Proposal in chapter 3, A coherent policy for development

The first proposal under the initiatives in chapter 3 applies to institutional reforms that can strengthen the political and administrative capacity to develop a more coherent policy for development. The proposal applies to the creation of a unit in the Ministry of Foreign Affairs that can take responsibility for this policy on behalf of the Government. The costs of this must be covered within the Ministry of Foreign Affairs’ budget.

Chapter 3 also includes a proposal to introduce regular reporting to the Storting for the collective effect of Norwegian policies on developing countries. It should be the responsibility of the unit for coherent policies for development in the Ministry of Foreign Affairs and covered within the Ministry’s budget.

The proposal for an independent evaluation to be carried out regularly of coherent policies for development should also be the responsibility of the proposed unit in the Ministry of Foreign Affairs and covered within the Ministry’s budget.

Proposal in chapter 4, Trade

It is proposed that a critical review is made of all Norwegian subsidy schemes in order to examine the extent to which they support coherent policies for development. The costs of this should be covered within the Ministry of Foreign Affairs’ budget.

The announcement of public tenders in middle-income countries also entails costs for the institutions submitting such tenders. It is not possible to estimate how high these costs will be.

VAT exemption for ethical goods that are certified by fair trade schemes entails a loss of tax revenues for the Government. The sale of such goods is likely to increase with the implementation of such an initiative, but it is unclear by how much. In addition, the manufacturers of such goods will receive an increase in income that is difficult to quantify. The Commission has not therefore made any calculations of the magnitude of this loss of income.

Proposal in chapter 5, Business investments

Positive screening for coherent policies for development of investments from the Government Pension Fund – Global is proposed. This will entail costs that must be covered by the Ministry of Finance/Norges Bank’s budgets.

A change is proposed for the ethical guidelines for the Government Pension Fund – Global with a view to being able to withdraw companies with a base in countries that breach human rights. This will entail fees to institutions that have expertise in this field. The costs must be covered by the Ministry of Finance/Norges Bank’s budget.

The proposal on reporting and consultation in the Storting with Norges Bank, with regard to their choice and priorities in relation to exercising ownership in companies that the Government Pension Fund – Global has interests in, entails an administrative change but probably not significant costs.

It is proposed that an investment fund is built up for developing countries associated with Norfund, which corresponds to 1 per cent of the Government Pension Fund – Global. The costs of the actual fund are estimated at NOK 10 billion, which should be accumulated through allocations from the national budget over five years. The costs of managing the fund should be covered within these allocations within the Ministry of Foreign Affairs’ budget.

GIEK will have increased costs through carrying out evaluations of investments in order to ensure that they are sustainable and through developing a new strategy for the institute’s developing country scheme.

Increased annual costs will also accrue through the proposal to increase the ceiling for GIEK’s developing country scheme. No amount has been proposed but the costs of the initiatives that relate to GIEK must be covered through increased allocations from the national budget for the Ministry of Trade and Industry/GIEK.

It is proposed that the Ministry of Foreign Affairs should review the external resources, including Innovation Norway, in order to be able to assist companies that want to set up business in developing countries. This should initially be a study that the Ministry of Foreign Affairs covers from its own budget. There may subsequently be a need for strengthening the foreign service. This must be covered by the Ministry of Foreign Affairs’ future budgets.

A study is proposed in order to map whether bilateral trade agreements will be able to increase the volume of Norwegian investments in developing countries and to what extent they restrict developing countries’ policy space. The study should also map how such agreements should be formulated in order to have an optimum effect on development and the fight against poverty.

It is proposed that the Government Pension Fund – Global maps the scope of the fund’s investments in tax havens and considers measures in order to limit the scope of such investments and establish partnerships and a common strategy with other funds. The costs of such a study and development of a common strategy must be covered by the Ministry of Finance/Norges Bank’s budget.

It is proposed that a statutory standard is introduced for reporting on social and environmental indicators. This should apply to all Norwegian companies and foreign companies listed on the Oslo Stock Exchange, be publicly accessible and be based on the established GRI standard. Costs here should be covered by the Ministry of Trade and Industry.

The proposal to strengthen OECD’s conflict contact point in Norway to implement the OECD’s guidelines for multinational companies and, until this happens, to create a national information and monitoring body in the form of an ombudsman, will lead to costs that should be covered by the Ministry of Trade and Industry’s budget.

It is recommended that clear guidelines be drawn up for all Government ownership management. The ethical guidelines for the Government Pension Fund – Global are regarded as a suitable starting point. The costs of this must be covered by the Ministry of Trade and Industry’s budget.

Proposal in chapter 7, Climate and energy

The proposal that Norway should commit to being 2.5 times carbon neutral by 2025 and reduce its emissions by 90 per cent by 2050 will lead to both social costs and revenues. This is support of a global public good and the Commission is leaning on international experts in its presumption that the long-term global economic effect of this is positive.

The proposal for an obligatory mix of biofuel at 2 per cent in fuels and mechanisms that ensure sustainable production of biofuels will most likely entail subsidies from the national budget in order to achieve the necessary change in production and consumption of such fuels. The Commission is supported by international experts in its presumption that the long-term global socioeconomic effect of this is positive. Costs may accrue in the budgets of the Ministry of the Environment, the Ministry of Petroleum and Energy and the Ministry of Agriculture and Food.

The proposal to introduce a 5-year moratorium on the allocation of new exploration blocks will entail substantial costs for the Norwegian public purse. It is a presumption that such a moratorium will have climate effects that lead to a positive global economic effect. The economic loss and the tax loss for the Government have not been calculated.

The Commission proposes an increased focus on research into the climate, renewable energy and environmental technology. The increase in costs for this must be covered by the responsible ministries’ budgets.

The Commission proposes that until a climate agreement that sets a ceiling on the emissions in all countries is in place, Norway should earmark between 1.5 and 3 per cent of the GDP per annum – NOK 30 to 60 billion – for measures to reduce greenhouse gas emissions nationally and internationally. It is assumed that in the long term this will lead to positive global economic gains.

It is proposed that Norway works towards international statutory CO₂ handling at all new fossil fuelled power stations from 2020. Norway and other OECD countries should lead the way and introduce such statutory handling from 2015. It is presumed that a regulation of this nature will impact the climate, which will in turn lead to a positive global economic effect. The costs of this have not been calculated.

Proposal in chapter 8, Knowledge policy

An evaluation has been proposed of the many, uncoordinated international initiatives within the health sector aimed at developing countries, as well as a study into the possibilities for coordinating existing multilateral research initiatives in this field. The costs of this must be covered by the Ministry of Health and Care Services’ budget.

It is proposed that Norway shall take the initiative to establish a global fund for health research in association with the WHO, ref. the proposal by the Commission for macroeconomics and health. The costs of starting this initiative and future Norwegian contributions must be covered by the Ministry of Health and Care Services’ budget.

It is proposed that Norway shall provide special support to existing global funds and networks within climate research and biodiversity, which help develop knowledge for developing countries in collaboration with these countries. The costs of this must be covered by the Ministry of the Environment’s budget.

It is proposed that the Norwegian Government should require that public research institutions and recipients of public research funds make research results publicly available by 1) uploading published articles and results to freely available electronic databases (Open Access), similar to what is currently being done in the EU, USA and a number of other places, and 2) license out patented technology on favourable terms to low-income countries. The proposals can entail direct loss of revenues for those who publish and produce and sell medicines, but can also mean substantial global economic gains. Both economic gains and costs will accrue. The Commission assumes that these effects will be positive on balance.

Proposals in chapter 9, Migration policy

A proposal has been made to permit the immigration of unskilled workers from countries outside the EEA area. The Commission is supported by international expertise on migration in that this can have significant positive economic consequences for the countries of origin. No calculations have been made but it is believed that this could also have a positive economic effect for Norway.

The creation of loan schemes has been proposed, with high underwriting for migrants that want to start up a company in their country of origin. They should be able to apply while resident in Norway. Costs of this initiative must be covered by the Ministry of Labour and Social Inclusion’s budget.

It is proposed that migrants without official papers in Norway be given the right to basic health services in addition to emergency treatment, and that providing humanitarian aid to such migrants is legalised. The costs of this will probably be modest and should be covered by the Ministry of Health and Care Services’ budget.

Proposals in chapter 10, Peace, security and defence policy

It is proposed that Norway introduces tracing mechanisms for arms and ammunition that are produced in Norway, whereby they are marked with the manufacturer, first buyer and production batch, and that Norway works towards a similar international labelling practice. Costs of introducing the tracing scheme must be borne by the manufacturers.

It is proposed that the capacity to ensure the coordination and multidisciplinary aspects linked to integrated multidimensional operations at all levels in the decision-making process should be strengthened considerably by the Office of the Prime Minister. The costs of this must be covered by the Office of the Prime Minister.

It is proposed to create a national council for the handling of the entire range of Norway’s involvement within international crisis, conflict handling and peace work in order to give advice in connection with international multidimensional operations and contribute with experiences linked to the coherence and operationalisation of integrated operations. The costs of this should be covered by the Ministry of Foreign Affairs and the Ministry of Defence.