Iceland - An Overview

Research Paper (undergraduate) from the year 2008 in the subject Politics - Region: Other States, grade: 1,3, University of Cooperative Education Mannheim, language: English, abstract: We're selling Iceland," quoted the Financial Times in November 2007 after an interview with Jon Olafsson, CEO of Icelandic Glacial. "The purity and coolness of the island - because Iceland is very cool and hip these days." Though this statement is refered to the water product, it demonstrated the high interest in the island itself. As many know, Iceland is the country where one can witness the phenomenons of Mother Nature: tremendous icecaps and several glaciers, raging rivers and magnificent waterfalls, spouting geysers and steaming solfatara, volcanoes, a multitude of birds and whales. The spectacular landscape is one reason why Iceland's tourism is successful. But in recent years Iceland also drew the attention of many industries to itself. For example, many technological and telecommuniational products have been outsourced in Europe towards Iceland as it provides many competitive advantages in these fields. Iceland is unique: it is the smallest economy in the world that has its own currency and a flexible exchange rate. It is also an advanced country with excellent institutions meaning low corruption index, the rule of law, a highly educated population and more (cf. Iceland Chamber of Commerce 2006). For most of the 1990s the island presented one of the highest consistent growth rates in the world and low inflation and unemployment. Particularly the resource management in the mainstay fisheries sector, price stability and diversification of the industry contributed to this economic record. The paper on hand gives an outline of the country. To begin with general information about the island is described. This includes demographic as well as historical and political aspects. The third chapter sketches the development and structure of the Icelandic economy. Current economic situation and main economic sectors are content of this section. Furthermore, the culture is described with the three pillars being religion, language and common history. Also the cultural dimensions of Hostede are analysed for Iceland. Moreover this paper provides an overview of the Icelandic education system. Finally upcoming topics and problems will be mentioned.