In this article, inclusive education is analysed from the perspective of the interlinked, dynamic relationship between international neo-liberal movements and national policies and practices. The aim is to explore the significance of "competence" in recent Norwegian reforms and the changing position attributed to inclusion. The analysis shows that during a very short period from 1997 to the present date Norway has seen a rapid change from a highly state-regulated system with an expressed emphasis on inclusive education policies to one of decentralisation, with an emphasis on competencies, differences and individualisation. I discuss the impact of international studies on national reforms in neo-liberal direction and the implications of such reforms for inclusive education policies and practices in Norway.