##vit and ormen lange will probably decline in the period to completion in 2007. high oil prices have led to a strong increase in activity on the norwegian continental shelf. many projects have been launched to increase recovery from fields in operation. a number of oil companies have revised upwards the long - term oil prices that are used as a basis for investment decisions, although they are still moderate compared with futures prices. further out in the projection period, developments in petroleum - related investment are highly uncertain. it is assumed that overall activity will decline somewhat when snøhvit and ormen lange are completed, but that the high oil price will contribute to maintaining investment at a relatively high level throughout the projection period. the fiscal rule implies a gradual phasing - in of petroleum revenues into the economy, approximately in pace with the expected real return on the government pension fund – global, formerly known as the petroleum fund. the government pension fund – global is likely to expand sharply in the years ahead. on the basis of our assumptions for developments in oil prices ahead ( oil futures prices ), a mechanical application of the 4 per cent rule implies that the use of petroleum revenues will increase by more than nok 31 billion from 2006 to 2009. this is somewhat higher than expected in the government ’ s supplement to the budget for 2006. the difference can partly be explained by the fact that at end - 2005 the fund ’ s capital was higher than that estimated by the government, and partly that the government assumed that oil prices ahead would be lower than current oil futures. for 2007, we assume an approximately unchanged structural non - oil deficit. with continued solid growth in the norwegian economy, it would be in line with the fiscal rule if the use of petroleum revenues is lower than the expected real return on the government pension fund – global over a few years. our projections are based on the assumption that fiscal policy will provide some stimulus to aggregate demand and output in 2008 and 2009, but somewhat less than a mechanical application of the fiscal rule based on our oil price assumption would imply. norges bank operates a flexible inflation targeting regime and seeks to achieve an interest rate path that provides a reasonable balance between the objective of bringing inflation up towards 2. 5 per cent over time and stabilising developments in output and employment. norge bank ’ s projections in the baseline scenario is based on an interest rate path that we find strikes a reasonable balance between the two objectives. in the baseline scenario, interest rates in norway and abroad are

the financing of education depends on the contribution which educated people will make to the economy once they enter the labour force. education should enable the people who receive it to increase their productivity, relative to what would be the case if they had not been educated. higher productivity will result in higher economic output which will generate the resources to enable the cost of the education to be recouped. this is applicable whether the education is paid for entirely by the student or paid for in full, or in part, by the taxpayer. however, if the costs of higher education exceed its discounted benefits, no system of financing will be sustainable without subsidy from some other sectors of the economy. 2. how well does the ugandan higher education system meet the country ’ s developmental needs? unfortunately, there are grounds to believe that higher education in uganda is ill suited to supporting the developmental needs of the country. uganda educates far more people at tertiary level than can be productively absorbed by the economy, given its current level of development. this is both a waste of resources which impedes economic development and is financially unsustainable. furthermore, the excessive numbers of students in higher education, and the very low entry standards, have degraded its quality. the result is that the quantity of university graduates is too large for the needs of the economy but the quality of these graduates is too low. it is also possible to argue that the education system fails to provide a sufficient supply of entrants to the job market with vocational skills, or with vocational skills of only poor quality, although that is not the fault of the education system alone, as these types of skills are often best learnt through on the job training, such as apprenticeships, yet there is dearth of employers who can provide this type of training in uganda. in 2014 there were 180, 000 students enrolled in ugandan universities and a further 69, 000 students enrolled in other institutions of higher education ( colleges of business and commerce, teacher training colleges, etc ) ; hence there was a total of 249, 000 students enrolled in higher education ( see table 1 ). if we assume that students pursue a three year course, this implies that, for each single year cohort of university age students, there are 60, 000 students enrolled in universities and about 83, 000 students in all types of higher educational institutions. the 2014 population and housing census revealed that there was 3. 18 million people in the 20 - 24 age cohort ( the relevant age cohort for