the crisis in iceland

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