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Key Takeaways The Paradox: Countries with abundant natural resources often grow slower and suffer more corruption than resource-poor nations. Dutch Disease: Resource exports strengthen the currency, making other industries uncompetitive – hollowing out the economy. The Spending Trap: Governments treat temporary resource windfalls as permanent income, creating unsustainable obligations. Norway's Secret: Strong institutions existed before oil discovery – the wealth didn't corrupt because the system was already corruption-resistant. The 4% Rule: Norway spends only 4% of fund returns annually, treating oil wealth as capital to preserve, not income to consume. In 1969, workers on the Ocean Viking drilling rig struck oil in Norway’s North Sea. What happened next should have been predictable: the same story of boom, corruption, and collapse that had played out in Nigeria, Venezuela, Angola, and countless other petrostates. ...

Key Takeaways The Paradox: Norway imposed some of the world's toughest terms on oil companies – and they kept investing anyway. The 78% Take: Norway captures ~78% of oil profits through taxes and ownership, far above the global average. Staged Escalation: Norway started with generous terms, then tightened as expertise grew and investments became sunk costs. Technology Transfer: Every foreign contract required training Norwegians and using local suppliers – building domestic capability. The National Champion: Statoil (now Equinor) gave Norway inside knowledge of what was actually profitable, preventing industry bluffs. When multinational oil companies arrive in a developing country, the script is familiar: “Give us favorable terms, or we’ll invest elsewhere.” The implicit threat works. Countries compete to offer the most attractive deals, racing to the bottom while oil majors capture the lion’s share of value. ...