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Iceland The Republic: From 1944 To The Present



The Republic: From 1944 To The Present

One of the biggest challenges for the new republic came immediately after the war. The US troops departed in 1946 as requested, but as the Cold War between the Soviet and Western powers began to take shape Iceland felt uncertain about its lack of defence. With neither the population nor desire to form its own military, in 1949 the Alping voted that Iceland should instead join the US, Britain and others as part of NATO , the North Atlantic Treaty Organisation, and in 1951 agreed to have US forces operate an airforce base at Keflavik , using facilities the US had already built during World War II. Though the need for defence was widely accepted, the idea of having foreign influence back in Iceland after having only just got rid of it for the first time in 700 years was not popular; the decision to join NATO caused a riot in Reykjavik, and today, with the Cold War long past, the continuing US presence at Keflavik remains a contentious issue.

The country has also had to deal with a rather different defence matter: that of preserving its fish stocks , and hence most of its export earnings, in the face of foreign competition. Following skirmishes dating right back to the English Century , in 1896 Iceland's territorial waters - the area from which it could exclude foreign vessels - had been set as extending three nautical miles from land. As commercial fishing picked up again after World War II, fish stocks through the Atlantic declined, and most countries increased their territorial limits. In 1958, Iceland declared a twelve-mile limit which Britain protested, sending in naval boats to protect its trawlers fishing in these new Icelandic waters in the first act of the Cod Wars . These flared on and off for the next thirty years, with Iceland continuing to expand its claims as fish stocks continued to dwindle, and employing its coastguard to cut the cables of any foreign trawlers that were caught poaching. Things came to a head in 1975, when Iceland declared a two-hundred-mile limit around its shores, at which point Britain broke off diplomatic relations and ordered its Navy to ram Icelandic coastguard boats, which happened on several occasions. The situation was only resolved in 1985, when international laws justified Iceland's position by granting the two-hundred-mile limit to all countries involved in the dispute.

Domestically, Iceland has become predominantly urban since 1944, with over half the population of 270,000 living in the Greater Reykjavik area, and just 24,000 remaining on the land as farmers. Standards of living are now equal to any European country - in fact, with little industry and low pollution levels, Icelanders are in some ways better off. Virtually all Icelanders are literate and well educated, and communications are as good as they can be given the natural conditions - the Ringroad around the country was completed in 1974, and Iceland's per-capita usage of computers and the Internet is one of the world's highest. New technologies, such as the harnessing of hydro and geothermal energy for electricity, heating and growing hothouse foods, have also been enthusiastically embraced. On the downside, the fact that fishing is the single main source of export earnings has made the economy very sensitive, and a reliance on imports means that prices are high, with many people needing more than one job in order to make ends meet. The runaway inflation of the 1970s (in part caused by the 1973 eruption of the volcano on Heimaey, which disrupted the season's fishing) has been capped, though at the cost of rising unemployment figures - although many Icelanders will tell you that if people don't have jobs in Iceland, it's because they don't want them.

At the beginning of the twenty-first century, three thorny issues dominate the political scene in Iceland: European Union membership ; the resumption of whaling, and the environment. Following the decision by fellow Nordic nations Sweden and Finland to join the EU in 1995, the question of whether Iceland should follow suit is rarely out of the headlines. At issue is the EU's Common Fisheries Policy, which opponents of membership claim would open up Iceland's territorial waters to other member states and do serious damage to the country's economy, eighty-percent of which is dependent on fish and fish-related products. Supporters argue that, as a tiny nation, Icelanders need the international stage offered by the meetings in Brussels that are shaping Europe's future. Public opinion on the issue swings back and forth, monitered closely by politicians of all parties, eager to gain political capital from the mood of the people.

The question of whether to resume whaling , and to what degree, is linked to that of EU membership. The Icelandic government, having been instructed by parliament in 1999 to research the impact any resumption would have on the economy, is carefully gauging the mood of the international public and that of the European Commission in Brussels, fearful of a repeat of earlier boycotts of Icelandic fish that sent the economy into freefall.

However, the burning issue for most Icelanders is the protection of their unspoilt environment .

© 2003 by Rough Guides Ltd. as trustee for its Authors. Published by Rough Guides. All rights reserved. Rough Guides name is a trademark of Rough Guides Ltd. Buy the book here! The Rough Guide to Iceland

Following a successful public campaign, a recent decision to postpone the building of vast dam in the uninhabited Interior to provide hydroelectric power for a new aluminium smelter planned for the East Fjords was greeted with much jubilation. Herein, however, lies the crux of Iceland's dilemna - how the country's outstanding natural beauty, fierce independence and pride can be protected from the economic and political pressures of a world upon which Iceland is totally dependent for its existence.


ANDREA

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Iceland

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Iceland

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........

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yUR MOM`

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~Giggle~

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12/5/2008 2:39:47 PM