Iceland : A Small Island Country

1945 Words Sep 14th, 2016 8 Pages
Iceland is a small island country located in the North Atlantic Ocean with only 300,000 populations in a country. They had almost no contact and relationship with other countries within 1000 years. However, throughout the 1990s and early 2000s, Great changes had taken place in Iceland. The average Icelander became 300% wealthier from 2003 to 2006, and all three of Iceland’s major banks which are Kaupthing, Landsbanki and Glitnir had developed from tiny saving banks in the 1990s to become the world’s top 300 banks a decade later (Gunnlaugsson, 2012). Iceland became the best places for living in this period of time. However, the 2008 world economic crisis sudden started in Iceland and became a national issue, and these three major banks crushed within a few days in October of 2008 (Boyes, 2009; Vaiman, 2011). After this happened, the public had an outcry that the cause of recession should be blame to local politicians and bankers, the government and supervisory agencies (Gunnlaugsson, 2012). However, others argue that they should not only blame to their bankers and politicians. This essay will argue that this financial crisis in Iceland in 2008 was not only caused by these individuals, but also by the society, banking system and world economy. Firstly, this essay will talk about the nepotism and naive belief of neoliberalism from politicians and bankers, then it will move to the reason that why Icelanders only blame to those individuals and show society’s…
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