International Aspects of Norwegian Economic Reconstruction

Abstract

IT is of primary importance that the far-reaching problems involved in the reconstruction of the economic life of the countries devastated by war and ruined by German occupation and exploitation should be thoroughly discussed and clearly understood. Owing to the unparalleled political records of Great Britain during the whole of this war since September 3rd, 1939, her geographical position, the structure of her economic life and her close economic and cultural ties with the other European nations as well as with the outside world, she will have to play a leading role in all international relief and reconstruction activities. Clearly, the primary task of rebuilding the occupied countries will have to be undertaken by the countries themselves. The greater the amount of constructive and well-advised outside help during the initial period, however, the sooner will the industries of the liberated countries be in a position to resume their normal activities. During this initial period, the basis of the economic life of the newly-freed countries should be laid in such a way as to facilitate their speedy integration in an expanding world economy. Under no conceivable circumstances are vested interests less powerful than among a heap of ruins. It is.of primary importance to the successful establishment of peaceful international relationships that they should not be allowed to develop afresh. The economic life of Great Britain and Norway has an outstanding feature in common: the prosperity and economic well-being of both countries is completely dependent on their international connections. The value of Norwegian imports per head of her population is higher than that of any other country in the world except New Zealand. In 1938, imports amounted to some ?60 million and exports to ?40 million. By way of comparison one may add that the national income in recent years before the war has been calculated at something above ?200 million. Shipping was estimated in 1938 to have given a net contribution towards the balance of foreign payments of some ?21 million, thus covering more than the whole of the import surplus. In fact, the Norwegian balance of payments during the six or seven years before the war showed large surpluses, which rendered possible the repayment of a third of our net foreign debt during this period. Of the total foreign trade, 47 per cent was with Great Britain and nonEuropean countries, and the remainder with the European continent.