Country Information on Iceland 

Terrain

Iceland is a relatively young volcanic island. Strongly cleft bays are typical for the west and the north of the country, the north-west being dominated by a huge peninsula. In the south and the south-west, the landscape is characterized by lowland areas. The country's central regions are dominated by an uninhabited highland consisting of stone and gravel deserts, huge glaciers, and mountain ranges with Iceland's highest elevation, Mount Hvannadalshnukur (2119 m). Vatnajökull is the biggest glacier with 8300 km², which makes it cover the entire area of all European mainland glaciers tied together. Glacial streams are feeding innumerable rivers with melt water, various elevations bless Iceland with a myriad of impressive cascades. Many spots on the island are proof of ongoing volcanic activity, with hot springs and geysers.

Climate

Climatic conditions on the island are maritime, with relatively mild winters and cool summers. Given currents from polar areas, the north, north-west, and east of the country are characterized by cooler climate when compared to the south. Temperatures average -0.6°C to 11°C in Reykjavik. Annual precipitation in this area averages 800 to 2000 mm, with 4000 mm not uncommon in the country's central regions. In June, twenty hours of daylight are common as a result of the midnight sun, while long twilights are typical of Icelandic winters.

Fauna/Flora

Iceland's cool climatic conditions only account for sparse plant life. Common plants include a number of grass species, heather, dwarfed shrubs, moss, and lichen. Woodland remainders are made up of birch and willow trees, reforestation programmes were only marginally successful as of yet. In the past, the arctic fox was the only mammal on the island. Later, settlers brought with them horses, sheep, cattle, and rodents. The country's fauna totally lacks reptile and amphibian species. However, Iceland is rich in bird species, with huge colonies of puffins, fulmars, and a number of duck species. Coastal areas are populated by seals and harbour seals, island sea waters by whales, cod, haddock, and halibut, Iceland's rivers by salmon and trout.

History/Politics

Iceland has been common to seafarers since the 4th century BC. The year 874 marked the beginning of permanent settlement on the island and the Althing (a legislative and executive assembly) was established by the inhabitants. By the end of the 10th century, Icelanders settled in Greenland, in the early 11th century, conqueror Leif Eriksen arrived in North America. Following a decision by the Althing, the Christian faith was established at the same time. In the mid-13th century, Iceland accepted Norwegian sovereignty, leading to the two countries being united under Danish rule in 1380. Denmark was successful in suppressing Iceland's trade flows with third countries, leading to the country's gradual impoverishment.

Over the years, Danish supremacy was extended, and diseases, famines, and the disastrous volcanic disruption of 1783 lead to Iceland's population being reduced to about 35,000 inhabitants. Denmark's trade barriers on Iceland were slightly eased by the late 18th century, with the effect of swift economic recovery on the island. Revolutions in the mid-19th century exerted a strong influence on Denmark and Iceland. Iceland's struggle for independence was strongly supported by politician Jon Sigurdsson. In 1918, Iceland became independent from Denmark, both countries still remaining parts of a union until 1944. The following years saw the country's economy booming.

In 1941, the USA established an airbase on the island, with the public initially protesting the measure. However, Iceland became a member of NATO in 1949, assigning the task of national defence to the USA in 1951. The following decades saw gradual expansion of Iceland's fishing grounds, leading to dispute over fishing rights with Great Britain and Germany. As late as 1976, common ground was found concerning the issue. High inflation rates were a constant drag on Iceland's economy during the 1980s, but the following years saw a large degree of improvement. Since 1918, domestic politics have been dominated by coalition governments. In 1980, Iceland was the first country in the world to elect a female head of state. Vigdis Finnbogadottir was re-elected president for three periods, current president Olafur Grimsson taking over as late as 1996.

Economy

Iceland has one of the highest living standards in the world. Fishing is the country's main economic sector, including processing of fish for a variety of products and the export industry. Whale-hunting was discontinued in 1992. Agriculture has seen an increase in the use of geothermal energy for heating greenhouses for growing vegetables. Agriculture is dominated by husbandry, the main products being milk and dairy products, wool and mutton. With stronger emphasis put on sectoral variety (and less on the fishing industry), the country's public administration is increasingly supporting manufacturing and foreign capital investment. Software development, biotechnology, and tourism are of growing importance. Five percent of the active population are employed in agriculture, 13% in the fishing industry, 10% in construction, and 61% in services. Iceland's gross domestic product growth was 3.6% in 2000, with unemployment amounting to 2.1%.

Culture

Icelandic Sagas are most typical for the island's history of literary heritage. Originating in the 12th and 14th centuries, sagas were handed down orally and only written down as late as the 13th century. Kings from Norway, as well as Icelandic or Scandinavian heroes are main characters enriching the sagas. Iceland's literature was strongly stimulated by European authors in the 19th century, a new movement triggering creativity with writers like Bjarni Thorarensen and Jonas Hallgrimmsson. In 1955, Icelander Halldor Laxness was awarded the Nobel Literature Price.