opportunity for Norwegian public servants to municipalities, counties and regions also take part participate in a wide range of working groups and in various forms of cross-border cooperation at the expert groups under the European Commission regional level. with the aim of developing new policy. In the sur­ veys, 63% of employees in Norwegian ministries report that the EU/EEA Agreement and/or the Business sector and society globalised Schengen agreements have had an impact on their International politics is not something that con­ areas of work. Over 50% say that laws and rules in cerns only the state and the public administration. their field originate in the EU. Almost 10% of the Globalisation affects the whole of society and cre­ employees say that they have some contact with ates new opportunities and foreign policy arenas the European Commission on a monthly basis and for a wide range of actors. some 9% state that they are in contact with other A large proportion of the Norwegian business international organisations. sector operates in international markets and has extensive activities and commitments abroad. Eco­ nomic cooperation and the accompanying flow of 19.2 Increasing number of goods, services, capital and knowledge mean that government bodies involved in the competitive position of the business sector is international matters constantly changing. On the one hand, there is greater access to expertise and skilled labour, The international work of the public administration while on the other, the competition for both has is not confined to the central government admin­ increased. Globalisation presents a number of chal­ 178 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities lenges to the public administration, including the lessons learned and how we can best coordinate Ministry of Foreign Affairs, in terms of pursuing the activities of the various ministries with those of an active business policy and promoting innova­ other actors in society in the light of new chal­ tion, creating new jobs and strengthening indus­ lenges. trial environments in Norway. The focus on corpo­ The quality of the Norwegian public adminis­ rate social responsibility widens the scope for tration is generally good, and Norway scores high cooperation between the business sector and the on the various World Bank Governance Indicators foreign policy arena (cf. Chapter 14). related to government effectiveness, the rule of Civil society is also becoming internationalised, law, and control of corruption. The figures show bringing new challenges for established foreign that there is a high level of confidence in the public policy actors. An increasing number of organisa­ administration and the political-administrative sys­ tions and enterprises are engaged in different tem in Norway. The quality of the Norwegian pub­ types of international cooperation, involving peo­ lic administration and its interaction with private ple-to-people cooperation, participation in interna­ actors and other actors in society is probably one of tional NGOs or activities connected with specific the factors that has enabled Norway to address campaigns or causes. In addition there are tens of many of the challenges of globalisation so effec­ thousands of different national interest organisa­ tively. tions, many of which also have extensive interna­ Norway is not the only country that is being tional activities. Particularly close cooperation has compelled to analyse possible forms of organising also developed between the Norwegian authorities its foreign service in the light of the challenges and NGOs in several areas, such as in the fields of posed by globalisation. Other countries are facing international development and humanitarian assist­ many of the same challenges and are now in the ance. The growing number of interest organisa­ process of implementing reforms. A number of tions and the increasing diversity of actors also countries with which Norway cooperates closely, raises questions about how the public sector and including Sweden, Denmark, the United Kingdom, civil society can cooperate in ways that ensure effi­ France and the US, have recently carried out ciency and clearer accountability in foreign policy extensive analyses of this topic. Even though there (these issues are discussed in Chapter 10). are clear differences between the Norwegian for­ eign service and that of these other countries, there are nevertheless a large number of similari­ 19.3 The Norwegian public ties as regards the challenges they are facing as a administration well equipped to result of globalisation. deal with the challenges of There is also considerable expertise to draw on globalisation in Norwegian academic communities involved in carrying out studies of the public administration In the Government’s view Norway is in a good and public administration reform. During recent position to address the question of how the foreign years a number of internal studies have been car­ service can be most effectively organised in a ried out at the Ministry of Foreign Affairs and in broad sense. Over the years the foreign service other parts of the public administration to ensure has gained considerable experience of managing that available instruments and resources are uti­ international tasks. Importance has been attached lised as effectively as possible. to finding candidates with specialist expertise and language and negotiation skills when recruiting to and developing the public administration. Many The challenges of globalisation point in opposite employees also have specialist expertise and expe­ directions rience of various forms of international coopera­ Globalisation presents the public administration tion and a number of them have spent periods work­ with a number of challenges and there is no single ing in international organisations. Knowledge and solution. Public administration policy must be experience of how international tasks can best be based on a recognition of this fact. On the one dealt with have also become part of the organisa­ hand, globalisation is accompanied by a greater tion’s institutional memory, in the sense that proce­ degree of unpredictability, complexity and rapid dures and rules have been established over time change. Given this situation, and seen in isolation, for how international work should be organised it could therefore be expedient to organise the pub­ and coordinated most effectively. The challenge is lic administration in such a way that a high degree therefore primarily to look at how we can build on of flexibility and adaptability is ensured. The ability 2008– 2009 Report No. 15 to the Storting 179 Interests, Responsibilities and Opportunities to solve problems effectively in dynamic and com­ areas as parts of a coherent whole and to ensure plex surroundings can often be achieved through that different interests, goals and positions are extensive decentralisation and local variation. Seen weighed up against one another and prioritised from this perspective it could therefore be expedi­ accordingly. The political lines of responsibility ent to give different parts of the public administra­ need to be defined and clarified. From this perspec­ tion the freedom to deal with their various interna­ tive it could be advisable to improve overall coher­ tional tasks and problems and to organise their ence and coordination. These two key challenges own interaction with their surroundings, clients, point in opposite directions. The potential conflict users and customers. between them must be actively addressed by those On the other hand, globalisation increases the responsible for the coordination of Norwegian for­ need for coherent and cross-sectoral coordination. eign policy. There is a greater need to view different policy 180 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

20 Improving the Norwegian authorities’ overall administration of foreign policy

The developments described above have led to an foreign service is to safeguard and promote Nor- increased need for cooperation and coordination wegian interests abroad, including both Norwe- between the various ministries on international gian special interests and any interests Norway issues. EU and EEA cooperation, immigration, cli- shares with other countries. The tasks of the for- mate change and the High North are examples of eign service are carried out by the diplomatic and areas in which a number of different ministries are consular missions and the Ministry of Foreign involved on an ongoing basis and where the level of Affairs. The Foreign Minister is responsible for cooperation is increasing in breadth and depth. ensuring that consitutional requirements and This means that domestic policy objectives must requirements of international law are complied be increasingly viewed in the context of foreign with when entering into international agreements policy aims and measures. The environmental with other states. This is done, for example, in con- challenges we are facing clearly illustrate how sultation with other ministries. The Ministry of international conventions and the dynamics of EU Foreign Affairs is also responsible for drawing up cooperation are internationalising Norwegian pol- the Government’s annual report to the Storting on icy administration. International migration is an treaties and agreements concluded with foreign area where there is a constant challenge to recon- powers. cile international demands with domestic policy The Foreign Minister’s active exercise of aims and where effective coordination of political reponsibility in this area is in keeping with the and administrative goals between several minis- rules of international law and international state tries is crucial if the Government is to achieve its practice on the representation of states in their overall aims. relations with other states, as well as the rules gov- Foreign policy objectives must also be increas- erning the assumption of obligations under inter- ingly viewed in the context of domestic policy national law. This is essential in order to ensure objectives, tools and resources. This applies to that Norwegian interests are safeguarded effec- areas such as immigration, the High North and cli- tively and that communication with other states mate and energy policy. The Ministry of Foreign and international organisations is well coordi- Affairs should work to ensure that foreign policy nated. It also helps to ensure a coherent and con- objectives and priorities are better coordinated, sistent approach to Norway’s international legal integrated and incorporated into the strategies and obligations, rights and responsibilities. action plans of the various ministries. As a number of other ministries are becoming Foreign policy is coordinated on the basis of increasingly engaged in and sharing responsibility legislation, custom and the continuous efforts of for foreign policy, it is important to ensure that due the government and the public administration to account is taken of broader foreign policy consider- adapt to new challenges. A short summary of some ations and international law obligations. It is also of the basic structures needed for the management important to prevent different parts of the public and coordination of foreign policy is given below, administration, which may have different interests followed by an overview of some of the challenges to protect, from putting forward divergent views or involved. making conflicting commitments in international negotiations. It is therefore crucial that the neces- sary policy coordination takes place at government 20.1 Foreign policy coordination level and at the same time vital to ensure a uniform Norwegian approach in daily interaction with other The Foreign Minister is responsible for coordinat- states and international institutions. Given the ing foreign policy, including relations with other breadth of Norway’s international engagement, states and international organisations. According more importance needs to be attached to coordina- to the Foreign Service Act, the primary task of the tion. 2008– 2009 Report No. 15 to the Storting 181 Interests, Responsibilities and Opportunities

The Foreign Minister has primary responsibil- binding cooperation. International agreement or ity for this coordination, in close cooperation with coordination is often also essential for achieving other ministries. In the EEA field, for example, important policy objectives in a number of areas. which is very extensive, the Ministry of Foreign Given that a number of Norwegian public bod- Affairs is responsible for coordinating Norway’s ies operate in the international arena, there is a efforts. It is also responsible for coordinating the need for coordination at different levels. In this Government’s High North policy, which has an respect other ministries increasingly complement impact on a number of specifically national priority the coordinating role of the Ministry of Foreign areas. The same applies to the WTO negotiations, Affairs as described above. The expertise and which are extremely important for Norway’s experience of the various ministries are an increas- national interests. The coordinating role of the ingly important resource in foreign policy. Work- Ministry of Foreign Affairs is in keeping with the ing methods and forms of cooperation that make formal processes described above, and is based on the best possible use of this expertise and knowl- considerable expertise and experience in dealing edge must be put in place. with complex and often cross-sectoral negotiation Networks, meeting places and projects need to processes. In addition the Ministry of Foreign be developed in a number of areas to ensure a Affairs possesses and is continually developing coherent approach to managing our foreign policy expertise in areas where the ministry has a key interests. Such meeting places could lead to better role to play in terms of safeguarding Norwegian coordination, quick and relatively inexpensive interests, such as in EU/EEA and WTO-related communication, development and training on dif- issues, questions of international and consitutional ferent issues and sectors, across the various minis- law in relation to a number of areas, security policy, tries and policy areas. There are already many climate policy, humanitarian issues, human rights coordination forums of this kind, not least in the and the policies of multilateral institutions. context of European policy. It is important that the public administration also helps to ensure that other relevant actors out- 20.2 Globalisation increases the need side the administration, which often have vital for and poses challenges in terms expertise and experience, are involved to a greater of coordination extent in the various coordination forums. In this context, we should consider how consultation The issue of climate change illustrates how globali- forums involving the social partners, the business sation and other international changes have gradu- sector, researchers, interest organisations and the ally led to a growing international engagement on local administration can be further developed. This the part of the other ministries. In the international is highlighted, for example, in Report No. 23 climate negotiations the Ministry of the Environ- (2005–2006) to the Storting on the implementation ment has the coordinating role, by virtue of its of European policy as crucial to providing a expertise on climate change, but it draws heavily sounder basis for policy formulation in EU/EEA- on the Ministry of Foreign Affairs’ knowledge of related issues. New technology should be used to international processes and negotiations. The Min- create virtual meeting rooms and forums. We istry of Finance and the Ministry of Petroleum and should also consider how databases and web- Energy also have important areas of responsibility based solutions for exchange of relevant informa- in the climate negotiations. The Ministry of tion can be developed. Finance, which also participates in coordinating Norway’s EU/EEA efforts, is heightening its inter- national profile through its management of the Strengthening diplomatic and consular missions as Government Pension Fund – Global. In 2007 the coordinating bodies Ministry of Finance drew up a separate strategy for The diplomatic and consular missions should play the Ministry’s work related to international issues. an even greater role in ensuring effective foreign The ministries are directly involved in interna- policy coordination. This means that the whole of tional cooperation in a number of areas, including the public administration should use the diplo- in the development of policy and legislation. The matic and consular missions as partners and that same applies to a large number of directorates and the foreign missions should report to a greater other state institutions in the respective fields. extent to the entire public administration and in the There is an interplay between the development of interests of the whole of society – in cooperation national policy and participation in internationally with experts in the ministries. It is also important 182 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities that ministries and other actors in the public order to enable them to coordinate efforts as effec- administration inform the diplomatic and consular tively as possible. missions of their activities in various countries, in 2008– 2009 Report No. 15 to the Storting 183 Interests, Responsibilities and Opportunities

21 Further developing the foreign service in response to the challenges of globalisation

The foreign service is an important resource for managing the Norwegian Agency for Develop­ safeguarding Norwegian interests in a rapidly ment Cooperation (NORAD) and FK Norway changing world. The Ministry of Foreign Affairs (Fredskorpset). It also carries out a number of and the diplomatic and consular missions must administrative tasks and fulfils various support play a central part in these efforts and have the functions for the foreign service. The diplomatic necessary expertise to do so. Norwegian embas­ and consular missions cooperate with all parts of sies, delegations/missions and consulates general the Norwegian central and local government admin­ are to play a coordinating role for the Norwegian istration. public administration and society in general. The As a consequence of globalisation, and Europe­ foreign service abroad now consists of 109 diplo­ anisation, foreign policy and domestic policy are matic and consular missions, with approximately becoming increasingly intertwined, giving rise to a 650 employees posted from Norway, as well as need to clarify the role and functions of the foreign some 1000 local employees. service. As a result of the complexity and unpredict­ The Ministry of Foreign Affairs is responsible ability of globalisation, the international tasks of for coordinating foreign policy and international the foreign service are expanding, as are its tasks development policy in Norway and abroad and for at home, as there is a growing need for cooperation

Figure 21.1 Norway’s diplomatic and consular representation abroad reflects a changing world Overview of Norwegian diplomatic and consular missions, with examples of missions established during the period 2004–2009. Several foreign missions have been closed down, moved or have changed status during this period. Source: Ministry of Foreign Affairs 184 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities both with a number of other Norwegian civil soci­ ever, it will be necessary to analyse in detail spe­ ety actors and with various international actors. cific needs, actual numbers, areas of expertise, These civil society actors are engaged in areas that professional backgrounds and working methods at were previously more exclusively the province of certain diplomatic and consular missions. the foreign service. This requires that all parties have a good understanding of their respective roles. 21.1 Ongoing changes and reforms Globalisation and other international changes are placing greater demands on the foreign service An extensive reform process has been under way as a knowledge organisation. New challenges are at the Ministry of Foreign Affairs for some time. leading to a new and greater demand for language The most recent large-scale reorganisation of the and cultural skills, regional expertise, expertise in Ministry was carried out in 2006. The organisation macroeconomics, trade relations, international must at any given time reflect the Government’s development policy, the functioning of internatio­ policy priorities, while fulfilling the administrative nal organisations, social development in new and tasks of the foreign service. The changes have old major powers, negotiation techniques and helped to create a more flexible organisation with security and emergency preparedness. Foreign greater emphasis on strategic leadership. The service employees have extensive knowledge, reforms have been broad in scope and have experience and skills in the field of foreign policy. involved both structural changes and changes to This expertise is continually being developed in working methods and the working environment. the Ministry and between the Ministry and the dip­ In recent years the Ministry of Foreign Affairs lomatic and consular missions, and in cooperation has given priority to efforts to make the activities with other actors. It is important that this collective of the foreign service more open, accessible and knowledge is maintained systematically. This will user-friendly for the general public. This policy of require strategic, coherent planning and at the same time openness on the part of the Ministry towards other parts of the public administration Box 21.1 Special representatives posted and society. Cooperation with research communi­ to Norwegian diplomatic and consular ties abroad must also be expanded beyond the missions Euro-Atlantic axis to include key actors in coun­ tries such as China, India, South Africa and Brazil. Of the total 648 employees posted abroad It should be possible to strengthen cooperation (person-years) at Norwegian diplomatic and between the diplomatic and consular missions and consular missions (embassies, delegations/ the rest of the public administration and with cen­ missions, consulates general), 69 are special tres of expertise by giving the foreign missions a representatives from ministries other than stronger coordinating role in foreign policy issues the Ministry of Foreign Affairs. The greatest and ensuring that they report to and work for the number of special representatives are posted public administration as a whole to an even greater to the Mission of Norway to the EU in Brus­ extent. This will help to ensure the coherence and sels (25) and to the embassies in Washington consistency of foreign policy. (5), Moscow (5) and Nairobi (4). Employees from different parts of the public Example: Special representatives in the administration work for periods at Norwegian dip­ field of immigration lomatic and consular missions as special represent­ The increasing number and complexity of atives or other representatives. The number of tasks have led to a need for special expertise such postings has increased dramatically over the in the field of immigration at a number of past few years, partly as a result of the increased diplomatic and consular missions. There are need for specialist expertise at a number of diplo­ at present 12 special representatives from the matic and consular missions. Today some 10% of Ministry of Labour and Social Inclusion, the the staff posted abroad are special representatives Directorate of Immigration, the Ministry of or other representatives, and the need for special­ Justice and the Police and the Police Directo­ ist expertise is ever-increasing, not least in the field rate at Norwegian diplomatic and consular of immigration. We should consider whether the missions. These representatives carry out number of special representatives can be key tasks related to the administration of increased further as a result of the new demands immigration matters. for expertise associated with globalisation. How­ 2008– 2009 Report No. 15 to the Storting 185 Interests, Responsibilities and Opportunities openness has led to the establishment of a separate Efforts to introduce alternative working meth­ communication unit and greater emphasis on infor­ ods at the Ministry of Foreign Affairs with increased mation and communication activities in general. emphasis on project management, use of tempo­ Continual adjustments are necessary to ensure rary and permanent interdisciplinary working that resources are directed to the most important groups and teams, and ongoing cooperation tasks, both politically and geographically. The for­ between the diplomatic and consular missions and eign service must at all times have a clear idea of the Ministry will also continue to be given priority the tasks required to safeguard Norway’s interests in the future. The purpose of these reforms is to abroad in the best possible way. The Ministry of achieve the level of flexibility necessary to be able Foreign Affairs has carried out a review of how to respond quickly and effectively to the increas­ resources and tasks are distributed between the ingly rapid changes associated with globalisation. diplomatic and consular missions and the Ministry, For several years, the Ministry has given priority with a particular focus on achieving closer integra­ to leadership development. This will continue to be tion between the two. The aim is to free resources a priority, as will performance management. The from lower priority tasks for tasks that have higher Ministry of Foreign Affairs will also continue to priority both politically and thematically and to focus efforts on improving the working environ­ ensure that the foreign service is equipped to deal ment in Norway and abroad. with today’s challenges, as well as to meet the objectives set by the Government. Alternative forms of presence abroad have 21.2 Managing growth been discussed, and more flexible forms of repre­ sentation have been set up and are being tested. The Norwegian aid budget has increased consider­ ably over the past few years, which poses clear

Figure 21.2 Number of person-years in the foreign service, 2002–2008 Source: Proposition No. 1 (2008–2009) to the Storting 186 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities challenges in terms of aid management. There is a of Foreign Affairs is giving priority to strengthen­ need to assess channels and systems for managing ing efforts in this field, for example by increasing aid on an ongoing basis, and to focus on striking a staff levels and ensuring that the diplomatic and balance between tasks and resources. consular missions have the necessary expertise. At the same time growing aid budgets, Developments in the field of immigration call increased political complexity and more stringent for a professional and coordinated approach in performance requirements mean that the organi­ cooperation with other bodies involved in the sation of aid management must be assessed contin­ administration of immigration matters. The Minis­ ually. One challenge highlighted in the OECD try of Foreign Affairs, the Ministry of Labour and Development Assistance Committee (DAC) peer Social Inclusion and the Ministry of Justice and the review of Norwegian development assistance in Police are all seeking to develop a coherent, effi­ the autumn of 2008 concerns the ability of the Min­ cient and user-friendly immigration administration istry of Foreign Affairs to maintain and strengthen system and are cooperating on a broad review of expertise on aid management. Another potential case processing procedures in the field of immigra­ problem is the risk that foreign policy tasks could tion (the SVAR project). be overshadowed by the focus on aid management. Nordic cooperation on reciprocal representa­ tion agreements, whereby the Nordic countries represent each other in selected countries, is to be Immigration – a rapidly growing area continued. The purpose of these agreements is to There are also considerable challenges related to provide a better, more professional, service to another rapidly growing area, namely immigration. users and improve the efficiency of administrative This is the general term for the administrative procedures. tasks connected with entry to and residence in Norway and the Schengen area. The work ranges from dealing with visa applications for short-term 21.3 Services for Norwegian citizens visits, to processing applications for student visas, abroad labour immigration, family reunification, perma­ nent residence permits, asylum and much more. Globalisation is leading to new migration flows and The Ministry of Labour and Social Inclusion is a demand for new types of services. While many reponsible for developing policy and legislation on people come to Norway to find work and use their immigration, but the administrative responsibility resources in Norway, a large number of Norwe­ is shared between the Ministry of Labour and gians travel abroad as tourists, or to study, work, Social Inclusion, the Ministry of Justice and the carry out research, do business or to settle. This Police and the Ministry of Foreign Affairs, with the increased mobility is changing the composition of Directorate of Immigration, the police and the dip­ our society, which in turn is changing our tradi­ lomatic and consular missions acting as admin­ tional perception of what it means to be Norwe­ istrative bodies. This is an example of close admin­ gian. We are also noting increased travel and con­ istrative cooperation between various ministries in sular activity, as well as an increase in the number matters related to foreign affairs. of refugee, asylum and visa cases. Increased travel The general increase in international migration activity also poses considerable challenges in and mobility has been accompanied by an increase terms of crisis management and changing from year to year in the number of immigration demands for public services, such as health, secu­ matters dealt with by the diplomatic and consular rity and other services for Norwegian citizens missions, which poses considerable challenges. abroad. We are also seeing significant changes in The foreign service has an important role to play in terms of what is required and expected of the Nor­ this area. The diplomatic and consular missions wegian authorities and the Norwegian public take decisions regarding visa applications, and administration. some also take decisions regarding residence Providing assistance to Norwegian citizens cases. They also prepare matters for further abroad is one of the foreign service’s key tasks. processing and check information. In terms of the According to section 1 of the Foreign Service Act, number of decisions taken on immigration mat­ the foreign service is to provide advice and assist­ ters, the diplomatic and consular missions rank ance to Norwegian nationals vis-à-vis foreign first in 2009, ahead of other administrative bodies authorities, persons and institutions. It is also to such as the police, the Directorate of Immigration provide assistance to Norwegian nationals abroad, and the Immigration Appeals Board. The Ministry 2008– 2009 Report No. 15 to the Storting 187 Interests, Responsibilities and Opportunities for example in connection with criminal prosecu­ In order to raise awareness of these challenges, tions, accidents, illness and death. the Ministry of Foreign Affairs is giving priority to An increasing number of Norwegians receive security in its day-to-day activities and has divided consular assistance from Norwegian diplomatic its security efforts into four categories: 1) the secu­ and consular missions. It is a constant challenge to rity of its own employees and their families, 2) the find a balance between Norwegians’ growing security of Nowegian citizens abroad (assistance), expectations of help from the Norwegian foreign 3) information security, and 4) Norway’s image service and the assistance that can be provided abroad and the reputation of the Norwegian for­ within the legal parameters and resources avail­ eign service. able, in the light of the other priority tasks of the A risk-based approach to security management foreign service. In addition to the diplomatic and based on coherent risk analyses is required to consular missions, the foreign service also has a meet the constantly changing security challenges. broad network of honorary consulates all over the A great deal of effort is being devoted to training in world that provide assistance to Norwegian citi­ crisis management and personal security and to zens. Moreover, plans are being made to establish conducting emergency preparedness exercises. a situation centre at the Ministry of Foreign In order for the Ministry of Foreign Affairs to Affairs. The centre will be operational 24 hours a be able to continue to meet the challenges associ­ day and will improve preparedness and enhance ated with the changing security situation, it is consular services. important that it has an organisation that has the capacity and expertise to deal with the new secu­ rity challenges at all times. In addition there is a 21.4 Security and emergency need to promote closer contact with other centres preparedness of expertise that have relevant experience of the new security situation. The Ministry of Foreign Affairs is now facing more extensive security challenges than previously. Due to Norway’s engagement in conflict areas, the 21.5 Strengthening foreign policy expansion of Norwegian business interests and expertise changes in travel habits, the Ministry of Foreign Affairs must be prepared to deal with complex situ­ The foreign service possesses extensive knowl­ ations. Norwegian diplomatic and consular mis­ edge and expertise related to international affairs sions and representatives of the Norwegian and is a centre of expertise for such issues in Nor­ authorities must be prepared for the possibility of a way. The Government is seeking to develop this terrorist attack. This is why top priority is being role further. The aim is that the foreign service given to the Ministry’s security efforts and to should be an open, dynamic and future-oriented strengthening the general security of employees at knowledge organisation, and a foreign policy Norwegian diplomatic and consular missions. knowledge base for the public administration and The foreign service has the primary responsi­ the whole of Norwegian society. Globalisation bility for dealing with civilian crises abroad and has poses a number of challenges to a knowledge developed a crisis management organisation that organisation of this kind, accompanied by a greater brings together expertise from various relevant demand for knowledge, insight and understanding authorities. This has worked well. A more detailed in a wide range of fields. account of the Government’s crisis management The Ministry of Foreign Affairs has and is con­ system can be found in the white paper on the tsu­ tinually developing expertise in a number of the­ nami disaster in South-East Asia and the central matic areas that are important for safeguarding crisis management system (Report No. 37 (2004– Norwegian interests. The following are examples 2005) to the Storting). The Ministry attaches great of areas that the Ministry of Foreign Affairs importance to further developing the crisis man­ defines as core areas of expertise: agement system with a view to being as well pre­ • Issues of international and constitutional law pared as possible for any crisis that may arise. Par­ related to a number of thematic areas ticular emphasis will be given to preventive secu­ • International negotiations and related proces­ rity measures, as well as preparation for crises that ses, often of a cross-sectoral nature could also affect foreign service employees or par­ • EU-, EEA-, and WTO-related issues, activities, ticipants in official delegations. processes and expertise 188 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

• Security policy and policy towards Russia and the High North The employees are our most important foreign • Country expertise, language skills and foreign policy resource policy analysis Securing access to highly qualified personnel who • Issues related to the policy of engagement, possess the necessary expertise is a challenge for including peace processes, human rights and all ministries. Therefore, it is important that the humanitarian issues Ministry of Foreign Affairs continually assesses the • Aid administration in a broad sense expertise it needs, and identify areas of expertise • Administration of immigration matters and skills that should be strengthened and/or developed. The employees are our most important At a time when more and more of the premises on foreign policy resource. Efforts are being made to which foreign policy is based are set outside the introduce tools for skills mapping and planning in Ministry of Foreign Affairs, the foreign service the Ministry and they will continue in 2009. Compe­ cannot see its expertise in isolation, but must view tence building is particularly important for the Min­ it together with that of other centres of expertise in istry of Foreign Affairs. The organisation has a rel­ and outside the central government administration atively low turnover of employees. Annual turnover and also beyond Norway’s borders. The Ministry in the foreign service is approximately 3% of the per­ must be able to talk to, draw on and cooperate with manent employees, compared with an average in expert groups that have expertise relevant to for­ other comparable ministries of about 10%. At the eign policy that it would not be expedient to same time the foreign service has an extremely develop within the Ministry. Cooperation with high staff rotation rate, both in the Ministry and research institutions and centres of expertise out­ between the Ministry and the diplomatic and consu­ side the public administration helps to raise the lar missions. This helps to create a dynamic organi­ general level of expertise on foreign policy, and to sation that is able to deal with change, new knowl­ ensure that questions of domestic and foreign edge and new initiatives, but at the same time meets policy are viewed in conjunction with one another. the need for continuity, transfer of expertise and uti­ The Foreign Service Institute is a key tool for lisation of available expertise. further developing expertise in the foreign service. The Institute organises both the the foreign ser­ vice trainee programme and other other courses Priority given to gender equality and diversity for the employees, including employees from other Ensuring gender equality in the foreign service ministries. The Agency for Public Management involves creating an environment in which both and eGovernment (DIFI) also offers courses on sexes are able to use and develop their expertise, international topics and languages, which are open at all levels and in all phases of life. Gender equality to the whole of the public administration. is essential if the foreign service is to develop as a This white paper has emphasised the fact that knowledge organisation and be a dynamic and foreign policy is expanding into new areas and that modern part of the public administration. The for­ the boundaries between domestic and foreign pol­ eign service has adopted a gender equality stra­ icy are becoming less distinct. This means that the tegy as part of its personnel policy, which is Ministry of Foreign Affairs will have to give prior­ designed to ensure a good gender balance at all ity to strategic skills planning and more mobility levels of the organisation. Active efforts are being within the foreign service and between the foreign made to recruit more women to management posi­ service and other institutions/organisations. These tions both in the Ministry and at the diplomatic and factors must be seen together and as a conse­ consular missions. quence of globalisation. Increased mobility between The Ministry of Foreign Affairs will give priority the various ministries, companies, research com­ to recruiting Norwegians with an immigrant back­ munities, and national and international organisa­ ground. This is important to ensure diversity in the tions would be mutually beneficial to the various organisation. It will reflect the Norwegian popula­ organisations and would strengthen networks and tion more closely and will provide expertise that is dialogue across sectors and disciplines. It would important for the foreign service, such as knowl­ enhance both the breadth and depth of foreign edge of countries, regions, languages, cultures, reli­ service employees’ sectoral knowledge and would gions and multicultural experience. It could also provide an opportunity for others to acquire knowl­ help to promote integration in Norwegian society edge of foreign policy and diplomacy. and enhance Norway’s international image as an open, inclusive and dialogue-oriented society. 2008– 2009 Report No. 15 to the Storting 189 Interests, Responsibilities and Opportunities

Figure 21.3 The number of women in management positions in the foreign service, 2004–2008 Source: Ministry of Foreign Affairs 190 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

22 Making active use of public diplomacy to take advantage of the freedom of manoeuvre offered by globalisation

This white paper has drawn attention to the large number of new actors, arenas and political issues Close contact with research communities that have significance for Norway and Norwegian Close close contact with research communities is foreign policy. Norway and Norwegian actors need essential for obtaining up-to-date knowledge and to communicate their policies and message analyses for developing a coherent foreign policy through channels other than the usual diplomatic designed to safeguard Norwegian interests in a ones, by means of public diplomacy. In the discus­ globalised world (cf. Chapter 21). International sion of public diplomacy policy presented in this cooperation on research and education is now white paper, as, for example, in Chapter 9.2, more important and more extensive than ever emphasis is given to the importance for Norwe­ before. Contact between experts across national gian interests of presenting a clear and positive borders is helping to create networks and knowl­ image of Norway. Mention is also made of the wide edge of relevance to our own national policy and to range of Norwegian actors that are involved in global developments. International research coop­ shaping Norway’s public image and the impor­ eration is also essential for developing national tance of this for Norway’s economy and prosperity, knowledge and technology. The global flow of cf. Chapter 14.7. knowledge and Norway’s position in this global The purpose of public diplomacy is to under­ knowledge pool are of great importance for achiev­ stand, inform, influence and build relations directly ing Norway’s objectives of improving the quality of with populations, or with specific social groups. Norwegian research, generating relevant innova­ This requires a proactive approach towards foreign tion and ensuring continued welfare and value cre­ media that can help to convey information about ation. Challenges related to climate change, the Norwegian political priorities to broader target environment, poverty and health must be addressed groups, with a particulate focus on building knowl­ through international research cooperation, and edge, relations and confidence. This has signifi­ the results must be applied on a global scale. Nor­ cance for a country’s interests, both directly in way will contribute to international knowledge terms of trade and business interests and more development in areas where it is particularly well indirectly, for example in preventing and reducing qualified and has special expertise (cf. Report No. conflicts, including indentity-related conflicts of 14 (2008–2009) to the Storting, The Internationali­ the kind we saw in connection with the sation of Education). Muhammed cartoons in 2006. Research communities play a key role in shap­ Public diplomacy is a set of instruments, which ing public opinion in their respective fields. By pro­ includes efforts to promote Norway and cultural viding up-to-date knowledge and analyses, they cooperation, that must be linked to Norway’s polit­ help to promote critical debate and a public ical objectives on the basis of Norwegian interests, exchange of views on global issues. This is crucial just like any other foreign policy tool. In other for putting important foreign policy issues on the words, public diplomacy efforts must be consistent international political agenda. with Norway’s interest-based policy, which the Government has defined in this white paper as pol­ icy that systematically safeguards and promotes 22.1 Systematic public diplomacy Norwegian security, welfare and the fundamental efforts as part of Norwegian interests of Norwegian society. More specifically, foreign policy public diplomacy efforts must be in keeping with Norway’s priority interests as they are presented The growing complexity of the foreign policy in this white paper. The Government will continue arena, combined with the challenges and opportu­ to attach importance to public diplomacy as an nities presented by the media and communications important and necessary foreign policy tool. society (as discussed in Chapter 9), makes it 2008– 2009 Report No. 15 to the Storting 191 Interests, Responsibilities and Opportunities increasingly important to give priority to public it has at its disposal to those places where the diplomacy efforts as a foreign policy tool. Effective impact will be greatest. public diplomacy efforts require a coherent This is a follow-up to one of the conclusions of approach. The various Norwegian actors should the Norwegian Public Diplomacy Forum that was know more about each other’s activities. This set up by the Foreign Minister in 2007 to advise the would enable us to create synergies and ensure Foreign Ministry in its efforts to promote Norway that the measures implemented complement each abroad. An analysis has been carried out to deter­ other. mine those countries in which Norway has inter­ Norwegian diplomatic and consular missions ests that would particularly benefit from a better are well placed to play a coordinating role in these Norwegian image up to 2025. The study is based efforts. But the need to reach, and influence, opin­ on all Norway’s national interests in the areas of ion-makers and the population in general is placing trade and industry, resource management and new demands on them. Efforts to build networks international environmental cooperation, research both with Norwegian actors and with target groups and education, culture, migration and foreign pol­ in the host country should therefore be intensified icy priorities. and professionalised. The result of the study is that 19 countries are Networking generates greater knowledge of being given priority in our public diplomacy the strategies and initiatives of the various actors, efforts. These countries are primarily our tradi­ both Norwegian and foreign. The task of the Nor­ tional partners in the Nordic region, Europe and wegian diplomatic and consular missions is to use North America. In addition the BRICS countries this knowledge to draw up strategies that promote (Brazil, Russia, India, China and South Africa) will Norwegian interests, by communicating, confirm­ be increasingly important.1 It is increasingly from ing, refuting and supplementing information about these highly different countries that new policies, Norway and perceptions of the country, and by dis­ consumers, tourists, investors and importers will pelling stereotypes. emerge. Public diplomacy is particularly difficult Cooperation with other Norwegian actors is when we have to compete for attention in countries essential if these strategies are to be successful. where there is very little knowledge of Norway. Cooperation is useful, but it cannot be standard­ The task is to ensure that decision-makers in these ised. Countries are too complex to be reduced to countries look to Norway in those areas where mere slogans, but we could coordinate the mes­ Norway can make a difference. sages we send out more closely. We must raise Funding from the Ministry of Foreign Affairs awareness of the importance of public diplomacy for public diplomacy efforts will to a large extent be among all partners in Norway. channelled to these 19 countries. The Government The Ministry of Foreign Affairs and Innovation will attach extra importance to establishing good Norway with their international presence are at the cooperation projects between the diplomatic and core of the authorities’ public diplomacy efforts, consular missions and Innovation Norway repre­ and must intensify their cooperation. sentatives in these countries. The public diplomacy measures of the consular and diplomatic missions include everything from Geographical focus of public diplomacy efforts and information on the portal Norway – the official site, efforts to promote Norway abroad contact with local press representatives and press Norwegian actors will benefit from carrying out visits to Norway and participation in trade fairs, to reputation surveys and image-building initiatives, scientific seminars, business-related workshops irrespective of the country or region where they and image-building initiatives in connection with have interests. This applies particularly to the for­ sports events and various cultural events. As a rule eign service. All Norwegian diplomatic and consu­ the measures are organised in cooperation with lar missions must be aware of the impact on Nor­ local partners who know the market and are famil­ way’s reputation of any strategies and initiatives iar with local issues. implemented. But Norway’s image is more impor­ tant for Norwegian interests in some countries 1 than in others. By increasing the geographical The 19 priority countries are: Sweden, Denmark, Finland, Iceland, Germany, the Netherlands, France, Spain, Poland, focus of its public diplomacy efforts, the Govern­ the UK, Italy, Turkey, Russia, the US, Canada, Brazil, Japan, ment will be able to channel the limited resources China and India. 192 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

22.2 International cultural cooperation in public diplomacy How can opportunities in the cultural sphere be used to best advantage? A civil society based on freedom of expression and International cultural dialogue, which is in essence broad popular participation is essential for a real universal and based on equality between the par­ democracy, and this presupposes the existence of ties, must be strengthened. Dialogue between cul­ free media, open debate and independent experts. tural and academic communities and individuals Free artistic expression and a broad and active cul­ provides opportunities to put forward Norwegian tural scene (art, design, architecture, sport, etc.) views and interests. This enables progress in dead­ are indications of democratic progress, and actors locked situations where there is no direct political in the cultural field can be seen as agents of social participation, but where the cultural dialogue can change. Moreover, cultural programmes and coop­ be used to raise critical issues and identify possible eration raise Norway’s profile in other countries, paths towards political dialogue. and cultural activities can enhance dialogue and In order to make maximum use of the potential mutual understanding. This also applies to educa­ of culture as a foreign policy tool, it is essential that tion and research cooperation and the exchange of the ministries work well together. Strategy must be students and researchers. In addition to having an coordinated and roles assigned in accordance with intrinsic value, cultural activities must be viewed as the current situation. There is a need to clarify the a part of public diplomacy, and as such are increas­ roles and responsibilities of the Ministry of For­ ingly important for safeguarding Norwegian inter­ eign Affairs and the Ministry of Culture and ests in a globalised world. Priority must therefore Church Affairs as regards the promotion of Nor­ be given to cultural activities in Norwegian foreign wegian culture abroad. This is important, on the policy. one hand, to ensure that both the cultural perspec­ The Foreign Ministry’s cooperation with cul­ tive and the foreign policy perspective are taken tural organisations also includes projects, such as into account and, on the other, to enable coopera­ “Nora’s sisters,” a series of Ibsen seminars at tion between international and national cultural selected embassies that examined Ibsen’s work actors to develop freely. A coordinated government from a gender perspective, as well as cooperation policy for cultural exchanges between Norway and on more complex international issues such as other countries would benefit both artists and cul­ human rights, the Millennium Development Goals tural institutions, and it is vital that national and and climate change. The Government’s efforts to international cultural activities are seen in conjunc­ promote culture include the internationalisation of tion with one another. The two ministries are seek­ Norwegian cultural activities. The significance of ing to develop a common strategic framework for this for foreign policy lies in the value of culture as activities in which their respective roles are clearly a tool of public diplomacy. defined. They will also employ an integrated policy implementation system, in which national cultural institutions, institutions with strategic responsibili­ ties in the various art forms and diplomatic and consular missions will play a central role. The role played by artists and other cultural Box 22.1 Expert visits actors in foreign policy has at least two basic com­ ponents. The first is the initiative they take them­ Norwegian cultural actors such as organisa­ selves to become involved in international activi­ tions and festivals frequently invite represen­ ties. It is important that a good economic and tatives of the foreign media and foreign organisational framework is provided for this. Cul­ experts to Norway. A large number of foreign tural activities free from government involvement experts attend cultural events in Norway each are a potential source of new, often unexpected year, or stay in the country for long periods in views and social analyses. Such independent activ­ order to study. This has resulted in an increas­ ities also highlight Norway’s commitment to free­ ing range of international contacts and a grow­ dom of expression. ing interest in Norwegian culture abroad. The other basic component is the voluntary These exchanges of visits are an important participation of artists and other cultural agents in tool in efforts to promote the internationalisa­ cross-disciplinary initiatives related to foreign pol­ tion of Norwegian culture. icy objectives and strategies. The High North Strategy and cultural cooperation with countries in 2008– 2009 Report No. 15 to the Storting 193 Interests, Responsibilities and Opportunities the South are good examples of this. In both cases both in Norway and elsewhere, of the importance considerable funds have been allocated and useful of efforts to promote Norwegian culture abroad, contacts between expert groups established. and to enhance expertise in this area. The interna­ tional contacts established by Norwegian artists and other cultural agents, as well as their audi­ Public diplomacy and cultural cooperation are ences, are important in this context. The diplo­ important tools in questions concerning identity, matic and consular missions will have to play a conflict and dialogue more central role in efforts to promote cultural dia­ Crisis communication, such as during the cartoon logue and to increase contacts between Norwegian controversy, must be based on knowledge and and foreign cultural actors. The networks and trust that is built up before the crisis hits. In a tran­ close ties to civil society established through this snational world this applies both at the national and work constitute an important resource for modern at the global level. For Norway it is important first diplomacy. This network-oriented method fits in of all to make use of confidence-building measures well with the image many people have of of public and dialogue, which have long traditions in Norwe­ diplomacy in foreign policy, precisely because it gian society, to take account of the composition of does not directly and exclusively target political Norway’s population today and the Norwegian leaders. Many processes have succeeded precisely “we”. This should be done not least by showing because they involve other key stakeholders, in trust by encouraging the involvement of new popu­ addition to politicians and civil servants. Insight lation groups and making use of their expertise. into and understanding of such processes will be Secondly, it is important to continue Norway’s crucial for diplomacy in the future. focus on dialogue in foreign policy and to increase knowledge, for example in Muslim countries, of Norway’s views on democracy and human rights, 22.3 Public diplomacy at the national diversity and freedom of expression. level – the Refleks project

The reach of foreign policy and public diplomacy What kind of expertise do we need to achieve must be extended to encompass domestic society foreign policy objectives using culture as a foreign as well. The Ministry of Foreign Affairs will seek to policy tool? provide knowledge and analysis as input to the Cultural cooperation has great potential as a for­ public debate with a view to counteracting stereo­ eign policy tool. It is important to raise awareness, types and tabloid portrayals of reality. See box 22.2. 194 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

Box 22.2 Openness, analysis, debate – the activities of the Refleks project In the autumn of 2006 the Foreign Minister initi­ – Africa: Political partner and global actor – opp­ ated the project “Refleks – globalisation and ortunities and challenges national interests” in order to stimulate debate –60th anniversary of the Universal Declara­ and reflection about the challenges for foreign tion: Reflections on human rights policy posed by globalisation, shifts in the balance of power and changes in Norwegian The project drew up a background report on the society . The need for an open debate on the basis of these papers and articles entitled international challenges and foreign policy National interest. Foreign policy for a globalised dilemmas facing Norwegian society and the world – the case of Norway, which was published desire to involve and engage new groups in this in book form in September 2008 and which has debate were at the core of the project. This also been translated into English. So far some white paper marks the final phase of the project, 7000 copies of the book have been printed. This and is based on input and analyses generated was followed up the same autumn by Foreign throughout the process. Minister Jonas Gahr Støre’s book Å gjøre en for­ skjell (Making a difference, available in Norwe­ gian only), which was published within the Books and publications for analysis and framework of the Refleks project and has sold discussion close to 30 000 copies. Through the series of publications Globale Norge – hva nå (Global Norway – what now?), more Debates, discussions and lectures: Refleks than 200 independent experts, social commenta­ seminars tors and activists from Norway and abroad have been invited to examine Norwegian foreign The Refleks project has held more than 40 policy in a number of different areas. The publi­ events in Oslo, Bergen, Trondheim, Tromsø, cations, which include papers and articles in Stavanger and Lillehammer, in cooperation with English and Norwegian, are available under the a wide range of partners. More than 200 people following headings at www.regjeringen.no/ from Norway and abroad have presented papers refleks, or may be ordered from the Ministry of and participated on panels. The project has Foreign Affairs: sought to bring new voices into the debate and – Sikkerhetspolitiske interesser og utfordringer has attached importance to diversity and gender (Security policy interests and challenges) equality. The political leadership of the Ministry – Energipolitiske interesser og utfordringer of Foreign Affairs has taken part in most of the (Energy policy interests and challenges) seminars. Politicians, researchers, students, – Økonomiske interesser og utfordringer (Econ­ representatives of the business sector, civil soci­ omic interests and challenges) ety and the UN, and experts from various fields – Norske miljø- og ressursinteresser i en globali­ have been involved in the debate. Most of the sert verden (Norwegian environmental and meetings were attended by 200–500 people, and resource-related interests in a globalised some by well over a thousand. A separate pre­ world) sentation entitled Norge i en ny tid (Norway in a – Våre interesser i en bedre organisert verden new era) has also been produced, which the For­ (Our interests in a better organised world) eign Minister and other representatives of the – Globale utfordringer for norsk engasjements­ political ledership have held at universities with politikk (Global challenges to Norway’s the aim of encouraging debate. The following policy of engagement) are the themes of some of the seminars: – Diversity, identity and foreign policy challen­ – Norwegian Foreign Policy in the Age of Globa­ ges (heading on website: Innvandring, inte­ lisation: Views from the Outside grasjon, identitet: utenrikspolitikk for hvem?) With the participation of Christoph Bertram (Immigration, integration, identity: Who is (former Director of the German Institute for foreign policy for?) International and Security Affairs, Berlin), Ulla Gudmundson (Swedish diplomat and writer), C. Raja Mohan (Strategic Affairs Edi­ 2008– 2009 Report No. 15 to the Storting 195 Interests, Responsibilities and Opportunities

Box 22.3 continues

tor at The Indian Express and member of In­ (student) and Raheela K. Chaudhry (journal­ dia’s National Security Advisory Board) and ist) Ivo Daalder (The Brookings Institution, – The Responsibility to Protect – Genocide, Washington) ethnic cleansing, war crimes and crimes – Politics and transparency in global financial against humanity markets – new trends, challenges and the role With General Wesley Clark (former NATO of the Norwegian pension fund global Supreme Allied Commander, Europe), Che- With Martin Skancke (Ministry of Finance), ryl Carolus (former South African High Co- Karin Lissakers and Yahia Said (Revenue missioner to the UK and Secretary General Watch Institute, New York) and Karina Lit- of the ANC, South Africa) and Professor vack (F&C Asset Management, London) Ghassan Salamé (former Minister of Culture – Transnational organised crime – the dark of Lebanon, Professor of International Rela­ side of globalisation. The case of human traf­ tions, Paris) ficking – Can fundamentalists be democratised? With Antonio Maria Costa (Executive Direc- With Ulrika Mårtensson (Norwegian Uni­ tor, UNODC), Misha Glenny (journalist and versity of Science and Technology (NTNU)), writer), Ingelin Killengreen (National Police Jennifer Bailey (NTNU) and May Thorseth Commissioner) and Ellen Beate Langehaug (NTNU) (CARE Norway) – Towards a new world order? The UN’s role – A new strategy for Afghanistan? The interna­ and Norwegian interests tional community’s responsibilities – what is With Minister of Foreign Affairs Jonas Gahr Norway’s role? Støre With Daniel Korski (European Council on – Norwegian security – the international legal Foreign Relations), Maryam Azimi (Afghan order and alliance policy writer and human rights activist), Astri Suhr- With Ragnhild Mathisen (Political Adviser, ke (Chr. Michelsen Institute, CMI) and Es- Ministry of Defence) and Stina Torjesen pen Barth Eide (State Secretary, Ministry of (Norwegian Institute of International Affairs Defence) (NUPI)) – Gender Equality and International Develop­ – What does China think? ment. Rights of sexual minorities and access to With Mark Leonard (Executive Director of safe abortion the European Council on Foreign Relations), With Fikile Vilakazi (Coalition of African Les- Henning Kristoffersen (BI Norwegian bians, South Africa), Dr Ejike Oji (Ipas Nige- School of Management), Cecilie F. Bakke ria) and Erik Solheim, Minister of the (University of Oslo), Wei Chen (Norwegian Environment and International Development Confederation of Trade Unions (LO)) and – Freedom of Expression – Missing in Action? Ågot Valle (Member of the Storting, Socialist With, among others, Omar Faruk Osman (Na- Left Party (SV)) tional Union of Somali Journalists, NUSOJ) – The Art of Influence. The role of culture in and Dr Agnes Callamard (ARTICLE 19) modern Norwegian foreign policy – The municipal sector in a globalised world – With, among others, Khalid Salimi (Horisont engagement and obligations Foundation and the Mela Festival), Luba Ku- With, among others, Minister of Local Go­ zovnikova (Pikene på Broen), Kjartan Fløg­ vernment and Regional Development Magn­ stad (writer) and Malika Makouf Rasmussen hild Meltveit Kleppa and Vice Chair of the (composer, Women’s Voice International Mu- Norwegian Association of Local and Regio­ sic Network) nal Authorities (KS) Bjørg Tysdal Moe – The 60th Anniversary of the UN Universal – Roundtable discussion on diversity and for- Declaration of Human Rights: What are the eign policy dilemmas for foreign policy? With Enver Djuliman (The Norwegian Hel­ sinki Committee), Mohammad Usman Rana 196 Report No. 15 to the Storting 2008– 2009 Interests, Responsibilities and Opportunities

The Ministry of Foreign Affairs

hereby recommends:

that the recommendation from the Ministry of Foreign Affairs on Interests, Responsibilities and Opportunities. The main features of Norwegian foreign policy, dated 13 March 2009, be submitted to the Storting. Published by: Norwegian Ministry of Foreign Affairs

Internet address: www.government.no

Cover illustration: Torbjørn Vagstein and Norwegian Government Administration Services

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