Iceland

The gradual emergence of an Icelandic state in the late nineteenth and early twentieth century was essentially based on a sense of distinctiveness within the Danish kingdom, facilitated by centuries of relative isolation and economic standstill. Winds of change in nineteenth-century Danish politics posed a threat to Icelandic traditions and eventually led to full separation with the dissolution of the union between the two countries in 1944. Constitutionally, the Icelandic state bears many similarities to the other Nordic states, based on parliamentary government, although local self-government is in many ways weaker, with a large number of small communes and lack of administrative capacity. Given the lack of capacity in many of the small communes, central government plays a relatively large role, compared to the Scandinavian countries, in public policy and administration.