Part 339

Type of government: republic

Capital: Reykjavik

Administrative divisions: 23 counties (syslar, singular - sysla) and 14 independent towns* (kaupstadhir, singular - kaupstadhur); Akranes*, Akureyri*, Arnessysla, Austur-Bardhastrandarsysla, Austur-Hunavatnssysla, Austur-Skaftafellssysla, Borgarfjardharsysla, Dalasysla, Eyjafjardharsysla, Gullbringusysla, Hafnarfjordhur*, Husavik*, Isafjordhur*, Keflavik*, Kjosarsysla, Kopavogur*, Myrasysla, Neskaupstadhur*, Nordhur-Isafjardharsysla, Nordhur-Mulasys-la, Nordhur-Thingeyjarsysla, Olafsfjordhur*, Rangarvallasysla, Reykjavik*, Saudharkrokur*, Seydhisfjordhur*, Siglufjordhur*, Skagafjardharsysla, Snaefellsnes-og Hnappadalssysla, Strandasysla, Sudhur-Mulasysla, Sudhur-Thingeyjarsysla, Vesttmannaeyjar*, Vestur-Bardhastrandarsysla, Vestur-Hunavatnssysla, Vestur-Isafjardharsysla, Vestur-Skaftafellssysla

Independence: 17 June 1944 (from Denmark)

National holiday: Anniversary of the Establishment of the Republic, 17 June (1944)

Constitution: 16 June 1944, effective 17 June 1944

Legal system: civil law system based on Danish law; does not accept compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Vigdis FINNBOGADOTTIR (since 1 August 1980) was elected for a four-year term by universal suffrage; election last held 29 June 1988 (next to be held June 1996); results - there was no election in 1992 as President Vigdis FINNBOGADOTTIR was unopposed head of government: Prime Minister David ODDSSON (since 30 April 1991) was appointed by the president cabinet: Cabinet was appointed by the president

Legislative branch: unicameral Parliament (Althing): elections last held on 8 April 1995 (next to be held by April 1999); results - Independence Party 37.1%, Progressive Party 23.3%, Social Democratic Party 11.4%, Socialists 14.3%, People's Movement 7.2%, Women's Party 4.9%; seats - (63 total) Independence 25, Progressive 15, Social Democratic 7, Socialists 9, People's Movement 4, Women's Party 3

Judicial branch: Supreme Court (Haestirettur), justices are appointed for life by the president

Political parties and leaders: Independence Party (conservative), David ODDSSON; Progressive Party (liberal), Halldor ASGRIMSSON; Social Democratic Party, Jon Baldvin HANNIBALSSON; People's Alliance (left socialist), Margret FRIMANNSDOTTIR; Women's Party, Kristin ASTGEIRSDOTTIR; People's Movement (centrist); National Awakening (People's Revival Party), Johanna SIGURDARDOTTIR

International organization participation: Australia Group, BIS, CCC, CE, EBRD, ECE, EFTA, FAO, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, ISO, ITU, MTCR, NACC, NATO, NC, NEA, NIB, OECD, OSCE, PCA, UN, UNCTAD, UNESCO, UNU, UPU, WEU (associate), WHO, WIPO, WMO, WTrO

Diplomatic representation in US: chief of mission: Ambassador Einar BENEDIKTSSON chancery: Suite 1200, 1156 15th Street NW, Washington, DC 20005 telephone: (202) 265-6653 through 6655 FAX: (202) 265-6656 consulate(s) general: New York

US diplomatic representation: chief of mission: Ambassador Parker W. BORG embassy: Laufasvegur 21, Reykjavik mailing address: US Embassy, PSC 1003, Box 40, FPO AE 09728-0340 telephone: 5629100 FAX: 5629139

Flag: blue with a red cross outlined in white that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)

Economy -------

Economic overview: Iceland's Scandinavian-type economy is basically capitalistic, but with an extensive welfare system, low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings and employs 12% of the work force. In the absence of other natural resources - except energy - Iceland's economy is vulnerable to changing world fish prices. The economy, in recession since 1988, began to recover in 1993, posting 0.4% growth, but was still hampered by cutbacks in fish quotas as well as falling world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. The center-right government plans to continue its policies of reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The government, however, remains divided on the issue of EU membership, primarily because of Icelanders' concern about losing control over their fishing resources.

GDP: purchasing power parity - $5 billion (1995 est.)

GDP real growth rate: 3.2% (1995 est.)

GDP per capita: $18,800 (1995 est.)

GDP composition by sector: agriculture: 9.6% industry: 22.1% services: 68.3% (1994)

Inflation rate (consumer prices): 2.5% (1995 est.)

Labor force: 127,900 by occupation: commerce, transportation, and services 60.0%, manufacturing 12.5%, fishing and fish processing 11.8%, construction 10.8%, agriculture 4.0%, other 0.9% (1990)

Unemployment rate: 3.9% (December 1995)

Budget: revenues: $1.9 billion expenditures: $2.1 billion, including capital expenditures of $297 million (1994 est.)

Industries: fish processing, aluminum smelting, ferrosilicon production, geothermal power

Industrial production growth rate: 1.75% (1991 est.)