Country Analysis of Iceland: Population, Resources and Development - Essay Example

Country Analysis of Iceland: Population, Resources and Development Iceland is the seventh least populated nation in the world (and the lowest populated country in all of Europe), its inhabitants numbering just about 300,000 (as of January 2006). The citizenry is mostly of Norwegian (Nordic) roots mixed with Celtic blood from the time of settlement. Because the territory of Iceland is quite extensive, while its population is small, the population density is just 2.8 meaning there are roughly about 3 inhabitants per square kilometer. This is very low compared to the rest of the countries under the European Union where the average population density is about 116 individuals per square kilometer. Most of Iceland's land area is uninhabitable: three-fifths consist of glaciers, wastelands, and lakes, and only around one-fifth is occupied by human dwellers. Although Iceland's population density is quite low, more than ninety percent of its inhabitants are situated in urban areas. The population is mostly located and congested in the valleys, coastal belts, and southwest areas of the country. In previous decades, the majority of the population lived in Hofuoborgarsvaeoi, but in recent times, the populatin shifted to the Greater Reykjavk area (over fifty percent of the population). The shift towards this area is due in part to the loss of jobs in fishing villages because fishing quota were being sold to large fishing companies. Other towns are relatively sparsely populated. Iceland's net migration rate is -2.28 migrant(s) every 1,000 individuals which means that more people are coming in than going out of the country. In 2004, 7 percent of the total population were composed of people born from other countries, 3.6 percent of those having foreign citizenships. The crude birth rate, or the number of live births per thousand people each year, is 13.73 (as of 2005). The total fertility rate is down to 1.92 children born per woman in 2005, from 4.17 in 1960. One basic assumption supporting the theory of demographic transition is that economically more developed and modernized countries such as Iceland will have lower fertility rates than less developed countrieso. The fertility rate is affected by a woman's social and economic development and is a result of traditional attitudes in many cultures. However, Icelandic society is non-traditional in nature, with many women holding business and government positions, and almost two-thirds participate in the labor force, a higher rate than most European countries. Marriage rates are also low (5.22/1,000 of the population) and 35 percent women aged 20-40 use some form of contraception. Health care is free in Iceland, and includes family planning services. Iceland's crude death rate, at 6.3%, and infant mortality rate, at 2.8 per 1,000 live births, remain one of the lowest in the world. Life expectancy is among the world's highest at 82.7 years in females and 78.2 years in males (as of 2005). The total population's sex ratio is fairly equal at 1 male per female. Population growth rate rose to 0.91% in 2005 from 0.54% in 2001. Its demographic model shows the stage of high fertility-declining mortality/high growth; the combination of low mortality and low emigration rates causing the steady increase in population growth. As with other demographic patterns, life expectancy and mortality is affected by the socioeconomic status of a population, and it can be seen that death rates are lower (and life expectancy higher) among those with higher incomes and higher levels of educational attainment. Iceland is a society living with progressive technology, high living standards, and high literacy rates. The percentage of the population living below poverty line is close to zero, unemployment rates are among the lowest in Europe at 1.8 percent, and education is mostly free; the literacy rate is almost perfect at 99 percent in 2001, which makes it among the highest in the world. The country has also experienced a decline in population growth rate in the past decade, and Iceland has by far adopted a pronatalistic approach to having children. Tteenage pregnancy is high and is generally accepted. The average number of children born per woman is less than 2, and studies show that 70 percent of Icelanders want to have three or more. The government's recent efforts to increase the local population include providing incentives for young people to conceive. Iceland's primary resources include both renewable and non-renewable sources. Its major renewable resources are animal agriculture, fisheries, and hydro-electric power, while the non-renewable ones include the country's abundant supply of geothermal power. Icelands imports vegetables and grain but has abundant supplies of meat and dairy products due to its animal industry. It is considered as having the 11th largest fishing industry in the world; fishing is the backbone of the nation's exports, providing almost 40 percent of all export-generated revenue. However, its importance in the economy is diminishing (from a contribution of 17% down to 10% in GDP over the last 20 years) due to the growth and development of other industries such as those involved in tourism, services, and technology. Still, Iceland's economy can be vulnerable to changes in world prices of fish since fish and fish by-products make up 62% of the country's total exports. Iceland also has a vast resource of geothermal power, as well as hydroelectric power from the country's numerous waterfalls and rivers. Over 99 percent of the country's electrical supply is produced from these sources, and over 90 percent of houses are heated by energy generated from hot springs. However, it is estimated that only one-fourth of these resources have been tapped. With the widespread availability of electricity, the residents acquire them at a very low price; this has helped the proliferation of power-intensive industries such as aluminum and ferrosilicon production which account for about 22 percent of the country's total exports. Overpopulation is a function of the number of individuals compared to the availability of resources they need in order to survive. Taking everything into consideration, Iceland can be considered as underpopulated-it has the lowest population density in the world, a low growth rate, and is among those with the highest purchasing power, and poverty is virtually nonexistent. And taking into account that its largest industry (fishing) is a renewable resource, and great amounts of it's nonrenewable resource (geothermal power) are still untapped, Iceland's population has more than what it needs to survive. For instance, in 1999, its electricity production reached 7.069 billion kilowatt per hour, but it only consumed 6.574 kilowatt per hour. The concentration levels of air, water, and ambient pollutants in Iceland are low and generally lower than those of other countries. Primarily, this reflects its low industrialization level and low population density. Since its economy highly depends on marine resources, Iceland has developed a fisheries management system to ensure the protection of the seas. Measures include the specification of a total allowable catch, individual quotas, and other technical and economic measures. It has also adopted conventions to make sure that the oceans remain sustainable, as well as studies of natural habitats and pollution levels. Carbon sequestration programs have also significantly reduced industrial greenhouse gas emissions. Iceland has the highest economic activity in all countries with a rate of 86.6 percent, and also has the highest percentage of men and women who are economically active (90 and 83 percent respectively). Its industrial sectors are experiencing rapid growth, including information, communication, and health technologies, pharmaceuticals, biomedical engineering, biotechnology, tourism, and financial services. One measure of a country's standard of living is the per capita Gross Domestic Product (GDP), calculated by dividing the GDP by its population. Alternately, the purchasing power parity (PPP), can be used to compare the standard of living between countries. Based on GDP per capita at purchasing power parity, Iceland is among the ten richest countries in the world. In 2005, it ranked fifth, with a GDP per capita of 35,586 U.S. Dollars. Another measure of a country's well-being is the Human Development Index (HDI). The HDI is a summary measure of a country's average achievements in basic aspects of development such as life expectancy, literacy rate, GDP. In 2005, Iceland ranked second in terms of HDI among all the countries in in the world. It's economic growth is 6.2% in 2004, and its external debt is 2.6 billion dollars. The government currently plans to reduce budget and account deficits through the promotion of economic diversity, containment of inflation, reduction of foreign borrowing, revision of fishing and agricultural laws and policies,and privatization of state-owned industries. Read More