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In economics this is known as the "Dutch Disease". Surprised it wasn't called by that name in the WSJ. http://en.wikipedia.org/wiki/Dutch_disease http://en.wi
by fiatmoney 13y ago
In economics this is known as the "Dutch Disease". Surprised it wasn't called by that name in the WSJ. http://en.wikipedia.org/wiki/Dutch_disease http://en.wikipedia.org/wiki/Dutch_disease
- justincormack 13y agoNorway has avoided some of the Dutch disease issues by investing much of the revenues in a huge fund that is largely invested offshore, reducing some of the pressure on the currency. http://www.nbim.no/ http://www.nbim.no/
- lobster_johnson 13y agoIt's not quite the Dutch disease, though. Norway was, at the time, aware of the problem, and thanks to some talented minds (not least Farouk al-Kasim, whose story is fascinating [1]), worked around it by ensuring that the private sector was involved in the process of building up the petroleum business. Also, the oil fund [2] was created to manage the revenue and invest in the future of the population. The fact that the tech startup scene has lagged behind as a result is an unfortunate side effect, but it's nowhere as bad as the Dutch disease, I think. [1] https://www.google.com/search?q=the+iraqi+who+saved+norway+from+oil+site%3Aft.com https://www.google.com/search?q=the+iraqi+who+saved+norway+f... (can't link directly due to paywall) [2] http://en.wikipedia.org/wiki/The_Government_Pension_Fund_of_Norway http://en.wikipedia.org/wiki/The_Government_Pension_Fund_of_...