Iceland
Iceland exhibits high-range performance across all four categories of the Global State of Democracy framework. It is also among the world’s top 25 per cent of countries with regard to all factors of democratic performance except Effective Parliament. The Nordic country has seen significant declines between 2018 and 2023 in Political Equality, Social Group Equality, and Economic Equality (mid-performing), Freedom of the Press, Access to Justice, Credible Elections, and Absence of Corruption (high-performing). With regards to its economic performance, Iceland is a comparatively volatile but egalitarian economy whose main sectors include the service industry, commercial fishing, and tourism. Iceland has chosen a course of sustainable energy generation, with 85 per cent of domestic energy consumption coming from renewable sources.
Declaring full independence from centuries of Danish rule in 1944, Iceland is a relatively young state. While self-determination formed a large part of Icelandic politics in the century prior to independence, contemporary politics is still fundamentally marked by the financial crisis of 2008. While its economy has recovered since the collapse of the banking system – the largest experienced by any country based on the size of the sector relative to GDP – Iceland’s level of political trust (although higher than the OECD average) has not, and Absence of Corruption is at its lowest recorded level. Political competition has also faced a restructuring, with new political parties rising in prominence vis-à-vis the traditionally characteristic system of two-party governments. However, the 2021 legislative elections – although requiring a recount due to procedural irregularities – saw the first government since 2008 retain its majority.
The main divisions in Iceland are along class, urban-rural, and traditional left-right lines. Other ideological cleavages – including environmentalism and multiculturalism vs. social conservatism – have also come to structure national political competition. At the same time, issue voting and election-specific factors, such as political scandals, have become more important in driving Icelandic politics. Traditionally homogenous, Iceland has experienced increased levels of immigration over the past decade. Approximately 16.6 per cent of the population is foreign-born, a significant proportion of whom are of Polish origin. The UN’s refugee agency also deems Iceland to have “a favorable protection environment” for forcibly displaced and stateless persons, with attitudes towards refugees generally positive. Iceland is also recognized for its strong commitment to gender equality, with high levels of women’s participation in politics (the country elected its second woman president in 2024, and women hold 47.6 per cent of parliamentary seats), and in the labor force, largely owing to parental leave policies. Businesses with more than 25 employees are required to demonstrate gender pay equality. However, the unequal division and recognition of domestic labour, a persisting gender pay gap, and gender-based violence led tens of thousands of individuals – including the then Prime Minister – to participate in a 24-hour strike in October 2023. Iceland was the ninth country in the world to legalize same-sex marriage, recently adopted an LGBTI Action Program, and passed a ban on conversion therapy in 2023.
Despite an overall high level of democratic performance, 2023 has seen a worsening across multiple factors, particularly within Rights and the Rule of Law. Accordingly, these are the categories to watch going forward. Corruption is a challenge that Iceland is likely to continue grappling with, due to the “excessive intermingling” of private interests with the management of public affairs. This spills into domains such as Freedom of the Press, where media freedom is threatened by business interests. Absence of Corruption is therefore an important factor to pay attention to within the wider Rule of Law. Lastly, given the documented 2021 irregularities, the 2024 legislative elections will be central in determining whether or not Iceland’s performance in Credible Elections improves.
Last updated: 15 June 2024
https://www.idea.int/democracytracker/
November 2024
Opposition Social Democratic Alliance wins early general elections
Iceland held early parliamentary elections on 30 November, the sixth since 2008. Prime Minister Bjarni Benediktsson, who came to power in April after his predecessor resigned, called for elections in October after ending the coalition between his Independence Party, the Progressive Party, and the Left-Green Movement due to disagreements over immigration, energy policy, and the cost-of-living crisis. Out of the 63 Alþingi (Parliament) seats, the Social Democratic Alliance (Samfylkingin) won 15 seats with a vote share of 20.8 per cent, becoming the largest party. The incumbent Independence Party (Sjálfstæðisflokkurinn) secured 14 seats with a vote share of 19.4 per cent. The centre-right Liberal Reform Party (Viðreisn) secured 11 seats, with a vote share of 15.8 per cent. Voter turnout was 80.1 per cent, remaining nearly unchanged from 2021.
Sources: Icelandic National Broadcasting Service, Euronews, Al Jazeera, International IDEA
November 2024
Opposition Social Democratic Alliance wins early general elections
Iceland held early parliamentary elections on 30 November, the sixth since 2008. Prime Minister Bjarni Benediktsson, who came to power in April after his predecessor resigned, called for elections in October after ending the coalition between his Independence Party, the Progressive Party, and the Left-Green Movement due to disagreements over immigration, energy policy, and the cost-of-living crisis. Out of the 63 Alþingi (Parliament) seats, the Social Democratic Alliance (Samfylkingin) won 15 seats with a vote share of 20.8 per cent, becoming the largest party. The incumbent Independence Party (Sjálfstæðisflokkurinn) secured 14 seats with a vote share of 19.4 per cent. The centre-right Liberal Reform Party (Viðreisn) secured 11 seats, with a vote share of 15.8 per cent. Voter turnout was 80.1 per cent, remaining nearly unchanged from 2021.
Sources: Icelandic National Broadcasting Service, Euronews, Al Jazeera, International IDEA
June 2024
Halla Tómasdóttir wins presidential election
In the presidential elections that took place on 1 June, the top three candidates were women. Halla Tómasdóttir, an independent candidate, won with 34 per cent of the votes in the first-past-the-post voting system, where the candidate with the most votes wins regardless of the total number of votes cast. A businesswoman and investor, Tómasdóttir said she will focus on issues like youth mental health, tourism development, and artificial intelligence. Former Prime Minister Katrín Jakobsdóttir from the Left-Green Movement came second with 25.5 per cent, while independent Halla Hrund Logadóttir, who pledged to prioritize energy and environmental issues, gender equality, and to expand opportunities for all, finished third with 15.5 per cent. 46 per cent of the candidates were women. Tómasdóttir becomes Iceland’s second female president, following Vigdis Finnbogadottir, who became the world's first democratically elected female president in 1980. Although the president is largely ceremonial, she can veto legislation or call referendums. Voter turnout was 80.8 per cent, the highest among presidential elections since 1996.
Sources: Euronews, Iceland Monitor, Iceland Review (1), Iceland Review (2), Al Jazeera, International IDEA
October 2023
Icelanders go on strike against gender-based violence and pay discrimination
On 24 October, more than a quarter of Iceland’s population went on a full-day strike against gender-based violence and pay discrimination. The crowd of over 100,000 women and non-binary people was joined by Prime Minister Katrín Jakobsdóttir and caused widespread disruptions, with schools, kindergartens and most banks having to close. It is the first strike of its kind since 1975, when a full-day strike by 90 per cent of Icelandic women resulted in the creation of a women’s political party and the election of the world’s first elected female president. Although the country at present is among the world’s most gender equal, research from the University of Iceland has found that 40 per cent of Icelandic women have experienced physical and/or sexual abuse in their lifetime. National statistics from 2022 reveal that Icelandic women earn 9.1 per cent less than Icelandic men, with a gap of over 25 per cent in some occupations.
Sources: Kvennafri, The Global State of Democracy Indices, The Guardian, The Saga Cohort, Statistics Iceland
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Global ranking per category of democratic performance in 2023
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Global State of Democracy Indices
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Factors of Democratic Performance Over Time
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