Iceland had a strong economy before 2008, when its three major banks collapsed, causing a financial crisis. The crisis was due to the banks taking on too much foreign debt. This led to currency devaluation and bankruptcy. In response, the people protested and a new government was elected. Referendums were held and the banks were nationalized. Unemployment rose but has since decreased as the economy recovered. A new constitution is being drafted through public debate to replace the existing one and add more oversight of economic and political activities.
2. INDEX
• Iceland before the crisis
• Beginning of the crisis
• Main causes
• Popular answer
• Measures adopted by the government
• Current situation
• Future perspective
• Media manipulation
3. Iceland before the crisis
ONU congratulate Iceland (2007)
The third most developed country in the world
Iceland is a country that always have had a good
and strong economy
In few years Developed so rapidly
4. • Iceland before the crisis Manage this budgets
- The public spending in health higher than the private one
- Low infant mortality
- The 8% of their PIB For education
- Only 3% of unemployment
- 70% of the energetic resources obtained by:
- Thermal power stations
- Solar power stations
- Geothermal installations
- No central power stations Iceland
- No PIB for military spending
On the other hand:
5. When did the crisis start?
• 2008 collapse of the three country’s
major commercial banks
6. When did the crisis start?
• At first: superficial crisis, then: the problem
was more serious.
“Relative to the size of its economy,
Iceland’s banking collapse is the largest
suffered by any country in economic
history”.
7. Main causes for the crisis
• Main banks of Iceland debt with: foreign companies
-Great Britain
- Netherlands
8. Main causes for the crisis
• The currency plummeted*:
- suspension of the stock market
- failure of banks
- country goes bankrupt*
* fall extremely rapidly
* bancarrota
10. POPULAR ANSWER
• Icelandic people: protests to get the
government's resignation and the
convening of elections.
11. POPULAR ANSWER
• Great Britain and Netherlands:
government to pay the debts, but the 93%
of the Icelandic population declined to pay
for this debts.
12. Popular answer
• BIRGITTA JONSDOTTIR
-former protestor
-member of Icelandic
parliament (Althing)
-represents: The Movement
(political party - ideologies:
democracy, equality, justice)
13. MEASURES ADOPTED BY
THE GOVERNMENT
Popular protests Government was forced to
investigate the causes of
the crisis
Arrests Detentions
Bankers
14. MEASURES ADOPTED BY
THE GOVERNMENT
• Referendums Take important decisions
and nationalized the
banks:
• 2011 Assemblies decided to create
a new constitution
More control
Economic activities Political activities
15. THE NEW CONSTITUTION
• Will replace the 1944 constitution (declaration of
independence of Denmark)
• This time: won’t be done just by the member of
parliament
• Contents: opened to public debate
• Comments and
suggestions through
16. THE NEW CONSTITUTION
Thorvaldur Gylfason
(economic professor in The
University of Iceland)
“ I’m nice surprised of the
involvement of Icelandic
people.
There has been a great
desire in relation to what
we are trying to do. The
public has added many
ideas to the debate and
their comments have been
very useful, they’re
certainly having very
positive effects in the
result.”
17. CURRENT SITUATION
• Economic situation quite suitable
the new
constitution has to
be approved this
year
(by referendum)
18. • Unemployment
• The unemployment has decreases the last 2 years
from 12% to 5%.
• The population of Island is of 180.000 people; of these
people 9000 people are unemployed.
• Agencies of calification ratificate that the
unemployment of Iceland is more stable than the
unemployment of Spain, that can variate.
• The Iceland unemployment is stable because its
economy is prosperous and flexible.
• In opinion of those calcification agencies, Island has
the capacity of creation of employment and a
sustainable economic increasing
19. • CONDITION OF THE BANKS
• Landsbannkin, the oldest bank of Iceland, has decided
to give back the money to their clients that were
affected with the crisis, now that they have get a good
financial position.
• This measure is going to help to a 70.000 people,
which is approximately the 20% of the population.
• Kaupthing, this bank was sacked by its own actionists
a couple of years ago.
• The two directives of this bank are with judgements
because they are accused of manipulation of founds.
• Glitnir, the two directives of this bank were condemned
to 9 months of jail, they are accused of a fraud of 53 M.
Euros.
20. FUTURE PERSPECTIVE
• + Iceland: seen in the way out of
the economic and political crises
*mercado de trabajo
*mano de obra
- excellent labour market
- young & well instructed labour force
- good energy sources
Improve
the
situation
• employment
• public debt
21. Future perspective
• Their banks: giving back the money to the
citizens
• They are generating a lot of work
• Industry of fishing (most important one in
Iceland) is increasing a lot.
• Public debt: decreasing a lot
24. Silenced revolution
• Most of media belongs to or are
financed by companies and banks
• Bill: Icelandic Modern Media
Initiative: to protect the freedom of
research, opinion, information and
expression.
