Iceland An island country just south of the Arctic Circle in the north-eastern Atlantic Ocean.

Physical

It is approximately 460 km (285 miles) long by 280 km (174 miles) wide; but only its coastal areas can be used for settlement and agriculture because the rest is a wasteland of ice, ash, and lava flows.

Economy

Hydroelectric power stations provide over three-quarters of the country's electricity needs and geothermal energy is abundant. Six-sevenths of the land area is agriculturally unproductive. The fishing industry is of vital importance to the economy, accounting for three-quarters of exports; other exports are aluminium (produced from imported alumina) and ferrosilicon. Sheep are grazed in coastal areas.

History

Iceland was conquered by the VIKINGS between 874 and 930. Its capital, Reykjavik, was founded, and the country was governed by some 36 chieftains, who met periodically in the Althing, an official assembly. A lawspeaker was appointed, and, in 1005, a Supreme Court. Authority, once derived from the pagan priests and temples, changed with conversion to Christianity in c.1000 to a partnership of Church and Althing. In 1262 Iceland passed to Norway and, in 1380, with Norway to the Danish crown. Under the rule of Denmark since 1380, a nationalist movement achieved the restoration of the Althing or parliament in 1845. Iceland acquired limited autonomy in 1874 and independence in 1918, although it shared its king with Denmark till 1943. It became an independent republic in 1944. An Allied base during WORLD WAR II, it joined the UNITED NATIONS ORGANIZATION and NATO (1949). It engaged in sometimes violent disputes with Britain over fishing limits, resulting in the ‘Cod War’ of 1972–76. In the late 1970s strong opposition to the presence of US bases developed, and Iceland became a nuclear-free zone in 1985. In 1990–91 Iceland attempted to restrict fishing within its territorial waters during negotiations between the European Free Trade Association (EFTA) and the EUROPEAN COMMUNITY (EC) over a common European Economic Area (EEA), which it boycotted. However, following the election of a new centre-right coalition government in April 1991, Iceland managed to secure a restriction on fishing in its waters and introduced measures of economic liberalization, leading to the privatization of many state-owned industries. It also favoured closer relations with the USA, which maintained NATO naval bases in Iceland. The country's worsening economic situation in 1992, caused by losses in the fishing industry (its economic mainstay), led the government to introduce emergency measures and to devalue the króna in 1993. Having finally approved the EEA agreement Iceland made moves towards applying for membership of the EUROPEAN UNION (EU), following the example of Sweden and Finland. In April 1995 a new coalition government was formed, led by David Oddsson, following a general election, and in 1996 Olafur Ragnar Grimsson was elected President.

Davíð Oddsson 1948-, Icelandic politician and writer. A lawyer, radio producer, and the author of several plays and teleplays, he also worked for the Reykjavík Health Insurance (1976-82), becoming a managing director. From 1982 to 1991 he was mayor of Reykjavík, having served on the city council since 1974. Elected to the Althing as a member of the conservative Independence party in 1991, he became prime minister the same year and remained in the office until 2004, when he swapped roles with Foreign Minister Halldór Ásgrímsson.