| Since 1990, Norway has diverted much of its oil earnings to a sovereign wealth fund, which has become the world's largest. The money, reaching $890 billion as of June 2014, amounts to $178,000 for every Norwegian citizen. The sovereign wealth fund helps Norway avoid some of the problems associated with the "resource curse" by investing capital abroad.
But more importantly, the money is set aside to be saved and invested to help the country plan for the eventual decline of oil production, with the intention of transitioning to a more diversified economy that can take oil's place...............................................Full Article: Source
|