1. THE CASE OF ICELAND CLIVE ARCHER
SMALL STATES IN CRISIS
THE CASE OF ICELAND
CLIVE ARCHER

2. SMALL STATES IN CRISIS OUTLINE: Why a crisis?
What is the problem for small states?
What is Iceland’s problem?
What is to be done?

3. SMALL STATES IN CRISIS Why a crisis? Economic downturn
High unemployment
External involvement
Political mistakes/inaction
Negative effect on citizens
All happens rapidly, at high rates

4. Problem for small states
SMALL STATES IN CRISIS
Problem for small states
Limited economic resources
More open economies
Limited capabilities
= Limited power

5. SMALL STATES IN CRISIS Iceland’s problem
Economic: banking, debt, employment, currency.
Institutional: Bank of Iceland’s problems, currency/euro, EEA/EU
Political: Q. of trust, capability, ability?

6. SMALL STATES IN CRISIS Iceland: any answers?
Nordic & IMF immediate answer
Long-term: euro & EU?
Niche: not banking!
USP: nature -> tourism, clean energy, fish-stocks
Answers for whom? Country, people, business? Differences open up