Corporatisation in Norwegian Local Government

Abstract

Corporatisation in Norwegian local government, although not a new phenomenon, has grown rapidly during the last 20-25 years, especially since 2003-2004. Considering its relatively small population, Norway has a high number of municipally owned companies (MOCs), compared to its Scandinavian neighbours. Despite this, measured by the number of employees, the size of MOCs constitute less than 10% of the size of local government. Because of the rapid growth, Norwegian municipalities still strive to compensate for the institutional lag that has developed in terms of political and corporate governance. This process involves issues of transparency, accountability and local democracy, which still have to find more sustainable and satisfactory solutions.

The Moderating Effects of Social Norms on Pre-merger Overspending: Results from a Survey Experiment

“…The council is the municipality's highest governing body, consisting of between 11 and 67 councilors (Klausen 2015). Councilors are directly elected by all legal residents every fourth year.…”

Policy mechanisms for interlocal service delivery: management perspectives in the USA and Norway

“…In Norway, national laws define options for ILC mechanisms (Arntsen et al. , 2018; Klausen and Torsteinsen, 2023; Zeiner and Tjerbo, 2014) that mandate formalized reporting, oversight boards and governance structures (NMLG, 1999, 2018). On the contrary, the entrepreneurial latitude and layered federal configuration of USA municipalities encourage informality (Farmer, 2022; Fowler, 2018; Weber and Khademian, 2008).…”

“…In Norway, ILC is commonplace, with most collaborations involving multiple entities and with most municipalities participating in multiple arrangements (Arntsen et al. , 2018, 2021; Klausen and Torsteinsen, 2023; Leknes et al. , 2013).…”

“…In Norway, ILC is commonplace, with most collaborations involving multiple entities and with most municipalities participating in multiple arrangements (Arntsen et al, 2018(Arntsen et al, , 2021Klausen and Torsteinsen, 2023;Leknes et al, 2013). As in the USA, Norwegian local governments engage through administrative networks and mutual organizations.…”

“…While similar in layout, Norwegian municipalities function under a national system that necessitates uniformity and universality in public services. In Norway, the central government oversees municipal processes, particularly for welfare services (Klausen and Torsteinsen, 2023). Although mostly discretionary, national laws in Norway require intermunicipal collaboration in some instances.…”