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Society and Government

Category: Society · Updated · About 3 min read

Iceland is a small but prosperous democracy with a Nordic welfare system. The country ranks near the top of international lists for equality, peace, quality of life and trust, but also faces challenges such as housing shortages, inflation and rapid population growth.

The constitution

Under the constitution of 1944, Iceland is a republic with a parliamentary government. State power is divided into three: legislative power rests with the Althing and the president, executive power with the president and the government, and judicial power with the courts. In practice ministers exercise executive power, and the president's role is mainly ceremonial. The president can, however, refuse to sign a law and refer it to a referendum, as Ólafur Ragnar Grímsson did with the media law in 2004 and the Icesave laws in 2010 and 2011.

Government and political parties

Icelandic governments are almost always coalitions of two or more parties. The prime minister leads the government. Among the main political parties of recent years are the Independence Party, the Social Democratic Alliance, the Progressive Party, the Reform Party, the People's Party, the Centre Party, the Pirate Party and the Left-Green Movement. Voter turnout is generally high, around 80%.

The courts

The judicial system has three levels. There are eight district courts, which judge at first instance. The Court of Appeal (Landsréttur), which began work on 1 January 2018, is the intermediate level, and the Supreme Court of Iceland, founded in 1920, is the highest court in the country.

Municipalities

Municipalities are responsible for pre-schools, primary schools, social services, planning and other local services. Their number has fallen sharply through mergers: in 1950 there were about 230, and now there are just over 60. Municipal elections are held every four years.

Population and growth

YearPopulation (approx.)
170350,000
180147,000
190178,000
1950144,000
2000281,000
2025390,000

Iceland's population has grown rapidly in recent years, mainly through immigration. About a fifth of the population is now of foreign origin, and the largest group comes from Poland. Life expectancy is among the highest in the world, about 81 years for men and 84 for women.

Welfare and health

Iceland has a tax-funded Nordic welfare system. Healthcare is available to everyone who is covered by national health insurance, and Landspítali – The National University Hospital of Iceland is the largest hospital in the country. Parental leave is twelve months, shared between the parents. The pension system is based on social security and funded pension schemes, which are among the largest in the world relative to GDP.

Gender equality

Iceland has topped the World Economic Forum's Global Gender Gap Index for more than a decade. On 24 October 1975 about 90% of Icelandic women stopped working on the Women's Day Off to demonstrate their importance. In 1980 Vigdís Finnbogadóttir was elected president. In 2018 a law on equal pay certification came into force, requiring companies to show that they pay women and men the same for comparable work.

Safety and trust

Iceland regularly ranks as one of the most peaceful countries in the world (Global Peace Index). Crime rates are low, and police officers generally do not carry firearms. Society is small and close-knit, and people sometimes joke that "everyone knows everyone". deCODE genetics has compiled the genealogical database Íslendingabók, in which most Icelanders can trace how they are related to one another.

Frequently asked questions

Does Iceland have an army?

No, Iceland has no army. The Coast Guard and police are responsible for security, and Iceland is a founding member of NATO.

How is Iceland governed?

Iceland is a parliamentary republic. The president is head of state, while the government rests on the support of the Althing.

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  • Education and the School SystemThe Icelandic school system: pre-schools, compulsory and upper secondary schools, universities, the history of education and learning Icelandic.
  • Facts about IcelandKey facts about Iceland in one place: geography, population, government, national symbols, records, weather records and fun facts about the country and its people.