elines implemented in 2007 allow the fund to invest up to 60% of the capital in shares (maximum of 40% prior), while the rest may be placed in bonds and real-estate. As the stock markets tumbled in September 2008, the fund was able to buy more shares at low prices. In this way, the losses incurred by the market turmoil was recuperated by November 2009.
Other natural resource-based economies, such as Russia, are trying to learn from Norway by establishing similar funds. The investment choices of the Norwegian fund are directed by ethical guidelines; for example, the fund is not allowed to invest in companies that produce parts for nuclear weapons. The highly transparent investment scheme is lauded by the international community.
The future size of the fund is of course closely linked to the price of oil and to developments in international financial markets. The Norwegian trade surplus for 2008 reached approximately US$80 billion. With an enormous amount of cash invested in international financial markets, Norway has financial muscles to avert many of the worst effects of the financial crisis that hit most countries in the fall of 2008. As most western countries struggle with burgeoning foreign debt, Norway remains a nation of stowed-away wealth, financial stability and economic power to meet the challenges of the worldwide economic crisis. In spite of the crisis, Norway still runs a 9% state budget surplus, being the only western country to run a surplus as of July 2009.
In 2000, the government sold one-third of the state-owned oil company Statoil in an IPO. The next year, the main telecom supplier, Telenor, was listed on Oslo Stock Exchange. The state also owns significant shares of Norway's largest bank, DnB NOR and the airline SAS. Since 2000, economic growth has been rapid, pushing unemployment down to levels not seen since the early 1980s (unemployment in 2007: 1.3%). The international financial crisis has primarily affected the industrial
