high tariffs on norwegian dried fish. to avoid these tariffs, norway eventually had to accept the import of large quantities of port and madeira wines. chart : rise of norwegian shipping trade and the cross - border exchange of goods allow countries to exploit their comparative advantages more efficiently. but – as we experienced during the prohibition period – this requires a mutual understanding of the need for open markets. as a small open economy, norway has always stood to gain from liberal trade regimes. the upswing for norwegian shipping that began in the mid - 1800s is a good example. shipping had long been an important export industry for norway, but freight transport mostly comprised goods exports from or imports to norway. this changed in the mid - 1800s. in 1849, england repealed its navigation act. trade with english colonies would no longer be restricted to english ships. freer world trade led at the same time to higher demand in the shipping freight market. the norwegian shipping industry made good use of the opportunity : we had good ships, skilled crews and experience of ocean transport. over the course of the next 25 years, the norwegian merchant fleet increased four - fold. chart : distribution of exports – 1835 and 1950 the foundations of a modern shipping nation had been laid. soon, most of the ships in the fleet were travelling between foreign ports, generating important export revenues. a hundred years after the repeal of the navigation act, shipping accounted for almost half of norwegian export revenues. the era of the sailing ship had passed, but we had been able to utilise new shipping technology, both as shipbuilders and as sailors. shipping and the maritime sector are still important drivers of the norwegian economy and a significant source of livelihood for many norwegians. norwegian shipping technology still ranks among the best in the world, and a large proportion of norway ’ s imports and exports are transported by ship. in tokyo, japanese sushi chefs go to the fish market every morning to buy norwegian salmon. delicious dishes made from norwegian dried cod are served in the backstreet restaurants of barcelona. and in norway, bacalhau, a portuguese dish based on dried cod, has been adopted as a dish for festive occasions. the nature of work at sea has changed. norwegian sailors are in the minority in the merchant fleet, and large factory ships have taken over from traditional fishing boats. shipping and fishing generate far fewer jobs now, and for those who still have the sea as their workplace, work is less 2 / 4 bis central bankers'speeches ardu

goods and services needed in the offshore oil sector. the norwegian business sector has made good use of the opportunities provided by the discovery of oil. the extraction of oil at extreme ocean depths required the development of new technology. the specialised expertise that has been built up has secured contracts – and not just off the shores of norway. offshore activity has had substantial spillover effects on other industries. an advanced oil service industry has emerged, and small local communities have been able to broaden their economic base. chart : distribution of exports – 1835, 1950 and 2016 the oil sector has generated substantial revenues for norway. and we have extracted large quantities of oil and gas at favourable prices. from the end of the 1990s and up to 2014, the price of north sea oil rose from about usd 10 to more than usd 100 per barrel. in spite of the fact that oil prices have fallen by about half compared with a few years ago, sales of oil and gas still provide a third of the country ’ s export revenues. 3 / 4 bis central bankers'speeches the substantial profits generated by the petroleum sector have been managed efficiently. our economy is in good order. well - functioning institutions and a high degree of trust between the various social groups provided a solid foundation. it was established at an early stage that norway ’ s oil and gas reserves belong to the people. the system of taxation and framework conditions for the petroleum industry were designed so that the large profits from this sector would accrue to the state. we have been able to enhance public welfare and prosperity. chart : from natural resources to financial wealth at the same time, norway ’ s subsea petroleum wealth has to a large extent been transformed into foreign financial assets. with the oil fund, not only current but also future generations will benefit from our oil and gas reserves. the capital in the oil fund is more than two and a half times the size of mainland gdp. as oil and gas production gradually dwindles, norway ’ s petroleum wealth will continue to generate profits in the form of income from the fund. chart : per capita gdp. norway and other countries – 1970 and 2015 the discovery of oil marked the beginning of an extraordinary era for the norwegian economy. before oil was discovered, the income level in norway was low compared with other western countries. today, the picture has been reversed. we have gradually caught up with the wealthiest countries. norway ’ s gdp per capita is one of the highest in the world. chart : the 1000 - krone banknote