The Organisation for Economic Co-operation and Development (OECD) presented its economic survey of Norway today. The survey gives a comprehensive analysis of the Norwegian economy.

-The Norwegian authorities share many of the assessments of the Norwegian economy made in the report, says the Minister of Finance, Per-Kristian Foss. Among others we agree on the need to maintain a large and active workforce by reducing sick leave and reversing the drop in the effective retirement age. I notice that the OECD all in all is positive to the guidelines for economic policy. I also notice that the OECD underscores the importance of not easing fiscal policy beyond the present fiscal rule.

In some areas the OECD is critical to the Norwegian economic policy. For instance they disapprove of the high level of agricultural support in Norway, and they strongly doubt whether the voluntary tripartite agreement is the correct instrument to reduce sick leave.

This time the survey contains a chapter on the effectiveness of public spending. The OECD expresses concern that the oil wealth will complicate the implementation of necessary reforms. To ensure a more sustainable fiscal policy, the OECD recommends supplementing the current fiscal deficit rule with an explicit expenditure rule and the introduction of multi-annual budgeting. Furthermore the OECD recommends that the private sector should play a larger role in providing public services. This can be done by increasing the use of “the money follows the user principle”. According to the OECD this will contribute to more competition, more user choice and increased efficiency.

Minister of Finance Per-Kristian Foss says that the OECD has made a comprehensive and interesting analysis of public spending efficiency. –The recommendation of limiting the growth in public spending is in line with the ambitions drawn up in the Sem-declaration. In the Sem-declaration the government also stresses the importance of modernising the public sector, and in many areas the recommendations made by the OECD coincide with the government’s modernisation programme. For instance we fully agree on the importance of increasing competition between public and private providers in the production of public services.

1. A summary of the report can be found here (PDF-format)
2. Video of the press conference (Real Player)