Capital and largest city: Reykjavik 64°08′N 21°56′W
Official language and national language: Icelandic
Ethnic groups: Icelandic 91%, Polish 4%, other 5%
Religion: Church of Iceland
Demonym: Icelandic
Government: Unitary parliamentary republic
Formation: Settlement 9th century. Commonwealth Founding of Althing 930-1262
Union with Norway. Signing of Old Covenant 1262-1397. Kalmar Union 1397-1523.
Denmark-Norway 1523-1814. Treaty of Kiel – ceded to Denmark January 1814. Constitution and limited home rule Jan 5 1874. Extended home rule Feb 1 1904. Sovereignty Danish-Icelandic Act of Union Dec1 1918. Rupublic June 17 1944.
Area: Total 102,775 km2 (106th). Water 2.7%
Population: 2018 350,710 (172nd). Density 3.2/km2 (233rd)
GDP (PPP): 2018 Total $18 billion (142nd). Per capita $54,288 (16th)
GDP (nominal) 2018 Total $25 billion. Per capita $70,332 (5th)
Gini: 24 (low 2nd)
HDI: .921 (very high 9th)
Currency: Icelandic króna (ISK) July 2018 – 100ISK = €.816 = US$.955 = CA$1.24
Visa: Schengen visa zone.
Time zone: GMT +1
Calling code: +354
Drives on the right
Internet TLD: .is
TIPS
1. Bring your own vehicle by ferry. The price (€1537 return) seems exorbitant, but is much cheaper than renting a vehicle for the 22 days I was in Iceland – €2000 for a car with no sleeping or cooking ability, €3600 for a camping van, or €8000 for a large camper. I believe vehicles reserved late were much more expensive.
I had a vehicle I knew that was trustworthy and had all my own stuff to hike or backpack – difficult to do if flying in carrying everything on your back. I also purchased a tremendous of food in Germany at discount supermarkets avoiding the prohibitive Iceland costs, at least twice German prices. The ferry gave me time off from my frenetic pace of travel, a welcome rest.
After only a few days, I have met many who rented camper vans in Iceland. None could compare to a California – no refrigerator – just a cooler and a camping stove that was taken out of the camper to cook. Basically, they were vans with a bed – cheap, low-end conversions.
2. Wild camping outside of formal campsites and urban areas has been illegal for caravans, camper vans, and motorhomes in Iceland since 2015. This is especially where it is posted but there are many laybys with toilets that are not marked with no camping signs. Most nights, I stayed at such a pullover and was joined by other vans and some tenters.
It is legal to tent for one night basically anywhere with a few regulations (no more than one night, no more than 3 tents, with permission from the owner if private land). That is a rule that is hard to understand as a tent has more of an environmental impact than a camper. I wild camped every night I was in Iceland because of the cost and the poor quality campgrounds. If I am caught, I will say that I was just about to set up my tent.
The descriptions of the campgrounds are not great – menial little places often patches of grass in the middle of town with vehicles parked side by side but with showers and a common room where you can cook on your own stove. All that I have talked to have felt cheated by the facilities offered for the price. And they charge by the person (about 1700 ISK is the cheapest), not the vehicle.
I ended up never paying to camp staying anywhere convenient in towns and cities and most commonly at laybys with toilets where there were often other campers staying and not having any problems.
Hotels start at €250 per night and easily reach €360 if out of the way and little choice. Iceland Air Hotels were apparently the cheapest and in most towns.
3. Roads. The N1 is the main ring road around Iceland. It is paved with no shoulders or guardrails and tends to have uneven surfaces because of frost heaving. Some areas are under construction and have rough rocks. Some secondary roads to major attractions (Dettifoss for example) and to major towns off N1 are also paved. Roads can suddenly change from paved to gravel so slow down if that is indicated. Most bridges are one-lane, as are some tunnels – the general rule is that the first vehicle to arrive has the right-of-way. Much of Iceland is open range so livestock, especially sheep can be on the road. Seat belts are mandatory.
At most major intersections, there are elaborate road signs indicating road quality (but lacking certain things like where you are). Other secondary roads are gravel and quality is indicated by the size of the dashes: ___ ___ ___ is passable by ordinary cars but may be steep and wet; __ __ __ __ is a good 4×4 road, rocky and wet with possible river crossings and not covered by any rental car agreement; _ _ _ _ _ is a mountain track for special 4×4 vehicles involving steep hills, snow, and treacherous rivers. Car insurance is invalid if crossing any river.
The speed limit on highways is 90km/hour and 30-50km/hour in towns.
Gas is 218 to 220.3 ISK (about €1.78-179.5), doesn’t seem to vary much, and is easily the most expensive in Europe.
Car Washes. The only cheap thing in Iceland is car washes, free and at every gas station with multiple brushes. Cars get very dirty if traveling on any gravel road and these are super useful. Once I discovered this, I washed my car every day.
4. How to Save Money. a. bring your own vehicle as it would pay even if staying for less than 7 days. b. bring as much food as possible from somewhere else. c. fill up with gas in Denmark before boarding the ferry d. wild camp. d. don’t go on any excursions or enter any museums except the free ones – Iceland has tons of great natural areas with free hiking – that is what you are here for anyway. e. buy groceries at the Bonus supermarkets, not Nitto, as prices are considerably cheaper, but still very expensive.
5. Swimming pools. Called thermal pools because of the geothermal heating, virtually every town has a swimming pool, often with hot tubs. This is the best source for showers in wild camping as it is against the law to enter a pool without having a shower where you get completely naked. Few are wild pools that are not commercialized. Cost average IKA 900 for an adult.
6. Camping card (www.campingcard.is). Sold at Tourist Information centres and on the Smyril Line ferries. €149 for 28 days at 41 campsites around the country but coverage is spotting in the southeast and northeast. An advantage is that it covers all members of a vehicle for 2 adults and 4 children up to the age of 16. It is valid from when the campsites close on September 15. The card does not pay for other services the campsite may offer such as electricity, lodging tax or showers.
7. Apps.
112 Iceland – allows regular check-ins that document your current location and can send an SMS to Icelandic emergency service with your phone’s GPS location.
Iceland Road Guide – Iceland’s important places, geography, culture, and history.
Opening Today – shows every event happening in the Greater Reykjavik area.
Aurora Alerts Northern Lights – increases your chances of seeing them.
Hreyfill – book a taxi skipping queues and phone calls
Icelandic Phrasebook – learn Icelandic with sentences for various occasions.
Veđur – weather app.
Vegagerđin – road information.
Strætó – timetables and routes and can purchase electronic tickets.
I found Google Maps could find everything I was looking for.
www.safetravel.is has weather alerts
www.road.is has road conditions and closures.
OBSERVATIONS
1. It doesn’t get dark at night. Thus there is no opportunity to see the northern lights at this time of year.
2. Icelandic Language. It is descended from Old Norse, the language brought by Norwegians in about 850, has changed little and has evolved in its own peculiar way. An isolated nation of mostly farmers and fishers until the early 20th century, there were few visitors, the language was preserved and is the least changed of the Nordic countries. Changes appeared in the Icelandic pronunciation not heard in the other Scandinavian languages and the grammar became considerably simpler outside Iceland. It is closest to the Faroe Island language and only they can understand it. The Old Sagas were developed in the 8thand 9thcenturies, written down in about 1200, and can still be understood today. The Old Edda is a poem written down in 1400 and it too can still be read today. The letters are runic derived but Latin and some only exist in Iceland. The letter Z was banned in the 1800s as it sounded like another letter and thus was not necessary. An unusual letter not seen in any other language looks somewhat like a capital P but is pronounced “th” so Pingvellir is actually Thingvellir.
Iceland believes in language puritanism guarding the mother tongue and not adopting English words for new things – it is a linguistic policy of the country. Rather than adopting foreign words for new concepts, they create their own words by using compound words, repurpose old words that have lost their relevance, revive old suffixes and translate loan words into Icelandic. Some examples are: the word computer is tölva, the combination of the tata (“digit”) and völva (“seerness”); iPad is spjalđtölva, the combination of spajald and tölva; ókei for OK, plis for please, Kraest for Christ, sæko for psycho and tjilla for to chill.
Also to protect the language, every Icelandic baby must be given a name from a database of approved names or else send their proposal to a committee that decides whether it complies with Icelandic rules of orthography and grammar. There are many words to describe the multiple varieties of snow and wind.
With all the special letters, multiple accents, odd spellings, and compound words, Icelandic seems unpronounceable, and it is.
Resisting the European convention of using family names. Iceland maintains a patronymic and matronymic naming system. Everyone – the President and Prime Minister included – is addressed by their given name, as their last name simply says that they are the son or daughter for their father or mother with the latter growing in popularity.
Two Icelandic names have found their way into English: geyser from the geyser in Iceland Geysir, and jökulhlaup, a scientific word used to describe a glacial flood following the sudden and rapid melting of ice caused usually by a sub-glacial eruption.
3. Midges. Once the sun shines and it gets warm, the midges come out. They don’t bite but buzz around your face.
4. The Icelandic Horse. I am seeing amazingly few sheep (maybe they are pasturing up high during the summer) and many more horses, often in large herds. Its origins can be traced to the Vikings who more than a thousand years ago brought their small Nordic horses with them. Due to its isolation and strict rules, the breed has remained pure maintaining its unique characteristics: strong, hardy, great stamina and speed, surefooted to handle the rough terrain, and renowned for its five gaits (walk, trot, töit – a four-beat gait with light flowing movement and easy to ride, gallop and flying). It has a wide colour palette from black to palomino, to silver dappled and a range of colours in between. It is intelligent, faithful and a friendly companionable to go anywhere.
Tours are available everywhere and range from about ISK 5000 for one hour to ISK 9000 for a 3-hour ride. Some companies (Eldhestar near Hveragerōi) offer 2-7 day tours.
5. Weather. I don’t think I have been anywhere where the weather changes so fast. On July 29th I woke up to clear skies and a warm breeze but experienced heavy rain, strong winds, and dense fog throughout the day. There are few days with sun, little wind and warmth, but then there would be midges.
6. Salaries and Minimum Wage. Iceland does not have a single minimum wage for all professions as a whole. Each profession decides in their collective bargaining agreements what the lowest possible salary is for their specific trade. Most are in the 280,000 – 300,000 ISK/month range. This is for 171.5 hours/month or 39.5 hours/week. 260k is the stated minimum for most employers or 1468/hour or US$2684 or about 15.15/hour.
These minimum wages would apply to the service sector, ie hotels, and restaurants. This applies to every kind of position, full-time, part-time, summer jobs, and internships. It may be less if less than 18 years of age. Summer research jobs for university students may be as low as 230k. Foreigners may get paid less as they don’t know their rights.
Factors that affect this: 1. Exchange rates: In US dollars 280k equals in Euros but exchange rates change regularly. 2. This is before taxes and mandatory pension payments. 3. High cost of living in Iceland makes this wage similar to or lower than in the other Nordic countries. 4. Room and board included? If this is included, these must be completely transparent reflecting the actual cost of housing. Payslips should include this so that everything adds up to at least 280k.
7. Whaling in Iceland. To give whale populations a chance to recover from extinction, the International Whaling Commission (IWC), called for a suspension of commercial whaling in 1986 and most countries complied. But Iceland continued ‘scientific whaling’, a loophole that allows whales to be hunted for DNA sampling and then permits the meat to be sold to restaurants.
Following international pressure, there was a lull between 1989 to 2003, after which Icelandic whalers resumed ‘scientific’ whaling. In 2006, Iceland resumed commercial whaling.
The answer as to why is not simple. Iceland’s position has always been that whale stocks should be utilized in a sustainable manner like any other marine resource. Its catch limits for common minke whales and fin whales follow the advice given by the Marine Research Institute of Iceland – in 2015 it was 229 minke whales and 154 fin whales but this causes concerns as fin whales are classified as endangered. In 2014 a formal diplomatic protest against whaling was delivered by 35 countries but this has fallen on deaf ears in Iceland.
A 2013 survey of Icelanders found that 60% were in favour of hunting for fin whales, 9% against, and 24% neutral, even though 75% of Icelanders never buy whale meat and much of the catch is exported to Japan. Some believe that whaling preserves fish stocks (refuted by most authorities) but whaling has become intrinsically linked to national pride. Icelanders have a long tradition of not letting others dictate their actions.
Ironically 35–40% of Icelandic whale meat is consumed by curious tourists.
8. Fast Food. MacDonald’s is not in Iceland but there are a few KFCs and Subways. Iceland fast food is very expensive, about 17€ for a hamburger, fries, and coke.
Why Come? Situated just below the Arctic circle, it is the land of light and darkness with long summer days with near 24 hours of sunlight, offset by short winter days with little light. But winters are relatively mild and play host to the Aurora Borealis. If you don’t like the weather, just wait five minutes, alternating quickly between sunshine, rain, and sunshine again.
Located at the juncture of the 40,000km long crack in the ocean floor of the North American and Eurasian tectonic plates, that are drifting apart about 2.5 centimetres every year, it is home to an incredible diversity of volcanic activity. As a result, the western part of Iceland belongs to the North American plate and the eastern part to the Eurasian plate so Iceland is actually in two continents. On average, it experiences a major volcanic event every 5 years so that a third of all lava that has covered the earth’s surface has erupted in Iceland. The largest lava flow in world history in 1783, poured out 14 cubic kilometres of lava from a 25km row of craters, Lakagigar, southwest of Vatnajökull. This has created dramatic mountain landscapes, black lava fields, and geothermal pools and geysers, and produces 90% of the countries natural geothermal energy. Meltwater created by sub-glacial volcanoes provides abundant hydroelectric power. Geothermal energy heats 170 swimming pools every town has one.
It is a curious mix of the new and the old – the youngest landmass in Europe and home to Europe’s oldest parliament formed in 930 at Thingvellir. Fishing has always been Iceland’s largest industry. The air quality is the best in Europe because of the oceanic climate, steady winds and lack of fossil fuel use. Natural hot springs and geothermal lagoons are everywhere. The water is so pure that it is recommended to drink water straight from the source.
It is the oldest parliamentary democracy in the world. It repeatedly receives top ranking for political freedom, gender equality and human development. With the world’s first female president in 1980, women enjoy the most equal access to political and economic life, education, healthcare. In 2009, Iceland elected the first openly gay prime minister in the world. Same-sex couples have been since 1996, but marriage has only been legal since 2010. A quarter of the population attends the Gay Pride festival. Iceland has never had a standing army, violent crime is rare and automatic rifles and handguns illegal.
GENERAL
Iceland (Icelandic: Island) is a Nordic island country in the North Atlantic, the most sparsely populated country in Europe. The capital and largest city is Reykjavík. Reykjavík and the surrounding areas in the southwest of the country are home to over two-thirds of the population.
Iceland is volcanically and geologically active. The interior consists of a plateau characterized by sand and lava fields, mountains, and glaciers, and many glacial rivers flow to the sea through the lowlands. Iceland is warmed by the Gulf Stream and has a temperate climate, despite a high latitude just outside the Arctic Circle. Its high latitude and marine influence keep summers chilly, with most of the archipelago having a tundra climate.
According to the ancient manuscript Landnámabók, the settlement of Iceland began in 874 AD when the Norwegian chieftain Ingólfr Arnarson became the first permanent settler on the island. In the following centuries, Norwegians, and to a lesser extent other Scandinavians, emigrated to Iceland, bringing with them thralls (i.e., slaves or serfs) of Gaelic origin. The island was governed as an independent commonwealth under the Althing, one of the world’s oldest functioning legislative assemblies. Following a period of civil strife, Iceland acceded to Norwegian rule in the 13th century. The establishment of the Kalmar Union in 1397 united the kingdoms of Norway, Denmark, and Sweden. Iceland thus followed Norway’s integration to that union and came under Danish rule, after Sweden’s secession from that union in 1523. Although the Danish kingdom introduced Lutheranism forcefully in 1550, Iceland remained a distant semi-colonial territory in which Danish institutions and infrastructures were conspicuous by their absence. In the wake of the French Revolution and the Napoleonic Wars, Iceland’s struggle for independence took form and culminated in independence in 1918 and the founding of a republic in 1944.
Until the 20th century, Iceland relied largely on subsistence fishing and agriculture, and was among the poorest countries in Europe. Industrialization of the fisheries and Marshall Plan aid following World War II brought prosperity, and Iceland became one of the wealthiest and most developed nations in the world. In 1994, it became a part of the European Economic Area, which further diversified the economy into sectors such as finance, biotechnology, and manufacturing.
Iceland has a market economy with relatively low taxes, compared to other OECD countries.
It maintains a Nordic social welfare system that provides universal health care and tertiary education for its citizens. Iceland ranks high in economic, political, and social stability and equality. In 2016, it was ranked as the ninth most developed country in the world by the United Nations’ Human Development Index, and it ranks first on the Global Peace Index.
Iceland runs almost completely on renewable energy. Affected by the ongoing worldwide financial crisis, the nation’s entire banking system systemically failed in October 2008, leading to severe depression, substantial political unrest, the Ice save dispute, and the institution of capital controls. Some bankers were jailed. Since then, the economy has made a significant recovery, in large part due to a surge in tourism.
Icelandic culture is founded upon the nation’s Scandinavian heritage. Most Icelanders are descendants of Norse and Gaelic settlers. Icelandic, a North Germanic language, is descended from Old West Norse and is closely related to Faroese and West Norwegian dialects. The country’s cultural heritage includes traditional Icelandic cuisine, Icelandic literature, and medieval sagas. Iceland has the smallest population of any NATO member and is the only one with no standing army, with a lightly armed coast guard in charge of defense.
HISTORY
The Sagas of Icelanders say that a Norwegian named Naddodd (or Naddador) was the first Norseman to reach Iceland, and in the 9th century, he named it Snæland or “snow land” because it was snowing. Following Naddodd, the Swede Garðar Svavarsson arrived, and so the island was then called Garðarshólmur which means “Garðar’s Isle”. Then came a Viking named Flóki Vilgerðarson; his daughter drowned en route, then his livestock starved to death. The sagas say that the rather despondent Flóki climbed a mountain and saw a fjord (Ísafjörður) full of icebergs, which led him to give the island its new and present name. The notion that Iceland’s Viking settlers chose that name to discourage over the settlement of their verdant isle is merely a myth.
Early History
According to both Landnámabók and Íslendingabók, monks known as the Papar lived in Iceland before Scandinavian settlers arrived, possibly members of a Hiberno-Scottish mission. Recent archaeological excavations have revealed the ruins of a cabin in Hafnir on the Reykjanes peninsula. Carbon dating indicates that it was abandoned sometime between 770 and 880. In 2016, archeologists uncovered a longhouse in Stöðvarfjörður that has been dated to as early as 800.
Swedish Viking explorer Garðar Svavarsson was the first to circumnavigate Iceland in 870 and establish that it was an island. He stayed over winter and built a house in Húsavík. Garðar departed the following summer but one of his men, Náttfari, decided to stay behind with two slaves. Náttfari settled in what is now known as Náttfaravík and he and his slaves became the first permanent residents of Iceland.
The Norwegian-Norse chieftain Ingólfr Arnarson built his homestead in present-day Reykjavík in 874. Ingólfr was followed by many other emigrant settlers, largely Scandinavians and their thralls, many of whom were Irish or Scottish.
By 930, most arable land on the island had been claimed; the Althing, a legislative and judicial assembly, was initiated to regulate the Icelandic Commonwealth. Lack of arable land also served as impetus to the settlement of Greenland starting in 986. The period of these early settlements coincided with the Medieval Warm Period when temperatures were similar to those of the early 20th century. At this time, about 25% of Iceland was covered with forest, compared to 1% in the present day. Christianity was adopted by consensus around 999–1000, although Norse paganism persisted among some segments of the population for some years afterward.
The Middle Ages. The Icelandic Commonwealth lasted until the 13th century when the political system devised by the original settlers proved unable to cope with the increasing power of Icelandic chieftains. The internal struggles and civil strife of the Age of the Sturlungs led to the signing of the Old Covenant in 1262, which ended the Commonwealth and brought Iceland under the Norwegian crown. Possession of Iceland passed from the Norwegian Empire to the Kalmar Union in 1415, when the kingdoms of Norway, Denmark, and Sweden were united. After the break-up of the union in 1523, it remained a Norwegian dependency, as a part of Denmark–Norway.
In the ensuing centuries, Iceland became one of the poorest countries in Europe. Infertile soil, volcanic eruptions, deforestation, and an unforgiving climate made for harsh life in a society where subsistence depended almost entirely on agriculture. The Black Death swept Iceland twice, first in 1402–1404 and again in 1494–1495. The former outbreak killed 50% to 60% of the population, and the latter 30% to 50%.
Reformation and the Early Modern period. Around the middle of the 16th century, as part of the Protestant Reformation, King Christian III of Denmark began to impose Lutheranism on all his subjects. Jón Arason, the last Catholic bishop of Hólar, was beheaded in 1550 along with two of his sons. The country subsequently became officially Lutheran and Lutheranism has since remained the dominant religion.
In the 17th and 18th centuries, Denmark imposed harsh trade restrictions on Iceland. Natural disasters, including volcanic eruptions and diseases, contributed to a decreasing population. Pirates from several countries, including the Barbary Coast, raided Iceland’s coastal settlements and abducted people into slavery. A great smallpox epidemic in the 18th century killed around a third of the population.
In 1783 the Laki volcano erupted, with devastating effects. In the years following the eruption, known as the Mist Hardships (Icelandic: Móðuharðindin), over half of all livestock died in the country. Around a quarter of the population died in the ensuing famine.
1814–1918: Independence movement. In 1814, following the Napoleonic Wars, Denmark-Norway was broken up into two separate kingdoms via the Treaty of Kiel but Iceland remained a Danish dependency. Throughout the 19th century, the country’s climate continued to grow colder, resulting in mass emigration to the New World, particularly to the region of Gimli, Manitoba in Canada, which was sometimes referred to as New Iceland. About 15,000 people emigrated, out of a total population of 70,000.
A national consciousness arose in the first half of the 19th century, inspired by romantic and nationalist ideas from mainland Europe. An Icelandic independence movement took shape in the 1850s under the leadership of Jón Sigurðsson, based on the burgeoning Icelandic nationalism inspired by the Fjölnismenn and other Danish-educated Icelandic intellectuals. In 1874, Denmark granted Iceland a constitution and limited home rule. This was expanded in 1904, and Hannes Hafstein served as the first Minister for Iceland in the Danish cabinet.
1918–1944: Independence and the Kingdom of Iceland. The Danish–Icelandic Act of Union, an agreement with Denmark signed on 1 December 1918 and valid for 25 years, recognized Iceland as a fully sovereign and independent state in a personal union with Denmark. The Government of Iceland established an embassy in Copenhagen and requested that Denmark carry out on its behalf certain defense and foreign affairs matters, subject to consultation with the Althing. Danish embassies around the world displayed two coats of arms and two flags: those of the Kingdom of Denmark and those of the Kingdom of Iceland. Iceland’s legal position became comparable to those of countries belonging to the Commonwealth of Nations such as Canada whose sovereign is Queen Elizabeth II.
During World War II, Iceland joined Denmark in asserting neutrality. After the German occupation of Denmark on 9 April 1940, the Althing replaced the King with a regent and declared that the Icelandic government would take over the full implementation of its defense and foreign affairs. A month later, British armed forces invaded and occupied the country, violating Icelandic neutrality. In 1941, the Government of Iceland invited the United States to take over its defense so that Britain could use its troops elsewhere.
1944–present: Republic of Iceland. On 31 December 1943, the Danish–Icelandic Act of Union expired after 25 years. Beginning on 20 May 1944, Icelanders voted in a four-day plebiscite on whether to terminate the personal union with Denmark, abolish the monarchy, and establish a republic. The vote was 97% to end the union, and 95% in favour of the new republican constitution. Iceland formally became a republic on 17 June 1944, with Sveinn Björnsson as its first president.
In 1946, the US Defence Force Allied left Iceland. The nation formally became a member of NATO on 30 March 1949, amid domestic controversy and riots. On 5 May 1951, a defense agreement was signed with the United States. American troops returned to Iceland as the Iceland Defence Force and remained throughout the Cold War. The US withdrew the last of its forces on 30 September 2006.
Iceland prospered during the Second World War. The immediate post-war period was followed by substantial economic growth, driven by industrialization of the fishing industry and the US Marshall Plan program, through which Icelanders received the most aid per capita of any European country (at USD $209, with the war-ravaged Netherlands a distant second at USD $109).
The 1970s were marked by the Cod Wars—several disputes with the United Kingdom over Iceland’s extension of its fishing limits to 200 n mi (370 km) offshore. Iceland hosted a summit in Reykjavík in 1986 between United States President Ronald Reagan and Soviet Premier Mikhail Gorbachev, during which they took significant steps toward nuclear disarmament. A few years later, Iceland became the first country to recognize the independence of Estonia, Latvia, and Lithuania as they broke away from the USSR.
Throughout the 1990s, the country expanded its international role and developed a foreign policy oriented toward humanitarian and peacekeeping causes. To that end, Iceland provided aid and expertise to various NATO-led interventions in Bosnia, Kosovo, and Iraq.
Iceland joined the European Economic Area in 1994, after which the economy was greatly diversified and liberalized. International economic relations increased further after 2001, when Iceland’s newly deregulated banks began to raise massive amounts of external debt, contributing to a 32% increase in Iceland’s gross national income between 2002 and 2007.
Economic boom and crisis. In 2003–2007, following the privatization of the banking sector under the government of Davíð Oddsson, Iceland moved toward having an economy based on international investment banking and financial services. It was quickly becoming one of the most prosperous countries in the world but was hit hard by a major financial crisis. The crisis resulted in the greatest migration from Iceland since 1887, with a net emigration of 5,000 people in 2009. Iceland’s economy stabilized under the government of Jóhanna Sigurðardóttir, and grew by 1.6% in 2012. Many Icelanders, however, have remained unhappy with the state of the economy and government austerity policies. The centre-right Independence Party was returned to power in coalition with the Progressive Party in the 2013 elections.
In the following years, Iceland saw a surge in tourism as the country became a popular holiday destination. In 2016, Prime Minister Sigmundur David Gunnlaugsson resigned after being implicated in the Panama Papers scandal. Early elections in 2016 resulted in a right-wing coalition government of the Independence Party, the Reform Party, and Bright Future. This government fell when Bright Future quit the coalition due to a scandal involving then-Prime Minister Bjarni Benediktsson’s father’s letter of support for a convicted pedophile. Snap elections in October 2017 brought to power a new coalition consisting of the Independence Party, the Progressive Party, and the Left-Green Movement, headed by Katrín Jakobsdóttir.
GEOGRAPHY
Iceland is at the juncture of the North Atlantic and Arctic Oceans. The main island is entirely south of the Arctic Circle, which passes through the small Icelandic island of Grímsey off the main island’s northern coast. The country lies between latitudes 63 and 68°N, and longitudes 25 and 13°W.
Iceland is closer to continental Europe than to mainland North America, although it is closest to Greenland, an island of North America. Iceland is generally included in Europe for historical, political, cultural, geographical, and practical reasons. Geologically, the island includes parts of both continental plates. The closest body of land is Greenland (290 km, 180 mi). The closest bodies of land in Europe are the Faroe Islands (420 km, 260 mi); Jan Mayen Island (570 km, 350 mi); Shetland and the Outer Hebrides, both about 740 km (460 mi); and the Scottish mainland and Orkney, both about 750 km (470 mi). The nearest part of Continental Europe is mainland Norway, about 970 km (600 mi) away, while mainland North America is 2,070 km (1,290 mi) away, at the northern tip of Labrador.
Iceland is the world’s 18th largest island and Europe’s second-largest island after Great Britain. The main island is 101,826 km2 (39,315 sq mi), but the entire country is 103,000 km2 (40,000 sq mi) in size, of which 62.7% is tundra. About 30 minor islands are in Iceland, including the lightly populated Grímsey and the Vestmannaeyjar archipelago.
Lakes and glaciers cover 14.3% of its surface; only 23% is vegetated. The largest lakes are Þórisvatn reservoir: 83–88 km2 (32–34 sq mi) and Þingvallavatn: 82 km2 (32 sq mi); other important lakes include Lagarfljót and Mývatn. Jökulsárlón is the deepest lake, at 248 m (814 ft).
Geologically, Iceland is part of the Mid-Atlantic Ridge, a ridge along which the oceanic crust spreads and forms a new oceanic crust. This part of the mid-ocean ridge is located above a mantle plume, causing Iceland to be subaerial (above the surface of the sea). The ridge marks the boundary between the Eurasian and North American Plates, and Iceland was created by rifting and accretion through volcanism along the ridge.
Many fjords punctuate Iceland’s 4,970-km-long (3,088-mi) coastline, which is also where most settlements are situated. The island’s interior, the Highlands of Iceland, is a cold and uninhabitable combination of sand, mountains, and lava fields.
The major towns are the capital city of Reykjavík, along with its outlying towns of Kópavogur, Hafnarfjörður, and Garðabær, nearby Reykjanesbær where the international airport is located, and the town of Akureyri in northern Iceland. The island of Grímsey on the Arctic Circle contains the northernmost habitation of Iceland, whereas Kolbeinsey contains the northernmost point of Iceland.
Iceland has three national parks: Vatnajökull National Park, Snæfellsjökull National Park, and Þingvellir National Park. The country is considered a “strong performer” in environmental protection, having been ranked 13th in Yale University’s Environmental Performance Index of 2012.
A geologically young land, Iceland is located on both the Iceland hotspot and the Mid-Atlantic Ridge, which runs right through it. This location means that the island is highly geologically active with many volcanoes, notably Hekla, Eldgjá, Herðubreið, and Eldfell. The volcanic eruption of Laki in 1783–1784 caused a famine that killed nearly a quarter of the island’s population. In addition, the eruption caused dust clouds and haze to appear over most of Europe and parts of Asia and Africa for several months afterward, and affected climates in other areas.
Iceland has many geysers, including Geysir, from which the English word is derived, and the famous Strokkur, which erupts every 8–10 minutes. After a phase of inactivity, Geysir started erupting again after a series of earthquakes in 2000. Geysir has since grown quieter and does not erupt often.
With the widespread availability of geothermal power and the harnessing of many rivers and waterfalls for hydroelectricity, most residents have access to inexpensive hot water, heating, and electricity. The island is composed primarily of basalt, low-silica lava associated with effusive volcanism as has occurred also in Hawaii. Iceland, however, has a variety of volcanic types (composite and fissure), many producing more evolved lavas such as rhyolite and andesite. Iceland has hundreds of volcanoes with about 30 active volcanic systems.
Surtsey, one of the youngest islands in the world, is part of Iceland. Named after Surtr, it rose above the ocean in a series of volcanic eruptions between 8 November 1963 and 5 June 1968. Only scientists researching the growth of new life are allowed to visit the island.
On 21 March 2010, a volcano in Eyjafjallajökull in the south of Iceland erupted for the first time since 1821, forcing 600 people to flee their homes. Additional eruptions on 14 April forced hundreds of people to abandon their homes. The resultant cloud of volcanic ash brought major disruption to air travel across Europe.
Another large eruption occurred on 21 May 2011. This time it was the Grímsvötn volcano, located under the thick ice of Europe’s largest glacier, Vatnajökull. Grímsvötn is one of Iceland’s most active volcanoes, and this eruption was much more powerful than the 2010 Eyjafjallajökull activity, with ash and lava hurled 20 km (12 mi) into the atmosphere, creating a large cloud.
The highest elevation for Iceland is listed as 2,110 m (6,923 ft) at Hvannadalshnúkur (64°00′N 16°39′W).
CLIMATE
The climate of Iceland’s coast is subarctic. The warm North Atlantic Current ensures generally higher annual temperatures than in most places of similar latitude in the world. Regions in the world with similar climates include the Aleutian Islands, the Alaska Peninsula, and Tierra del Fuego, although these regions are closer to the equator. Despite its proximity to the Arctic, the island’s coasts remain ice-free through the winter. Ice incursions are rare, the last having occurred on the north coast in 1969.
The climate varies between different parts of the island. Generally speaking, the south coast is warmer, wetter, and windier than the north. The Central Highlands are the coldest part of the country. Low-lying inland areas in the north are the aridest. Snowfall in winter is more common in the north than in the south.
The highest air temperature recorded was 30.5 °C (86.9 °F) on 22 June 1939 at Teigarhorn on the southeastern coast. The lowest was −38 °C (−36.4 °F) on 22 January 1918 at Grímsstaðir and Möðrudalur in the northeastern hinterland. The temperature records for Reykjavík are 26.2 °C (79.2 °F) on 30 July 2008, and −24.5 °C (−12.1 °F) on 21 January 1918.
BIODIVERSITY
Around 1,300 species of insects are known in Iceland. This is low compared with other countries (over one million species have been described worldwide). Iceland is essentially free of mosquitoes. The only native land mammal when humans arrived was the Arctic fox, which came to the island at the end of the ice age, walking over the frozen sea. On rare occasions, bats have been carried to the island with the winds, but they are not able to breed there. Polar bears occasionally come over from Greenland, but they are just visitors, and no Icelandic populations exist. No native or free-living reptiles or amphibians are on the island.
Phytogeographically, Iceland belongs to the Arctic province of the Circumboreal Region within the Boreal Kingdom. Around three-quarters of the island is barren of vegetation; plant life consists mainly of grassland, which is regularly grazed by livestock. The most common tree native to Iceland is the northern birch (Betula pubescens), which formerly formed forests over much of Iceland, along with aspens (Populus tremula), rowans (Sorbus aucuparia), common junipers (Juniperus communis), and other smaller trees, mainly willows.
When the island was first settled, it was extensively forested. In the late 12th century, Ari the Wise described it in the Íslendingabók as “forested from mountain to seashore”.
Permanent human settlement greatly disturbed the isolated ecosystem of thin, volcanic soils and limited species diversity. The forests were heavily exploited over the centuries for firewood and timber. Deforestation, climatic deterioration during the Little Ice Age, and overgrazing by sheep imported by settlers caused a loss of critical topsoil due to erosion. Today, many farms have been abandoned. Three-quarters of Iceland’s 100,000 square kilometres is affected by soil erosion, 18,000 km2(6,900 sq mi) serious enough to make the land useless. Only a few small birch stands now exist in isolated reserves. The planting of new forests has increased the number of trees, but the result does not compare to the original forests. Some of the planted forests include introduced species. The tallest tree in Iceland is a Sitka spruce planted in 1949 in Kirkjubæjarklaustur; it was measured at 25.2 m (83 ft) in 2013.
The animals of Iceland include the Icelandic sheep, cattle, chickens, goats, the sturdy Icelandic horse, and the Icelandic Sheepdog, all descendants of animals imported by Europeans. Wild mammals include the Arctic fox, mink, mice, rats, rabbits, and reindeer. Polar bears occasionally visit the island, traveling on icebergs from Greenland. In June 2008, two polar bears arrived in the same month.
Marine mammals include the grey seal (Halichoerus grypus) and harbor seal (Phoca vitulina). Many species of fish live in the ocean waters surrounding Iceland, and the fishing industry is a major part of Iceland’s economy, accounting for roughly half of the country’s total exports. Birds, especially seabirds, are an important part of Iceland’s animal life. Puffins, skuas, and kittiwakes nest on its sea cliffs.
Commercial whaling is practiced intermittently along with scientific whale hunts. Whale watching has become an important part of Iceland’s economy since 1997.
POLITICS
Iceland has a left-right multi-party system. Following the 2017 parliamentary election, the biggest parties are the center-right Independence Party (Sjálfstæðisflokkurinn), the Left-Green Movement (Vinstrihreyfingin – grænt framboð) and the Progressive Party (Framsóknarflokkurinn). These three parties form the current ruling coalition in the cabinet led by leftist Katrín Jakobsdóttir. Other political parties with seats in the Althing (Parliament) are the Social Democratic Alliance (Samfylkingin), the Centre Party (Miðflokkurinn), Iceland’s Pirates, the People’s Party(Flokkur fólksins), and the Reform Party (Viðreisn).
Iceland was the first country in the world to have a political party formed and led entirely by women. Known as the Women’s List or Women’s Alliance (Kvennalistinn), it was founded in 1983 to advance the political, economic, and social needs of women. After participating in its first parliamentary elections, the Women’s List helped increase the proportion of female parliamentarians by 15%. Although it disbanded in 1999, merging with the Social Democratic Alliance, it left a lasting influence on Iceland’s politics: every major party has a 40% quota for women, and in 2009 nearly a third of members of parliament were female, compared to the global average of 16%. Following the 2016 elections, 48% of members of parliament are female.
In 2016 Iceland was ranked 2nd in the strength of its democratic institutions and 13th in government transparency. The country has a high level of civic participation, with 81.4% voter turnout during the most recent elections, compared to an OECD average of 72%. However, only 50% of Icelanders say they trust their political institutions, slightly less than the OECD average of 56% (and most probably a consequence of the political scandals in the wake of the Icelandic financial crisis).
GOVERNMENT
Iceland is a representative democracy and a parliamentary republic. The modern parliament, Alþingi (English: Althing), was founded in 1845 as an advisory body to the Danish monarch. It was widely seen as a re-establishment of the assembly founded in 930 in the Commonwealth period and suspended in 1799. Consequently, “it is arguably the world’s oldest parliamentary democracy.” It currently has 63 members, elected for a maximum period of four years. The president is elected by popular vote for a term of four years, with no term limit. The elections for the president, the Althing, and local municipal councils are all held separately every four years.
The president of Iceland is a largely ceremonial head of state and serves as a diplomat, but may veto laws voted by the parliament and put them to a national referendum. The current president is Guðni Th. Jóhannesson.
The head of government is the prime minister who, together with the cabinet, is responsible for executive government. The cabinet is appointed by the president after a general election to the Althing; however, the appointment is usually negotiated by the leaders of the political parties, who decide among themselves after discussions which parties can form the cabinet and how to distribute its seats, under the condition that it has majority support in the Althing. Only when the party leaders are unable to reach a conclusion by themselves within a reasonable time span does the president exercise this power and appoint the cabinet personally. This has not happened since the republic was founded in 1944, but in 1942 regent Sveinn Björnsson, who had been installed in that position by the Althing in 1941, appointed a non-parliamentary government. The regent had, for all practical purposes, the position of a president, and Sveinn would later become the country’s first president in 1944.
The governments of Iceland have always been coalition governments, with two or more parties involved, as no single political party has ever received a majority of seats in the Althing throughout the republican period. The extent of the political power possessed by the office of the president is disputed by legal scholars in Iceland; several provisions of the constitution appear to give the president some important powers, but other provisions and traditions suggest differently. In 1980, Icelanders elected Vigdís Finnbogadóttir as president, the world’s first directly elected female head of state. She retired from office in 1996. In 2009, Iceland became the first country with an openly gay head of government when Jóhanna Sigurðardóttir became prime minister.
International Memberships. Iceland, which is a member of the UN, NATO, EFTA, Council of Europe, and OECD, maintains diplomatic and commercial relations with practically all nations, but its ties with the Nordic countries, Germany, the United States, Canada, and the other NATO nations are particularly close. Historically, due to cultural, economic, and linguistic similarities, Iceland is a Nordic country, and it participates in intergovernmental cooperation through the Nordic Council.
Iceland is a member of the European Economic Area (EEA), which allows the country access to the single market of the European Union (EU). It was not a member of the EU, but in July 2009 the Icelandic parliament, the Althing, voted in favour of the application for EU membership and officially applied on 17 July 2009. However, in 2013, opinion polls showed that many Icelanders were now against joining the EU; following the 2013 elections the two parties that formed the island’s new government—the centrist Progressive Party and the right-wing Independence Party—announced they would hold a referendum on EU membership.
Military. Iceland has no standing army, but the Icelandic Coast Guard which also maintains the Iceland Air Defence System, and an Iceland Crisis Response Unit to support peacekeeping missions, perform paramilitary functions.
The Iceland Defence Force (IDF) was a military command of the United States Armed Forces from 1951 to 2006. The IDF, created at the request of NATO, came into existence when the United States signed an agreement to provide for the defense of Iceland. The IDF also consisted of civilian Icelanders and military members of other NATO nations. The IDF was downsized after the end of the Cold War and the U.S. Air Force maintained four to six interceptor aircraft at the Naval Air Station Keflavik, until they were withdrawn on 30 September 2006. Since May 2008, NATO nations have periodically deployed fighters to patrol Icelandic airspace under the Icelandic Air Policing mission. Iceland supported the 2003 invasion of Iraq despite much domestic controversy, deploying a Coast Guard EOD team to Iraq, which was replaced later by members of the Iceland Crisis Response Unit. Iceland has also participated in the ongoing conflict in Afghanistan and the 1999 NATO bombing of Yugoslavia. Despite the ongoing financial crisis, the first new patrol ship in decades was launched on 29 April 2009.
Iceland was the neutral host of the historic 1986 Reagan–Gorbachev summit in Reykjavík, which set the stage for the end of the Cold War. Iceland’s principal historical international disputes involved disagreements over fishing rights.
Conflict with the United Kingdom led to a series of so-called Cod Wars, which included confrontations between the Icelandic Coast Guard and the Royal Navy over British fishermen, in 1952–1956 due to the extension of Iceland’s fishing zone from 3 to 4 nmi (5.6 to 7.4 km; 3.5 to 4.6 mi), 1958–1961 following a further extension to 12 nmi (22.2 km; 13.8 mi), 1972–1973 with another extension to 50 nmi (92.6 km; 57.5 mi); and in 1975–1976 another extension to 200 nmi (370.4 km; 230.2 mi).
According to the Global Peace Index, Iceland is the most peaceful country in the world, due to its lack of armed forces, low crime rate, and high level of socio-political stability. Iceland is listed in the Guinness World Records book as the “country ranked most at peace” and the “lowest military spending per capita”.
ECONOMY
In 2007, Iceland was the seventh most productive country in the world per capita (US$54,858), and the fifth most productive by GDP at purchasing power parity ($40,112). About 85 percent of the total primary energy supply in Iceland is derived from domestically produced renewable energy sources. The utilization of abundant hydroelectric and geothermal power has made Iceland the world’s largest electricity producer per capita. As a result of its commitment to renewable energy, the 2016 Global Green Economy Index ranked Iceland among the top 10 greenest economies in the world.
Historically, Iceland’s economy depended heavily on fishing, which still provides 40% of export earnings and employs 7% of the workforce. The economy is vulnerable to declining fish stocks and drops in world prices for its main material exports: fish and fish products, aluminum, and ferrosilicon. Whaling in Iceland has been historically significant. Iceland still relies heavily on fishing, but its importance is diminishing from an export share of 90% in the 1960s to 40% in 2006.
Until the 20th century, Iceland was among the poorest countries in Europe. Currently, it remains one of the most developed countries in the world. Strong economic growth had led Iceland to be ranked first in the United Nations’ Human Development Index report for 2007/2008, although in 2011 its HDI rating had fallen to 14th place as a result of the economic crisis. Nevertheless, according to the Economist Intelligence Index of 2011, Iceland has the 2nd highest quality of life in the world. Based on the Gini coefficient, Iceland also has one of the lowest rates of income inequality in the world, and when adjusted for inequality, its HDI ranking climbs to 5th place.
Iceland’s unemployment rate has declined consistently since the crisis, with 4.8% of the labour force being unemployed as of June 2012, compared to 6% in 2011 and 8.1% in 2010.
Many political parties remain opposed to EU membership, primarily due to Icelanders’ concern about losing control over their natural resources (particularly fisheries). The national currency of Iceland is the Icelandic króna (ISK). Iceland is the only country in the world to have a population under two million yet still have a floating exchange rate and an independent monetary policy.
A poll released on 5 March 2010 by Capacent Gallup showed that 31% of respondents were in favour of adopting the euro and 69% opposed it. Another Capacent Gallup poll conducted in February 2012 found that 67.4% of Icelanders would reject EU membership in a referendum.
Iceland’s economy has been diversifying into manufacturing and service industries in the last decade, including software production, biotechnology, and finance; industry accounts for around a quarter of economic activity, while services comprise close to 70%.
The tourism sector is expanding, especially in ecotourism and whale-watching. On average, Iceland receives around 1.1 million visitors annually, which is more than three times the native population. 1.7 million people visited Iceland in 2016, 3 times more than the number that came in 2010.
Iceland’s agriculture industry, accounting for 5.4% of GDP, consists mainly of potatoes, green vegetables (in greenhouses), mutton, and dairy products. The financial centre is Borgartún in Reykjavík, which hosts a large number of companies and three investment banks. Iceland’s stock market, the Iceland Stock Exchange (ISE), was established in 1985.
Iceland is ranked 27th in the 2012 Index of Economic Freedom, lower than in prior years but still among the freest in the world. As of 2016, it ranks 29th in the World Economic Forum’s Global Competitive Index, one place lower than in 2015. According to INSEAD’s Global Innovation Index, Iceland is the 11th most innovative country in the world.
Unlike most Western European countries, Iceland has a flat tax system: the main personal income tax rate is a flat 22.75%, and combined with municipal taxes, the total tax rate equals no more than 35.7%, not including the many deductions that are available. The corporate tax rate is a flat 18%, one of the lowest in the world. There is also a value-added tax, whereas a net wealth tax was eliminated in 2006. Employment regulations are relatively flexible and the labour market is one of the freest in the world. Property rights are strong and Iceland is one of the few countries where they are applied to fishery management. Like other welfare states, taxpayers pay various subsidies to each other, but with spending being less than in most European countries.
Despite low tax rates, agricultural assistance is the highest among OECD countries and a potential impediment to structural change. Also, health care and education spending have relatively poor returns by OECD measures, though improvements have been made in both areas. The OECD Economic Survey of Iceland 2008 had highlighted Iceland’s challenges in currency and macroeconomic policy.
There was a currency crisis that started in the spring of 2008, and on 6 October trading in Iceland’s banks was suspended as the government battled to save the economy. An assessment by the OECD 2011 determined that Iceland has made progress in many areas, particularly in creating a sustainable fiscal policy and restoring the health of the financial sector; however, challenges remain in making the fishing industry more efficient and sustainable, as well as in improving monetary policy to address inflation. Iceland’s public debt has decreased since the economic crisis, and as of 2015 is the 31th highest in the world by proportion of national GDP.
Economic contraction. Iceland had been hit especially hard by the Great Recession that began in December 2007, because of the failure of its banking system and a subsequent economic crisis. Before the crash of the country’s three largest banks, Glitnir, Landsbanki, and Kaupthing, their combined debt exceeded approximately six times the nation’s gross domestic product of €14 billion ($19 billion). In October 2008, the Icelandic parliament passed emergency legislation to minimize the impact of the financial crisis. The Financial Supervisory Authority of Iceland used permission granted by the emergency legislation to take over the domestic operations of the three largest banks. Icelandic officials, including central bank governor Davíð Oddsson, stated that the state did not intend to take over any of the banks’ foreign debts or assets. Instead, new banks were established to take on the domestic operations of the banks, and the old banks will be run into bankruptcy.
On 28 October 2008, the Icelandic government raised interest rates to 18% (as of August 2010, it was 7%), a move forced in part by the terms of acquiring a loan from the International Monetary Fund (IMF). After the rate hike, trading on the Icelandic króna finally resumed on the open market, with a valuation of around 250 ISK per Euro, less than one-third the value of the 1:70 exchange rate during most of 2008, and a significant drop from the 1:150 exchange ratio of the week before. On 20 November 2008, the Nordic countries agreed to lend Iceland $2.5 billion.
On 26 January 2009, the coalition government collapsed due to public dissent over the handling of the financial crisis. A new left-wing government was formed a week later and immediately set about removing Central Bank governor Davíð Oddsson and his aides from the bank through changes in law. Davíð was removed on 26 February 2009 in the wake of protests outside the Central Bank.
Thousands of Icelanders have moved from the country after the collapse and many of those moved to Norway. In 2005, 293 people moved from Iceland to Norway; in 2009, the figure was 1,625. In April 2010, the Icelandic Parliament‘s Special Investigation Commission published the findings of its investigation, revealing the extent of control fraud in this crisis. By June 2012, Landsbanki managed to repay about half of the Icesave debt.
According to Bloomberg, Iceland is on the trajectory of 2% unemployment as a result of crisis-management decisions made back in 2008, including allowing the banks to fail.
TRANSPORT
Iceland has a high level of car ownership per capita; with a car for every 1.5 inhabitants; it is the main form of transport. Iceland has 13,034 km (8,099 mi) of administered roads, of which 4,617 km (2,869 mi) are paved and 8,338 km (5,181 mi) are not. A great number of roads remain unpaved, mostly little-used rural roads. The road speed limits are 30 km/h (19 mph) and 50 km/h (31 mph) in towns, 80 km/h (50 mph) on gravel country roads and 90 km/h (56 mph) on hard-surfaced roads.
Route 1, or the Ring Road (Icelandic: Þjóðvegur 1 or Hringvegur), was completed in 1974, and is the main road that runs around Iceland and connects all the inhabited parts of the island, with the interior of the island being uninhabited. This paved road is 1,332 km (828 mi) long with one lane in each direction, except near larger towns and cities and in the Hvalfjörður Tunnel (also the site of a toll) where it has more lanes. Many bridges on it, especially in the north and east, are single lanes and made of timber and/or steel.
Keflavík International Airport (KEF) is the largest airport and the main aviation hub for international passenger transport. It serves several international and domestic airline companies. KEF is in the vicinity of the larger metropolitan capital areas, 49 km (30 mi) to the WSW of Reykjavík center, reachable only by bus services and passenger cars. Iceland has no passenger railways.
Reykjavík Airport (RKV) is the second-largest airport located just 1,5 km from the capital centre. RKV serves general aviation traffic and has daily- or regular domestic flights to 12 local townships within Iceland. RKV also serves international flights to Greenland and the Faroe Islands, business and private airplanes along aviation training.
Akureyri Airport (AEY) and Egilsstaðir Airport (EGS) are two other domestic airports with limited international service capacity. There are a total of 103 registered airports and airfields in Iceland; most of them are unpaved and located in rural areas. The second-longest runway is at Geitamelur, a four-runway glider field around 100 km (62 mi) east of Reykjavík.
Six main ferry services provide regular access to various outpost communities or shorten travel distances.
ENERGY
Renewable sources—geothermal and hydropower—provide effectively all of Iceland’s electricity and around 85% of the nation’s total primary energy consumption, with most of the remainder consisting of imported oil products used in transportation and in the fishing fleet. Iceland expects to be energy-independent by 2050. Iceland’s largest geothermal power plants are Hellisheiði and Nesjavellir, while Kárahnjúkar Hydropower Plant is the country’s largest hydroelectric power station. When the Kárahnjúkavirkjun started operating, Iceland became the world’s largest electricity producer per capita.
Icelanders emit 6.29 tonnes of CO2 in 2009 equivalent of greenhouse gases per capita. Iceland is one of the few countries that have filling stations dispensing hydrogen fuel for cars powered by fuel cells. It is also one of a few countries currently capable of producing hydrogen in adequate quantities at a reasonable cost, because of Iceland’s plentiful renewable sources of energy.
On 22 January 2009, Iceland announced its first round of offshore licences for companies wanting to conduct hydrocarbon exploration and production in a region northeast of Iceland, known as the Dreki area. Two exploration licenses have been awarded.
In 2010 Iceland was noted by Guinness World Records as “the Greenest Country”, reaching the highest score by the Environmental Sustainability Index that measures a country’s water use, biodiversity, and adoption of clean energies with a score of 93.5/100.
As of 2012, the government of Iceland is in talks with the government of the United Kingdom about the possibility of constructing a high-voltage direct-current connector for the transmission of electricity between the two countries. Such a cable would give Iceland access to a market where electricity prices have generally been much higher than those in Iceland. Iceland has considerable renewable energy resources, especially geothermal energy and hydropower resources, and most of the potential has not been developed, partly because there is not enough demand for additional electricity generation capacity from the residents and industry of Iceland, but the United Kingdom is interested in importing inexpensive electricity from renewable sources of energy, and this could lead to further development of the energy resources.
EDUCATION & SCIENCE
The Ministry of Education, Science and Culture is responsible for the policies and methods that schools must use, and they issue the National Curriculum Guidelines. However, playschools, primary schools, and lower secondary schools are funded and administered by the municipalities. The government does allow citizens to Home educate their children, however under a very strict set of demands. Students must adhere closely to the government-mandated curriculum, and the parent teaching must acquire a government-approved teaching certificate.
Nursery school, or leikskóli, is non-compulsory education for children younger than six years and is the first step in the education system. The current legislation concerning playschools was passed in 1994. They are also responsible for ensuring that the curriculum is suitable so as to make the transition into compulsory education as easy as possible.
Compulsory education, or grunnskóli, comprises primary and lower secondary education, which often is conducted at the same institution. Education is mandatory by law for children aged from 6 to 16 years. The school year lasts nine months, beginning between 21 August and 1 September, ending between 31 May and 10 June. The minimum number of school days was once 170, but after a new teachers’ wage contract, it increased to 180. Lessons take place five days a week. All public schools have mandatory education in Christianity, although an exemption may be considered by the Minister of Education.
Upper secondary education, or framhaldsskóli, follows lower secondary education. These schools are also known as gymnasia in English. Though not compulsory, everyone who has had a compulsory education has the right to upper secondary education. All schools in Iceland are mixed-sex schools. The largest seat of higher education is the University of Iceland, which has its main campus in central Reykjavík. Other schools offering university-level instruction include Reykjavík University, University of Akureyri, Agricultural University of Iceland, and Bifröst University.
An OECD assessment found 64% of Icelanders aged 25–64 have earned the equivalent of a high-school degree, which is lower than the OECD average of 73%. Among 25- to 34-year-olds, only 69% have earned the equivalent of a high-school degree, significantly lower than the OECD average of 80%. Nevertheless, Iceland’s education system is considered excellent: the Programme for International Student Assessment currently ranks it as the 16th best performing, above the OECD average. Students were particularly proficient in reading and mathematics.
According to a 2013 Eurostat report by the European Commission, Iceland spends around 3.11% of its GDP on scientific research and development (R&D), over 1 percentage point higher than the EU average of 2.03%, and has set a target of 4% to reach by 2020. A 2010 UNESCO report found that out of 72 countries that spend the most on R&D (100 million US dollars or more), Iceland ranked 9th by the proportion of GDP, tied with Taiwan, Switzerland, and Germany and ahead of France, the UK, and Canada.
DEMOGRAPHICS
The original population of Iceland was of Nordic and Gaelic origin. This is evident from literary evidence dating from the settlement period as well as from later scientific studies such as blood type and genetic analyses. One such genetic study indicated that the majority of the male settlers were of Nordic origin while the majority of the women were of Gaelic origin, meaning many settlers of Iceland were Norsemen who brought Gaelic slaves with them.
Iceland has extensive genealogical records dating back to the late 17th century and fragmentary records extending back to the Age of Settlement. The biopharmaceutical company deCODE genetics has funded the creation of a genealogy database that is intended to cover all of Iceland’s known inhabitants. It views the database, called Íslendingabók, as a valuable tool for conducting research on genetic diseases, given the relative isolation of Iceland’s population.
The population of the island is believed to have varied from 40,000 to 60,000 in the period ranging from initial settlement until the mid-19th century. During that time, cold winters, ash fall from volcanic eruptions, and bubonic plagues adversely affected the population several times. There were 37 famine years in Iceland between 1500 and 1804. The first census was carried out in 1703 and revealed that the population was then 50,358. After the destructive volcanic eruptions of the Laki volcano during 1783–1784, the population reached a low of about 40,000.
Improving living conditions have triggered a rapid increase in population since the mid-19th century—from about 60,000 in 1850 to 320,000 in 2008. Iceland has a relatively young population for a developed country, with one out of five people being 14 years old or younger. With a fertility rate of 2.1, Iceland is one of only a few European countries with a birth rate sufficient for long-term population growth (see table below).
In December 2007, 33,678 people (13.5% of the total population) living in Iceland had been born abroad, including children of Icelandic parents living abroad. Around 19,000 people (6% of the population) held foreign citizenship. Polish people make up the largest minority group by a considerable margin, and still form the bulk of the foreign workforce. About 8,000 Poles now live in Iceland, 1,500 of them in Fjarðabyggð where they make up 75% of the workforce who are constructing the Fjarðarál aluminum plant.
The recent increase in immigration has been credited to a labour shortage due to the booming economy at the time, as well as to the lifting of restrictions on the movement of people from the countries that were a part of the 2004 enlargement of the European Union. Large-scale construction projects in the east of Iceland (see Kárahnjúkar Hydropower Plant) have also brought in many people whose stay is expected to be temporary. Many Polish immigrants were also considering leaving in 2008 as a result of the Icelandic financial crisis.
The southwest corner of Iceland is the most densely populated region. It is also the location of the capital Reykjavík, the northernmost national capital in the world. The largest towns outside the Greater Reykjavík area are Akureyri and Reykjanesbær, although the latter is relatively close to the capital.
Some 500 Icelanders under the leadership of Erik the Red colonized Greenland in the late 10th century. The total population reached a high point of perhaps 5,000 and developed independent institutions before disappearing by 1500. People from Greenland attempted to set up a colony at Vinland in North America, but abandoned it in the face of hostility from the indigenous residents.
Emigration of Icelanders to the United States and Canada began in the 1870s. As of 2006, Canada had over 88,000 people of Icelandic descent, while there are more than 40,000 Americans of Icelandic descent, according to the 2000 US census.
LANGUAGE
Iceland’s official written and spoken language is Icelandic, a North Germanic language descended from Old Norse. In grammar and vocabulary, it has changed less from Old Norse than the other Nordic languages; Icelandic has preserved more verb and noun inflection and has to a considerable extent developed new vocabulary based on native roots rather than borrowings from other languages. The puristic tendency in the development of Icelandic vocabulary is to a large degree a result of conscious language planning, in addition to centuries of isolation. Icelandic is the only living language to retain the use of the runic letter Þ in Latin script. The closest living relative of the Icelandic language is Faroese.
English and Danish are compulsory subjects in the school curriculum. English is widely understood and spoken, while basic to moderate knowledge of Danish is common mainly among the older generations. Polish is mostly spoken by the local Polish community (the largest minority of Iceland), and Danish is mostly spoken in a way largely comprehensible to Swedes and Norwegians—it is often referred to as skandinavíska (i. e. Scandinavian) in Iceland.
Rather than using family names, as is the usual custom in most Western nations, Icelanders carry patronymic or matronymic surnames, patronyms being far more commonly practiced. Patronymic last names are based on the first name of the father, while matronymic names are based on the first name of the mother. These follow the person’s given name, e.g. Elísabet Jónsdóttir (“Elísabet, Jón’s daughter” (Jón, being the father)) or Ólafur Katrínarson (“Ólafur, Katrín’s son” (Katrín being the mother)). Consequently, Icelanders refer to one another by their given name, and the Icelandic telephone directory is listed alphabetically by the first name rather than by surname. All new names must be approved by the Icelandic Naming Committee.
HEALTH
Iceland has a universal health care system and is paid for mostly by taxes (85%) and to a lesser extent by service fees (15%). Unlike most countries, there are no private hospitals, and private insurance is practically nonexistent.
A considerable portion of the government budget is assigned to health care, and Iceland ranks 11th in health care expenditures as a percentage of GDP and 14th in spending per capita. Overall, the country’s health care system is one of the best performing in the world, ranked 15th by the World Health Organization. According to an OECD report, Iceland devotes far more resources to healthcare than most industrialized nations. As of 2009, Iceland had 3.7 doctors per 1,000 people (compared with an average of 3.1 in OECD countries) and 15.3 nurses per 1,000 people (compared with an OECD average of 8.4).
Icelanders are among the world’s healthiest people, with 81% reporting they are in good health, according to an OECD survey. Although it is a growing problem, obesity is not as prevalent as in other developed countries. Iceland has many campaigns for health and wellbeing. Infant mortality is one of the lowest in the world, and the proportion of the population that smokes is lower than the OECD average. Almost all women choose to terminate pregnancies of children with Down syndrome in Iceland. The average life expectancy is 81.8 (compared to an OECD average of 79.5), the 4th highest in the world.
Additionally, Iceland has a very low level of pollution, thanks to an overwhelming reliance on cleaner geothermal energy, a low population density, and a high level of environmental consciousness among citizens. According to an OECD assessment, the amount of toxic materials in the atmosphere is far lower than in any other industrialized country measured.
RELIGION
Church of Iceland 67.22%. Other Christian 11.56%. Other and not specified 11.29%. Unaffiliated 6.69%. Germanic Heathenism 1.19%. Humanist association .67%. Muslim .55%. Buddism .42%. Islam .30%. Bahá’i Faith .10%.
Icelanders have freedom of religion guaranteed under the Constitution, although the Church of Iceland, a Lutheran body, is the state church:
Iceland is a very secular country; as with other Nordic nations, religious attendance is relatively low. The above statistics represent administrative membership of religious organizations, which does not necessarily reflect the belief demographics of the population. According to a study published in 2001, 23% of the inhabitants were either atheist or agnostic. A Gallup poll conducted in 2012 found that 57% of Icelanders considered themselves “religious”, 31% considered themselves “non-religious”, while 10% defined themselves as “convinced atheists”, placing Iceland among the ten countries with the highest proportions of atheists in the world. The proportion registered in the official Church of Iceland is declining rapidly, more than 1% per year (the Church of Iceland has declined from 80% in 2010 to less than 70% in 2017).
CULTURE
Icelandic culture has its roots in North Germanic traditions. Icelandic literature is popular, in particular the sagas and eddas that were written during the High and Late Middle Ages. Centuries of isolation have helped to insulate the country’s Nordic culture from external influence; a prominent example is the preservation of the Icelandic language, which remains the closest to Old Norse of all modern Nordic languages.
In contrast to other Nordic countries, Icelanders place relatively great importance on independence and self-sufficiency; in a public opinion analysis conducted by the European Commission, over 85% of Icelanders believe independence is “very important,” compared to 47% of Norwegians, 49% of Danes, and an average of 53% for the EU25. Icelanders also have a very strong work ethic, working some of the longest hours of any industrialized nation.
According to a poll conducted by the OECD, 66% of Icelanders were satisfied with their lives, while 70% believed that their lives will be satisfying in the future. Similarly, 83% reported having more positive experiences in an average day than negative ones, compared to an OECD average of 72%, which makes Iceland one of the happiest countries in the OECD. A more recent 2012 survey found that around three-quarters of respondents stated they were satisfied with their lives, compared to a global average of about 53%.
Iceland is liberal with regard to LGBT rights issues. In 1996, the Icelandic parliament passed legislation to create registered partnerships for same-sex couples, conferring nearly all the rights and benefits of marriage. In 2006, parliament voted unanimously to grant same-sex couples the same rights as heterosexual couples in adoption, parenting and assisted insemination treatment. On 11 June 2010, the Icelandic parliament amended the marriage law, making it gender-neutral and defining marriage as between two individuals, making Iceland one of the first countries in the world to legalize same-sex marriages. The law took effect on 27 June 2010. The amendment to the law also means registered partnerships for same-sex couples are now no longer possible, and marriage is their only option—identical to the existing situation for opposite-sex couples.
Icelanders are known for their deep sense of community: An OECD survey found that 98% believe they know someone they could rely on in a time of need, higher than in any other industrialized country. Similarly, only 6% reported “rarely” or “never” socializing with others. This high level of social cohesion is attributed to the small size and homogeneity of the population, as well as to a long history of harsh survival in an isolated environment, which reinforced the importance of unity and cooperation.
Egalitarianism is highly valued among the people of Iceland, with income inequality being among the lowest in the world. The constitution explicitly prohibits the enactment of noble privileges, titles, and ranks. Everyone is addressed by their first name. As in other Nordic countries, equality between the sexes is very high; Iceland is consistently ranked among the top three countries in the world for women to live in.
Literature. Iceland’s best-known classical works of literature are the Icelanders’ sagas, prose epics set in Iceland’s age of settlement. The most famous of these include Njáls saga, about an epic blood feud, and Grænlendinga saga and Eiríks saga, describing the discovery and settlement of Greenland and Vinland (modern Newfoundland). Egils saga, Laxdæla saga, Grettis saga, Gísla saga, and Gunnlaugs saga ormstungu are also notable and popular Icelanders’ sagas.
A translation of the Bible was published in the 16th century.
Icelanders are avid consumers of literature, with the highest number of bookstores per capita in the world. For its size, Iceland imports and translates more international literature than any other nation. Iceland also has the highest per capita publication of books and magazines, and around 10% of the population will publish a book in their lifetimes.
Most books in Iceland are sold between late September to early November. This time period is known as Jolabokaflod, the Christmas Book Flood. The Flood begins with the Iceland Publisher’s Association distributing Bokatidindi, a catalog of all new publications, free to each Icelandic home.
CUISINE
Much of Iceland’s cuisine is based on fish, lamb, and dairy products, with little to no utilization of herbs or spices. Due to the island’s climate, fruits and vegetables are not generally a component of traditional dishes, although the use of greenhouses has made them more common in contemporary food.
Þorramatur is a selection of traditional cuisine consisting of many dishes and is usually consumed around the month of Þorri, which begins on the first Friday after 19 January. Traditional dishes also include skyr (a yogurt-like cheese), hákarl (cured shark), cured ram, singed sheep heads, and black pudding, Flatkaka (flatbread), dried fish, and dark rye bread traditionally baked in the ground in geothermal areas. Puffin is considered a local delicacy that is often prepared through broiling.
Breakfast usually consists of pancakes, cereal, fruit, and coffee, while lunch may take the form of a smörgåsbord. The main meal of the day for most Icelanders is dinner, which usually involves fish or lamb as the main course. Seafood is central to most Icelandic cooking, particularly cod and haddock but also salmon, herring, and halibut. It is often prepared in a wide variety of ways, either smoked, pickled, boiled, or dried. Lamb is by far the most common meat, and it tends to be either smoke-cured (known as hangikjöt) or salt-preserved (saltkjöt). Many older dishes make use of every part of the sheep, such as slátur, which consists of offal (internal organs and entrails) minced together with blood and served in sheep stomach. Additionally, boiled or mashed potatoes, pickled cabbage, green beans, and rye bread are prevalent side dishes.
Coffee is a popular beverage in Iceland, with the country being third placed by per capita consumption worldwide in 2016, and is drunk at breakfast, after meals, and with a light snack in mid-afternoon. Coca-Cola is also widely consumed, to the extent that the country is said to have one of the highest per capita consumption rates in the world.
Iceland’s signature alcoholic beverage is brennivín (literally “burnt [i.e., distilled] wine”), which is similar in flavouring to the akvavit variant of Scandinavian brännvin. It is a type of schnapps made from distilled potatoes and flavoured with either caraway seeds or angelica. Its potency has earned it the nickname svarti dauði (“Black Death”). Modern distilleries on Iceland produce vodka (Reyka), gin (Ísafold), moss schnapps (Fjallagrasa), and a birch-flavoured schnapps and liqueur (Foss Distillery’s Birkir and Björk). Martin Miller blends Icelandic water with its England-distilled gin on the island. Strong beer was banned until 1989, so bjórlíki, a mixture of legal, low-alcohol pilsner beer and vodka, became popular. Several strong beers are now made by Icelandic breweries.
SPORT
Sport is an important part of Icelandic culture, as the population is generally quite active. The main traditional sport in Iceland is Glíma, a form of wrestling thought to have originated in medieval times.
Popular sports include football, track and field, handball, and basketball. Handball is often referred to as the national sport. The Icelandic national football team qualified for the 2016 UEFA European football championship for the first time. They recorded a draw against later winners Portugal in the group stage and defeated England 2–1 in the round of 16, and then lost to hosts and later finalists France in the quarter-finals. Following up on this, Iceland made its debut at the 2018 FIFA World Cup. For both the European and the world championship, Iceland is to date the smallest nation in terms of population to qualify.
Iceland has excellent conditions for skiing, fishing, snowboarding, ice climbing, and rock climbing, although mountain climbing and hiking are preferred by the general public. Iceland is also a world-class destination for alpine ski touring and Telemark skiing, with the Troll Peninsula in Northern Iceland being the main centre of activity. Although the country’s environment is generally ill-suited for golf, there are nevertheless lots of golf courses throughout the island, and Iceland has a greater percentage of the population playing golf than Scotland with over 17,000 registered golfers out of a population of approximately 300,000. Iceland hosts an annual international golf tournament known as the Arctic Open played through the night during the summer solstice at Akureyri Golf Club.
Iceland has also won the second most World’s Strongest Man competitions of any country with nine titles, including four by both Magnús Ver Magnússon and Jón Páll Sigmarsson and most recently Hafþór Júlíus Björnsson in 2018.
Iceland is also one of the leading countries in ocean rowing, Icelandic rower Fiann Paul became the fastest and the most record-breaking ocean rower. He has claimed overall speed Guinness World Records for the fastest rowing of all four oceans (Atlantic, Indian, Pacific, and Arctic) in a man-powered rowboat, as well as the Guinness title of the first rower to ever hold the record for all four oceans simultaneously, claiming 24 Guinness World Records in total for Iceland by 2017.
Swimming is popular in Iceland. Geothermally heated outdoor pools are widespread, and swimming courses are a mandatory part of the national curriculum.
Horseback riding, which was historically the most prevalent form of transportation on the island, remains a common pursuit for many Icelanders.
The oldest sport association in Iceland is the Reykjavík Shooting Association, founded in 1867. Rifle shooting became very popular in the 19th century with the encouragement of politicians and nationalists who were pushing for Icelandic independence. To this day, it remains a significant pastime.
Iceland has also produced many chess masters and hosted the historic World Chess Championship 1972 in Reykjavík during the height of the Cold War. As of 2008, there have been nine Icelandic chess grandmasters, a considerable number given the small size of the population. Bridge is also popular, with Iceland participating in a number of international tournaments. Iceland won the world bridge championship (the Bermuda Bowl) in Yokohama, Japan, in 1991 and took second place (with Sweden).