Gates urges fund-rich Norway to spend more on the poorest

Mr Gates, who runs the $37bn Bill and Melinda Gates Foundation, said Norway should set aside a portion of the fund to invest in infrastructure in sub-Saharan Africa and Asia, and buy equity in small enterprises that alleviate agricultural and medical problems.

“Norway is by many measures one of the richest countries in the world and you can afford to take some of that money and help out people in other places,” Mr Gates said on a visit to Oslo before meeting top government officials.

Norway is working on a complete review of the fund, including its investment strategy.

Critics say it has become too big and needs to diversify away from stocks, bonds and real estate, and may even need to be broken up into specialised vehicles.

Mr Gates argued that spending in poor countries, primarily on roads, rail and power, AP Photo/Carolyn Kaster, as it would generate returns over time, even as the spending had a dual role of generosity.

“The area where you may get this dual benefit is ... in sub-Sahara Africa and some of the countries in Asia,” Mr Gates said.

“That’s an asset class, which could absorb, if it was well managed, an additional $10bn... I’m not talking about a gigantic amount.”

Norway has amassed the world’s biggest wealth fund, saving up its surplus oil revenues, and operates it as a sort of endowment, spending only its returns.

It is expected to exceed $1 trillion this decade and already owns about 1.25 per cent of all global equities, a huge amount for a country of 5.1 million people.

Speaking at the same event, Finance Ministry State Secretary Jon Gunnar Pedersen told Mr Gates that the fund would be expanding investment in developing markets but stopped short of endorsing Mr Gates’ ideas.

“There’s no doubt in my mind that a larger part of not only our investments but all investments will and should move into frontier markets with less developed markets and higher risk,” Mr Pedersen said.

He added that making an adequate return will have to be the goal of the fund.

Norway is spending around $5bn on foreign aid in dozens of countries this year, but critics want to see more generosity.