Good Money: Norwegians Go to the Polls Amid an Uproar Over their Country’s Investments
NEED TO KNOW
Good Money: Norwegians Go to the Polls Amid an Uproar Over their Country’s Investments
NORWAY
Norway’s $1.87 trillion sovereign wealth fund, seeded with oil revenues, is the biggest investor in the world. Holding shares in 8,500 companies in 69 countries, its managers are tasked with ethical investing, a fitting strategy for a country with a robust social safety net and an excellent track record in advocating for human rights through institutions like the Nobel Peace Prize and the Norwegian Refugee Council.
Yet many Norwegians like Sindre Bangstad, a professor at the Oslo-based Institute for Church, Religion and Worldview Research (KIFO), feel that something is amiss. “Since the Hamas atrocities of Oct. 7, 2023, and Israel’s subsequent retaliation in Gaza, the oil fund has actually increased its investments in Israel by 66 percent,” wrote Bangstad in a recent Guardian op-ed.
News about these investments became a major issue in the Nordic country, especially after the July killing of Palestinian activist Awdah Al Hathaleen, who appeared in the Oscar-winning, Norwegian co-produced film, “No Other Land,” in the West Bank.
After the uproar, the Norwegian government under Prime Minister Jonas Støre moved quickly to divest the wealth fund of some of its Israeli holdings, NewsinEnglish.no reported. The country recognized Palestinian statehood last year, wrote Al Jazeera. Still, some investments linger, as NewsinEnglish.no noted.
Now, as voters prepare to go to the polls to elect a new government on Sept. 8, an unusually public debate over how the sovereign wealth fund operates could influence which political party leads Norway’s next government, as the election race is tight.
To date, Støre’s Labour Party has held its lead over its traditional rivals, the Conservatives, even as the right-wing, populist Progress Party now appears to have replaced the Conservatives as the prime minister’s biggest political threat.
Meanwhile, Labour is only polling at 28 percent, however, meaning that even if they come out on top with that percentage of the vote, they will need to either partner with left-wing parties such as the Socialist Left and others, which would mean that the new administration would focus on improving the country’s welfare system and fighting climate change, or, alternatively, make a deal with conservative parties that would tilt the country more toward business, focusing on cutting regulations and taxes, and drilling for more oil, noted Stratfor.
Still, right-wing parties – the Conservatives, Progress Party, Liberals and Christian Democrats – are currently projected to win 85 seats – just one more than needed to secure a majority in parliament, polls showed.
Their government could make big changes, however, impacting the tight labor market in the country, analysts say.
The Progress Party, for example, wants to reduce immigration from African, Asian, and Middle Eastern countries to zero. Leader Sylvi Listhaug has little regard for Muslims, who comprise 3.4 percent of the country’s population. Many anti-immigrant Norwegians blame outsiders for a spike in crime in the region.
Still, the sovereign fund issue makes it tricky for Labour to form a coalition because the Socialist Left has said it won’t join with Labour unless it promises full divestment, something Labour has been resisting.
Since June 30, the fund has divested from 23 Israeli companies out of 38 it held stakes in. Finance Minister Jens Stoltenberg said in August that the fund would divest from more companies but Labour and parliament have resisted a blanket ban on Israeli firms or on those multinationals with sales and services available in the occupied Palestinian territories.
Advocates of divestment say the investments contribute to the violation of international law by investing in companies active in the occupied Palestinian territories. Opponents, however, argue that following Norway’s formal divestment process is necessary and that singling out a country might violate its ethical rules. They add that a blanket ban is overreach.
Regardless of the uproar over the fund and its impact on the election, fund officials say the issue has chipped away at trust in the government, which has traditionally been high in the country of about 5.5 million people.
“This is my worst ever crisis,” the oil fund’s CEO Nicolai Tangen told Swedish daily Dagens industri, adding that he regrets that he did not realize that owning shares in an Israeli fighter jet company, as Israel bombed Gaza, would be problematic. “We should have either taken the holding to the ethics council, or sold it outright. This is a serious situation because it is about trust in the fund.”
THE WORLD, BRIEFLY
Japanese Prime Minister Resigns Over Election Losses
JAPAN
Japanese Prime Minister Shigeru Ishiba resigned Sunday, less than a year after taking office, bowing to pressure after two election defeats that cost his ruling Liberal Democratic Party (LDP) and its coalition partner their majorities in both houses of parliament, the Guardian reported.
In his announcement, Ishiba said he made the “painful decision” to step down to avoid a “decisive division” within the LDP, which had been preparing to force an early leadership contest next week.
He cited the conclusion of negotiations with the United States on tariffs – including US President Donald Trump’s order lowering duties on Japanese cars from 27.5 percent to 15 percent – as the “appropriate moment” to resign.
Ishiba became prime minister in October 2024, vowing to tackle inflation and reform the LDP, which had been beset by a series of fundraising scandals, according to Japanese broadcaster NHK.
But later that same month, the LDP and its coalition partner Komeito lost their majority in the lower house of parliament. The ruling coalition then suffered another stinging defeat after it lost its majority in the upper house this July.
The election losses were a major blow for the LDP, which has governed Japan nearly uninterrupted since the 1950s, prompting internal calls for Ishiba’s removal.
The resignation comes at a volatile time for the world’s fourth-largest economy, which is struggling with high prices, Trump’s tariffs, and growing voter support for populist rivals such as the Sanseitō party.
A Kyodo poll published Sunday showed Ishiba’s cabinet approval had slipped to 32.7 percent, its lowest level since he took office.
The move drew mixed reactions within the ruling bloc: Former Defense Minister Tomomi Inada said the decision was “the best” to preserve party unity, while Komeito leader Tetsuo Saito called the announcement “deeply regrettable.”
Opposition leaders warned of a dangerous political vacuum, with Democratic Party for the People chief Yuichiro Tamaki urging the LDP to “swiftly bring this situation to a close” so the government can focus on dealing with rising prices.
Attention now shifts to Ishiba’s successor, with an LDP leadership vote among lawmakers and rank-and-file members expected in early October.
Possible contenders for the country’s top post include Sanae Takaichi, a conservative former economic security minister who ran against Ishiba last year, and Agriculture Minister Shinjiro Koizumi, who has drawn attention for his efforts to curb soaring rice prices.
Ishiba, who finally won the LDP presidency on his fifth attempt last year, will remain in office until a replacement is chosen.
Israel Backs Off From West Bank Annexation Plans After UAE Threat
ISRAEL / WEST BANK & GAZA
The United Arab Emirates and Saudi Arabia warned this week that Israeli plans to annex parts of the occupied West Bank could unravel normalization agreements and block future ties, placing new pressure on Prime Minister Benjamin Netanyahu as his coalition faces mounting calls from far-right ministers to move ahead with annexation despite international alarm, the Washington Post reported.
Earlier this month, the Israeli government said it would review proposals to annex the West Bank as a possible response to France and other Western nations’ plans to recognize a Palestinian state, Israeli officials told CNN.
Netanyahu was set to meet with cabinet members on Thursday to discuss Israel’s response. However, the annexation proposals prompted a strong reaction from Arab countries, including the UAE.
Last week, Emirati envoy Lana Nusseibeh said annexation was a “red line” that would “foreclose on the idea of regional integration.” Emirati officials complained that Israel and the United States had ignored months of private appeals, forcing them to go public.
Meanwhile, Saudi Crown Prince Mohammed bin Salman and UAE President Mohamed bin Zayed said that normalization with Israel would be rolled back if sovereignty moves proceed, according to Gulf officials as reported by the Times of Israel.
The officials added that any annexation would also halt progress toward Riyadh’s own normalization with Israel.
Analysts noted that such warnings threaten the durability of the Abraham Accords that normalized ties with Israel and the UAE and other countries in 2020. They added that the annexation plan also risked Israel’s efforts to reach a long-sought deal with Saudi Arabia.
By Thursday, the annexation issue was taken off the agenda at a high-level cabinet meeting in Jerusalem, Israeli officials acknowledged, underscoring how Abu Dhabi’s unusual public pressure has rattled Netanyahu’s government.
Despite the warnings, Israeli Finance Minister Bezalel Smotrich on Wednesday unveiled a plan to annex 82 percent of the West Bank, calling it time to “remove once and for all” the idea of a Palestinian state.
National Security Minister Itamar Ben Gvir pushed annexation again at Thursday’s cabinet meeting, regardless of Arab objections.
Western governments, including the United Kingdom, Canada, Australia, and France, have pledged to soon recognize Palestinian statehood, while the US has taken a more cautious line, with Secretary of State Marco Rubio saying annexation was “not a final thing.”
The debate over annexation comes as indirect negotiations over a ceasefire in Gaza remain stalled, the BBC added.
Hamas said this week it was ready for a “comprehensive deal” to end the nearly two-year war and free all remaining hostages, even as Israel dismissed the statement as “more spin.”
Families of hostages warned that Israel’s looming offensive into Gaza City could endanger the remaining captives. On Saturday, in a rally organized by the hostages’ families and held in front of the prime minister’s house in Jerusalem, tens of thousands of Israelis protested the war and the lack of action to bring home the hostages. Protesters called the Israeli leader “a traitor.”
Opposition Leader Becomes Thai Prime Minister, the Third In Two Years
THAILAND
Thai lawmakers elected business tycoon Anutin Charnvirakul as prime minister over the weekend, the country’s third leader in two years after the removal of his predecessor, Paetongtarn Shinawatra of the powerful Shinawatra dynasty, the BBC reported.
On Friday, lawmakers voted to replace Paetongtarn of the ruling Pheu Thai party, who was dismissed by the constitutional court last week over ethical violations tied to a border dispute with Cambodia.
Anutin, who is the leader of the conservative opposition Bhumjaithai party, secured a victory over Pheu Thai candidate Chaikasem Nitisiri after receiving support from the progressive People’s Party, another opposition party, and the largest in the lower house.
His election followed months of political uncertainty in the Southeast Asian nations that began after a leaked phone call between Paetongtarn and Cambodian strongman Hun Sen over a border dispute. The dispute later resulted in a five-day conflict between the two countries’ militaries that killed 43 people in July.
The scandal prompted the Bhumjaithai party to leave the Pheu Thai-led coalition and the constitutional court to dismiss Paetongtarn.
The court’s ruling marked the fifth time a Shinawatra-backed prime minister has been removed, dealing a fresh blow to a political family repeatedly ousted by courts or coups since Paetongtarn’s father, Thaksin Shinawatra, first became prime minister in 2001.
Her dismissal came less than a year after she took office, seen initially as a political comeback for the Shinawatra clan.
On Thursday, Thaksin left Thailand on a private jet bound for Dubai, saying he intended to return by Sept. 9 for a court hearing that could send him back to prison.
The scandal and dismissal have once again highlighted the fragility of Thai politics, while prompting questions about the longevity of the new prime minister.
Anutin struck a deal with the People’s Party, promising to hold elections within four months and pursue constitutional reform.
Observers noted that the new prime minister will have limited room for maneuver as his Bhumjaithai Party only holds 69 of 500 seats in parliament, leaving him reliant on support from the People’s Party.
On Saturday, Anutin named key cabinet members made up of political veterans, including former Treasury Department head Ekniti Nitithanprapas as finance minister and respected diplomat Sihasak Phuangketkeow as foreign minister, Reuters wrote.
Their appointments – pending royal approval – come as Thailand struggles with slowing economic growth and seeks stability after months of turmoil.
The conservative leader – who gained prominence by liberalizing marijuana laws when he was health minister in 2022 – called for unity in his first remarks as prime minister and said all sides must work together to “move our country forward at the speed that could compensate for the opportunities that were lost.”
DISCOVERIES
A Shark’s Tooth
Dentists tell their patients to avoid acidic foods and beverages to prevent tooth decay.
This won’t be an option for sharks in the future.
Researchers in Germany recently found that ocean acidification, driven by human carbon dioxide (CO2) emissions, could leave the ocean’s apex predator with brittle, corroded teeth.
“Shark teeth … are still vulnerable to corrosion under future ocean acidification scenarios,” said lead author Maximilian Baum of the new study in a statement. “They are highly developed weapons built for cutting flesh, not resisting ocean acid. Our results show just how vulnerable even nature’s sharpest weapons can be.”
For the study, the research team tested the effects of future acidified oceans by incubating discarded teeth from blacktip reef sharks in seawater tanks. One tank matched the current ocean average pH of 8.1, while the other simulated the predicted pH of 7.3 by the year 2300 – an almost tenfold increase in acidity.
After eight weeks, the dentures in the acidic tank showed “visible surface damage such as cracks and holes, increased root corrosion, and structural degradation,” explained senior author Sebastian Fraune in the statement.
This is quite concerning, considering that the predator’s teeth are made of tough, mineralized phosphate.
And even though their teeth can grow back when lost, researchers caution that this might not be enough if tooth loss outpaces regrowth. Meanwhile, some species must swim with their mouths open to breathe, making exposure to acidic water constant.
The findings underscore increasing concern about how climate change is threatening the world’s oceans and marine ecosystems, prompting calls for reducing CO2 emissions to stabilize ocean chemistry and protect marine life.
The researchers said their study mainly focuses on non-living tissue and noted that the situation might be “more complex” in living sharks.
Baum hopes that sharks will eventually adapt to their changing environment, an optimistic prediction shared by other marine scientists.
“It will be interesting to see in future studies if the damage to teeth seen in studies like this one results in a functional effect on a tooth’s ability to do its job,” Lisa Whitenack, a shark tooth specialist at Pennsylvania’s Allegheny College who was not involved in the work, told the Guardian. “…(and if) damaged teeth can still cut or puncture prey.”