I work a lot with models. A model will either work for a given situation or it won’t. So, when I learned that Alaska’s oil-based fiscal woes are shared by the likes of Canada, North Dakota and Russia, I wondered if another model of governance might prevent this boom-bust cycle. Then came news that Norway has managed to skirt nearly all the pain being felt by other oil-producing states. Here was model material.
Norway was the No. 1 most livable country listed by the UN Human Development Index Report for the 12th straight year in a row. That index measures life expectancy (81.6 years), per capita income ($65K), health care (universal) and education (free through college). Also notable is that Norway is in the top 5 for the “happiest citizens,” and is “the best country to grow old in” (Newsy).
Alaska and Norway rely chiefly on resource extraction and tourism to pay the bills. They share a similar climate, topography, latitude and lifestyle. But in 1996 Norway created a wealth fund, currently at $780 billion, to weather the depressed market austerity that grips other oil producers now. The fund has “surged in size under a self-imposed straightjacket that caps government use of oil revenue” (Bloomberg News). Note this is government capping government.
Alaska Gov. Bill Walker’s plan to impose a sales tax and reduce the PFD amount is a start. Doing so will help us begin to get a handle on stabilizing the state’s economy and maybe even enhancing our own “livability index.”
Larry Larson