– We are trying to make a diagnosis for the Norwegian economy. Much is good, but there are great opportunities for improvement.
Economy Professor Jørn Rattsø at NTNU in Trondheim engaged as GP for the Norwegian economy in a few years. Today he puts forward productivity its first report. Then acquires attending chief physician and Treasury Siv Jensen.
The diagnosis and proposed treatment is titled Productivity – the basis for growth and prosperity . It is 555 pages and will assert itself in the competition for thickest public investigation.
It has faded
The goal of treatment is that Norway should get productivity growth back up to levels
- In the 1996-2005 period, production increased pr. hours worked by 3 percent annually on average in mainland Norway business.
- In the eight years afterwards was the annual growth only 0.7 percent on average.
Output growth pr. hour largely determines cake Norway has to distribute.
– Should Norway in the years ahead will continue to be on top in income, we must also be on top when it comes to using labor and capital smarter every year. Reconstruction of the oil industry is largely done, and other industries must now stand for growth, says Rattsø.
Requires political brutality
Those who had expected quick action with rapid effects may be disappointed Commission report.
– We suggest small and large measures, and many go on the deep structures of the economy, says Rattsø.
– Where are opposing forces?
– They are many. A number of interest groups related to professions, geography and industry will fight against many of the measures we propose. So much of this requires a fit dose of political brutality. The gain is a more efficient economy in the future, he said.
His message is that it is time consuming to change political processes, established rules and prolonged practice in all corners of the public administration.
– The education can not be improved in just a few years. But more important it is to get started quickly, he said.
Bet towns
Supporters of small community supplies and regional policy may get a shock of the report.
– Cities are more productive. Without strong regional cities we will get even stronger centralization, as the Oslo cauldron wins on. Therefore strong regional cities both the best regional policy and the best for good productivity growth, says Rattsø.
He advocates municipality merging for more efficient transport, shaping an overall development pattern and lifting knowledge-intensive services such as schools, he said.
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– There is play in knowledge production in Norway at all levels, says Professor Jørn Rattsø.
Better knowledge is crucial to keep Norway on income top, he said.
Diagnosis
Rattsø starting with primary school and continues upwards:
- We spend more money and more teachers than most countries, but the results are on average.
- Failure in mathematics and science provide weak recruitment is later.
- The failure of primary propagates to school. 60 per cent complete at the stipulated time.
- Poor education provides shortage of skilled workers. Great Apostasy.
- 40 percent of those who started on higher education has not completed degree 10 years later.
- Too much mediocrity and insufficient restructuring in the research.
Medicine
Rattsø believe we must discuss who is responsible.
– Municipalities are school owners and release for easy away in this debate. They are responsible for the organization and management of schools. In Sweden discuss the state takeover of schools. In Norway, the answer to pour in more teachers and micromanagement, he says .
The Commission will:
- introduce stricter teachers and students, new roads into the teaching profession, and attractive career paths.
- have multiple paths through vocational training, better adapted to different learners.
- have several study science and fewer in economics.
- make it easier to lay down badly higher education.
- have more money to the best researchers and less political control of research money.
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New and old industries must fill the void that occurs when the oil-related industries have less to do.
– Our future competitiveness will lie in a workforce that has high and relevant skills, good adaptability and that we are in technology development, says Professor Jørn Rattsø.
He believes Norway will have to raise the level of performance in mainland business to keep a state income.
– Further growth in income can only build on growth in corporate productivity. We can not continue to float on selling ever more expensive abroad, while we increasingly buy cheap goods from China, he said.
Diagnosis
– There is great adaptability in Norwegian industry. Manpower has a high level of education, says Rattsø.
He thinks basically is good, but not to rest on:
- Businesses coming out with intermediate position among rich countries when it its ability to innovate, new entrants and their own research.
- Businesses are less tied to technologically advanced international markets than our Nordic neighbors.
- Low production is based on advanced knowledge.
Medicine
– Industry itself must do the main job, but the authorities can contribute in important areas, says Rattsø.
This means according to the Commission
- More quality and better link between education, research and industry.
- Means for innovation should be directed towards large firms doing their own research.
- More investment in information and communication technology (ICT) and technological learning from abroad.
- Many service industries have weak productivity growth so that regulations must ensure increased competition, including from abroad. They must be encouraged more use of highly educated and technology.
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The selection of projects means wasting 68 billion In the last national transport plan.
– A large part of transport projects being built today is economically unprofitable. In Sweden, the proportion profitable projects significantly higher, says Professor Jørn Rattsø.
And it does not end there, and it applies not only to transport: When the public projects are selected, balls it upon themselves with extensions and cost with large amounts. Final cost is many times as great as the first estimate (see table).
The sum will be incorrect projects with poor implementation.
– The public sector must become better at managing projects scope underway, and the ability to keep budgets must be improved. A number of interest groups without providing funding is inside and affect the projects, he said.
Diagnosis
- Profitability is placed too little emphasis in transport investment. The agencies are notified of a number of other factors that must be taken into account.
- Norway builds expensive. A comparable stretch highway cost 45-60 percent more per. kilometers in Norway than in Denmark and Sweden, corrected for higher salary and other differences.
- In a number of major projects, there are significant differences between early and Quotation bill in the end.
- Reforms are slowed by small, articulate groups who are worse off in the short term. The rewards will be happy later and spread on very many who do not take the word.
Medicine
- Clearer formulations of targets for national transport. Economic profitability must get a prominent place.
- Linking responsibility for prioritizing and responsibility to fund projects. Those who propose extensions must contribute to the payment.
- Profitability and holistic considerations must prevail consideration to local interests and interest groups. Police reform is a test.
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