In 2008 Iceland was confronted with an unprecedented economic catastrophe. Three of its major banks collapsed dragging with them the country's social, economic and political life. Four years later, in 2012, Iceland has begun to show signs of recovery. Unemployment rates are declining and growth rates have reached approximately 2,5%. However, in order to reach this positive outcome, some quite unorthodox methods were implemented. The measures were completely different from what the E.U. and the IMF have imposed on member states that are suffering from the effects of the recession. Many times, these measures brought Iceland up against the international financial community but today even the IMF admits that the methods used here in handling the crisis have come into fruition.
This was the basis of a new min-documentary from the producers of "Exantas" (shown on the state NET channel) who traveled to Iceland and conducted a very interesting investigative report. They found out that the best route out of any recession is only to boost, and it is definitely not to slash like the Greek government has done in Greece.
Just a couple of days ago we also saw Brazil doing the same thing, a country which is apparently enjoying a +7 percent development rate!
Certainly the idea of placing the money in the hands of people who are the most likely to spend it is the best way any nation can recover from this global economic crisis... because it makes perfect sense. Even the IMF notes that distributing income more equitably fosters faster growth.
We wonder if the Troika is listening?
So how did the Vikings' descendants achieve these results? Watch the report and find out.
(The mini-documentary is in the Greek and English language)
Posts
