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 constitutes 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.