".....Krugman also says: A funny thing happened on the way to economic Armageddon: Iceland’s very desperation made conventional behavior impossible, freeing the nation to break the rules. Where everyone else bailed out the bankers and made the public pay the price, Iceland let the banks go bust and actually expanded its social safety net. Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver. Krugman is right. Letting the banks go bust – instead of perpetually bailing them out – is the right way to go. We’ve previously noted: Iceland told the banks to pound sand. And Iceland’s economy is doing much better than virtually all of the countries which have let the banks push them around. Bloomberg reports: Iceland holds some key lessons for nations trying to survive bailouts after the island’s approach to its rescue led to a “surprisingly” strong recovery, the International Monetary Fund’s mission chief to the country said......"
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Interesting post and my first thought was how did this happen? What makes Iceland different? Then I remembered they had a fairly advanced program of developing geothermal power and wondered if perhaps that had a hand in it. And I found out that the answer was, perhaps indeed. From the Ecology Global Network I learned.
"Iceland’s energy needs, more than any other country in the world, are predominantly met by renewable energy sources. Over 70 percent of Iceland’s energy needs are met by renewable energy sources with imported coal and oil making up the rest. Practically all of Iceland’s electricity is provided by renewable sources with well over 80 percent coming from hydroelectric and the rest coming from geothermal (heat from within the Earth)......"
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Then I came across a speech given by the President of Iceland Olafur Ragnar Grimsson. Who credits his country's renewable energy program not for standing up to the bankers but for helping to create the economic boon the country is now enjoying. In the same speech credits the fact that ordinary citizens constantly were demonstrating in front of the capitol building as the government was meeting on how to deal with the crisis. They even formed citizen groups to put forward proposals to the legislators. We can now see why they authorities were keen to make sure last years Occupy protests didn't get to that level.