Norway is the prototype of the Nordic model of cultural administration, characterised by a weighty public sector, a high level of organisation, strongly union-oriented and politically influential artists associations, public subsidies to artists which are usually justified by socio-political arguments, a concept of decentralisation, democratisation and distribution based on local self-government, egalitarian values, and a tendency to eliminate or simulate the play of market forces.

Public funding is disbursed at three levels – the state, the county municipalities and the municipalities. In principle, the Ministry of Culture and Church Affairs is responsible for major national cultural initiatives, whilst the county municipalities are responsible for regional initiatives and the municipalities for the local events. This arrangement came into operation as part of the new funding system introduced in 1986, to give greater freedom to local authorities and achieve rationalisation in the local sector. However, some important regional and local cultural events are still partly financially dependent on the Ministry. As of 2004, the Ministry fully or partially supports over 400 institutions, organisations, associations and projects, please see National statutory institutions.

Public cultural funding on a state level is primarily allocated through the Ministry of Culture and Church Affairs and the Norwegian Cultural Fund. In 2004, the Ministry’s total cultural budget was EUR 550 million (excluding church affairs), with only EUR 36 million drawn from the National Lottery Ltd. This means that only 0.007per cent of the total national budget is allocated to culture in Norway.

The Ministry is responsible for administering the operating funds granted to national and regional cultural institutions and has at its disposal a number of subordinate agencies and enterprises to implement political resolutions and administrate grant schemes.

The Arts Council Norway is responsible for administering the Norway Culture Fund, and is due to this formally administered and financed by the Ministry of Culture and Church Affairs. However, it retains a largely independent arms length position. The Council allocates support to artistic and cultural projects throughout the country. In 2004, the Council had a total budget of EUR 30 million. In total, theatres and opera annually receive the highest amounts of public cultural funding, followed by music and museums. Visual arts activities receive the smallest grants.

Public funding to artists is channelled through various collective funds and cultural policies, the most important being the office for government grants and guaranteed income for artists. Grants may be applied for, and allotted to artists who reside and work primarily in Norway.

Other semi-public artists associations also operate to reimburse artists for the public use of books, music, artworks, etc. In the book trade the state set fixed book prices, offers VAT exemption and guarantees book purchases.

International artists may receive some direct public funding from the Ministry, but it is more common to use the host venue as a funding conduit.