Except that Norway doesn't have a large and desperate population of poor people with no alternative.. People are always better off outside of prison, Scandinavian and especially Norwegian culture is a good detergent against crime in itself. People are easily ostracised for criminal conduct in a small community, and that means it can quickly be social suicide for however gets into prison.
Get people invested in their surroundings and well being of friends and countrymen and you'll see crime (here meaning theft, robbery, fraud etc) plummet.