Part 2/11:
For many years, Iceland enjoyed a reputation as a stable democracy with a high standard of living, low unemployment rates, and minimal government debt. The infrastructure of a modern society was in place, including clean energy sources, managed fisheries, and robust healthcare and educational systems. This idyllic scenario, however, began to unravel in 2000 when the Icelandic government embarked on a path of aggressive deregulation.
The Consequences of Deregulation
Iceland's government began inviting multinational corporations to exploit the nation's natural resources, particularly its geothermal and hydroelectric energy sources. A significant development was the establishment of large aluminum smelting plants, which had dire consequences for the environment and the local economy.