ABSTRACT
This chapter describes the political context of the economy, the basic natural conditions, and the integration into world markets. Two themes are stressed: openness to international markets and strong state involvement. The Norwegian economy is comparatively small. It depends heavily on a few raw materials and is very sensitive to changes in international markets. Since the 1970s, there has been a decline in the economic importance of traditional industries and an increasing importance of the petroleum sector. The Norwegian economy has become even more integrated in and vulnerable to the international markets. Support for district-based jobs was much more extensive than the money channeled though the various public agencies and investment banks created to aid economic activities. The European Economic Area (EEA) countries are allowed to monitor the European Union's (EU) internal decision making process on new internal market regulations and to present its potential queries before the EU Commission finalizes its proposals.
