Iceland

THE REPUBLIC OF ICELAND is an island located in northern Europe between the Greenland Sea and the north Atlantic Ocean. At different points in its history, Iceland has been ruled by Norway, Scotland, Ireland, and Denmark. In 1875 the Icelandic economy was devastated by the eruption of the Askja volcano, which resulted in one-fifth of the population immigrating to the United States and Canada. Iceland achieved independence in 1944.

By the 21st century, Iceland has developed into a high-income nation with a per capita income of $31,900 and a high quality of life. While Iceland operates on the basis of a market economy, the country has an extensive welfare system that includes a national health plan, generous housing subsidies, training, and education. Inequality is minimal in Iceland, and poverty as it is usually defined does not exist.

The Icelandic economy is heavily determined by its location, and most exports come from marine products. Iceland also exports aluminum, ferro-silicon alloys, pharmaceuticals, and fishing-related products. Financial services, information technology, and life sciences and related services have become increasingly important to the Icelandic economy. Tourism is rapidly expanding, and whale watching has become a popular activity. The United States is the largest foreign investor in Iceland. The small agricultural sector depends on government subsidies and protection for survival. While the unemployment rate of 3.1 percent is relatively low in comparison with most countries, it is considered high in Iceland.

The national government finances 85 percent of health services, while individuals pay the remaining 15 percent. There are 352 physicians for every 100,000 residents, and 95 to 100 percent of Icelanders have access to affordable drugs. The entire population has access to safe drinking water and improved sanitation. As a result of the high quality of life and accessible healthcare, citizens' life expectancy is one of the highest in the world at 80.19 years. At 82.34 years, females have a four-year advantage over males (78.13). Among the population of 296,737, the median age is 34 years. Over 22 percent of the population are under the age of 14, and almost eight percent have seen a 65 birthday.

With an infant mortality rate of 3.31 deaths per 1,000 live births, Iceland ranks among the lowest in the world in infant mortality. The infant mortality rate in the 1970s was 13 deaths per 1,000 live births. The mortality [Page 522]rate of children under the age of five fell from 14 in 1970 to four per 1,000 in 2003. Four percent of Icelandic infants are underweight at birth. Childhood immunizations among children from birth to 23 months are generally in the low to high 90s. However, the rate of infant immunizations against measles dropped from 99 to 88 percent between 1990 and 2002, and infant immunizations against DPT fell from 99 to 92 percent during that same period.

Between 1970 and 2005, the fertility rate of Icelanders dropped from 2.8 children per woman to 1.92 children per woman. The fertility rate for adolescents occurs at a rate of 22 births per 1,000. With universal healthcare and excellent postnatal and antenatal care, Iceland has virtually abolished maternal mortality. According to modeled estimates for 1995, the maternal mortality rate was 16 deaths per 100,000 live births. At present, not a single maternal death occurs out of 100,000 live births.

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