Poles apart: comparative resource sector governance in Australia and Norway

ABSTRACT: This article contrasts the resource policy performance of Norway and Australia. Australia has not established a long-term sovereign wealth fund or a medium-term stabilisation fund to save windfall revenue during boom times and its resource sector is characterised by relatively modest rates of taxation. In contrast, Norway has established the largest sovereign wealth fund in the world and imposed very high rates of taxation shortly after discovering its resource wealth. This article argues that Norway's consensual approach to industry development and regulation are the primary causes of its success in capitalising on its resource wealth. The difference between the two countries’ approaches is exacerbated by Australia's federal system, which has created less effective governance of resource industries.