ICELAND

officially Republic of Iceland, Icelandic Ldhveldidh sland, island country located in the North Atlantic Ocean. Its rugged coastline, of more than 3,000 miles (4,800 km), meets the Greenland Sea on the north, the Norwegian Sea on the east, the Atlantic Ocean on the south and west, and the Denmark Straitwhich separates it from Greenland by about 200 miles (320 km)on the northwest. Iceland is a land of vivid contrasts. Sparkling glaciers lie across its ruggedly beautiful mountain ranges, while a vast quantity of subterranean thermal activity makes Iceland one of the most active volcanic regions in the world. Glacier ice and cooled lava each cover approximately one-tenth of the total 39,699 square miles (102,819 square km) of the country. The glaciers are a reminder of Iceland's proximity to the Arctic Circle, which nearly touches its northernmost peninsula. The area covered by Vatna Glacier, the country's largest, is equal to the combined total area covered by all the glaciers on the continent of Europe. The volcanoes, reaching deep into the unstable interior of the Earth, are explained by the fact that Iceland is located on top of the Mid-Atlantic Ridge. It is estimated that since the year AD 1500 about one-third of the Earth's total lava flow has poured out of the volcanoes of Iceland. Iceland was founded more than 1,000 years ago during the Viking age of exploration. The capital, Reykjavk (Bay of Smokes), is the site of the island's first farmstead. The early settlement, made up primarily of Norwegian seafarers and adventurers, fostered further excursions to Greenland and the coast of North America (which the Norse called Vinland). In spite of its physical isolation some 500 miles (800 km) from Scotland, its nearest European neighbour, Iceland has remained throughout its history very much a part of European civilization. It is a Scandinavian country, modern in nearly every respect. The Icelandic sagas, most of which recount heroic episodes that took place at the time the island was settled, are regarded as among the finest literary achievements of the Middle Ages. Additional reading Jhannes Nordal and Valdimar Kristinsson (eds.), Iceland, the Republic (1996), provides a comprehensive general survey. Geologic, geothermal, geographic, and ecological characteristics of the country are studied in Ari Trausti Gudmundsson and Halldr Kjartansson, Earth in Action: An Outline of the Geology of Iceland (1996); Bjrn H. Rarsson and Sigurdur Sveinn Jnsson, Geysers and Hot Springs in Iceland, trans. from Icelandic (1992); Thorleifur Einarsson, Geology of Iceland: Rocks and Landscape (1994; originally published in Icelandic, 1991); Hrdur Kristinsson, A Guide to the Flowering Plants and Ferns of Iceland (1987); and Sturla Fridriksson, Surtsey (1975). Illustrated descriptions and guidebooks include Bjrn Briksson, The Beauty of Iceland (1992); Bernard Scudder and Pll Stefnsson, Iceland: Life and Nature on a North Atlantic Island (1991); Hjlmar R. Brdarson, Ice and Fire: Contrasts of Icelandic Nature, trans. from Icelandic, 4th ed. (1991); Max Schmid, Iceland: The Exotic North (1985); Steindr Steindrsson Fr Hldum (ed.), Iceland Road Guide, 4th updated ed. (1988); and David Williams, Essential Iceland (1992).Icelandic society, economy, culture, and political orientation are reviewed in The Economy of Iceland (annual), published by the Central Bank of Iceland; OECD Economic Surveys: Iceland (annual), published by the Organisation for Economic Co-operation and Development; Gudmundur Jnsson and Magns S. Magnsson (eds.), Icelandic Historical Statistics (1997), a wide-ranging statistical abstract of Icelandic society; Hjlmar R. Brdarson, Iceland: A Portrait of Its Land and People, 3rd ed., trans. from Icelandic (1982, reissued as 3rd ed., 1989); Kristjn Eldjrn, Ancient Icelandic Art (1957); Carol J. Clover and John Lindow (eds.), Old Norse-Icelandic Literature: A Critical Guide (1985); lafur Th. Hardarson, Parties and Voters in Iceland: A Study of the 1983 and 1987 Elections (1995); Sigurdur A. Magnsson and Vladimir Sichov, Iceland Crucible: A Modern Artistic Renaissance (1985); and Gsli Plsson and E. Paul Durrenberger, Images of Contemporar Iceland: Everyday Lives and Global Contexts (1996). Bjrn MatthassonJn R. Hjlmarsson, History of Iceland: From the Settlement to the Present Day (1993), is a recent survey of the subject. Gudmundur Hlfdanarson, Historical Dictionary of Iceland (1997), is useful and has a good bibliography of works in English. Scholarly studies include Jn Jhannesson, A History of the Old Icelandic Commonwealth: slendinga Saga, trans. from Icelandic (1974); and Jesse L. Byock, Medieval Iceland: Society, Sagas, and Power (1988, reissued 1993). E. Paul Durrenberger and Gsli Plsson (eds.), The Anthropology of Iceland (1989), includes essays covering the commonwealth period, 9301262. Studies on the 20th century, with historical introductions, are Gylfi Th. Gslason, The Challenge of Being an Icelander, trans. from Icelandic (1990); and Esbjrn Rosenblad and Rakel Sigurdardttir-Rosenblad, Iceland from Past to Present (1993; originally published in Swedish, 1990). Gudmundur Jnsson and Magns S. Magnsson (eds.), Icelandic Historical Statistics (1997), is an extensive bilingual (Icelandic and English) survey. Bjrn Thorsteinsson, Island, trans. from Icelandic (1985), is a historical survey in Danish. Sigurdur Lndal (ed.), Saga slands (1974 ), is a comprehensive multivolume history in Icelandic. Gunnar Karlsson Administration and social conditions Government Iceland is a parliamentary democracy with a directly elected president as head of state. In 1980 Vigds Finnbogadttir became the first woman to hold this office. She retired in 1996 and was succeeded by lafur Ragnar Grmsson, a former university professor and finance minister. The powers of the president are similar to those of other heads of state in western European democracies. Real power rests with the 63-member parliament, the Althing (Althingi). One of the oldest legislative assemblies in the world, it is a unicameral legislature in which members serve four-year terms unless parliament is dissolved. The executive branch is headed by a cabinet that must maintain majority support in parliamentor at least avoid censureotherwise it must resign. The judiciary consists of a supreme court and a system of lower courts, most of which hear both civil and criminal cases. Cases are heard and decided by appointed judges; there is no jury system. Citizens are guaranteed the civil rights customary in Western democracies. Local government in Iceland is chiefly responsible for primary education, municipal services, and the administration of social programs. The country is divided into 124 municipalities. Since the 1970s their number has decreased by nearly half as a result of consolidation. Each municipality administers local matters through an elected council. The president, Althing, and local councils are elected every four years, but not necessarily all at once. All citizens 18 years of age and older may vote. Since the late 1970s the Independence Party, centre to conservative in political outlook, has commanded about one-third of the popular vote. The Progressive Party, which has captured the second largest proportion of the vote during this period, draws its strength from rural areas. Among the other main political parties are the Social Democratic Party, the People's Alliance, and the Women's Alliance. Foreign relations Iceland joined the United Nations in 1946, a year after its founding, and is a charter member of the North Atlantic Treaty Organization (NATO). In the post-World War II period it has based its foreign policy on peaceful international cooperation and participated in joint Western defense efforts. It does not maintain armed forces. The United States, having assumed responsibility for Iceland's defense, maintains a naval air station at Keflavk International Airport under NATO auspices. Iceland's entry into distant fishing waters has caused friction with other nations over fishing rights. Fishing in the Barents Sea is a source of contention with Norway and Russia, as is herring fishing in the open ocean between Norway and Iceland. Moreover, Canada has objected to Iceland's shrimp fishing off the coast of Newfoundland. Cultural life Icelanders are proof that a rich cultural life can be developed despite a small population. The country's literary heritage stems from writers of the 12th to 14th centuries who vividly recorded the sagas of Iceland's first 250 years. Other traditional arts include weaving, silver crafting, and wood carving. Poetry was the great literary form of expression in the 19th century, whereas the novel and drama have been the prime forms of literature in the 20th century. The Reykjavk area, which supports several professional theatres, a symphony orchestra, an opera, and a number of art galleries, bookstores, cinemas, and museums, has a cultural environment that compares favourably with those of cities several times its size. It also holds biennial international art festivals. Valdimar Kristinsson Bjrn Matthasson The arts Art in Iceland was long connected with religion, first the Roman Catholic church and later the Lutheran church. The first professional secular painters appeared in Iceland in the 19th century. Gradually increasing in number, these painters, such as Jhannes Kjarval, highlighted the character and beauty of their country. Painting continues to thrive in Iceland, where artists have fused foreign influences with local heritage. The old traditions in silver working have been retained, the most characteristic of which is the use of silver thread for ornamentation. Literature is also alive and well in Iceland. The literary tradition of the saga has been revived, and Iceland has often been the setting of 20th-century fiction. Several Icelandic writers have received international acclaim, such as Halldr Laxness, who received the Nobel Prize for Literature in 1955. Other native writers have written for the theatre, and their work has grown more international in theme and setting. Music also enjoyed a tremendous upsurge after World War II. The programs of the Iceland Symphony are drawn from a classical repertoire and the work of modern Icelandic composers, and one or more operas or musicals are performed every year at the National Theatre and the Icelandic Opera. Popular music by Icelandic performers, such as Bjrk, has gained international commercial success and critical acclaim. National folk traditions in applied art have achieved a new popularity. Old designs and forms have been revived, some modified to please modern tastes. Wool, knitted or woven, is the most commonly used material. Many people in the country participate in this industry, creating high-quality goods. Iceland, flag of national flag consisting of a blue field incorporating a white-bordered red cross. The width-to-length ratio of the flag is 18 to 25. In the early 20th century the sanction of the king of Denmark was sought for a local Icelandic flag. Royal approval was available on the condition that the flag be different from any existing flag and always flown subordinate to the national flag of Denmark. To the blue flag with a white Scandinavian Cross proposed by political parties in Iceland, a red cross was added so that the colours of Denmark would be incorporated. Approval was given by the king on June 19, 1915. At sea the new flag could be used only in territorial waters, and on land it could be displayed on public buildings only together with the Danish flag. Icelanders continued to push for wider usage, and, finally, on December 1, 1918, full recognition was given to the flag at the same time that Iceland was constituted a separate kingdom under the Danish king. When Iceland became a republic on June 17, 1944, the flag was altered by a change to a darker shade of blue. Blue and white had originally been chosen for several reasons. The first local flag of those colours, used only briefly, dated from 1809. In 1903 a coat of arms was granted to the island, showing a white or silver falcon on a blue shield. Blue and white were also the traditional colours of clothing worn by people in Iceland. Because most people felt that it was desirable to have a reflection of Scandinavian solidarity as well as national self-identity reflected in the flag, the Scandinavian Cross was central to the design. (See also the flag histories of Finland, Norway, and Sweden.) Whitney Smith History Early history Settlement (c. 870c. 930) Iceland apparently has no prehistory. According to stories written down some 250 years after the event, the country was discovered and settled by Norse people in the Viking Age. The oldest source, slendingabk (The Book of the Icelanders), written about 1130, sets the period of settlement at about AD 870930. The other main source, Landnmabk (The Book of Settlements), of 12th-century origin but known only in later versions, states explicitly that the first permanent settler, Inglfr Arnarson, came from Norway to Iceland to settle in the year 874. He chose as his homestead a site that he named Reykjavk, which he farmed with his wife, Hallveig Frdadttir. The Book of Settlements then enumerates more than 400 settlers who sailed with their families, servants, and slaves to Iceland to stake claims to land. Most of the settlers came from Norway, but some came from other Nordic countries and from the Norse Viking Age settlements in the British Isles. A layer of tephra (volcanic ash) that in many places coincides with the earliest remains of human habitation in Iceland has been identified in Greenland ice and dated to about 870. Archaeological finds also support the documentary evidence and place Iceland among Norse Viking Age settlements of the late 9th or early 10th century. The Icelandic language testifies to the same origin; Icelandic is a Nordic language and is most closely related to the dialects of western Norway. Although the island was not populated until the Viking Age, Iceland probably had been known to people long before that time. The 4th-century-BC Greek explorer Pytheas of Massalia (Marseille) described a northern country that he called Thule, located six days' sailing distance north of Britain. In the 8th century Irish hermits who had begun to sail to Iceland in search of solitude also called the island Thule. It is unknown, however, if Pytheas and the hermits were describing the same island. According to the early Icelandic sources, some Irish monks were living in Iceland when the Nordic settlers arrived, but the monks soon left because they were unwilling to share the country with heathens. Commonwealth (c. 9301262) At the time of Iceland's settlement, Norse people worshiped gods whom they called sir (singular ss), and this religion left behind an extensive mythology in Icelandic literature. Thor seems to have been the most popular of the pagan gods in Iceland, although Odin is thought to have been the highest in rank. It appears that heathen worship was organized around a distinct class of chieftains called godar (singular godi), of which there were about 40. In the absence of royal power in Iceland, the godar were to form the ruling class in the country. By the end of the settlement period, a general Icelandic assembly, called the Althing, had been established and was held at midsummer on a site that came to be called Thingvellir. This assembly consisted of a law council (lgrtta), in which the godar made and amended the laws, and a system of courts of justice, in which householders, nominated by the godar, acted on the panels of judges. At the local level, three godar usually held a joint assembly in late spring at which a local court operated, again with judges nominated by the godar. All farmers were legally obliged to belong to a chieftaincy (godord) but theoretically were free to change their allegiance from one godi to another; the godar were allotted a corresponding right to expel a follower. Some scholars have seen in this arrangement a resemblance to the franchise in modern societies. On the other hand, there was no central authority to ensure that the farmers would be able to exercise their right in a democratic way. No one was vested with executive power over the country as a whole. In any case, no trace of democratic practice reached farther down the social scale than to the heads of farming households; women and workers (free or enslaved) had no role in the political system. Christianization By the end of the 10th century, the Norwegians were forced by their king, Olaf I Tryggvason, to accept Christianity. The king also sent missionaries to Iceland who, according to 12th-century sources, were highly successful in converting the Icelanders. In 999 or 1000 the Althing made a peaceful decision that all Icelanders should become Christians. In spite of this decision, the godar retained their political role, and many of them probably built their own churches. Some were ordained, and as a group they seem to have closely controlled the organization of the new religion. Two bishoprics were established, one at Sklholt in 1056 and the other at Hlar in 1106. Literate Christian culture also transformed lay life. Codification of the law was begun in 111718. Later the Icelanders began to write sagas, which were to reach their pinnacle of literary achievement in the next century. Economic life Historians believe that early Icelandic society was prosperous. The country proved to be well suited for sheep and cattle, and both were raised for meat and milk. The sheep also yielded wool, and homespun cloth became the chief export. There was some agriculture, but grain was always imported. Timber was also imported; the only indigenous wood was birch. However abundant driftwood may have been, it could not satisfy the needs of the whole population. The Icelanders built large turf-clad houses on bulky timber frames, and some of the churches were built entirely of timber. In spite of the seeming abundance, the end was coming for an independent Icelandic commonwealth. In Norway royal power gained strength in the early 13th century when the king set out to unite all Norwegian Viking Age settlements under his reign. By that time about 10 powerful godar, belonging to some five families, held almost all the chieftaincies in Iceland, and by mid-century these chieftaincies were engaged in a bloody struggle for power. Finally, in 126264, all Icelandic chieftains and representatives of the farmers were persuaded to swear allegiance to the king of Norway, partly in the hope that he would bring peace to the country. Iceland under foreign rule Late Middle Ages (1262c. 1550) To a large extent, Iceland was ruled separately from Norway. It had its own law code, and the Althing continued to be held at Thingvellir, though mainly as a court of justice. Most of the royal officials who succeeded the chieftains were Icelanders. In 1380 the Norwegian monarchy entered into a union with the Danish crown, but that change did not affect Iceland's status within the realm as a personal skattland (tax land) of the crown. Economic growth and decline A fundamental change in Iceland's economy took place in the early 14th century when Norwegian merchants began to import dried fish from Iceland to Bergen. English merchants in Bergen became acquainted with Icelandic fish supplies, and shortly after 1400 they themselves began sailing to Iceland to catch fish and buy it from local fishermen. The Danish crown repeatedly tried to stop English trade in Iceland but lacked the naval power with which to defend its remote possession. One of the royal governors was killed by the English when he tried to stop their trade, an event that led indirectly to clashes between Denmark and England (146873). In the early 16th century English interest in Iceland declined, partly because rich fishing grounds had been discovered off the North American coast of Newfoundland. Instead, Germans became the chief foreigners to fish and trade in Iceland. In spite of the rise of a profitable export industry, it is generally believed that Iceland's economy deteriorated in the late Middle Ages. The birchwood that had covered great parts of the country was gradually depleted, in part because it was excellent for making charcoal. The destruction of the woodland, together with heavy grazing, led to extensive soil erosion. The climate also became more severe, and grain growing was given up altogether. At the same time, more and more of the land was acquired by ecclesiastical institutions and wealthy individuals, to whom the farmers had to pay rent. Twice in the 15th century, in 140204 and 149495, the plague visited Iceland and killed approximately half the population each time. Although the epidemics must have been a serious blow to the society, they presumably relieved the population pressure. This, in turn, probably postponed for centuries the emergence of permanent fishing villages on the coasts, which might have developed in the late Middle Ages from the seasonal fishing camps of the English and Germans. The Reformation The Lutheran Reformation, which was instituted in Denmark in the 1530s, met greater resistance in Iceland than anywhere else in the realm. In 1541 the bishop of Sklholt was captured by the governor, and Lutheranism was introduced in his diocese. In the northern diocese of Hlar, Bishop Jn Arason held out against Lutheranism for a decade longer. In 1550 he was finally captured and beheaded, without benefit of law or clergy, and all resistance to the Reformation ended. Jn's death is traditionally understood to mark the end of the Middle Ages in Iceland. Growth of Danish royal power (c. 1550c. 1830) After the Reformation the royal treasury confiscated all lands that had belonged to the Icelandic monasteries. German traders were ousted in the 16th century, and in 1602 all foreign trade in Iceland was monopolized by a royal decree and handed over to Danish merchants, who paid a rent on it to the crown. This arrangement remained intact for nearly two centuries, during which Iceland's contacts with the outside world were almost exclusively restricted to Denmark. In this period the influence of earlier contacts with England and Germany seems mostly to have disappeared. In 1787 the monopoly was abolished. Only subjects of the Danish crown, however, were permitted to carry on foreign trade, a restriction that remained in force until 1855. The Danish crown increased its hold on Iceland on the constitutional level as wellat least in formal terms. In 1661 Frederick III introduced an absolute monarchy in Denmark and Norway, and in the following year his absolutism was acknowledged in Iceland. This event was not of any great immediate significance in Iceland; local officials, most of whom were Icelanders, continued to make important political decisions. Danish officials in Copenhagen rarely had enough knowledge of or interest in Icelandic affairs to enforce their will if the Icelandic officials were unanimous on a different policy. Nevertheless, the bureaucratic state, which formed the backbone of absolutism, was gradually introduced into Iceland. An essential part of that development was the emergence of a town nucleus in Reykjavk, the first one in this hitherto entirely rural country. In the 1750s a tiny village grew up in Reykjavk as a result of a semiofficial attempt to start a wool-processing factory there. Within half a century the two ancient bishoprics were united, with the bishop residing in Reykjavk. The Althing was abolished in 1800, and an appeals court was set up in Reykjavk to succeed it. A few years later the Danish governor also settled in the town, which by then had about 300 inhabitants. In 1703, when the first census was taken, the population was 50,358. The main occupation was farming, though an important auxiliary occupation, undertaken mostly by rural labourers on the southern and western coasts in late winter and spring, was fishing. With few exceptions, labourers were obliged to stay in the domestic service of a farmer, and the establishment of permanent households in fishing stations was severely restricted. Thus, the landownerswith most of the native officials in their numbersucceeded in monopolizing fishing and prevented it from becoming an independent industry. The 18th century was a period of decline and increasing poverty in Iceland. Faminecaused by a volcanic eruption and subsequent years of cold weatherplagued the country in the 1780s and killed one-fifth of the population. However, these hardships bred little criticism in Iceland of the country's status within the Danish realm. In 1809 Danish adventurer Jrgen Jrgensen seized power in Iceland for two months. When he was removed and Danish power restored, he received no support from the Icelandic population. Five years later, when Norway was severed from the Danish monarchy and given much greater autonomy under the Swedish crown, there was no push in Iceland to demand the same from Denmark. Modern Iceland Struggle for independence (c. 18301904) In the 1830s Iceland was allotted two seats at a new consultative assembly for the Danish Isles established at Roskilde, Denmark. This arrangement kindled a desire in Iceland for a restoration of the Icelandic Althing as a consultative assembly for the nation. Christian VIII granted the Icelanders their wish, and in 1845 a restored Althing met for the first timenot at Thingvellir, as originally intended, but in Reykjavk. Franchise to the assembly was almost entirely restricted to officials and farmers. In 1848 Christian's successor, Frederick VII, renounced his absolute power, and a constitutional assembly was summoned to prepare a representative democracy in Denmark. This led inevitably to the question of what was to become of Iceland in the new form of government. By that time Iceland had a relatively undisputed political leader: Jn Sigurdsson, a philologist living in Copenhagen. Jn argued that the king could only give his absolute rule over Iceland back to the Icelanders themselves, since they were the ones who had surrendered it to him in 1662. This claim was met with a royal pledge that the constitutional status of Iceland would not be decided until the Icelanders had discussed the matter at a special assembly. This assembly met in 1851, but no agreement could be reached between the Icelandic representatives and the Danish government. The assembly was dissolved in disappointment. A stalemate of more than 20 years ensued, but the Althing decided to use the occasion of the millennium of Iceland's settlement to accept the status that Danish authorities were by then willing to grant. Thus, in 1874 the king presented Iceland with a constitution whereby the Althing was vested with legislative power in internal affairs. As before, however, the cabinet minister responsible for Iceland was the minister of justice in the Danish government. For an additional three decades the Icelanders continued to demand that executive power be transferred to Iceland. In 1901 the path was opened when rule by parliamentary majority was introduced in Denmark and the Liberalsalways more positive than the Conservatives toward the Icelanderscame into power. In 1904 Iceland got home rule, and the first Icelandic minister opened his office in Reykjavk. At the same time, rule by parliamentary majority was introduced. The high level of political activity in 19th-century Iceland stands in sharp contrast to its economic stagnation, which was considerable compared with the countries of western Europe. The significant growth of Iceland's population put increasing strain on the badly eroded soil in rural areas, and for many people the only visible solution was emigration to North America. Some 15,000 Icelanders emigrated between 1870 and 1914, most of them to Canada. Virtually the only successful technical innovation during that period was the introduction of decked fishing vessels, which made it possible to catch fish farther offshore than could be done on open boats. Still, at the beginning of the 20th century, more than half the annual catch was still taken in open boats. Home rule and sovereignty (190444) The period of home rule (190418) was one of rapid progress. Motors were installed in many of the open fishing boats, and a number of steam-driven trawlers were acquired. The country was connected by telegraph cable with Europe. School attendance was made compulsory for children in towns and villages, and a number of schools were built. The University of Iceland was established (1911) in Reykjavk, which by 1918 had a population of 15,000. All restrictions on the freedom to move to the fishing villages were either abolished or quietly forgotten. There was a radical transformation in the occupational structure of the country, which in turn led to the advent of a labour movement. In 1916 a national organization of trade unions was established. By then unions were already widely accepted by employers as negotiating bodies, but their formal status was not legalized until 1938. In the political arena, democracy was extended to new groups. Women and propertyless men were given the franchise, subject to certain qualifications, in 1915. Four years earlier a law had been passed that gave women the right to attend schools of higher education, enter into the professions, and occupy any public office in the country. The struggle for greater autonomy continued until the dispute with Denmark was solved. On December 1, 1918, Iceland became a separate state under the Danish crown, with only foreign affairs remaining under Danish control. Either party, however, had the right to call for a review of the treaty, and if negotiations about its renewal proved fruitless at the end of 25 years (i.e., 1943) it would be terminated. The struggle for independence that had shaped Icelandic politics for almost a century now subsided, and in the 1920s a new system of political parties based on class divisions emerged. Class antagonism grew more severe during the Great Depression of the 1930s; the depression was prolonged in Iceland when the outbreak of the Spanish Civil War in 1936 closed the important Spanish market for Icelandic fish. The problem of high unemployment persisted until after the outbreak of World War II. The German occupation of Denmark in April 1940 effectively dissolved the union between Iceland and Denmark. A month later British forces occupied Iceland. In 1941 the United States took over the defense of Iceland and stationed a force of 60,000 in the country. The foreign forces brought employment, prosperity, and high inflation to the population, which then numbered about 120,000. The war made it impossible for Iceland and Denmark to renegotiate their treaty. In spite of great resentment in Denmark, the Icelanders decided to terminate the treaty, break all constitutional ties with Denmark, and establish a republic. On June 17, 1944, now celebrated as National Day, the Icelandic republic was founded at Thingvellir, with Sveinn Bjrnsson as its first president. The Icelandic republic Since the prosperous years of World War II, Iceland has developed into a modern welfare state with growing production and consumption. A rapid restoration of the trawler fleet after the war prevented the return of prewar unemployment. Fish freezing became a highly technical industry and the mainstay of Iceland's exports. The economy became characterized by expansion, full employment, high inflation, and much unprofitable investment. It became normal to work overtime and for women to enter the labour market. The advent of regular air service to both Europe and North America in the late 1940s revolutionized communication with the outside world. The tendency toward overexpansionwhich seemed to have been checked in the 1990swas caused in part by weak political leadership; no party has ever held an absolute majority in the Althing, and generally the country has been ruled by a coalition government. The only coalition to have lasted more than one electoral term without interruption was that formed by the right-of-centre Independence and the more leftist Social Democratic parties, which remained in power for three terms (195971). The two other parties that have formed coalitions have been the agrarian-liberal Progressive Party and the left-wing socialist People's Alliance. This tendency to blur the political left and right was probably caused by another dividing line in Icelandic postwar politics: that between the more integrationist Independence and Social Democratic parties and the more isolationist Progressives and People's Alliance. This contrast has come to a head in controversies over three recurrent issues: defense, European integration, and the extension of the fishing limits. A fourth issue, the status of women, has formed still another dimension of Icelandic politics. Defense From the time that Iceland joined the North Atlantic Treaty Organization (NATO) in 1949 and received American forces in 1951, the Independence Party has firmly supported a pro-NATO policy, while the People's Alliance has been NATO's most ardent opponent. The Social Democratic Party and the Progressives have supported NATO membership, and most of the time they have accepted the presence of American forcesthe Progressives with considerably greater reluctance than the Social Democrats. Since the 1980s this issue has moved to the background, while Iceland's attitude toward Europe has occupied the foreground. European integration Iceland entered the European Free Trade Association (EFTA) in 1970, in the period of the Independence and Social Democratic coalition, against the votes of the People's Alliance; the Progressives abstained from voting. As EFTA became increasingly absorbed by the European Union (EU), Iceland's treaties with the EU became more important. By the late 1990s the Social Democratic Party alone sought full Icelandic membership in the EU and thus appeared to be the most integrationist party. Fishing limits After World War II Iceland gradually extended its exclusive fishing zone from 3 nautical miles (5.6 km) in 1950 to 200 miles (370 km) in 1975. This extension provoked strong protests from the United Kingdom and West Germany, and the British navy was repeatedly sent to the Icelandic fishing grounds to protect British trawlers. The struggle with Britain, commonly known as the Cod Wars, came to an end in 1976 when Britain recognized the 200-mile limit. Although all the political parties supported the claim for Iceland's dominance over the fishing grounds, only the more isolationist parties were willing to risk Iceland's good relations with its NATO partners. The victory in the Cod Wars was accompanied by some disappointment as the fish stocks around Iceland began to be depleted. Severe restrictions on Iceland's own fishing within its zone were inevitable. Icelandic fishing firms subsequently started deep-sea fishing on remote grounds, which led to disputes with other fishing nationsparticularly with Norway and Russia over fishing in the Barents Sea. The status of women Outwardly the feminist movement may seem uniquely strong in Iceland. A woman, Vigds Finnbogadttir, served as president of the republic for four terms (198096), enjoying great popularity. A Women's Alliance has been represented in the parliament since 1983. However, the Icelandic president typically is not influential in politics, and the Women's Alliance has yet to participate in forming a government. Furthermore, women still earn less income than men, suggesting that they have not yet obtained full equality. Gunnar Karlsson