Joined to Denmark until 1814 and to Sweden until 1905, Norway is now a constitutional monarchy. Labour and centre-right parties (conservatives and Christian democrats) have alternated in power since 1950. Referendums in 1972 and 1994 decided that the country would not join the EEC and EU, though in 1996 it did sign up to the Schengen Treaty allowing free circulation of people within the EU.
Under the 1814 Constitution (amended many times over the decades), legislative power is exercised by the unicameral Parliament (Storting), made up of 169 members elected directly for a four-year term, which casts a vote of confidence for the government (Statsråd).

Defence.
Military service is compulsory and lasts 12 months, followed by four or five top-up training periods.

Justice.
The judicial system is based on a combination of continental European law and Common Law. In 2015, reform of the criminal law came into effect, allowing for a maximum of 30 years of imprisonment for the most serious crimes.

Economic situation.
The pandemic had a limited effect on the Norwegian economy in 2020 (GDP -0.8%). A hike in oil prices and minor restrictions are expected to bring 3.9% growth in 2021.

Primary sector
Agriculture and forests.
The main crops are cereals (oats, barley, wheat, rye) and, in the south, fruit and vegetables (carrots, apples, plums).
Norway is the least forested of the Scandinavian countries. The most common species is fir, which is used to make mechanical pulp, chemical pulp, cellulose and paper.
Livestock farming, principally sheep, followed by cattle, pigs and fur animals (fox and mink) is well developed. Reindeer are reared by the Laps in the north of the country.
Fishing.
The main catches are cod in the northern seas and herring further south. Fish farming is widespread (salmon). Though it initially subscribed to moratorium on whaling introduced by the IWC (International Whaling Commission), Norway now hunts for whales (mainly as food) with an upper limit on catches fixed year by year. Since 2015, the annual public subsidy for seal hunting has been suspended.

Secondary sector
Minerals.
Norway has large oil and natural gas reserves in the North Sea; the debate continues on whether to expand the exploitation of the deposits. A gas liquefaction terminal is active near Hammerfest; there are also other plants aimed at exporting oil and gas to Europe through a dense pipeline network.
Part of the enormous revenue from exports is invested in a sovereign wealth fund, which is now committed to reducing stakeholdings in highly polluting sectors. The fund is worth approximately 1275 billion dollars (2020), up from 1148 billion in 2019.
There are also significant deposits of iron ore (Mo i Rana and Sydvaranger, reopened in 2019), copper and nickel (Narvik), titanium (Tellnes), pyrites, olivine and graphite.
Energy and industry.
Almost all the electricity generation is hydroelectric. A large investment program in renewables was announced in 2020.
Norway is hosting two refineries, in Mongstad and in Slagen, and several basic chemical plants. Abundant electricity has encouraged the expansion of the iron and steel industry and the production of other metals (aluminium, zinc and silicon carbide).
Ship-building is highly developed, with yards at Oslo, Moss, Fredrikstad, Stavanger and Bergen.
Other industries include textiles, beer and margarine; fish processing centres are active on the coast.

Tertiary sector
Foreign trade.
The trade balance remains positive, despite the drop in oil prices. The main trading partners are the UK, Germany, the Netherlands, Sweden and China.

Main exports
(M US$ - 2017)
natural gas 26 488, crude oil 25 875, fresh and preserved fish 11 040, petroleum products 5 222, machinery 4 028, aluminium 3 997, electrical and electronic equipment 2 682, chemicals 2 399, iron and steel 2 003, ships and boats 1 593, technical and electro-medical appliances 1 413, nickel 904, vehicles and parts thereof 892, pharmaceuticals 756, electric energy 703, timber 585, aircraft and parts thereof 550, refined zinc 514, furniture and accessories 508, plastics 490, paper 440

Finance and banking.
The Norges Bank acts as the country’s central bank, which manages the sovereign fund. The main merchant banks are privately owned, and there are numerous savings banks. The Stock Exchange is in Oslo.

Tourism. Tourism is a major source of income and has modern, highly developed infrastructures. The main attractions are the fiords and winter sports resorts.

Education, culture & research.
Education is compulsory from 7 to 15 years.

Social security and health.
Norway has first-class social services. An equal opportunity law introduced in 2002 stipulates that 40% of the board members of every company should be women.