–  Or should it be deposited in a bank or lent through another channel? Even before discovering oil, the state had long been a substantial direct owner of Norwegian companies. The value of state investment in Norwegian companies is more than NOK 600 billion. 15 The state owns more shares in Norway than in the US where the oil fund has its largest investments. 16 But will substantial investment in one’s own business – or one’s own nation – guarantee growth and prosperity? Many OPEC countries received enormous income after the oil price shocks in the 1970s. They later not only experienced low growth, but negative growth. 17 Professor Ragnar Torvik writes that one of the main reasons behind the decline was that such a large portion of the additional income was invested domestically. Politicians invested in projects that may have brought political gains – but resulted in economic loss. 18 We can also draw on Norway’s historical experience. In the post-war period, the Norwegian economy was to be reconstructed through a large-scale investment programme. 15  Report no. 13 to the Storting (2010–2011) Aktivt eierskap – norsk statlig eierskap i en global økonomi [Active ownership – Norwegian state ownership in a global economy], Ministry of Trade and Industry (in Norwegian only): http://www.regjeringen.no/pages/16193771/PDFS/STM201020110013000DDDPDFS.pdf) and the annual reports of the Government Pension Fund Norway and the Government Pension Fund Global.
In my speech today, I will  1  Alf Collet (1915): Familien Collett og Christianialiv i gamle dage (The Collett family and life in Christiania in olden days), Cappelen, Kristiania. 2  See Facts 2011 – The Norwegian petroleum sector, Ministry of Petroleum and Energy: http://www.npd.no/en/ Publications/Facts/Facts-2011/  3  Report to the Storting on Long-Term Perspectives for the Norwegian Economy, Section 4.5: http://www.regjeringen.no/en/dep/fin/press-center/press-releases/2009/long-term-perspectives-for-thenorwegian.html?id=542381  BIS central bankers’ speeches  1  discuss in particular what sound management entails from an economic viewpoint. I will also touch upon how we practice oil wealth management in Norges Bank. Intergenerational saving The first question that must be answered is: Who owns the oil wealth? Does it belong to the present generation of Norwegians? Does it also belong to future generations? 4 Even though I will be speaking from an economic vantage point, I will borrow a point made by the philosopher Henrik Syse. He asks whether we have the right in the course of a single generation to expend resources that it has taken nature millions of years to produce. But there are also counter arguments. The next generations are likely to be wealthier than us in any case. Should we save for them? Saving for the future can also be supported with vicarious arguments by those who are worried about their own upcoming pension payments. Today’s pension obligations are underfunded but can be more easily met if oil revenues are saved.