ICELAND. Republic of Iceland
A country in Europe located on the island of the same name in the northern part of the Atlantic Ocean. Area — 103,000 km². Capital — Reykjavik (about 110,000); other major cities: Kopavogur, Akureyri. Administrative division — 23 districts.
Population — 288,000 (2004); over 99% are Icelanders. Official language — Icelandic. Religion: the majority of believers are Protestant Lutherans. Currency — Icelandic króna = 100 aurar.
Has diplomatic relations with the Russian Federation (established with the USSR in October 1943).
National holiday — June 17 — Day of the Proclamation of the Republic (1944).
Iceland is a parliamentary republic. The current constitution was adopted on June 17, 1944. The head of state is the president (since 1996 — Ólafur Ragnar Grímsson, People's Alliance), elected by direct vote for a term of 4 years. Legislative power belongs to the president and the Althing (unicameral parliament — 63 deputies), which is elected in general elections by a system of proportional representation for 4 years. Following the elections on May 10, 2003, the parliament includes: Independence Party (IP; conservatives) — 22 mandates, Progressive Party (centrists) — 12, United Left — 20, Left Green Party — 5, Liberal Party — 4 seats. Executive power is exercised by the president and the government appointed by him, headed by the prime minister (since 2004 — Halldór Ásgrímsson, chairman of the Alliance).
Political parties: Independence Party (IP) — founded in 1929, represents the interests of big business and large shipowners, holds conservative positions. Chairman — Davíð Oddsson. Progressive Party (PP) — established in 1916, unites medium and small landowners, part of the middle class of the urban population. The party's social base has significantly expanded in recent years and now includes not only traditional farming but also entrepreneurs and some civil servants.
A center-right party. Chairman — Halldór Ásgrímsson. United Left (UL) — a social-democratic party formed in 2000 as a result of the merger of left opposition members — the People's Party, People's Alliance (PA), and the Women's Electoral Bloc. One of the largest opposition parties in the history of Iceland. Advocates for strengthening the social system, fighting poverty, equality among various social groups, and reforming the quota system in fishing.
Consistently advocates for the country's accession to the European Union. Party chairman is Össur Skarphéðinsson. The new political movement formed in the summer of 1998 after the split of the People's Alliance was formalized in January 1999 as the Left Green Party (LGP). LGP is a left-socialist party focused on environmental protection, anti-globalism, combating economic monopolization, and reducing the influence of large capital. Advocates for the withdrawal of U.S. troops from Iceland and the country's exit from NATO. Joined the Association of Left Parties of the Nordic countries with an ecological focus established in February 2004. Chairman of LGP - Sigurður Þórðarson.
Liberal Party (LP) - a right-wing party founded in November 1998 as a result of a split in the IP. The main issue for LP is the elimination of the current quota system for managing the fishing industry and transitioning to a system of permitted fishing days. The party is critical of Iceland's accession to the EU. While advocating for the preservation of the U.S. base in Keflavik, it is negative towards Iceland's support of U.S. military actions. Chairman of LP - G. A. Kristjánsson.
The leading trade union organization is the Federation of Trade Unions of Iceland (FTUI), founded in 1916. Currently, it unites about 40 sectoral trade unions with a total membership of over 60,000 people.
For 5.5 centuries (since 1380), Iceland was a possession of Denmark. In 1918, the country achieved independence but remained in a union with Denmark. In 1944, it was proclaimed an independent republic. The territory of Iceland hosts a U.S. airbase in Keflavik, warning system facilities, and others.
Since 1946 - a member of the UN, since 1950 a member of the Council of Europe, since 1960 - a member of the OECD, since 1970 - a member of EFTA, since 1952 - a member of the Nordic Council, since 1949 - a member of NATO, since 1992 - an associated member of the EEA.
The country's economy largely depends on the state of affairs in fishing and fish processing. These sectors employ 10% of the workforce, providing more than 10% of GNP and about 35.5% of all foreign currency earnings. The fish catch is about 1.7 million tons per year. The fishing fleet consists of over 1,000 vessels with a total tonnage of about 130,000 gross registered tons. In recent years, promising sectors in Iceland have been international tourism and non-ferrous metallurgy (aluminum). These sectors account for 23% of foreign currency earnings.
The country does not have significant mineral and raw material resources. There are several relatively large industrial enterprises producing (thousand tons per year): aluminum - about 90, ferrosilicon - over 70, diatomite - 30, cement - over 130. There are also several shipyards for the repair and construction of fishing vessels with a displacement of up to 300 gross registered tons.
Iceland has a powerful potential for hydro and geothermal energy resources, estimated at 50,000 GWh per year. Annually, over 8,500 GWh is produced (83% of electricity is generated at hydroelectric power stations, 16.6% - at geothermal plants). Per capita electricity consumption is one of the highest in the world (about 29,000 kWh per year).
Arable land accounts for 24% of the total area. About 1% is cultivated. The main sectors of agriculture (employing about 5% of the working population) are sheep farming and dairy farming. Potatoes and fodder crops are grown. Greenhouse farming is developing.
The main part of cargo transportation is carried out by the maritime fleet. Over 95% of all air transportation is carried out by the company "Icelandair." The vehicle fleet consists of about 500 cars per 1,000 residents.
Exports of goods and services accounted for up to 50% of GNP. Fish and fish products accounted for 62.3% of export value. Consumer goods and industrial products dominate imports. Main trading partners are EU countries (about 50% of imports and 70% of exports). The share of Eastern Europe, including CIS countries, accounted for 7% and 3%, respectively.
The most important traditional markets for Iceland include: EEA countries (70.8% of trade turnover), the USA (11.8%), and Eastern European and Southeast Asian countries, whose share in Icelandic trade reached 8%.
Gross external debt at the end of 2004 reached 172% of gross national product (GNP).
The GDP per capita places Iceland among the top in the group of developed countries. In 2004, GDP was $36,500 per capita. Annual GNP growth rate - 5.5%. Inflation rate - 3.8% (2004). The average unemployment rate - 3.1% of the working population.
The education system includes 5 universities and colleges. There are 5 central daily newspapers, including "Morgunblaðið" (56,000 copies), "Dagblaðið Vísir" (45,000), "Fréttablaðið" (60,000), and others. The media also includes 1 state television channel, several commercial and satellite channels, and radio broadcasting.