The curse of being oil-rich

aftenposten-090302Ah…the complacency of being oil rich. So complacent, in fact, that we forget about our infrastructure. That’s the picture painted by the Norwegian newspaper aftenposten.no this morning, in their seemingly never-ending series of articles about the increasingly delapidated Norwegian road network. The reason for why things are the way they are: The literally well-oiled economy.

A matter of prioritization

Instead of prioritizing infrastructure development, like many other countries , Norway has put much of its oil revenues into the social welfare system, hospitals, education, schools, kindergardens and so on.  Although this has resulted in one of the world’s best social welfare systems, it has neglected building better roads, which by many is seen as THE prerequisite for a contry’s economy.

The result

Norway has some 8500 kms of  “major highways” (“stamveg” in Norwegian), important links between regions or between population centers in a region. Merely 8% of these are classified as having a full appropriate standard, 56% are classified as below acceptance levels. No wonder people complain…



Without roads, businesses are facing high transportation costs, which makes them less competitive. Besides the fact that we consumers end up having to pay more for their services. And more for our own travels.

Related

Posted in THIS and THAT
Tags: , ,

ARTICLES and PAPERS
Finding the right location - minimizing disruption costs
Classical facility location models assume that once optimally located and set up, facilities will op[...]
Supply Chain Turbulence
We are living in turbulent times. So are our supply chains. Nonetheless, the standard tenets of supp[...]
BOOKS and BOOK CHAPTERS
Supply Chain Logistics Risk in Germany
What are the most common supply chain and logistics risks that businesses and logistics providers ha[...]
Book Review: Transportation GIS
This book showcases many examples of how GIS can be applied in the field of transportation using Arc[...]
REPORTS and WHITEPAPERS
ISO 28002 – Supply Chain Resilience
Have you heard of ISO 28002?  No? You should take note of this standard, because the ISO 28000 serie[...]
How New Zealand develops resilient organisations
Is New Zealand better prepared for a disaster than other countries? As our infrastructure and organi[...]