Introduction

Norway is a thin, stretched country with a population of just over 5 million. It is one of the world's richest countries, and its residents possess among the lowest variability in living standards (The World Bank, 2011). There is a long-standing consensus among all political parties that the quality of health, education and social services should be equalised as much as possible throughout the nation. Hence, the Norwegian welfare state is built on the ‘citizenship’ principle, with schemes, for the most part, financed through general taxes and a tax system that is redistributive in nature (Kuhnle, 1994a, p 81). This consensus is based on a prerequisite strong work ethic and commitment to full employment, as well as the ideals of equality, social justice, social security, solidarity and social integration (Christiansen and Markkola, 2006; Halvorsen and Stjernø, 2008).

These ideals are subject to positive and negative tensions. The redistributive and integrative goals of the Norwegian welfare state are premised on an economy that maintains high employment levels and economically active people (Lødemel et al, 2001). The country's policy focus on employment and employability – crystallised as its ‘work approach’ – is not, however, always conducive to the broader ethical ideals listed above and may, for particular groups, work to heighten a sense of marginalisation and exclusion.

Norway's broader welfare state is characterised by a diverse array of social reforms, where eligibility is based not on class or occupation but instead on residency. Development was encouraged early on by a traditionally strong peasant/agricultural class (Halvorsen and Stjernø, 2008) joining forces with organised labour, by the relatively strong position of democratic government and by political consensus on issues related to social protection and welfare (Baldwin, 1990; Hatland, 1992). The concept of folkeforsikring (the people's insurance) and the principle of universal coverage entered the Norwegian policy arena well before the end of the 19th century and certainly before the universal welfare ideas of Beveridge some 50 years later (Seip, 1981; Kuhnle, 1994b).

The Norwegian Labour Party's near-hegemonic rule from 1935 until the early 1960s, along with a pragmatic post-Second World War political consensus supporting the development of a broader welfare state, ensured the rapid expansion of coverage and increased benefit levels (Lødemel, 1997a).