Iceland

D

Language

Icelandic is the official language, which has remained closer to the Old Norse of Iceland’s original Viking settlers than to the other Scandinavian languages. Most Icelanders also speak at least one foreign language. See Icelandic Literature.

E

Education

Virtually all Icelanders are literate. Education is free through to the university level and is compulsory for all children between the ages of 6 and 16. In 2000, 31,786 pupils were enrolled in primary schools, 32,186 students attended secondary schools, and 11,584 were enrolled in tertiary institutions in Iceland; about 25 per cent of tertiary-level students study abroad. The leading institution of higher education is the University of Iceland (1911), in Reykjavík. Other university-level institutions include the University of Akureyri (1987) in Akureyri; Hvanneyri Agricultural University College (1997) in Hvanneyri; and Iceland University of Education (1908) and Iceland College of Engineering and Technology (1964), both in Reykjavik. In 2002–2003, 7.8 per cent of gross national product (GNP) was spent on education.

F

Culture

The principal libraries of Iceland are the University Library, the National Library, and the City Library, all located in Reykjavík. The capital is also the site of the Museum of Natural History; the National Museum, containing a major collection of Icelandic antiquities; and an art gallery housing the work of the Icelandic sculptor Einar Jónsson.

IV

Economy

In 2004, Iceland’s GNP was US$11,077 million, equivalent to more than US$49,960 per head. Private enterprise forms the basis of the economy, but the government exercises a considerable degree of control and supervision over key sectors; it owns many of the banking and financial institutions and, with local governments, most of the power-generating facilities. Until the end of the 19th century, agriculture was the chief occupation, with fishing as a supplementary source of income. By the middle of the 20th century, however, fishing and fish-processing had become the major industries. Iceland’s hydroelectric power and geothermal energy potential is enormous and is being developed to further industrialization. In 1970 Iceland became a member of the European Free Trade Association. The annual national budget in 2006 included revenue of about US$5,870 million and expenditure of about US$4,895 million. Iceland suffered from a high rate of inflation in the late 1970s and the 1980s, but the rate had decreased substantially by the early 1990s.

A

Agriculture, Forestry, and Fishing

About 7 per cent of Iceland’s labour force is now engaged in agriculture compared with 36 per cent in 1930. About 1 per cent of the land is forested, but timber is of little economic significance. Less than 1 per cent of the land area is under cultivation; turnips and potatoes are the principal crops. Since 1945, however, there has been a major expansion of production in greenhouses heated by geothermal energy. By the early 1990s an estimated 14,500 hectares (35,800 acres) were under glass, producing flowers and exotic fruits as well as vegetables. About 20 per cent of the land is suitable for pasture and livestock-raising is the major agricultural occupation; considerable quantities of dairy products, wool, mutton and lamb, and eggs are produced. In 2006 Iceland had an estimated 451,559 sheep, 63,375 cattle, and 74,820 horses.

Fishing and fish-processing are the most important Icelandic industries, accounting for more than 71 per cent of yearly export earnings and employing about 12 per cent of the labour force. Iceland is a leading producer of cod and capelin, which make up about two thirds of the catch; haddock, crustaceans, herring, redfish, and saithe (pollack) are also important. About 1.69 million tonnes of fish were caught in 2005. Coastal towns have extensive facilities for fish-processing. In response to international pressure, Iceland suspended all whaling operations in 1989. However, in June 1992 Iceland withdrew from the International Whaling Commission (IWC), disputing the designation of some species of whales as endangered and claiming that certain species threatened Iceland’s commercial fish population. At the end of 2000 Iceland joined the Convention on International Trade in Endangered Species (CITES). In 2002 Iceland was accepted again as a member of the IWC, despite the country’s intention to begin whaling once more by 2006. The Fisheries Ministry authorized the catching of fin and minke whales.