to Noroway oer the faem!
|this blog is a visual stunner|
I'm talking about the Norwegian State Oil Fund - a marvellous marvellous thing apparently, whereas us feckless Brits have just spent the lot. On booze and fags, probably.
Well, let's just have the tiniest bit of democratic scrutiny. We start getting oil rich in the 70s. We'd already had a balance of payment crisis in the 60s. Our infrastructure needs investment. Our public service demands are growing and growing - we want to build new universities; there are demands to dual the A74.
So as an elected politician you have a choice - do these things or else set up a wealth fund. That's right, put your money into foreign equities, like Nestle and Micrsosoft - as Norway has done. You money effectively invested abroad, instead of in your own country. Sure, in good years you'll get a dividend.
Of course poor old Norway had no choice - it had to invest abroad - it only has 5m people and too much money. It's like Qatar - reduced to buying up prime real estate in London.