Iceland has traditionally been seen as an isolated Nordic fishing outpost, marooned in the middle of the north Atlantic and slightly out of step with the modern world. But any visitor to Reykjavik in 1999 would find that the exact opposite is true. The country's small population has become wealthy, hi-tech, forward-thinking and even highly fashionable.
Most of this transformation has been achieved through the opening up of the Icelandic economy to foreign investment during the 1990s, accompanied by the retreat of the state's role in the economy. And after decades of slow and insular development, Iceland has joined the international capital markets. A stock exchange was established in 1985, and during the 1990s the debt and equity markets have grown in depth and liquidity. A privatization programme adopted by the government in the early 1990s is helping to increase the size of the stock market and in future may...
