So long as a new Norwegian book passes quality control, Arts Council Norway purchases 1,000 copies of it to distribute to libraries—or 1,550 copies if it’s a children’s book. (This comes on top of the libraries’ acquisition budgets.) The purchasing scheme, I was told, keeps alive many small publishers that could not otherwise exist. American independent presses would drool at the prospect. Another effect of the scheme is that it subsidizes writers as they build a career. They make royalties on those 1,000 copies—in fact, at a better royalty rate than the contractual standard. Books are also exempted from Norway’s value-added tax.
I would note that, other than Knausgaard, the merits of recent Norwegian literature are…subject to debate.