The standard of living in Norway is one of the highest in the world. Norwegian society indulges high levels of prosperity, high labor force participation rate and an equitable income distribution. The socio-economical model of the country is characterized by a comprehensive public welfare state, high public investments in education and close cooperation between the government and the social partners. The above-mentioned situation creates a social structure which guarantees a good standard of living for individuals.

The main reason behind this situation is undoubtedly the fact that Norway has a constantly growing productive and adaptable economy. Successful management of the petroleum resources on the Norwegian continental shelf has created revenues that Norwegian authorities used in order to foster the development of the economy and society.

Additionally, the Norwegian economy reassures a high labour force participation rate. Under this context the low level of unemployment in Norway is largely explained by rapid growth in production and demand. Additionally, Norwegian economy has been largely beneficiated by its integration in the international market. International trade has allowed the country to further augment its economy and to exploit its industrial capabilities a fact that reinforced employment and standard of living.

Another example that reinforces the ascertainment that Norway has outstanding social and economical conditions is that in 2007 the country was the first in the Human development index (HDI) ranking. HDI measures the human development of a country and is being published by the United Nations Development Program (UNDP).  The factors that are taken into consideration in order to form the aforementioned index are life expectancy, education (measured by adult literacy and gross enrolment in education) and standards of living (measured by purchasing power parity, PPP, income). The prices of the index fluctuate form 0 to 1. Norway has the highest index with 0.971.

Furthermore, there are some significant indicators that are difficult to be measured but contribute substantially to equalizing living conditions. For example, income disparities are small in Norway compared with most other countries and additionally health and education are virtually free of charge. Although, benefits like the above-mentioned are not normally included in international comparisons, they contribute substantially to equalizing living conditions. As it is already delineated, the current socio-economical situation of the country beneficiates the development of a healthy and robust society. Nevertheless, the Norwegian government is trying to reassure that this development will continue to go on by trying to eliminate all the future problems that society may face. Consequently, one of the most significant problems that Norwegian authorities have to face is the changes of earth’s climate. The main reason for the aforementioned changes is the pressure that the extensive exploitation of natural resources is putting in the environment. That is the reason why a new term has been created in the international socio-economical terminology; sustainable development. Norway aims to be a leading nation in terms of sustainable development, which means the country has to reduce the pressure on the ecosystems and simultaneously create the proper circumstances for the creation of a socio-economical status quo that will give the proper means to the citizens to a comfortable living.

Under this context the Norwegian government is trying to create the proper conditions so as the future generations to have access to a good environment and unspoiled nature. This means protecting essential environmental resources and ensuring fully adequate management of natural resources.

Norwegian government has a rather important and strenuous task. It must find a way of reducing the negative effects of extensive exploitation of the environment without limiting the potential for raising the standards of its citizens living.