Trapped contemporary Framework Iceland

• Political climate - The politics of Iceland take place in the framework of a parliamentary representative democratic republic, whereby the President is the head of state, while the Prime Minister of Iceland serves as the head of government in a multi-party system. Executive power is exercised by the government. Katrín Jakobsdóttir is an Icelandic politician serving as the 28th and current Prime Minister of Iceland since 2017. She is the member of the Althing for the Reykjavík North constituency since 2007. She became deputy chairperson of the Left-Green Movement in 2003 and has been their chairperson since 2013. The withdrawal of US forces in northern Syria, thereby opening the way for Turkey to attack Kurds in the region, has been a matter of strong contention in the Icelandic Parliament, with some suggesting that Iceland’s relationship with the US should be reviewed.

• Iceland has a small economy that is subject to high volatility. It can be described as a mixed economy with both elements of influence from the government and free trade. In 2011, the country’s GDP was US$ 12 billion, but this had more than doubled by 2017 (US$ 24 billion). From 2008 to 2010, Iceland, like most countries, faced a period of the financial crisis, leading to a decline in GDP and employment rate. However, the tourist book of 2010 helped to reserve this situation. After a period of robust growth, the economy of Iceland is slowing down. Despite the slow growth, the economy is expected to continue growing as more industries emerge in the country. Iceland has a mixed economy with high levels of free trade and government intervention. However, government consumption is less than other Nordic countries. Hydro-power is the primary source of home and industrial electrical supply in Iceland.

• Some of the major industries in Iceland include tourism, fisheries, hydropower generation, agriculture, and manufacturing. Tourism played a significant role in the revival of Iceland’s economy, following the global financial crisis of 2008 to 2010. The tourism boom that started in 2010 continued into the following years and accounted for over 10% of the GDP in 2017. The tourism industry has grown considerably in economic significance, and the number of tourists visiting the country has also increased, surpassing the 2 million mark in 2017. This industry is responsible for about 42% of the total export revenue (2017). The majority of the tourists to Iceland (42%) arrive during summer months (June to August) with most tourists drawn from South and Central Europe. For centuries, the leading industries in Iceland were agriculture, forestry, and fishing. In the 19th century, about 80% of the Icelanders depended on agriculture as a source of food and income. However, over the years, there has been a steady decline in the number of people involved in farming to about 5% of the total population. The numbers are expected to continue falling as other industries such as tourism and manufacturing continue to grow. Fisheries were once the most crucial part of the economy of Iceland (now replaced by tourism), accounting for about 27% of the GDP in 2011. According to the labour department, the industry accounts for about 5% of the total labour force of which 4,900 are involved in fishing, and another 4,000 are involved in fish processing. However, it is estimated that about 25,000 or 20% of the labour force depends on fisheries and related sectors. Most of the jobs are provided by the companies that manufacture fisheries equipment or companies that are engaged in processing marine products. Iceland has a growing manufacturing industry, mainly boosted by the hydropower generation. It has the largest electricity production per capita in the world. The abundant electrical power is as a result of the large scale availability of hydroelectric and geothermal energy sources. Hydropower is the main source of industrial and home electrical supply in the country and has played a significant role in the growth and development of the manufacturing sector. The biggest components of the manufacturing industry are the power-intensive industries which mainly produce export products. The manufacturing industry accounts for 35% of all export goods, a 13% increase from 22% in 1997. Although tourism is the largest service Industry in Iceland, the banking sector also plays a significant role in promoting the country’s economy. The collapse of the banking sector during the global financial crisis led to an unprecedented economic crisis in the country. However, the sector has been completely overhauled with only three major banks currently in operation. The smaller banks have been consolidated or acquired by these bigger banks. The three major commercial banks include Arion Bank, NBI, and Islandsbanki. Since the founding of Iceland Stock Exchange in 1985, the equity markets have also greatly developed.

• Women in Iceland generally enjoy good gender equality. As of 2018, 88% of working-age women were employed, 65% of students attending university were female, and 41% of members of parliament were women. Nevertheless, women still earn about 14% less than men, though these statistics do not take into account the hours worked, over-time and choices of employment. Iceland has the world's highest proportion of women in the labour market, significant child care allocations for working women, and three months' parental leave for both men and women. Iceland is arguably one of the world's most feminist countries, having been awarded this status in 2011 for the second year in a row. Iceland was the first country to have a female president, Vigdís Finnbogadóttir, elected in 1980. It also has the world's first female and openly gay head of government, Jóhanna Sigurðardóttir, who was elected prime minister in 2009. Iceland enjoys the smallest overall gender gap, according to the World Economic Forum ranking Global Gender Gap Report, a position it has held since 2008. In 2016 Iceland had a 12.6% gap, as measured across four categories: health, education, economic participation and opportunity, and political advancement. The pay gap between women and men is decreasing at a rate which would lead to equality in 2068. Women earn about 72% of men's salaries on average, and are still subject to domestic and sexual violence.

• Iceland is the most peaceful country in the world, 97% of people in Iceland believe they are part of the middle class so a class system is barely existent which reduces jealousy and crimes associated with poverty. Children have equal opportunities for education and go to the same schools.

• Lesbian, gay, bisexual and transgender (LGBT) rights in Iceland are very progressive. Iceland is frequently referred to as one of the most LGBT-friendly countries in the world. Same-sex couples have had equal access to adoption and IVF since 2006. In February 2009, a minority government took office, headed by Jóhanna Sigurðardóttir, the world's first openly gay head of government in modern times. The Icelandic Parliament amended the country's marriage law on 11 June 2010 by unanimous vote to define marriage as between two individuals, thereby making same-sex marriage legal. The law took effect on 27 June 2010.

• Racist public discourse has increased in Iceland in recent years, mostly against Muslims, according to a report by the European Commission against Racism and Intolerance, the human rights body of the Council of Europe, published today. Although much progress has been made in Iceland, not least in terms of the rights of lesbians, gays, bisexual and transgender (LGBT) people, the report suggests that many areas need improvement. The authors of the report are concerned about “increasing racist public discourse with few investigations and so far no prosecutions or convictions under hate speech legislation. Immigrants encounter problems in social integration, in learning Icelandic, access to information and lack of fair employment conditions.”