Iceland
Created | Updated Jan 28, 2002
Iceland (Lýðveldið Ísland (The Republic of Iceland)) is the land of ice and fire. It is a huge country but only a very small area is built. Over 80% of the island is unpopulated because the land is covered either with permanent snow and ice fields (glaciers) or has a volcanic surface, which has poor soils that are not suited to crop growing, sheep grazing, or other agricultural activities.
Iceland is rightly said to be different from other countries. The air is rather cool, but clean. Where other countries have their grand old architecture, Iceland has works of art done by nature herself. Here the land is still in the process of formation, and it is the very diversity of landscape and natural phenomena which is Iceland's greatest attraction. Population is circa 270,000 people and 170,000 of them live in the capital city, Reykjavík. Icelanders speak Icelandic and our flag is a red Nordic cross outlined in white on a blue background.
We have very strict rules about our flag. The strictest in the world some say. You can not flag the flag after sunset and you can not flag the flag before 7:00 am. If the flag touches the ground, you have to burn it. You have to fold it in a very special way (there are more than one way, I think they are two or three) and you may not fold the flag if it is wet. If you brake the rules you can get arrested and put to jail or you get a fine.
Climate.
Iceland is an oceanic island touching the Artic Circle. Here cold air currents from the Artic meet warmer winds from the Atlantic ocean. In the waters around Iceland the Gulf Stream merges with the cold polar currents, which sometimes carry drift ice to the north coast. The weather is very unpredictable, and can also vary greatly from area to area within Iceland. The wind force is sometimes exceptionaly strong (or always, that’s my opinion), and in the highlands sudden snowfall can occur at any time. Rainfall is heaviest in the coastal regions, especially to the south and east.
Vegetation and animals.
It is believed that when Iceland was first settled in the ninth century more than half the total land area was covered with vegetation of which about 50% was birch wood. Human settlement eventually led to the desrtuction of the woodlands, which in turn led to the deterrioration of the remaining vegetation and soil erosion. Volcanic activiti also played a large part in this process, sometimes desrtoying human settlements as well. Today only about 25% of the land is vegetated whereof only about 1% is wooded.
Bilberries and crowberries are the only kinds of fruit that grow on the island. The arctic fox was the only land mammal in Iceland at the time of the first human settlement. Reindeer were introduced about 1770; rodents were brought in on ships. There are no reptiles, frogs or toads. About 100 species of birds inhabit the island; many of these species are aquatic, among them the whistling swan and several kinds of duck; the duck colonies at Mývatn (Gnat-Lake), in the north, are the largest and most varied in the world. The eider duck is valued for its down. Whales and seals live off the coast, as do cod, haddock, halibut, herring, and of course Keikó the killer whale (who lives in a gigantic fishbowl placed in a large bay near Westman-Islans =). Many salmon and trout inhabit Iceland's freshwater rivers and lakes.
Volcanoes.
Iceland lies atop one of the major fault lines in the earth's crust, the Mid-Atlantic Ridge (See Plate Tectonics). As a result it is one of the most tectonically active places on earth, with a wealth of volcanoes, thermal springs and solfataras (volcanic vents emitting hot gases and vapours). Earthquakes are frequent but rarely cause serious damage. More than 200 volcanoes, including at least 30 that have erupted in historic times, are situated on the island. Noteworthy among them are Mount Hekla (1,491 m/4,891 ft), which has erupted many times, including in 1766, 1947, 1980, and latest in the year 2000, and nearby Laki, with about 100 separate craters. The vast lava fields created by the volcanoes cover almost 10% of Iceland. Many eruptions have caused widespread devastation. In 1783, when the only known eruption of Laki occurred, molten lava, volcanic ashes and gases, and torrential floods resulting from melting ice and snow led to the deaths of more than 9,000 people, ruined large tracts of arable land, and destroyed about 80% of the livestock on the island. In 1963 an ocean-floor volcano erupted off the south-western coast of Iceland, creating Surtsey Island. In 1973 a volcano on Heimaey (Home-Island) became active, forcing the evacuation of the island's main town, Vestmannaeyjar (Westman-Islands).
Thermal springs are common in Iceland. Particularly numerous in the volcanic areas, the springs occur as geysers, as boiling mud lakes, and in various other forms. Geysir, from which the word geyser derives, is generally regarded as the most spectacular; it erupts at irregular intervals (usually from 5 to 36 hr), ejecting a column of boiling water up to about 60 m (200 ft) in height. All buildings in the Reykjavík area, as well as most buildings in other towns are heated by water piped from nearby hot springs.
Population.
The population of Iceland is extremely homogeneous, being almost entirely of Nordic and Celtic origin. Irish monks established early isolated settlements in Iceland, but Norwegians arriving from AD 874 were primarily responsible for the island's continuous occupation and population growth. In addition to the Norwegian stock, large numbers of the early settlers came from the British Isles. Traders from the Black Sea and Mediterranean areas also culturally influenced the island.
Standard of Living.
Despite the problems presented by Iceland's natural environment, the standard of living is relatively high. In 1998 Iceland ranked 5th in standard of living in the world, sharing place with Denmark. Icelanders are number one in the world in Internet usage per capital and have about one car per every two inhabitants and are in 4th place in number of cellular phones. We also drink very much Cola and it whouldn’t surprise me if we held the record in eating sugar.
Iceland has a comprehensive social security and health insurance system, predominantly state funded, which covers the entire population; more than 40% of central government spending is allocated to health and welfare. The system supports one of the highest standards of public health in the world; Iceland has the world's lowest infant mortality rate and one of its highest life expectancy rates.
The people receive a variety of social services from the government, including medical care, unemployment insurance, pensions for the elderly and handicapped, and free schooling. The homes in the cities are equipped with modern conveniences, such as refrigerators, stoves, radios, televisions, and indoor running hot and cold water and plumbing. Most houses are constructed from concrete rather than wood, which is scarce. Fish and mutton, available locally, are leading foods. Most fruits and vegetables have to be imported, except for those grown in greenhouses. The cost of living is relatively high in Iceland because so many foods, other raw materials, and most manufactured products must be imported.
Government.
Iceland is governed under the constitution that came into force when the country achieved full independence on June 17, 1944 and is a social democracy led by a president who is elected every four years. Cabinet officers, headed by the prime minister, administer the following areas: foreign affairs, justice, agriculture, education, fisheries and communications, trade and commerce, health and social security, finance, and energy and industry. The Althing, or parliament, consists of 63 members and is made up of an Upper House and Lower House. The voting age is 18 years.
Iceland has no armed forces of its own except for 130 coast guard personnel, but is a member of the North Atlantic Treaty Organization (NATO). As of June 1993, 3,000 United States military personnel were stationed at Keflavík air base under a bilateral agreement first signed in 1951.
Executive.
The head of state of Iceland is a president, who is elected every four years by universal suffrage of people aged 18 and above. The constitution vests executive power in the president and a cabinet of ministers; in practice it is the latter alone which exercises executive power. A prime minister, who is responsible to the Parliament, leads the cabinet.
Legislature.
The legislature of Iceland is the Althing (www.althingi.is), which has met almost continually since its establishment in AD 930, and which was converted from a bicameral to a unicameral body in 1991. It has 63 members, 54 elected to four-year terms under a system of proportional representation and 9 allotted to the political parties based on their relative vote totals in the elections.
Judiciary.
The highest tribunal of Iceland is the supreme court, made up of a chief justice and seven other justices appointed by the president. In 1992 jurisdiction in civil and criminal cases was transferred from provincial magistrates to eight new district courts, separating the judiciary from the prosecution. In addition to the district courts there are a number of special courts.
Agriculture.
About 3% of Iceland's labour force is now engaged in agriculture compared with 36% in 1930. Agriculture is based primarily on sheep and dairy cattle. Sheep graze the open, highland pastures during summer and are rounded up each fall. The cattle feed on lowland coastal pastures during summer and stored hay during winter. Less than 1% of Iceland is under cultivation. Hay, potatoes, and turnips are the chief crops. Some vegetables and grain grow in the more suitable areas. The threat of summer frosts, the cold summer temperatures, and the short growing season severely limit the variety and success of crop production.
Fishing. ><>
The few resources available in Iceland place limits on the economy. Fishing is a dominant occupation because of the rich fishing grounds that surround the island.
Fishing and fish processing are the most important Icelandic industries, accounting for more than 75% of yearly export earnings and employing about 10% of the labour force. Iceland is a leading producer of cod and capelin which make up about two-thirds of the catch; haddock, crustaceans, herring, redfish, and saithe are also important. Coastal towns have extensive facilities for fish processing.
The fishery limits were extended to 200 nautical miles (370 kilometres) in 1975 in order to protect this crucial industry. The British raised strong objections to the extension of the fishery zone, because they have long regarded the waters off Iceland as an important fishing ground for their own fishing fleet.
Iceland was the first in the world to impose total ban on whaling in 1903, a ban that lasted for almost 30 years, when controlled whaling was allowed again.
In response to international pressure though, Iceland suspended all whaling operations in 1989. However, in June 1992 Iceland withdrew from the International Whaling Commission, disputing the designation of some species of whales as endangered and claiming that certain species threatened Iceland's commercial fish population.
Manufacturing.
Aside from fish processing, traditional manufacturing industries are primarily small-scale and geared to the domestic market, but greater number of people are working in industry that in both agriculture and fishing together. The principal products are alloys, fertilizers, clothing, shoes, and chemicals. Book production is also important in Iceland. Software development is becoming an increasingly important industry as well as production of advanced equipment for fish processing. However, major export-oriented plants producing diatomite, aluminium (from imported bauxite) and ferrosilicon have been established since the 1960s by foreign firms taking advantage of Iceland's cheap and abundance energy resources.
Religion.
The state church of Iceland is the Evangelical Lutheran church, to which more than 95% of Icelanders belong (but they are getting fewer and fewer by the time). Complete religious freedom exists, however. Free Lutherans and other Protestants, and Roman Catholics make up a small minority (other Protestant denominations 3%, Roman Catholic 1%, and some followers of Ásatrú, an ancient Norse religion).
Language.
The Icelandic language is primarily Old Norse or old Norwegian in character, although it varies considerably from modern Norwegian. It has remained closer to the Old Norse of Iceland's original Viking settlers than to the other Scandinavian languages. Most Icelanders also speak at least one foreign language.
Education.
Virtually all Icelanders are literate. Education levels are high in Iceland, where more books and newspapers are published per person than in any other nation, and is free through to the university level. Education has been compulsory for all children since 1907 and is so now for children between the ages of 6 and 16. The education system is of a Scandinavian model and divided into 3 levels. The gymnasium comprises 4 years. Many students seek education abroad in spite of a total of 10 universities and more than a thousand different courses available. Roughly one third do their studies in other Nordic countries while the rest is scattered around the rest of Europe, the US and even some in Asian countries.
The leading institution of higher education is the University of Iceland (1911), in Reykjavík. The capital also has a technical college and colleges of agriculture and music as well as teacher-training schools.
The principal libraries of Iceland are the University Library, the National Library, and the City Library, all located in Reykjavík.
The capital is also the site of the Museum of Natural History; the National Museum, containing a major collection of Icelandic antiquities; and an art gallery housing the work of the Icelandic sculptor Einar Jónsson.
Literary works called sagas and Eddas provide Icelanders with a rich literary background dating back to the 12th and 13th centuries. The sagas are about Icelandic and Scandinavian heroes, and the Eddas are the stories of gods and heroes of the pre-Christian era in Northern Europe.
Icelandic people in modern times have been important contributors of novels, poems, and musical compositions. In 1955 Halldor Laxness was awarded the Nobel prize for literature.
Energy.
Iceland has vast energy potential. It is estimated that only one-tenth of the hydroelectric power potential of its rivers and one-twentieth of its geothermal energy potential has been harnessed. Almost 85% of Iceland's electricity is produced in hydroelectric installations Hot water from springs is used for domestic heating and glasshouse cultivation and in some manufacturing operations. About 89% of houses are heated geothermally, 10% electrically and less than 1% by wood, oil or coal.
Currency and Banking.
The monetary unit of Iceland is the króna (Icelandic crown, ISK). In 1981 the government introduced a new króna, equivalent to 100 old krónur. The change was part of efforts to control inflation and was followed during the 1980s and early 1990s by several devaluations of the króna. Currency is issued by the state-owned Central Bank (1961). To comply with the requirements of the European Union (EU) internal market, the government has considerably reduced its previously strong controls over the banking and financial sector since the mid-1980s. The two state banks have now been privatised; leaving the money market to four privately owned banks.
Transport and Communications.
Iceland has about 12,503 km (7,769 mi) of roads, mainly located in coastal areas. Only 2,682 km (1,667 mi) are surfaced, including most of the Hringvegur ("Ring Road") which forms a 1,440 km (900 mi) circle round the island. The island has no railways or navigable rivers, so motor vehicle traffic is important. A highway parallels the coast, but heavy traffic occurs only in the area of greater Reykjavik, which has morning and evening rush hours. The country has domestic air services and an international airline that regularly carries passengers to and from Scandinavia, the United Kingdom and other European countries, and the United States, via the Keflavik International Airport. Icelandair is the dominant provider of domestic and international air service, and serves 24 international destinations with direct flights providing a transatlantic link from 6 gateways in the United States and Canada to 18 European cities. Icelanders, together with Norwegians and New Zealanders, are the ones that top the world in flying.
The country has several seaports, including Akranes, Keflavík, Reykjavík, and Siglufjörður.
Four daily newspapers are published in Reykjavík and Akureyri. Telephone and telegraph services are owned and administered by the government until recently (early in the year 1998) they gave the competition free so now two other companies (altogether three) are serving the telephone (not only one) and thereby increaseing the competition. The monopoly of the state-owned Icelandic National Broadcasting Service over radio and television broadcasting ended in 1986.
Some milestones in history of Iceland.
874-930 < - - > The settlement of Iceland. Norwegian Ingólfur Arnarson, the first permanent settler, arrives in Reykjavík.
930 < - - > Establishment of the Alþingi assembly at Þingvellir, making it the oldest parliament in the world.
985 < - - > Eiríkur the Red discovers and settles in Greenland.
1000 < - - > Icelanders adopt Christianity as their new religion. Leifur the lucky discovers North America and names it Vínland (Wine land).
1120-1230 < - - > The age of writing. A era of tremenduos literary activity when the Sagas were written in the vernacular.
1262 < - - > Iceland comes under the Norwegian crown. End of the age of the Sturlungs.
1380 < - - > Iceland and Norway come under the Danish crown.
1783-1785 < - - > The Lakagígar eruption and earthquakes. Famine follows.
1786 < - - > Reykjavík obtains town status.
1843 < - - > Alþingi is re-established as a consultative body.
1874 < - - > New Icelandic constitution.
1904 < - - > Home rule under Denmark.
1918 < - - > Independence from Denmark.
1940 < - - > Iceland occupied by British troops.
1941 < - - > U.S. forces take over defence of Iceland.
1944 < - - > The republic of Iceland founded at Þingvellir. Sveinn Björnsson elected first president.
1946 < - - > Iceland joins the U.N.
1947-1948 < - - > Mount Hekla eruption.
1949 < - - > Iceland becomes a founding member of NATO.
1952 < - - > Ásgeir Ásgeirsson elected 2nd president of the Republic.
1955 < - - > Author Halldór Laxness receives the Nobel prize for literature.
1963 < - - > Undersea volcanic eruption makes a new island, later named Surtsey, off the coast of the Westman islands.
1968 < - - > Kristján Eldjárn elected 3rd president of Iceland.
1972 < - - > Fishery limits extend to 50 miles.
1973 < - - > Volcanic eruption in Heimaey, part of the Westman Islands, forces 5000 inhabitants to evacuate the islands.
1974 < - - > 1100th anniversary of the settlement.
1975 < - - > Fishery limits extend to 200 miles. Cod war with Britain.
1980 < - - > Vigdís Finnbogadóttir becomes the first woman ever to be democratically elected President of a Republic. She was re-elected in 1984, 1988, and 1992.
1986 < - - > Reagan-Gorbachev Summit Meeting held in Höfði house, Reykjavík.
1996 < - - > Ólafur Ragnar Grímsson elected the 5th president of Iceland. Vatnajökull glacier eruption.
2000 < - - > Mount Hekla eruption.
Iceland is rightly said to be different from other countries. The air is rather cool, but clean. Where other countries have their grand old architecture, Iceland has works of art done by nature herself. Here the land is still in the process of formation, and it is the very diversity of landscape and natural phenomena which is Iceland's greatest attraction. Population is circa 270,000 people and 170,000 of them live in the capital city, Reykjavík. Icelanders speak Icelandic and our flag is a red Nordic cross outlined in white on a blue background.
We have very strict rules about our flag. The strictest in the world some say. You can not flag the flag after sunset and you can not flag the flag before 7:00 am. If the flag touches the ground, you have to burn it. You have to fold it in a very special way (there are more than one way, I think they are two or three) and you may not fold the flag if it is wet. If you brake the rules you can get arrested and put to jail or you get a fine.
Climate.
Iceland is an oceanic island touching the Artic Circle. Here cold air currents from the Artic meet warmer winds from the Atlantic ocean. In the waters around Iceland the Gulf Stream merges with the cold polar currents, which sometimes carry drift ice to the north coast. The weather is very unpredictable, and can also vary greatly from area to area within Iceland. The wind force is sometimes exceptionaly strong (or always, that’s my opinion), and in the highlands sudden snowfall can occur at any time. Rainfall is heaviest in the coastal regions, especially to the south and east.
Vegetation and animals.
It is believed that when Iceland was first settled in the ninth century more than half the total land area was covered with vegetation of which about 50% was birch wood. Human settlement eventually led to the desrtuction of the woodlands, which in turn led to the deterrioration of the remaining vegetation and soil erosion. Volcanic activiti also played a large part in this process, sometimes desrtoying human settlements as well. Today only about 25% of the land is vegetated whereof only about 1% is wooded.
Bilberries and crowberries are the only kinds of fruit that grow on the island. The arctic fox was the only land mammal in Iceland at the time of the first human settlement. Reindeer were introduced about 1770; rodents were brought in on ships. There are no reptiles, frogs or toads. About 100 species of birds inhabit the island; many of these species are aquatic, among them the whistling swan and several kinds of duck; the duck colonies at Mývatn (Gnat-Lake), in the north, are the largest and most varied in the world. The eider duck is valued for its down. Whales and seals live off the coast, as do cod, haddock, halibut, herring, and of course Keikó the killer whale (who lives in a gigantic fishbowl placed in a large bay near Westman-Islans =). Many salmon and trout inhabit Iceland's freshwater rivers and lakes.
Volcanoes.
Iceland lies atop one of the major fault lines in the earth's crust, the Mid-Atlantic Ridge (See Plate Tectonics). As a result it is one of the most tectonically active places on earth, with a wealth of volcanoes, thermal springs and solfataras (volcanic vents emitting hot gases and vapours). Earthquakes are frequent but rarely cause serious damage. More than 200 volcanoes, including at least 30 that have erupted in historic times, are situated on the island. Noteworthy among them are Mount Hekla (1,491 m/4,891 ft), which has erupted many times, including in 1766, 1947, 1980, and latest in the year 2000, and nearby Laki, with about 100 separate craters. The vast lava fields created by the volcanoes cover almost 10% of Iceland. Many eruptions have caused widespread devastation. In 1783, when the only known eruption of Laki occurred, molten lava, volcanic ashes and gases, and torrential floods resulting from melting ice and snow led to the deaths of more than 9,000 people, ruined large tracts of arable land, and destroyed about 80% of the livestock on the island. In 1963 an ocean-floor volcano erupted off the south-western coast of Iceland, creating Surtsey Island. In 1973 a volcano on Heimaey (Home-Island) became active, forcing the evacuation of the island's main town, Vestmannaeyjar (Westman-Islands).
Thermal springs are common in Iceland. Particularly numerous in the volcanic areas, the springs occur as geysers, as boiling mud lakes, and in various other forms. Geysir, from which the word geyser derives, is generally regarded as the most spectacular; it erupts at irregular intervals (usually from 5 to 36 hr), ejecting a column of boiling water up to about 60 m (200 ft) in height. All buildings in the Reykjavík area, as well as most buildings in other towns are heated by water piped from nearby hot springs.
Population.
The population of Iceland is extremely homogeneous, being almost entirely of Nordic and Celtic origin. Irish monks established early isolated settlements in Iceland, but Norwegians arriving from AD 874 were primarily responsible for the island's continuous occupation and population growth. In addition to the Norwegian stock, large numbers of the early settlers came from the British Isles. Traders from the Black Sea and Mediterranean areas also culturally influenced the island.
Standard of Living.
Despite the problems presented by Iceland's natural environment, the standard of living is relatively high. In 1998 Iceland ranked 5th in standard of living in the world, sharing place with Denmark. Icelanders are number one in the world in Internet usage per capital and have about one car per every two inhabitants and are in 4th place in number of cellular phones. We also drink very much Cola and it whouldn’t surprise me if we held the record in eating sugar.
Iceland has a comprehensive social security and health insurance system, predominantly state funded, which covers the entire population; more than 40% of central government spending is allocated to health and welfare. The system supports one of the highest standards of public health in the world; Iceland has the world's lowest infant mortality rate and one of its highest life expectancy rates.
The people receive a variety of social services from the government, including medical care, unemployment insurance, pensions for the elderly and handicapped, and free schooling. The homes in the cities are equipped with modern conveniences, such as refrigerators, stoves, radios, televisions, and indoor running hot and cold water and plumbing. Most houses are constructed from concrete rather than wood, which is scarce. Fish and mutton, available locally, are leading foods. Most fruits and vegetables have to be imported, except for those grown in greenhouses. The cost of living is relatively high in Iceland because so many foods, other raw materials, and most manufactured products must be imported.
Government.
Iceland is governed under the constitution that came into force when the country achieved full independence on June 17, 1944 and is a social democracy led by a president who is elected every four years. Cabinet officers, headed by the prime minister, administer the following areas: foreign affairs, justice, agriculture, education, fisheries and communications, trade and commerce, health and social security, finance, and energy and industry. The Althing, or parliament, consists of 63 members and is made up of an Upper House and Lower House. The voting age is 18 years.
Iceland has no armed forces of its own except for 130 coast guard personnel, but is a member of the North Atlantic Treaty Organization (NATO). As of June 1993, 3,000 United States military personnel were stationed at Keflavík air base under a bilateral agreement first signed in 1951.
Executive.
The head of state of Iceland is a president, who is elected every four years by universal suffrage of people aged 18 and above. The constitution vests executive power in the president and a cabinet of ministers; in practice it is the latter alone which exercises executive power. A prime minister, who is responsible to the Parliament, leads the cabinet.
Legislature.
The legislature of Iceland is the Althing (www.althingi.is), which has met almost continually since its establishment in AD 930, and which was converted from a bicameral to a unicameral body in 1991. It has 63 members, 54 elected to four-year terms under a system of proportional representation and 9 allotted to the political parties based on their relative vote totals in the elections.
Judiciary.
The highest tribunal of Iceland is the supreme court, made up of a chief justice and seven other justices appointed by the president. In 1992 jurisdiction in civil and criminal cases was transferred from provincial magistrates to eight new district courts, separating the judiciary from the prosecution. In addition to the district courts there are a number of special courts.
Agriculture.
About 3% of Iceland's labour force is now engaged in agriculture compared with 36% in 1930. Agriculture is based primarily on sheep and dairy cattle. Sheep graze the open, highland pastures during summer and are rounded up each fall. The cattle feed on lowland coastal pastures during summer and stored hay during winter. Less than 1% of Iceland is under cultivation. Hay, potatoes, and turnips are the chief crops. Some vegetables and grain grow in the more suitable areas. The threat of summer frosts, the cold summer temperatures, and the short growing season severely limit the variety and success of crop production.
Fishing. ><>
The few resources available in Iceland place limits on the economy. Fishing is a dominant occupation because of the rich fishing grounds that surround the island.
Fishing and fish processing are the most important Icelandic industries, accounting for more than 75% of yearly export earnings and employing about 10% of the labour force. Iceland is a leading producer of cod and capelin which make up about two-thirds of the catch; haddock, crustaceans, herring, redfish, and saithe are also important. Coastal towns have extensive facilities for fish processing.
The fishery limits were extended to 200 nautical miles (370 kilometres) in 1975 in order to protect this crucial industry. The British raised strong objections to the extension of the fishery zone, because they have long regarded the waters off Iceland as an important fishing ground for their own fishing fleet.
Iceland was the first in the world to impose total ban on whaling in 1903, a ban that lasted for almost 30 years, when controlled whaling was allowed again.
In response to international pressure though, Iceland suspended all whaling operations in 1989. However, in June 1992 Iceland withdrew from the International Whaling Commission, disputing the designation of some species of whales as endangered and claiming that certain species threatened Iceland's commercial fish population.
Manufacturing.
Aside from fish processing, traditional manufacturing industries are primarily small-scale and geared to the domestic market, but greater number of people are working in industry that in both agriculture and fishing together. The principal products are alloys, fertilizers, clothing, shoes, and chemicals. Book production is also important in Iceland. Software development is becoming an increasingly important industry as well as production of advanced equipment for fish processing. However, major export-oriented plants producing diatomite, aluminium (from imported bauxite) and ferrosilicon have been established since the 1960s by foreign firms taking advantage of Iceland's cheap and abundance energy resources.
Religion.
The state church of Iceland is the Evangelical Lutheran church, to which more than 95% of Icelanders belong (but they are getting fewer and fewer by the time). Complete religious freedom exists, however. Free Lutherans and other Protestants, and Roman Catholics make up a small minority (other Protestant denominations 3%, Roman Catholic 1%, and some followers of Ásatrú, an ancient Norse religion).
Language.
The Icelandic language is primarily Old Norse or old Norwegian in character, although it varies considerably from modern Norwegian. It has remained closer to the Old Norse of Iceland's original Viking settlers than to the other Scandinavian languages. Most Icelanders also speak at least one foreign language.
Education.
Virtually all Icelanders are literate. Education levels are high in Iceland, where more books and newspapers are published per person than in any other nation, and is free through to the university level. Education has been compulsory for all children since 1907 and is so now for children between the ages of 6 and 16. The education system is of a Scandinavian model and divided into 3 levels. The gymnasium comprises 4 years. Many students seek education abroad in spite of a total of 10 universities and more than a thousand different courses available. Roughly one third do their studies in other Nordic countries while the rest is scattered around the rest of Europe, the US and even some in Asian countries.
The leading institution of higher education is the University of Iceland (1911), in Reykjavík. The capital also has a technical college and colleges of agriculture and music as well as teacher-training schools.
The principal libraries of Iceland are the University Library, the National Library, and the City Library, all located in Reykjavík.
The capital is also the site of the Museum of Natural History; the National Museum, containing a major collection of Icelandic antiquities; and an art gallery housing the work of the Icelandic sculptor Einar Jónsson.
Literary works called sagas and Eddas provide Icelanders with a rich literary background dating back to the 12th and 13th centuries. The sagas are about Icelandic and Scandinavian heroes, and the Eddas are the stories of gods and heroes of the pre-Christian era in Northern Europe.
Icelandic people in modern times have been important contributors of novels, poems, and musical compositions. In 1955 Halldor Laxness was awarded the Nobel prize for literature.
Energy.
Iceland has vast energy potential. It is estimated that only one-tenth of the hydroelectric power potential of its rivers and one-twentieth of its geothermal energy potential has been harnessed. Almost 85% of Iceland's electricity is produced in hydroelectric installations Hot water from springs is used for domestic heating and glasshouse cultivation and in some manufacturing operations. About 89% of houses are heated geothermally, 10% electrically and less than 1% by wood, oil or coal.
Currency and Banking.
The monetary unit of Iceland is the króna (Icelandic crown, ISK). In 1981 the government introduced a new króna, equivalent to 100 old krónur. The change was part of efforts to control inflation and was followed during the 1980s and early 1990s by several devaluations of the króna. Currency is issued by the state-owned Central Bank (1961). To comply with the requirements of the European Union (EU) internal market, the government has considerably reduced its previously strong controls over the banking and financial sector since the mid-1980s. The two state banks have now been privatised; leaving the money market to four privately owned banks.
Transport and Communications.
Iceland has about 12,503 km (7,769 mi) of roads, mainly located in coastal areas. Only 2,682 km (1,667 mi) are surfaced, including most of the Hringvegur ("Ring Road") which forms a 1,440 km (900 mi) circle round the island. The island has no railways or navigable rivers, so motor vehicle traffic is important. A highway parallels the coast, but heavy traffic occurs only in the area of greater Reykjavik, which has morning and evening rush hours. The country has domestic air services and an international airline that regularly carries passengers to and from Scandinavia, the United Kingdom and other European countries, and the United States, via the Keflavik International Airport. Icelandair is the dominant provider of domestic and international air service, and serves 24 international destinations with direct flights providing a transatlantic link from 6 gateways in the United States and Canada to 18 European cities. Icelanders, together with Norwegians and New Zealanders, are the ones that top the world in flying.
The country has several seaports, including Akranes, Keflavík, Reykjavík, and Siglufjörður.
Four daily newspapers are published in Reykjavík and Akureyri. Telephone and telegraph services are owned and administered by the government until recently (early in the year 1998) they gave the competition free so now two other companies (altogether three) are serving the telephone (not only one) and thereby increaseing the competition. The monopoly of the state-owned Icelandic National Broadcasting Service over radio and television broadcasting ended in 1986.
Some milestones in history of Iceland.
874-930 < - - > The settlement of Iceland. Norwegian Ingólfur Arnarson, the first permanent settler, arrives in Reykjavík.
930 < - - > Establishment of the Alþingi assembly at Þingvellir, making it the oldest parliament in the world.
985 < - - > Eiríkur the Red discovers and settles in Greenland.
1000 < - - > Icelanders adopt Christianity as their new religion. Leifur the lucky discovers North America and names it Vínland (Wine land).
1120-1230 < - - > The age of writing. A era of tremenduos literary activity when the Sagas were written in the vernacular.
1262 < - - > Iceland comes under the Norwegian crown. End of the age of the Sturlungs.
1380 < - - > Iceland and Norway come under the Danish crown.
1783-1785 < - - > The Lakagígar eruption and earthquakes. Famine follows.
1786 < - - > Reykjavík obtains town status.
1843 < - - > Alþingi is re-established as a consultative body.
1874 < - - > New Icelandic constitution.
1904 < - - > Home rule under Denmark.
1918 < - - > Independence from Denmark.
1940 < - - > Iceland occupied by British troops.
1941 < - - > U.S. forces take over defence of Iceland.
1944 < - - > The republic of Iceland founded at Þingvellir. Sveinn Björnsson elected first president.
1946 < - - > Iceland joins the U.N.
1947-1948 < - - > Mount Hekla eruption.
1949 < - - > Iceland becomes a founding member of NATO.
1952 < - - > Ásgeir Ásgeirsson elected 2nd president of the Republic.
1955 < - - > Author Halldór Laxness receives the Nobel prize for literature.
1963 < - - > Undersea volcanic eruption makes a new island, later named Surtsey, off the coast of the Westman islands.
1968 < - - > Kristján Eldjárn elected 3rd president of Iceland.
1972 < - - > Fishery limits extend to 50 miles.
1973 < - - > Volcanic eruption in Heimaey, part of the Westman Islands, forces 5000 inhabitants to evacuate the islands.
1974 < - - > 1100th anniversary of the settlement.
1975 < - - > Fishery limits extend to 200 miles. Cod war with Britain.
1980 < - - > Vigdís Finnbogadóttir becomes the first woman ever to be democratically elected President of a Republic. She was re-elected in 1984, 1988, and 1992.
1986 < - - > Reagan-Gorbachev Summit Meeting held in Höfði house, Reykjavík.
1996 < - - > Ólafur Ragnar Grímsson elected the 5th president of Iceland. Vatnajökull glacier eruption.
2000 < - - > Mount Hekla eruption.
