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Nicolai Tangen leads Nordic behemoth Norges Bank Investment Management, which governs the revenue earned by Norway’s oil and gas resources, hoping to distribute its benefits fairly between current and future Norwegian generations.
Under Tangen’s leadership since 2020, and over the past decade, the $1.6 trillion fund has invested more heavily in the U.S. instead of its closer neighbors in Europe.
Tangen told the Financial Times America’s performance, particularly in innovation, is “worrisome” in contrast to Europe.
Part of comes down to mindset, Tangen added, and how accepting each continent is of mistakes and risk: “You go bust in America, you get another chance. In Europe, you’re dead,” he said. But there is a difference in the "level of ambition,” he added. “We are not very ambitious. I should be careful about talking about work-life balance, but the Americans just work harder,” Tangen continued.
Meanwhile, data from the International Labour Organization, last updated in January, showed the average hours workers clocked in the U.S. was 38 hours a week. However, of those employees, 13% worked 49 hours or more per week, which outstripped the majority of European nations.
Moreover, countries like the U.K. have a statutory requirement entitling staff to 28 paid days of leave a year—if you’re a full-time employee. In the U.S. it is not a legal requirement for staff to be given any paid time off; however, according to the Bureau of Labor Statistics, the average employee who is in their first year of service takes eight PTO days
Investments in the U.S. now represent 46.9% of Norges Bank’s portfolio, whereas a decade ago the U.S. represented just under 30%. Going back a further 10 years, in 2003, the organization’s investment in America made up just 26.3% of all investments.
Conversely, in 2003, 59.5% of Norges Bank’s portfolio was invested in European countries, a figure that, by 2023, had fallen to 28.7%.
AI, a growing field of American-European disparity, is instructive. “I’m not saying it’s good, but in America, you have a lot of AI and no regulation; in Europe, you have no AI and a lot of regulation. It’s interesting,” Tangen added.
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