this post was submitted on 29 Jul 2023
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Finding oil tends to fuck up a nation, making the nation's other industries unable to compete due to the currency being too strong.
That Norway succeed in remaining a stable state after finding oil is a bit amazing, seeing as oil nations tend to become ruled by oligarchies.
I.e., the guy you're responding to makes no sense. Having oil usually means that you become an undemocratic hell hole.
I'm sure this is a stupid simple take, but could a nation like Norway avoid this (at least for a while) by selling oil in other currencies and maintaining their investments in other currencies?
What currency the selling is done in probably doesn't matter but yes Norway maintains one of the largest sovereign wealth funds.
The issue is in undemocratic countries there's usually a preverse incentive to not educate people to maintain control of the country. Non resource rich countries have to educate their population to improve productive output.