Iceland

Lore & Background

According to the Landnámabók, an ancient manuscript, the settlement of Iceland began in 874 AD, when the Norwegian chieftain Ingólfr Arnarson became the island's first permanent settler. In following centuries, Norwegians and to a lesser extent other Scandinavians, migrated to Iceland, bringing with them thralls (i.e., slaves or serfs) of Gaelic origin. The island was governed as an independent commonwealth under the native parliament, the Althing, one of the world's oldest functioning legislative assemblies. After a period of civil strife, Iceland acceded to Norwegian rule in the 13th century. In 1397, Iceland followed Norway's integration into the Kalmar Union along with the kingdoms of Denmark and Sweden, coming under de facto Danish rule upon its dissolution in 1523. The Danish kingdom introduced Lutheranism by force in 1550, and the Treaty of Kiel formally ceded Iceland to Denmark in 1814. Influenced by ideals of nationalism after the French Revolution, Iceland's struggle for independence took shape, culminating with the Danish–Icelandic Act of Union in 1918, and the establishment of the Kingdom of Iceland, sharing through a personal union the incumbent monarch of Denmark. During the occupation of Denmark in World War II, Iceland voted overwhelmingly to become a republic in 1944, ending its remaining formal ties to Denmark. Although the Althing was suspended from 1799 to 1845, Iceland nevertheless has a claim to sustaining one of the world's longest-running parliaments. Until the 20th century, Iceland relied largely on subsistence fishing and agriculture. Industrialisation of the fisheries and Marshall Plan aid after World War II brought prosperity, and Iceland became one of the world's wealthiest and most developed nations. In 1950, Iceland joined the Council of Europe. In 1994 it became a part of the European Economic Area, further diversifying its economy into sectors such as finance, biotechnology, and manufacturing.

In Their Own Story

The wind screamed across Reynisfjara's obsidian sands, carrying a sharp mix of sulfur and salt. A traveler huddled into their wool cloak, eyes fixed on basalt columns rising like cathedral organ pipes against the steel-grey sky. Here, where the crust splits to expose the planet's molten heart, the line between solid earth and fiery depths feels perilously thin. In the distance, a geothermal vent hissed a plume of steam that dissolved into the mist clinging to glacier-capped peaks. It was a realm where time suspended itself, measured not by ticking clocks but by the slow, grinding drift of tectonic plates and the sudden, earth-shaking roar of an awakening volcano.

Reader's Guide

Iceland has a market economy with relatively low taxes, compared to other OECD countries, as well as the highest trade union membership in the world. It maintains a Nordic social welfare system that provides universal health care and tertiary education. Iceland ranks highly in international comparisons of national performance, such as quality of life, education, protection of civil liberties, government transparency, and economic freedom. It has the smallest population of any NATO member and is the only one with no standing army, possessing only a lightly armed coast guard.

Did You Know?

• The Landnámabók names Naddodd as the first Norseman to reach Iceland in the ninth century, giving it the name Snæland (Snowland).
• The island's present name originated from Flóki Vilgerðarson, who coined it after seeing an ice cap.
• The Althing was suspended from 1799 to 1845, but Iceland still claims one of the world's longest-running parliaments.
• Iceland is the only NATO member with no standing army, only a lightly armed coast guard.