Iceland, Icelandic Ísland, republic (9,698 sq mi/102,819 sq km; 1993 population 264,919; 2004 estimated population 293,866), the westernmost state of Europe, occupying an island in the Atlantic Ocean just S of the Arctic Circle, c.600 mi/970 km W of Norway, and c.180 mi/290 km SE of Greenland; (cap.) Reykjavík.
Geography
Iceland includes several small islands, notably the Vestmannaeyjar off the S coast. Deep fjords indent the coasts, particularly in the N and W. The island itself is a geologically young basalt plateau, averaging 2,000 ft/610 m in elevation (Hvannadalshnúkur, newly buried by Öraefajökull, c.6,950 ft/2,120 m high, is the highest point) and culminating in vast icefields, of which the Vatnajökull, in the SE, is the largest. There are about 200 volcanoes, many of them still active; the highest is Mount Hekla (c.4,900 ft/1,490 m). Hot springs abound and are used for inexpensive heating; the great Geysir is particularly famous. The watershed of Iceland runs roughly E-W; the chief river, the Jökulsá, flows N into the Axarfjörður (there are several other rivers of the same name). Most energy is obtained from hydroelectric power (large dams on Sog and Thonsa rivers; geothermal energy in SW and NE). Only about one-quarter of the island is habitable, and practically all the larger inhabited places are located on the coast; they are Reykjavík, Akureyrí, Hafnarfjörður, Siglufjörður, Akranes, and Isafjörður. The climate is relatively mild and humid (especially in the W and S), owing to the proximity of the North Atlantic Drift (Gulf Stream); however, N and E Iceland have a polar, tundra-like climate. Grasses predominate; timber is virtually absent, and much of the land is barren.
Population
96% of the population is a homogeneous mixture of the descendents of Norse and Celtic settlers. The Lutheran Church is the sole established church, but there is complete religious freedom. The official language is Icelandic (Old Norse), and virtually all Icelanders are literate. There is a university (established 1911) at Reykjavík.
Economy
About 15% of the land is potentially productive, but agriculture, cultivating mainly hay, potatoes, and turnips, is restricted to 0.5% of the total area. Fruits and vegetables are raised in greenhouses. There are extensive grazing lands, used mainly for sheep raising, but also for horses and cattle. Fishing is very important, accounting for 12% of the GNP and 70% of exports. Increased emphasis on wool industry, cattle, and tourism. There was an expansion of the aluminum industry in the late 1990s designed to make the country Europe’s largest aluminum producer based on the use of its vast untapped hydroelectric resources. Aside from aluminum smelting, Iceland has little heavy industry and relies on imports for many of the necessities and luxuries of life. Over half of Iceland’s GNP comes from the communications, publishing (most books per capita in the world), trade, and service industries. Tourism is also an important industry (waterfalls, geysers, and hot springs, volcanoes, glaciers; sport fishing). Most trade is with the U.S. and Europe. In 1990 Iceland’s per capita national income was higher than the average for Europe.
History to 1264
Iceland may be the Ultima Thule of the ancients. Irish monks visited here before the 9th century but abandoned it on the arrival (c.850–875) of Norse settlers, many of whom had fled from the domination of Harold I. The Norse settlements also contained Scottish and Irish slaves. In 930 a general assembly, the Althing, was established near Reykjavík at Thingvellir, and Christianity was introduced c.1000 by the Norwegian Olaf I, although paganism seems to have survived for a time. These events are preserved in the literature of 13th-century Iceland, where old Norse literature reached its greatest flowering. (Modern Icelandic is virtually the same language as that of the sagas.) Politically, Iceland became a feudal state, and the bloody civil wars of rival chieftains facilitated Norwegian intervention. The attempt of Snorri Sturluson (1179–1241) to establish the full control of King Haakon IV of Norway over Iceland was a failure; however, Haakon incorporated Iceland into the archdiocese of Trondheim and between 1261 and 1264 obtained acknowledgment of his suzerainty by the Icelanders.
History - 1264 to 1854
Nor.wegian rule brought order, but high taxes and an imposed judicial system caused much discontent. When, with Norway, Iceland passed (1380) under the Danish crown, the Danes showed even less concern for Iceland's welfare; a national decline (1400–1550) set in. Lutheranism was imposed by force (1539–1551) over the opposition of Bishop Jon Aresson; the Reformation brought new intellectual activity. The 17th and 18th centuries were, in many ways, disastrous for Iceland. English, Spanish, and Algerian pirates raided the coasts and ruined trade; epidemics and volcanic eruptions killed a large part of the population; and the creation (1602) of a private trading company at Copenhagen, with exclusive rights to the Iceland trade, caused economic ruin. The private trade monopoly was at last revoked in 1771 and transferred to the Danish crown, and in 1786 trade with Iceland was opened to all Danish and Norwegian merchants.
History - 1854 to 1961
The exclusion of foreign traders was lifted in 1854. The 19th-century rebirth of Icelandic culture and desire for independence was led by Jón Sigurðsson. The Althing, abolished in 1800, was reestablished in 1843; a constitution and limited home rule were granted in 1874; and Iceland became a sovereign state in personal union with Denmark in 1918. The German occupation (1940) of Denmark in World War II gave the Althing autonomy over the country’s affairs. Iceland was defended from German attack by Great Britain (1940–1941), then by U.S. forces (1941–1945). Union with Denmark was terminated in 1944 by majority vote; the kingdom of Iceland was proclaimed an independent republic on June 17, 1944, with Sveinn Björrnsson as its first president. Iceland was admitted to the UN in 1946; it joined in the Marshall Plan and NATO. In 1946, Iceland granted the U.S. the right to use the American-built airport at Keflavík for military as well as commercial planes. Under a 1951 defense pact, U.S. troops were stationed here. Björnsson was succeeded by Ásgeir Ásgeirsson. To protect its vital fishing industry, Iceland extended the limits of its territorial waters (1958) from 4 mi/6.4 km to 12 mi/19 km, resulting in a conflict with Great Britain, which at times led to exchanges of fire between Iceland's coast guard vessels and British destroyers, until 1961 when Great Britain accepted the new limits.
History - 1961to Present
Surtsey Island, 8 mi/12.9 km SE of Vestmannaeyjar, was born November 16, 1963, with the eruption of a submerged volcano. Iceland joined EFTA in 1970. In 1971 elections the Independence–Social Democratic coalition government, which had governed for twelve years, lost its majority. A leftist coalition, composed of the Progressive party, the Communist-led Labor Alliance party, and the Liberal Left party, came to power. In 1972, the territorial waters were further extended to 50 mi/80 km, renewing the dispute with Britain over fishing rights. An interim agreement in October 1973, limited the British catch and restricted the areas and types of vessels they could use. In January, 1973, the Helgafell volcano on Heimaey Island erupted, damaging the town of Vestmannaeyjar. Later in the year Iceland and the U.S. began revising the 1951 defense pact, with a view toward ending the U.S. military presence. U.S. forces still occupy the NATO base at Keflavík Airport, and their presence continues to be a point of contention among Iceland’s parties. In May 1974, the Althing was dissolved following a split in the ruling coalition over economic policies. In the June elections the Independence party won a large plurality and formed a new government. Iceland extended its fishing limits to 200 mi/320 km in 1975, which, after more skirmishes with Great Britain, was finally recognized in 1976. Vigdís Finnbogadóttir (Progressive Party) was elected president in 1980, and was reelected in 1984, 1988, and 1992. David Oddson (Independence Party) became prime minister in April 1991. The economy stabilized in 1990s with government attempts to expand hydroelectric and geothermal energy resources, reducing dependency on oil imports, and emphasis on diversifying exports. A rural electrification program in 1980s brought electric power to most of Iceland’s farms and small settlements. In 1994, the “cod wars” resumed, this time with Iceland’s closest ally, Norway, in waters surrounding Svalbard Islands (Spitsbergen). Though the latter is under Norwegian sovereignty, forty signatories of 1920 Paris Treaty are allowed access to its resources, and the Russians have coal-mining concessions.
Government
Iceland is governed by parliamentary democracy, with a cabinet responsible to the Althing and a president elected by popular vote for a four-year term. The four major parties are the Independence, the Progressive, the Social Democratic, and the People’s Alliance. The republic possesses neither an army nor a navy. The government plays a major part in the economic life of the country and has established monopolies on the import and sale of several important articles. Social welfare legislation is extensive. The current President is Olafur Ragnar Grimsson, elected in 1991. The head of governfment, in office since 1991, is Prime Minister David Oddsson.
