Iceland: History, Culture, Education, Politics, Macroeconomics and Legal System

Executive Summary 

Iceland is a small nation located in the Northern parts of the world. The country occupies 39,769 miles. It consists of 320,000 citizens who conduct economic, political, religious, and social activities. The capital city of the nation is Reykjavik where a third of the population lives. Most features in Iceland are volcanically activities. The natural resources include hills, plateaus, glaciers, and oceans. However, the climate in the country is not suitable for bats, polar bears, and amphibians. The state has 13,000 insects and Arctic Fox that survive in the high temperatures. The current family unit in Iceland has adopted the dual working framework. Men and Women have secured job positions in the workforce. The state provides financial assistance to single households to enhance wealth distribution in the community. Also, the government meets the children needs to ensure that the parents participate in the workforce. Companies assist the government to fulfill its mission by incorporating the family and gender policies in the work setting. 

The education system in the country contains four categories which include pre-school, compulsory, secondary, and tertiary stage. The government regulates the education activities by providing funding and developing laws. It is mandatory for children between the ages of 6 to 16 years must attend classes. Iceland has established gymnasiums to offer advanced secondary education. As a result, the literacy rates have increased in the country. Iceland is a free nation and uses the multi-party approach in governing the citizens. The citizens are responsible for electing the government leaders after every four years. Each political party has an equal chance of representation in the Parliament. 

Iceland is the smallest economy among the rich nations. The country collects taxes from corporations and receives returns from the investments which increase the GDP. Iceland has developed the manufacturing sector to increase the income. The nation has a unique economy which can be changed during economic fluctuations. Iceland has raised the foreign exchange rates, but reduced the unemployment levels for economic development. Further, the nation has retained the inflation rates 3.9%. The social classes in the country include the rich and poor individuals. The civilians interact by social classes. The business sector has customs and practices that regulate the conduct of entrepreneurs or employees including punctuality, transparency, dress code, communication, and CSR. Most residents in the country attend the NIC church. Other residents are Catholics or non-religious. Medical facilities in the country are equally provided and funded by the government. The mortality levels have decreased in the past two years with boys having the highest birth rates. The Icelandic government supports the elderly in the country where they access health and social services. The poverty rates are reducing, but the youths are victims due to scarce employment opportunities. The common language is Icelandic, but the citizens use English to communicate with foreigners. 

History 

Iceland was the last European nation to receive immigrants between the ninth and tenth century. The immigrants were from Norway and Scandinavia. The primary language and culture of Iceland were similar to the Scandinavian practices. The country faced challenges such as poverty, disease, and natural calamities which affected the overall performance (Minelgaite, Árelía, & Stangej, 2018) . Iceland began to conduct economic, social, and political activities independently after gaining freedom. Some elements such as poverty and diseases have been eliminated in the country. However, Iceland still receives immigrants who come as tourist or workers (Minelgaite, Árelía, & Stangej, 2018) . Tourists come to view the volcanic and natural features in Iceland. Further, the artistic activities are still present in Iceland. The old museums and galleries still exist which attract tourists. In 2016, the tourist increased by 40% which is an estimate of 170, 000 people (Minelgaite, Árelía, & Stangej, 2018) . Although the country has developed, the economic, political, and social activities still affect the performance of the country. 

Current Events 

The citizens of Iceland conduct various activities that enhance the performance. Firstly, the current economic activities in the country include processing fish, aluminum, and producing silicon. The citizens are working in the manufacturing and production sectors to acquire income. Tourists are visiting the country to view the artifacts and natural resources. The nation is also participating in international trade by exporting fish and aluminum (Minelgaite, Árelía, & Stangej, 2018) . There are no political events including elections and amending the constitution. 

Geography 

Iceland is among the European countries and is located in the Northern regions. The country consists of 320,000 residents who occupy approximately 39, 769 miles (Hartman et al., 2017) . The capital city of Iceland is Reykjavik. Most of the mountains and water bodies in Iceland are volcanically active. The interior regions of Iceland comprise plateau, hills, dunes, and rivers (Hartman et al., 2017) . The country is surrounded by water bodies including the North Atlantic Ocean. The Gulf Stream increases the temperatures in Iceland in spite of the heat along the Arctic region. Geographically, the country is one of the areas of the Mid-Atlantic Range (Hartman et al., 2017) . Thus, the nation borders the Eurasian and North American plates. The country was formed when the Mid-Atlantic range erupted to create the two plates. Iceland has 1,300 organisms, and the only mammal that exists in the region is the Arctic Fox (Hartman et al., 2017) . The nation has the least number of species in the world due to unfavorable temperatures. Geologists spot bats that are driven by winds on rare occasions, but the survival rates are low. Further, polar bears are seen in Iceland occasionally, but they do not live in the region (Hartman et al., 2017) . The climate in Iceland is not suitable for reptiles and amphibians. 

Family 

The families in Iceland have many members than the households in the European region. In the 1990s, households in Iceland spent 18% of the total gross domestic product on medical and welfare purposes. The spending rate was lower as compared to other European nations. In spite of Iceland households having more children than the European countries, the money allocated for health and welfare facilities is inadequate. However, the Icelandic government decided to mitigate the challenge by incorporating household regulations including the appointment of the FC (Family Council) in 1998 (Minelgaite, Árelía, & Stangej, 2018) . The council assisted the state in implementing laws including paternity leave where men could take a third of the compensation during the break. In the 1990s, the government implemented regulations that allowed men and women to provide equal support for their children. The state funded children support hours and after school tasks to enhance favorable laws for the working-class households. The regulations were critical to the employees in Iceland because it increased the workforce turnover in the private and public sectors (Minelgaite, Árelía, & Stangej, 2018) . The Icelandic government has been developing policies from the late 19 th century to strengthen the family units. 

The framework of the family unit in Iceland has transformed to a dual working and similar rights from a single provider. The government has increased job opportunities for women and meets the expenses of supporting the children. Between the 1970s and 1980s, the individual families had equal rights (Minelgaite, Árelía, & Stangej, 2018) . The modern framework facilitates progress in the households by increasing income. Also, the Icelandic state has introduced housing allowances to the contemporary family structure (Minelgaite, Árelía, & Stangej, 2018) . The preschools have not attained legal rights in spite of the state increasing the hours. The government offers financial support to single and dual families. However, the state provides more finances to the single households. The policy facilitates the equal wealth distribution in the Icelandic community. The state restructured the family regulations to give men and women equal opportunities to ensure that the families get adequate income to meet the welfare or medical needs (Minelgaite, Árelía, & Stangej, 2018) . The family unit is necessary to the civilians in the country because the community perceives that social and economic connections are developed in the households. Iceland implemented laws where children should attend preschools for the parents to get an opportunity to raise income. One of the critical aspects of household policy is child development. The law facilitates the intellectual and emotional growth of the children at a young age as compared to other nations. Companies in Iceland incorporate gender and household laws to assist the state to achieve its mission (Minelgaite, Árelía, & Stangej, 2018) . Also, private companies implement social regulations to promote equality and progress in families. 

Education 

The education structure in Iceland consists of four categories which include pre-school, compulsory, secondary, and tertiary education. The education setup is similar to that of Nordic regions. The Icelandic government provides that children between the ages of 6 to 16 years must access education facilities (Jóhannesson et al., 2011) . Most of the learning organizations receive financial support from the state. Iceland emphasizes academic learning where it delegates learning institutions to offer advanced education at the secondary level. The government has constructed gymnasiums that provide advanced training at affordable rates (Jóhannesson et al., 2011) . Therefore, most citizens in the country enroll in learning institutions. The current literacy rate in the country is 99%. Iceland has maintained the literacy levels since 2004. More than 99% of the children graduate from the primary level, and around 97% of the pupils attain a secondary certificate (Jóhannesson et al., 2011) . The final education stage in Iceland is the tertiary level. Students enroll for jobs and internships after completing all the education levels. 

Icelandic government offers students from Nordic regions to study and work in the country. However, students from the European area and across the world must fulfill special conditions before enrolling in Icelandic schools and work settings. The state has developed placement opportunities programs such as Erasmus and Nordplus to offer international students a chance to join their learning institutions or workforce (Jóhannesson et al., 2011) . The programs assist students in acquiring internship opportunities in organizations related to their area of specialization. The duration for the attachment in the country ranges from three months to one year. However, students with background experience enroll for eight weeks. The organizations that offer attachment positions include training institutions, private corporations, and universities . European Union agencies or public organizations do not provide placement positions to students (Jóhannesson et al., 2011) . The placement institutions give the students limited time to prepare for the activities. The institutions should provide all the attachment documents and consent before the student starts to work in the organization. Students get allowances during internships, but it is not a culture in the country (Jóhannesson et al., 2011) . The purpose of the attachment or internship opportunities is to prepare the student to join the labor sector. 

Politics 

Iceland is an independent country after gaining freedom in 1944. The state uses its constitution to regulate the economic, social, and political activities. The Icelandic government has been politically stable since its formation in 1944 (Verney, 2013) . The state possesses the oldest legislative assembly, Althingi, in the world. The nation has sustained Althingi since 930 A.D. The LA consists of 63 individuals who serve in the state for four years (Verney, 2013) . The country has a Prime Minister who chooses the cabinet. Citizens above 18 years have a right to elect leaders. The PM who attains majority votes leads the nation for four years. The Prime Minister has the power to delegate duties to the cabinet secretaries. The cabinet members and Prime Minister hold on their positions until the preceding election (Verney, 2013) . However, the government has authority over the executive. The members of the government are chosen separately from the presidential elections. The government holds its power for four years before the next vetting process. The Supreme and Regional courts have authority in the judicial structure (Verney, 2013) . All the state branches must meet the needs of the citizens to avoid opposition and political tension. 

There are several cases in which the citizens are against government activities. An illustration is a collapse of the banking structure in 2008 where foreign investors claimed their finances after the industry was unproductive. Consequently, the citizens and foreigners held daily protests to advocate for the termination of the Prime Minister. The Prime Minister was a former employee of the country’s reserve bank. The bank customers perceived that the PM was involved in the insolvency of the banking sector ( Irma, Valur, & Urfalino, 2016). Another challenge that has increased the opposition to the government is the reduction in the employment rates. The current rate of unemployment in Iceland is 8%. The citizens perceive that the state leaders focus on their problems rather than public concerns. Also, the public understands that the state has not decreased the wealth gaps because it has been increasing since 2003 (Irma, Valur, & Urfalino, 2016) . Political tensions have developed in the country due to the government’s inability to satisfy the citizens. 

The government of Iceland uses a multi-party structure. Every political party in the country has an equal presentation in the Parliament. Further, the parties collaborate to form an integrated government. The parties elect members who represent them in the Althingi. The transparency level in the country is 77% which is an indication that there is low corruption (Trading Economics, 2019). The low corruption levels and fair presentation of the parties have increased the performance of Iceland. 

Macroeconomics 

Iceland owns a lot of wealth and possesses various industries. The country has low state debt and high liquidity. The nation has invested in FER (foreign exchange reserves) and pending credits. Historically, the economy of Iceland is flexible to sudden economic changes. The country is the smallest economy among the rich nations in spite of attaining a GDP of $ 34.91 billion in 2017 and a low unemployment rate of 2.9% (The Heritage Foundation, 2019) . Iceland is unique from its counterparts due to its response to the macroeconomic trends. In the mid-1990s, the fishing industry dominated in the country which was the main contributor of the GDP (The Heritage Foundation, 2019) . As a result, Iceland economy was volatile because the primary sources of income were exports. 

The country has transformed its investment approach for economic development. Currently, Iceland has increased its investments on the established of manufacturing industries. For example, the state established an aluminum smelting industry in the eastern and southwestern region (The Heritage Foundation, 2019) . The state has sustained its inflation rates to enhance the growth of the manufacturing industry. Iceland has sustained an inflation rate is 3.5% by increasing the exchange rates and imposing strict monetary regulations. The asset and equity prices in the country have been rising since 2003. Also, the housing prices in Iceland increased by 40% (The Heritage Foundation, 2019) . The investment projects have increased employment and wage rates in the region. Subsequently, the consumer spending rates and demand for imports have also increased. The main taxes in the country include VAT, income, and corporate collections. The DIR is responsible for collecting taxes from the financial organizations (The Heritage Foundation, 2019) . The country earns revenue by raising taxes and investment returns. 

Iceland restructured its financial sector to enhance economic growth. The government facilitated the development of the financial industry by increasing credit to investors and domestic entrepreneurs. For instance, the central bank increased lending by 40% to promote trading activities (The Heritage Foundation, 2019) . The government has imposed policies on maintaining low-interest rates for long-term loans. Banks and financial organizations provide mortgage loans to the public to save the housing expenses. The country is a member of international institutions such as NATO, WTO, and the European Union (The Heritage Foundation, 2019) . The state reserves the real property rights to the civilians. It has developed an institutional model to ensure the property of the citizens is secure (The Heritage Foundation, 2019) . The economy of Iceland is growing by boosting financial activities despite economic fluctuations. 

Legal System 

The Icelandic government uses the public law legal structure. Therefore, the law is the country is written. The primary sources of government regulations in the state include regulatory policies, the Constitution, and judicial acts. The additional legal references include the standard and paradigm policies (Verney, 2013) . The Constitution is the primary legal document in Iceland which regulated all the activities and conduct of the public. The original Constitution was created in 1874. Subsequently, Iceland changed its Constitution 1944 after gaining independence (Verney, 2013) . The government charter focuses on power and respect to republican policies. The demand for new systems has risen due to an increase in economic and social challenges in the nation. Administrators have the right to delegate laws as provided in the statutory procedures (Verney, 2013) . The government publishes the local management laws and guidelines in Part B of the Legal Gazette through newspapers or public documents. The judiciary can refer to the customary law when making a decision or establishing regulations (Verney, 2013) . For example, the customary provisions are an essential reference to government matters. 

Sociology 

The cultural practices in Iceland are drawn from Norse traditions. Traditionally, the Icelandic community comprised various classes such as crown officers, landowners, merchants, tenant farmers, sub-tenants, lodgers, servants, and paupers. The crown officers had the highest rank in the community. The paupers and servants had the lowest level in the community (Aevar Oddsson, 2010) . The crown officers did not interest with the paupers or servants. Further, they could not accept their daughters to get married to the servants. The current social class is different from the traditional structure. It contains three levels which include the upper, middle, and lower class (Aevar Oddsson, 2010) . The upper-class individuals rarely interact with the lower-class in the community. However, the upper and middle-class individuals associate regarding business activities. The facilities for the wealthy and low-class families are disintegrated including schools and recreational centers (Aevar Oddsson, 2010). The social classes portray different behaviors to attract their counterparts. For example, the working-class individuals depict their class status by using a unique language. The dressing code of the upper and middle class is different from the lower-class people. They wear expensive and attractive clothes. The eating and social behaviors of the three classes are different (Aevar Oddsson, 2010) . There is a gap between the rich and the poor due to the variations in social behaviors. Icelanders dominate around 94% of the country’s population. The other ethnicities occupy 6% of the total citizens (Aevar Oddsson, 2010) . Thus, the state follows the Icelandic customs, beliefs, and culture. 

Business Customs and Practices 

Traditionally, Iceland did not embrace the aspect CSR which was a primary practice of companies in the Nordic nations. The Icelandic corporations adhere to the social and environmental measures developed in the European region. One of the main focuses of Iceland is the natural resources that can be useful in the future. The country presumes that the resources can increase the GDP. The government has encouraged companies to implement CSR measures in their activities because it can increase customer loyalty and competition in the industry (Minelgaite, Árelía, & Stangej, 2018) . Currently, CSR has become a significant practice in the industries. Most companies in Iceland had not implemented the CSR measures before the occurrence of the banking crisis which led to poor trust and low competition (Minelgaite, Árelía, & Stangej, 2018) . The firms have incorporated the CSR standards to increase customer loyalty and competitiveness in the market. 

Punctuality is among the valued practices in Icelandic corporations. The companies provide that employees should give notice on lateness to meetings. The firms request that the staff should arrive early in the business conferences for the chairperson to commence at the designated time (Minelgaite, Árelía, & Stangej, 2018) . Also, organizations recommend that appointments must be scheduled earlier for the appointee to confirm the availability. The appointment should be in planned to avoid confusion due to communicating using an international language. The firms use the 24-hour system to schedule appointments (Minelgaite, Árelía, & Stangej, 2018) . Punctuality has enabled businesses to perform efficiently. 

Icelanders love fashion and dress modestly when conducting business activities. However, some individuals wear casual clothes in the work environment. The companies in the state recommend that foreigners should dress formally or in a manner that is suitable in the business setup. Most employees’ wear formal clothing but the companies allow casual clothes twice a week (Minelgaite, Árelía, & Stangej, 2018) . Some workers wear according to the stated clothing by the company. 

Bribery and corruption are not acceptable in business contracts. The businesspersons in the country value transparency. Iceland was ranked as the 13 th country in the world in 2011 that embraces transparency. The banking crisis of 2009 increased the corruption levels in the country because it was the 1 st in the world concerning transparency (Minelgaite, Árelía, & Stangej, 2018) . The Icelandic government focuses on reducing corruption levels to attract investors. 

Many entrepreneurs in the country prefer face-to-face communication. The businesspersons prefer face-to-face communication to determine the intentions of the other investor. Direct communication is essential in enhancing values such as honesty, integrity, and accountability (Minelgaite, Árelía, & Stangej, 2018) . The residents value relationships which prompt them to meet their business partners. The entrepreneurs prefer to meet in conferences rooms, hotels, bonfires, or parties. The language barrier can be a challenge in direct communication if the local entrepreneurs meet a foreigner (Minelgaite, Árelía, & Stangej, 2018) . In most cases, the entrepreneurs use English, but they hire an interpreter to ensure the negotiation process is successful. 

Religion 

The citizens in the country have the freedom of worship as stated in the Constitution. The universal church in the country is the NIC (National Church of Iceland). The civilians are categorized into different groups. About 80.7% of the country’s population attends the NIC church (Minelgaite, Árelía, & Stangej, 2018) . Around 6.2% of the civilians attend unregistered churches or are not affiliated to a particular religion. However, 2.5% of the population attends the Catholic Church, and 11% of the citizens are not affiliated with religious groups (Minelgaite, Árelía, & Stangej, 2018) . The traditional religion in Iceland was Christianity due to the influence of colonists. The missionaries introduced theosophy in the 19 th century, but Iceland was open to other religions. After the 20 th century, the residents began to enter other religious groups. For instance, Germans introduced the Neopagan religion in the late 20 th century (Minelgaite, Árelía, & Stangej, 2018) . The transformation from Christianity was facilitated by the increased knowledge of different languages including Eddas. In 2010, the citizens embraced the Sumerian religion which was established in 2013 (Minelgaite, Árelía, & Stangej, 2018) . The difference in the religion has affected the unity in Iceland. 

Living Conditions 

The medical structure in the country is universal. The health facilities depend on the finances collected from taxes rather than domestic sources of funding. The Ministry of Welfare is responsible for regulating the medical activities in the country. The citizens can access insurance services, but there are no private medical facilities in Iceland (Minelgaite, Árelía, & Stangej, 2018) . The government provides financial support to the medical sector to ensure that all citizens access similar health services. Iceland has a decentralized medical structure where the country is divided into seven regions to ensure citizens receive quality care from the physicians. There are no training systems in the state, but the physicians acquire experience in foreign nations for around eight to ten years (Minelgaite, Árelía, & Stangej, 2018) . All the citizens acquire quality health services due to the government’s efforts in funding hospitals. 

The birth rates decreased in 2017 where 4,071 infants were delivered. Most of the children were from single-parent households. About 71% of the children were from single families, and 14.8% were from dual households ("Lowest Ever Fertility Rate in 2017", 2018) . The mortality rates were the lowest as compared to the previous years. The fertility level is 1.80 births for a woman. More boys were born as compared to girls. In 2017, there were 2112 male infants, but the girls were 1,959 ("Lowest Ever Fertility Rate in 2017", 2018) . The life expectancy rates have been increasing over the past decades due to improved medical services. The average life expectancy in the country is 82.4 years which is the 12 th in the world. The life expectancy of women is higher with 83.9, but men can live for approximately 80.9 years ("Life Expectancy in Iceland", 2018) . The real estate costs have risen by 13.7% in 2018 which indicates that the demand for purchasing houses is increasing (Thelwell, 2017) . Most residents in Iceland purchase houses by taking mortgage loans from financial organizations. The state has implemented formal regulations to support the elderly. The government provides that old individuals should access quality health and social facilities. Iceland has taken action in conducting comprehensive examinations to ensure the elderly receive the recommended care (Sigurdardottir, Kristmundsson, & Hrafnsdottir, 2016) . Poverty in Iceland involves inadequate finances to meet basic needs. About 30,000 individuals are below the poverty levels in the country. However, 13% of the citizens are at risk of getting below the poverty rate. The poverty rates are dominant among young individuals who have not secured job opportunities. More than 3,000 youth access welfare services from government agencies (Thelwell, 2017) . The poverty levels are decreasing, and the mortality rates are increasing after the improvement of health services. 

Language 

The primary language in the nation is Iceland. It originated from the Germans, but influences on the European language. The Icelandic language has transformed since the 9 th and 10 th centuries. The language is among the cultural aspects due to its rich literary origin (Minelgaite, Árelía, & Stangej, 2018) . The citizens do not borrow words from other languages but develop new literature or provide meaning to ancient language. The popular literature in the language is Eddas and Sagas. At times the citizens use English to communicate to international visitors (Minelgaite, Árelía, & Stangej, 2018) . The country has a unique language that is not influenced by foreign words. 

References 

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Hartman, S., Ogilvie, A. E. J., Ingimundarson, J. H., Dugmore, A. J., Hambrecht, G., & McGovern, T. H. (2017). Medieval Iceland, Greenland, and the new human condition: A case study in integrated environmental humanities.  Global and Planetary Change ,  156 , 123-139. Retrieved from https://www.sciencedirect.com/science/article/pii/S0921818116303356 

Irma, E., Valur, I., & Urfalino, P. (2016).  Iceland's financial crisis: The politics of blame, protest, and reconstruction . Abingdon, Oxon: Routledge. 

Jóhannesson, I. Á., Norðdahl, K., Óskarsdóttir, G., Pálsdóttir, A., & Pétursdóttir, B. (2011). Curriculum analysis and education for sustainable development in Iceland.  Environmental Education Research ,  17 (3), 375-391. Retrieved from https://www.tandfonline.com/doi/abs/10.1080/13504622.2010.545872 Bottom of Form 

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Minelgaite, I., Árelía, E. G., & Stangej, O. (2018).  Demystifying leadership in Iceland: An inquiry into cultural, societal, and entrepreneurial uniqueness . Cham, Switzerland: Springer. Bottom of Form 

Sigurdardottir, S. H., Kristmundsson, O. H., & Hrafnsdottir, S. (2016). Care of older adults in Iceland: policy objectives and reality.  Journal of Social Service Research ,  42 (2), 233-245. Retrieved from https://www.tandfonline.com/doi/full/10.1080/01488376.2015.1137535 

Thelwell, K. (2017). World Leader: Poverty Rate in Iceland Continuously Lowers. Retrieved from https://borgenproject.org/poverty-rate-in-iceland/ 

The Heritage Foundation. (2019). Iceland Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. Retrieved from https://www.heritage.org/index/country/iceland 

Trading Economics. (2019). Iceland Corruption Index | 2019 | Data | Chart | Calendar | Forecast | News. Retrieved from https://tradingeconomics.com/iceland/corruption-index 

Verney, D. V. (2013).  Analysis of political systems . Routledge.