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Norway’s Poverty Reduction: What We Can Learn From It

Norway’s Poverty ReductionNorway is a small country with around 5 million people; however, despite its size, it has become a global leader in poverty reduction. Norway consistently ranks among the top contributors to international development aid, despite its limited hard power. In 2024, the Norwegian government pledged nearly $500 million to the World Bank’s International Development Association (IDA).

This represents a massive 50% increase compared to previous commitments. Norway’s poverty reduction plan largely reflects its belief in strategic investment in global stability, rather than a charity case to be disregarded.

Foreign Aid Contributions

In 2025, Norway provided approximately $228 million in humanitarian aid for 13 crises. These funds went to places like Chad, Gaza and Ukraine, aiming not only to raise awareness of the issues but also to meet the needs of those in need as sustainably as possible. Similarly, it increased funding to the World Bank and the U.N., aiming to target food security, electricity access and climate resilience.

The country’s approach of providing immediate relief, such as water, shelter and medicine, paired with long-term development and governance support, helps ensure that these countries are provided with a stable aid relief plan. Norway’s multi-year agreements with aid organizations, worth nearly $1 billion, reflect a strategic and sustained commitment to relief services.

What Makes Norway’s Model Effective?

Norway’s aid relief plan remains largely effective due to its consistently high levels of aid, regardless of economic uncertainty. Similarly, it participates in strategic partnerships which allow institutions to provide legitimacy and an amplified impact. Not only does Norway consistently rank as a leading European aid donor, but it also does not see poverty aid as “charity.”

It ensures that it is consistently viewed as an overarching justice issue by allocating nearly 1% of its Gross National Income (GNI) to foreign aid.

Lessons for Other Countries

Norway remains an exemplary nation for the rest of the world in terms of generosity and commitment, demonstrating that investing abroad only strengthens stability at home. It expertly managed to tackle climate and poverty issues simultaneously, providing a “future-proof” model of development. The aid Norway provides is successful in creating jobs and fostering expertise in companies across the country and worldwide, thereby enhancing its domestic stability.

Not only has Norway successfully set an example for addressing issues such as climate instability and global poverty, but it has also proven that small states are capable of leadership, demonstrating that influence stems from commitment and credibility. By aligning its policies with the U.N.’s 2030 Agenda, Norway became a member of the Global Alliance Against Hunger and Poverty in 2024, promoting collective, institution-led solutions that scale impact. The country has also shown that aid works best when it is strategic rather than reactive, relying on multi-year planning and rights-based frameworks to deliver deeper, longer-lasting results.

Overall, Norway’s poverty reduction approach is strategic, principled and future-focused. As global crises continue to intensify, other nations can learn from Norway’s willingness to commit to long-term solutions. Its model shows that effective aid is built on consistency, accountability and planning—not short-term reactions. 

– Megan Burrows

Megan is based in Birmingham, UK and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Homelessness in Norway Eliminated Through “Housing First” Policy

Homelessness in NorwayNorway is on a mission to reach zero homelessness and it’s making real progress. The country proves that homelessness reduction is possible and sustainable. The Norwegian Housing First policy is based on research, coordination and a social approach to the problem. Here is all you need to know about the Norwegian recipe to eliminate homelessness.

Homelessness in Norway

Norway defines homeless people quite broadly. It widens the group to include people without permanent accommodation under many circumstances beyond simply living on the streets. This includes individuals who do not own or rent a home, those temporarily staying with friends or family and people about to be released from a facility or institution within the next two months who have nowhere to stay or go.

In 2020, 3,325 people were homeless in Norway, representing 0.06% of the country’s population. This is one of the lowest homelessness rates in Europe and nearly a 50% reduction compared to 1996. This result is a phenomenon on an international scale, matched only by Finland.

Norway and its fellow Scandinavian neighbors are pioneers of the Housing First approach. However, comparisons are challenging, as there is no generally accepted definition of homelessness and statistical methodologies differ between countries.

Plan, Divide and Conquer

In Norway, housing policies and homelessness reduction programs are a shared responsibility of the central and local governments, the private sector and nongovernmental organizations (NGOs). The state provides the legal framework and financial resources, while municipalities and NGOs implement the policies. Social and health services also play a key role in supporting people experiencing homelessness.

Such cooperation is crucial in addressing homelessness, as individuals affected by it often face complex challenges in multiple areas of their lives. The first homelessness survey in Norway was conducted in 1996. Since then, the country has implemented five projects aimed at eliminating homelessness.

The latest program, the National Strategy for Social Housing Policies (2021–2024), titled “Everyone Needs a Safe Home,” also incorporates the Housing First approach. The government focused on two groups that are especially disadvantaged in the current housing market: children and young people and people with disabilities.

Provide Housing First

The philosophy behind Housing First is simple: a safe and stable place to call home is the foundation for everything else. Indeed, once housing is secured, pursuing employment or addressing substance use becomes much more manageable.

Beneficiaries of the policy only need to be experiencing a housing crisis to receive support—there are no additional requirements. Participation in other programs is voluntary. The initiative recognizes housing as one of the four pillars of well-being, alongside health, education and work.

This is a significant difference in Norway’s approach compared to other solutions. Every action, plan and program is designed to provide a solid foundation to build. Like a house, a person needs a stable base to grow and become self-reliant.

– Patrycja Pietrzak

Patrycja is based in Cyprus and focuses on Good News for The Borgen Project.

Photo: Unsplash

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In-Home Health Care Strategy: Reducing Elderly Poverty in Norway

Elderly Poverty in NorwayThe Norwegian health care system is often cited as one of the most efficient, accessible and patient-oriented nationwide health services available. In 2024, the Scandinavian country’s universal health care structure earned a number five ranking in the World Index of Healthcare Innovation, a measure the Foundation for Research on Equal Opportunity uses to assess health care quality for 32 high-income nations.

With world-class infrastructure and prestigious credentials, Norway’s exemplary health care system offers a template for socialized coverage that neighboring countries often look to adopt. Despite its strengths, Norway’s health care system faces challenges that could leave its aging population in the margins. Fortunately, Norway’s ever-advancing welfare technology offers promising solutions. Here are the upcoming challenges older Norwegians face in securing adequate health care and how this relates to old-age poverty in Norway. 

How Norway’s Health Care System Works

Norway’s decentralized health care system allows for a higher degree of municipal management, providing a regionally tailored experience for patients across the country. National and municipal taxes fund Norway’s health care infrastructure: a system of four Regional Health Authorities that cover residents’ health insurance and oversee the country’s 20 hospital trusts.

In 2023, 11% of the country’s gross domestic product (GDP) accounted for health care spending. As of 2025, around one in 10 Norwegians receives private health insurance. The 2012 Public Health Act reflects Norway’s policy-forward approach to health care by making health a priority in all public service management. A well-integrated blend of national and local oversight for health care services leaves Norwegian residents with a considerable social safety net; however, recent concerns have arisen surrounding the rising costs of sustaining such a system. In particular, elderly poverty in Norway will disproportionately affect the elderly who face low socioeconomic status. 

Strained Health Care Services

As in many other developed countries, Norway’s increasing life expectancy places a significant strain on assisted living facilities that are already understaffed. From 2007 to 2017 alone, demand for nursing services jumped by 18% Per projections, demand could increase in the coming years, as 250,000 more Norwegians older than 80 will add to the country’s population in the next two decades.

Notably, the past decade saw a 37.9% increase in the number of Norwegians ages 67 to 79, a landmark figure. All the while, in the short span from 2015 to 2018, the country’s nursing home availability decreased by 2%. Old age often brings increased vulnerability to isolation and stigma, which can deter individuals from seeking care—heightening risks to both health and financial stability. Unfortunately, discrepancies exist in which Norwegians are most likely to experience these injustices as they age. 

Access to Health Care

Older Norwegians with differing educational attainment and income levels, which are often interdependent, see notable discrepancies in available health care. For example, a difference in life expectancy of up to seven years exists between Oslo’s districts. A 2024 study, highlighting higher mortality rates for elderly patients discharged to under-resourced municipalities, speaks to the social gradient that Norwegian elderly experience. Rural municipalities with populations of 10,000 or fewer, where 17% of Norwegians live, are particularly underserved. Furthermore, a higher educational degree can add four years to the life expectancy of Norwegians 65 or older, compared to those with a lower degree.

Norwegians without a high socioeconomic status may lack the financial stability to afford the costs of living in municipalities with more abundant health care services. Even when they can, only two in five patients living in municipalities with populations of 50,000 or more register for a nursing home within 15 days of requesting one. Clearly, intra-municipality competition for aging services exacerbates regional inequalities in nursing home availability. With such sparse resources, the existing social safety net may not sufficiently protect the country’s aging population from old-age poverty. 

What Elderly Poverty Means for Aging Norwegians

With current levels of competition for nursing home services, elderly poverty in Norway is at risk of increasing in the coming years. As older Norwegians are discharged early from hospitals to underserved municipalities, they may be more likely to require future care. Consistent transitions in and out of hospitals can accumulate costs over time, while the proactive care nursing homes could provide often remains out of reach for elderly people without the means to finance it.

A 2022 study also noted cases in which Norwegian employees took sick leave to care for their elderly parents. Thus, elderly poverty can become generational if aging parents depend on their children to provide the services that municipal health care doesn’t have the bandwidth to. While Norway’s nursing home services are not at a capacity to sustain current and future demand, technological advances in in-home care have the potential to address this shortcoming.

The Path Forward

The future of equal health care and prevention of old-age poverty in Norway is complex, with elderly health care needs differing between rural and urban municipalities. With 38.5% of Norway’s elderly aged 65 and older living alone, local health care services are looking to welfare technology to sustain in-home care as an alternative to nursing homes. Home installments designed to detect signs of distress and enhance autonomy enable older Norwegians to maintain a sense of independence and forgo the transition to a nursing home environment as they age.

While relieving pressure on crowded, assisted living facilities, Norwegian elderly will be able to preserve their financial resources and social networks, promoting personal resilience to otherwise life-disrupting events. In-home aging technology may still be out of reach for some older Norwegians due to socioeconomic discrepancies, but this innovation will play a central role in reducing current and future elderly poverty in Norway.

– Isla Hansen

Isla is based in Spokane, WA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr