History
Iceland is a relatively young place, both geologically and politically speaking. The island emerged some 20 million years ago when a series of eruptions in the Mid-Atlantic Ridge created enough molten rock to rise from the bottom of the ocean to the surface and emerge as land. The volcanic island was one of the last islands on earth to be discovered and inhabited, making Iceland a newcomer on many fronts.
Literary and archaeological evidence confirms the settling of Reykjavik around 870, making it the first permanently settled place in Iceland. The first settlers were Norwegian sailors, their families and their Irish and Scottish slaves. The stories of these first Icelanders are recorded in the Landnámabók, or Book of Settlers, and later in the sagas the country is famous for, blending Icelandic history and literature into an indistinguishable genre.
Reykjavik wasn't the best place in Iceland to settle, with its soil too poor to support much agriculture, so it wasn't until the 17th century that it started to take shape as a city. Iceland was under Danish rule at the time and the port was used for first wool processing and export, then for fisheries and shipbuilding operations. Reykjavik grew slowly, decade after decade, and really became an urban center during World War II when British and American troops doubled the population of the city. Jobs and construction came with the "Allied occupation" (which was quite peaceful and in fact welcomed) and by the end of the war, Reykjavik was so used to its urbanization that it stayed a social hub and attracted many Icelanders from the hinterlands. Iceland also became a republic at the close of the war, and Reykjavik became the official capital of the newly independent nation.
In the past 50 years Iceland has developed into an important international player, despite its remote location and small population. Communications and information technology companies, as well as financial institutions, have transformed Reykjavik into a forward-thinking, ultra-modern city, which situated on the sea with its high-tech trawlers bobbing in the harbor, somehow still feels like a fishing village—warm, inviting and safe while at the same time buzzing with a vibrant, youthful and innovative energy.
