Norway is on its way to becoming one of the richest countries in the world, thanks to its vast oil and gas reserves. The country has been smart about managing its wealth by investing profits from oil into a huge savings fund, known as the Government Pension Fund Global, which is now worth over a trillion dollars. Norway also has a strong welfare system, providing free healthcare and education to its citizens. Even though the country is rich in resources, it’s also a leader in renewable energy, working toward a greener future. The state encourages innovation, creating new jobs in tech and sustainable industries. Animation is created by Bright Side. ---------------------------------------------------------------------------------------- Music from TheSoul Sound: https://thesoul-sound.com/ Check our Bright Side podcast on Spotify and leave a positive review! https://open.spotify.com/show/0hUkPxD34jRLrMrJux4VxV Subscribe to Bright Side: https://goo.gl/rQTJZz ---------------------------------------------------------------------------------------- Our Social Media: Facebook: https://www.facebook.com/brightside Instagram: https://www.instagram.com/brightside.official TikTok: https://www.tiktok.com/@brightside.official?lang=en Stock materials (photos, footages and other): https://www.depositphotos.com https://www.shutterstock.com https://www.eastnews.ru ---------------------------------------------------------------------------------------- For more videos and articles visit: http://www.brightside.me ---------------------------------------------------------------------------------------- This video is made for entertainment purposes. We do not make any warranties about the completeness, safety and reliability. Any action you take upon the information in this video is strictly at your own risk, and we will not be liable for any damages or losses. It is the viewer's responsibility to use judgement, care and precaution if you plan to replicate.
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00:00Now, when you think of Norway, things that come to mind are the sun that never sets in
00:04the summer, unbelievable nature, the fact that it's one of the happiest countries in
00:09the world, even white bears that freely roam in the wild, I'm guessing they're happy too.
00:14Already planning your trip to this dream country?
00:17Well, don't rush, you'll have to review your budget.
00:20Fuel there is 10-15% more expensive than in other Western European countries.
00:25A meal at a cafe for one person will cost at least 30 bucks.
00:29Plus, consider yourself lucky if you manage to find a hotel at $100 a night.
00:34If you Google the most expensive country in the world, you'll see this list, Switzerland,
00:39which is meanishly expensive, the United States, duh, been there, know that, Luxembourg is
00:45not a surprise either.
00:47And then, all of a sudden, you see Norway.
00:49Just so you know, a family of four would need over 4 grand a month just to exist in Norway.
00:55And it doesn't even include rent.
00:57Specialists say that Norway is around 7% more expensive than in the US.
01:02Norway is a bit weird though.
01:04Usually, the richest countries have national currencies that are stronger than the US dollar.
01:09Take Swiss francs, for example, or the Kuwaiti dinar, which is literally the boss when it
01:13comes to currencies.
01:15Like one Kuwaiti dinar can snag you 3.25 US dollars.
01:19Now, here's where the mismatch comes.
01:21The Norwegian krona is dubbed the weakest currency in the West.
01:25Well, how come?
01:27In the wild world of global currencies, the Norwegian krona used to be a tough player
01:32known for smart money moves.
01:35But surprisingly, it is now the weakest currency in the West, taking a big hit in the last
01:40decade.
01:41It has fallen hard against the US dollar and Euro, causing concern for central banks and
01:46money folks worldwide.
01:48The oil price rollercoaster is a major factor in the krona struggle, as Norway relies heavily
01:53on oil exports.
01:55But even with oil prices relatively high, it remains historically weak against major
02:00currencies.
02:02The weak Norwegian krona is affecting everyday folks too, with prices rising on almost everything
02:07due to heavy imports.
02:09Inflation is growing, leading to interest rate hikes by the largest bank.
02:14High interest rates are hurting the housing market and making life more expensive for
02:18Norwegian citizens.
02:19So one of the supposed reasons for why Norway is so expensive might be weak national currency.
02:26What else is particular about Norway?
02:28Well, climate for sure.
02:30It may be hard to imagine a freezingly cold country plunging into riches.
02:34It's an imagery we usually see on social media with geotags Dubai, Saudi Arabia, or
02:40even Kuwait.
02:41And it makes sense to think now that all the riches are somewhere southward, as these places
02:46have strong oil-based economies and super-strong currencies.
02:50But in reality, better economies in the south are a current trend.
02:55Ever wonder why cold countries seem to be raking in the cash while the hot nations are
02:59just hanging out?
03:00Turns out, those living in chilly climates had to hustle just to survive winter.
03:05Think building shelters, stockpiling food, and keeping that fire burning.
03:10Meanwhile, those basking in the sunshine had it a little easier with hunting and foraging
03:14year-round.
03:16This theory holds true even in the land down under.
03:19Sydney and Melbourne, the top dogs in Australia's wealth game, also happen to be some of the
03:24coldest cities, while Darwin, the warmest city, is lagging behind.
03:29Some might argue that this theory doesn't hold up when we look at ancient civilizations
03:33or modern hotspots like tropical Singapore.
03:37But hey, times change, and so does wealth generation.
03:40Back in the day, it was all about farming, but now it's more about industry and innovation.
03:46So Norway may seem to have been bound to get rich historically and geographically.
03:50Still, it's not exactly so.
03:53Norway used to struggle a lot.
03:55Back in the day, it faced some tough times with harsh winters and tricky geography.
03:59They even had famines that pushed families to seek a better life in the US.
04:05So how did Norway go from rags to riches?
04:08Yep, oil and gas played a big role.
04:10The country is small, but it has around 0.31% of all oil reserves in the world.
04:17But in Norway, there's more to the story than just black gold.
04:20For example, the top oil reserve is not some Arabic country but Venezuela, which claims
04:26up to 20% of the world's liquid gold.
04:29Still, Venezuela's economy is far from stable, so it's not all about oil.
04:35Although bested in forest size by other European nations, Norway was an unrivaled powerhouse
04:41in lumber during the Age of Sail.
04:44Thanks to its strategic fjord path, timber from its inland forests could quickly reach
04:48fjordside mills and global markets.
04:51As railroads unlocked larger forest potential in other countries post the 19th century,
04:56Norway was Europe's timber king, bolstered by a world-class merchant fleet by the 20th century.
05:03The Norwegian timber wealth, coupled with early cooperative societal norms, spurred
05:08growth across several sectors, from agriculture to fishing and banking.
05:13Despite being labeled poor in the 19th century, Norway's GDP per capita outshone eastern
05:19and southern European nations.
05:21The nation's ascendancy continues beyond the discovery of its oil reserves.
05:26Norway is unique, with a small population but sprawling land.
05:30Despite its vastness, the Nordics are scattered and considered one of the most spacious countries
05:35globally.
05:36Much of the North's territory stretches beyond the Arctic Circle, offering harsh landscapes
05:40with thin topsoil covering the bedrock.
05:43The tough terrain in Norway, full of mountains and with a short growing season, limits arable
05:48land to only 2.2%, similar to Yemen.
05:52The scattered arable land in small valleys makes extensive farming impractical, a far
05:57cry from the efficient farming in the US.
06:01With a huge chunk of land and coastlines, but a small population, Norway makes some
06:06serious cash from its reserves.
06:08Plus, nature has been pretty kind in Norway, with rich fishing grounds, hydropower from
06:13rivers, and power from cold waters.
06:16And only then comes the little thing called oil.
06:19The late 50s saw a big discovery that changed everything for Norway's economy.
06:24Fast forward to today, and petroleum activities have been a major game-changer for Norway,
06:29feeding its economic growth and funding its welfare state.
06:35But Norway didn't just sit back and watch the money flow in.
06:38They made smart moves, like creating a sovereign wealth fund to manage their oil wealth for
06:43the long haul.
06:44The fund sees some big bucks, currently standing at 1.7 billion Norwegian kroner, or over 160
06:51million US dollars.
06:53Norway uses the interest from this fund to boost its annual budget, ensuring top-notch
06:57healthcare, education, and welfare for its citizens.
07:01And here's the kicker – Norway's not resting on its laurels.
07:04They're investing in sustainable technologies, like offshore wind power, to secure a bright
07:09future beyond oil and gas.
07:12Norway may be expensive, but it can't compete with the world's costliest place to live
07:17– Monaco.
07:18It's almost four times more expensive than the global average.
07:22So if you're looking to rub elbows with the rich and famous, look no further than
07:26Monaco.
07:27With property prices soaring to an average of over $50,000 per square meter in 2022,
07:33it's no wonder why this tiny country is a magnet for the la-di-da.
07:38However, there's a place that's particularly expensive for tourists.
07:42And I'm not talking about tourist traps.
07:44Neither Oslo nor Monaco can beat the prices in… well, take a second to make your guess.
07:50Ready?
07:51Welcome to Ashgabat, Turkmenistan's capital.
07:54A gallon of milk costs a whopping $15, while a standard internet subscription plan will
08:00set you back $168 a month.
08:04Calm down, you're not poor, it's just an economic glitch.
08:07The reason for these prices is simple.
08:09The Turkmen national currency exchange rate in relation to dollars is fixed and never
08:14changes.
08:15$1 equals 3.5 minats, and it's been so since 2015.
08:20Local prices and the local currency grew to inflation, making it not proportionate to
08:25prices in dollars – the exchange rate never changes.
08:29So if you live there, such prices don't seem to be extraordinary.
08:33If you come with dollars, you're in for a pricey trip!
08:37That's it for today!
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08:42friends!
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