Daniel Cano
Maialen Carro
Nerea Remírez
Zuriñe Viñegra
Nerea Zubiria
CRISIS IN ICELAND
INDEX
• Iceland before the crisis• Beginning of the crisis• Main causes• Popular answer• Measures adopted by the government• Current situation• Future perspective• Media manipulation
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
• 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:
When did the crisis start?
• 2008 collapse of the three country’s
major commercial banks
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”.
Main causes for the crisis
• Main banks of Iceland debt with: foreign companies
-Great Britain
- Netherlands
Main causes for the crisis
• The currency plummeted*:
- suspension of the stock market
- failure of banks
- country goes bankrupt*
* fall extremely rapidly
* bancarrota
Main causes for the crisis
POPULAR ANSWER
• Icelandic people: protests to get the government's resignation and the convening of elections.
POPULAR ANSWER
• Great Britain and Netherlands: government to pay the debts, but the 93% of the Icelandic population declined to pay for this debts.
Popular answer
• BIRGITTA JONSDOTTIR
-former protestor
-member of Icelandic parliament (Althing)
-represents: The Movement (political party - ideologies: democracy, equality, justice)
MEASURES ADOPTED BY THE GOVERNMENT
Popular protests Government was forced to investigate the causes of
the crisis
Arrests Detentions
Bankers
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
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
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.”
CURRENT SITUATION
• Economic situation quite suitable
the new constitution has
to be approved this year
(by referendum)
• 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
• 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.
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
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
Silenced revolution
Silenced revolution
• Nationalisation of the bank
• Referendum; lesson of democracy
• Main responsibles of the crisis to prision
• New constitution
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.
Sources:
• www.youtube.com
• www.elciudadano.cl
• www.wikipedia.org
• www.expansion.com
• www.iceland.is
THE END