The 2011 edition of OECD's periodic economic review of Iceland's economy. This edition includes chapters covering restoring the financial sector, securing sustainable public finances, returning to work in Iceland, and ensuring a sustainable and efficient fishery.
Table of contents:
Basic statistics of iceland 2010 Executive summary Assessment and recommendations -Bibliography -Annex A1. Progress in structural reform Chapter 1.Restoring the financial sector to health -Iceland’s main banks pursued risky strategies that led to their downfall -Financial sector restructuring has been achieved in a way that minimises fiscal costs and strengthens market discipline -Steps are being taken to accelerate private-sector debt restructuring -Micro-prudential regulation and supervision is being improved -Macro-prudential regulation is to be strengthened -The blanket deposit guarantee will eventually be replaced by limited deposit guarantee arrangements -Concluding comments Chapter 2.Securing sustainable public finances -Public finances deteriorated markedly in the wake of the financial crisis -The government is implementing a demanding fiscal consolidation programme under the aegis of the IMF SBA -Consolidation efforts will need to be maintained for many years to keep fiscal policy on a sustainable path -The government has implemented institutional reforms to strengthen fiscal discipline -The adoption of fiscal rules would help to sustain needed fiscal restraint Chapter 3.Returning to work in Iceland -The Icelandic labour market continues to slump in the wake of the financial crisis -High unemployment will likely decline slowly -Policy actions can speed up the reduction in unemployment and lessen increases in structural unemployment -Concluding remarks Chapter 4.Ensuring a sustainable and efficient fishery -Scientifically-based TACs and the ITQ system are the foundations of Iceland’s successful fisheries management system -Resource rents could be increased by restricting fishing effort to below the level compatible with biological sustainability -The special resource rent tax should be increased but not by so much as to undermine the ITQ system -The fisheries management system should not be undermined in the pursuit of social objectives -Iceland is negotiating to maintain the key features of its fisheries management system in its EU accession negotiations -Reducing the Icelandic fishing industry’s Greenhouse Gas (GHG) emissions
