OFFENTLIGE TJENESTER I NORGE 1830-1865 INNENFOR RAMMEN AV HISTORISKE NASJONALREGNSKAPER PUBLIC SERVICES IN NORWAY 1830-1865 WITHIN THE FRAMEWORK OF mSTORICAL NATIONAL ACCOUNTS ELISABETH BJØRSVIK Avhandling for graden dr. oecon Submitted in partial fulfilment of the requirements for the degree dr. oecon at the Norwegian School ofEconomics and Business Administration (NHH) Bergen, Norway July 2004 FORORD Problemstillinger knyttet til krigsideologi i norsk middelalder og offentlig forvaltning i Norge på 1800-tallet er representert i henholdsvis hovedfagsoppgaven i historie Ideologi og tendens i Baglersagaen fra Universitetet i Bergen 1994, og i doktorgradsarbeidet Offentlige tjenester i Norge 1830-1865 innenfor rammen av historiske nasjonalregnskaper, Norges Handelshøyskole (NHH) 2004. I tid er det 600 år mellom de periodene de to arbeidene omfatter, men det finnes allikevel en fellesnevner i tema, og det er militærvesenet, som er hovedfokus i hovedfagsoppgaven og en av de offentlige tjenestene doktorgradsarbeidet omfatter. I årene 1999-2000 gjennomførte jeg kursdelen i høyere avdeling studium (HAS) ved NHH. I januar 2001 ble jeg ansatt som doktorgradstipendiat samme sted. I perioden frem til og med juni 2004 ble undersøkelsen Offentlige tjenester i Norge 1830-1865 innenfor rammen av historiske nasjonalregnskaper gjennomført. Jeg ønsker å takke NHH for at jeg fikk stipendiatstilling. Veileder Ola Honningdal Grytten har vært en god læremester. En spesiell takk går til han, men også til andre nåværende og tidligere ansatte og stipendiater ved seksjon for økonomisk historie og institutt for samfunnsøkonomi, som har vært viktige bidragsytere både faglig og sosialt. Bibliotekets personale har vært til uvurderlig hjelp. Takket være dem hadde jeg i flere uker hele serien med Departements Tidende 1829-1855 på kontoret! Veiledningskomiteen bestående av Edgar Hovland og Gudmundur Jonsson har gitt nyttige tilbakemeldinger. Kontakten med Jan Pieter Smits og Herman de Jong ved Groningen Growth and Development Centre (GGDC) ble etablert under mitt forskningsopphold der høsten 2003, og representerte et viktig bidrag for prosjektets fremdrift. Jenny var ni måneder og Jørgen syv år da jeg begynte på HAS-studiet. Gjennomføringen av doktorgradskurs og arbeidet med selve avhandlingen har vært mulig fordi jeg har et godt støtteapparat. Den største takken går derfor til min mann, mine foreldre og min søster, som har holdt ut med mine prosjekter siden jeg begynte hovedfagsstudiet i 1991 da Jørgen var to uker gammel. Davanger, juli 2004 Elisabeth Bjørsvik ENGLISH SUMMARY The work on establishing the historical national accounts for Norway (HNN) 1830-1865 started in 1994, as a joint project between the Economic History Section at the Norwegian School of Economics and Business Administration (NHH) and Statistics Norway (SSB). The project is set in a Nordic framework aiming at construction of co- ordinated Nordic historical national accounts (NHNA). My doctoral dissertation Public services in Norway 1830-1865 within the framework of historical national accounts is part of the work on HNN 1830--1865. The dissertation is built up around the question: What was the GNP contribution of public services 1830-1865? The calculations are carried out based on empirical and quantitative studies. Search for sources and source criticism is essential. During the 19th century, Norwayentered into the industrial age. GNP per capita had an annual growth of 1,35 per cent 1830-1875. This growth was above average of those countries Norway usually is compared with. The political framework was the Swedish-Norwegian union (1814-1905). Local autonomy was introduced in 1837. In 1837 Norway had 17 counties, 355 rural municipalities and 37 towns. In 1865 the numbers were 434 rural municipalities and 57 towns. Hardly any subject has been treated more closely in Norwegian economic history than the municipalities. At the same time, no analysis of the public sector in aggregated terms exists. As the existing official national accounts begin in 1865, new statistics on public services for the period 1830- 1864 are offered. Compared with the official figures for the year 1865, the new findings indicate that public services have been underestimated by more than 20 per cent. The Finnish work (HNF), the Swedish work (HNS) and the Dutch work (HNH) form the basis of my research. Information concerning HNF, HNS and HNH is mainly found in: Finland's Historical National Accounts 1860-1994: Calculation Methods and Statistical Tables, The Finnish Economy 1860-1985. Growth and Structural Change, Historiska nationalråkenskaper for Sverige: Offentlig verksamhet i Sverige, 1800-1980, The economic development of the Dutch service sector 1800-1850, Trade and transport in a premodern economy and Dutch GNP and its components, 1800-1913.1 The classification of production of the HNN, is presented by Tor Skoglund, Statistics Norway? The proposition emphasizes former historical estimates for Norway, today's national accounts (NA), the aim for a co-ordinated NHNA, sources and objects of analysis. Public services cover section 14 in HNN, with a sub-grouping in central government activities and municipalities. According to the EU Standard, NACE Rev. 1, Public services in HNN are covered in Section L Public administration and defence, Section M Education and Section N Health and social services, the part which is non- market production. In HNH, Government includes only administration and defence. Postal services, education, religion, and government industries are excluded. These industries are kept separate in order to avoid sudden breaks in time series as a consequence of an increase in public involvement or a policy of privatisation.' Major parts of public activities are not included: "All business concerns owned by the central government and the municipalities belong to trades or industries indicated by their field of activity and so do the state-owned companies. The major ones are the State Railways and the Post and Telegraph Office."? The main difference between the classifications of public services in NHNA is the treatment of the state church. Like HNS, I have included the state church under municipal services. In the HNF, religious activities are part of private sector.l The classification of public services in HNN is detailed to meet various purposes of analysis and comparability. Statistics Norway is responsible for the final presentation. I Hjerppe, Riitta, Finland's Historical National Accounts 1860-1994: Calculation Methods and Statistical Tables, Jyvliskylii 1996, Hjerppe, Riitta, The Finnish Economy 1860-1985. Growth and Structural Change, Bank of Finland, Helsinki 1989, Krantz, Olle, Hlstoriska Nationalråkenskaper for Sverige: Offentlig verksamhet 1800-1980, Lund 1987, Horlings, Edwin, The economic development of the Dutch service sector 1800-1850, trade and transport in a premodern economy, Neha Amsterdam 1995, Smits, Jan-Pieter, Edwin Horlings and Jan Luiten van Zanden, Dutch GNP and its components, 1800-1913, Groningen 2000. 2 Skoglund, Tor, "Næringsgruppering i historisk nasjonalregnskap for Norge", Christensen, Jørgen Peter (ed.), Nordiske historiske nationalregnskaper, Workshop 3, København 1998, p. 51-66. 3 Horlings, Edwin, op.cit. p. 90. 4 Hjerppe, Riitta, 1996, p. 55f. 5 Kauppila, Jari and Ilja Kavonius, "The Service Sector in the Historical National Accounts. A comparison between Finland and Sweden", Lindmark, Magnus and Peter Vikstrom, Nordiska Historiska Nationalriikenskaper, Workshop V, Umeå 2001, p. 167f. Il Table 1.Public services in HNN 1830-1865 C{.'ntr<11Government Intcr-mllni..:ipal ,1\ lttrti..:ipallties "4,, s , , , " authorities , j < Administration Administration Administration Defence Education Education Education Health, medical and Health, medical and Health, medical and social services social services social services 7fhe :,tate church The GNP contribution of central government is calculated as the sum of wage and salary totals. This is in accordance with HNH.6 HNF has a more comprehensive definition. "The GDP contribution of the central government is calculated as the sum of the wage and salary totals, the calculated interest on state-owned buildings or rents plus the depreciation on fixed capital.?" The process leading towards total wage can roughly be divided into four segments: I. Abstract of the Central government fiscal account has been analysed and wage entries identified. The military service includes food and clothing. II. Several government institutions were only represented by government subsidy. Wage calculations are based on institution accounts, budgets and the works of the wage committees. III. Civil servants and government officials' variable income has been identified and calculated. The main sources of wage information are the works of the salary commission (1868) and job advertisements in Departements Tidende.8 IV. Information on the value offree housing etc. is found for county governors. Municipal activities include services offered by counties, rural municipalities and towns. The GNP contribution equals wage totals. The HNF has a broader definition: 6 Smits, Jan-Pieter, Edwin Horlings and Jan Luiten van Zanden, op.cit. p. 6-11. 7 Hjerppe, Riitta, 1996, p. 57. 8 "O. NO.3. Om de med Sportler lønnede Embeder", Storthings Forhandlinger i Aaret 1871, Tredie Deel, Christiania. iii "The GDP contribution ofthe municipal activities is presented as the total sum of wages and salaries plus the calculated rent and depreciation of the buildings owned and used