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Policy Challenges for Agriculture and Rural Areas in Norway

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  • Philip Hemmings

    (OECD)

Abstract

Norwegian policy gives high priority to supporting rural communities, with support for agriculture receiving particular attention. It is broadly successful in terms of maintaining rural communities, and urban-rural gaps in a range of well-being indicators are comparatively narrow. However, the cost-efficiency and sustainability of the policy mechanisms are questionable. Agriculture and rural policy in Norway needs to focus more strongly on economic sustainability alongside social sustainability. Agricultural support remains overly concentrated on maintaining the status quo and has seen little reform compared with policies elsewhere in the OECD. In contrast, the fishing industry has reformed much further towards economic sustainability, aquaculture has seen considerable success and there is potential for more rural tourism. Supporting rural communities also requires attention to the quality of public services in rural areas, and this report draws particular attention to inefficiencies arising from small-scale municipalities, and supports efforts to encourage mergers towards larger units, paving the way for greater operational leeway for municipal government.This working paper relates to the 2016 OECD Economic Survey of Norway (www.oecd.org/eco/surveys/economic-survey-norway.htm). Agriculture et zones rurales en Norvège : enjeux pour l'action publique Les pouvoirs publics norvégiens s’emploient de manière prioritaire à soutenir les communautés rurales, le soutien à l’agriculture bénéficiant d’une attention particulière. Cette politique porte largement ses fruits en ce qui concerne le maintien des communautés rurales, et pour tout un éventail d’indicateurs du bien-être, les écarts entre les zones urbaines et les zones rurales sont relativement modestes. Toutefois, on peut s’interroger sur le rapport coût-efficience et sur la viabilité d’une telle stratégie. Les politiques agricoles et rurales de la Norvège devraient mettre davantage l’accent sur la viabilité économique parallèlement à la viabilité sociale. Le soutien à l’agriculture reste excessivement concentré sur le maintien du statu quo et les réformes ont été peu nombreuses par comparaison avec les politiques menées dans d’autres pays de l’OCDE. En revanche, l’industrie halieutique a été bien davantage réformée dans le sens de la viabilité économique, l’aquaculture a enregistré des réussites considérables et il existe un potentiel de développement du tourisme rural. Le soutien apporté aux communautés rurales doit également prendre en compte la qualité des services publics dans les zones rurales ; la présente Étude souligne en particulier les inefficiences liées aux municipalités de petite taille et soutient les efforts déployés pour encourager les fusions visant à constituer des collectivités plus larges, ce qui permettrait de ménager aux autorités municipales de plus grandes marges de manoeuvre opérationnelles. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Norvège 2015 (www.oecd.org/fr/eco/etudes/etude-economique-norvege.htm).

Suggested Citation

  • Philip Hemmings, 2016. "Policy Challenges for Agriculture and Rural Areas in Norway," OECD Economics Department Working Papers 1286, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1286-en
    DOI: 10.1787/5jm0xf0r676c-en
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    Citations

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    Cited by:

    1. Kozioł-Kaczorek, Dorota, 2016. "The Livestock Production in Norway," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 16(31), pages 1-8, December.
    2. Alexey Naumov & Daria Sidorova & Ruslan Goncharov, 2022. "Farming on Arctic margins: Models of agricultural development in northern regions of Russia, Europe and North America," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 174-186, February.
    3. Kumbhakar, Subal C. & Li, Mingyang & Lien, Gudbrand, 2023. "Do subsidies matter in productivity and profitability changes?," Economic Modelling, Elsevier, vol. 123(C).

    More about this item

    Keywords

    agricultural support; agriculture; agriculture; gouvernement local; local government; municipalities; municipalités; politique régionale; regional policy; soutien à l'agriculture;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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