History of Iceland

Iceland's history begins with Norse settlers who arrived in the late 9th century, led by Ingólfur Arnarson in 874 AD. Irish monks (papar) may have been present earlier, as recorded in the monk Dicuil's De Mensura Orbis Terrae (825 AD), but left no permanent settlement. The settlers established the Althing at Þingvellir in 930, one of the world's oldest parliaments: an open-air assembly where 36 chieftains (goðar) gathered every June to legislate and resolve disputes. Christianity was peacefully adopted by parliamentary decree around 1000 AD. Iceland lost independence in 1262 under the Old Covenant (Gamli sáttmáli) with Norway, then passed to Denmark via the 1380 Kalmar Union. The 1783–84 Laki eruption killed roughly 20% of the population (about 10,000 people) and 80% of livestock, and triggered a famine called the "Mist Hardships" (Móðuharðindin). The independence movement, led by Jón Sigurðsson (born 1811), secured sovereignty in 1918 and full republic status on June 17, 1944 (Sigurðsson's birthday), while Denmark was under Nazi occupation. The 2008 financial collapse saw all three major banks fail within a week, but Iceland's unconventional recovery (letting banks fail, imposing capital controls, prosecuting bankers) is studied as a model of crisis management. Today Iceland has a population of about 383,000 and a GDP per capita among the world's highest.