Iceland - An Overview (PDF)

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.