Enterprise and Industrial Policy
Moving Iceland Forward initiative
and the Iceland 2020 policy statement
Overview of presentation
• Government´s Coalition Platform
• Moving Iceland Forward
• Iceland 2020
• Regional Plans of Action
• Investment plan
• Simplification, reduction and coordination of government
polices and plans
• Conclusion
The Government Coalition Platform (2009)
New values emphasized by the government:
• New values on: equality, social justice, solidarity, sustainable
development, gender equality, moral reform and democracy.
• Guided by these values the aim is to create a Nordic welfare
society in Iceland.
• Also to launch a comprehensive long- term policy work to
boost economic development and social reforms.
• This includes strenghtening research, development and
innovation in all sectors but with emphasis inter alia on green
industries, sustainable development, ICT, health technologies
and tourism.
What was the moving Iceland Forward
initiative?
Moving Iceland Forward initative
• Broad consultation under the direction of the Prime Minister´s Office
for pro-active plans to boost long-term employment and quality of
life in all areas of Iceland.
• More than a thousand people contributed to the project at national
forums: Inhabitants from all over the country, members of
parliament, ministers, representatives from independent non-profit
organisations, the economy and labour market and personnel from
ministries and institutions, municipal authorities and regional
associations.
• Objective to identify Iceland´s strengths and opportunities and form
a common vision for a better community with a focus on valuecreation, education and welfare.
• Three pillars: regional plans of action, future vision and
competitiveness.
National forum
on the values of a new Constitution
Main pillars of the Moving Iceland
Forward initiative
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•
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Future vision
– Status report by the Institute of Economic Studies and Social Science Research
Institute of the University of Iceland
– Scenario planning
– Draft Economic Activity Plan
Competitiveness
– Infrastructure and institutions
– Efficiency of the markets
– Economic conditions
– Quality of life, health and equality
– Education and innovation
– Infrastructure, technological readiness and telecommunications
– Development and innovation
Regional action plans
– 8 regional forums in collaboration with regional associations
Regional plans of action
Analysis of the competitiveness of the
regions
Nine status reports
• Various data and facts about the regions
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Prosperity
Environment
Labour market
Research and development
Educational levels
Economy
Culture and other social activity
Quality of life and equality
and more
Eight regional national gatherings
• One day event
• More than 100 participants
• Input from status reports
• Roundtables with facilitators
– Two rounds
• Aim to identify strength, weaknesses, specificities and
competitiveness
Conclusions of the regional national
assemblies
• Information processed by regional associations
– First draft of regional plans
• Six common themes in the regions
– Tourism services – related to nature and culture
– Health and wellbeing
– “Pure” food and water
– Finished food products
– Knowledge and research centers
– Use of renewable eco-friendly energy (hydropower,
geothermal energy)
ICELAND 2020
The Iceland 2020 policy statement
•Iceland 2020 is based on the results of the work undertaken
under the Moving Iceland Forward initiative and therefore
reflects the broad consultation process described previously.
•Iceland 2020 is a vision for the future and policy statement that
the government has agreed on.
•Iceland 2020 forms the basis for the Icelandic government´s
policy making and planning in specific areas over the coming
years.
Iceland 2020
•20 measurable objectives
–5 Welfare
–5 Knowledge
–5 Sustainability
–3 Economic
–2 Development
•30 first steps towards the
objectives
1. To reduce the unemployment rate (> 12
months) to under 3% by 2020.
2. To achieve greater equality in Iceland, by
lowering the Gini coefficient for
disposable income to around 23 by 2020.
3. To narrow the gender gap in order to
bring the Global Gender Gap Index close
to 0.9 by 2020.
4. To reduce the percentage of people, in
the age group 16-67, receiving disability
pensions from 6.9% of the population to
5.7% by 2020.
5. To improve well-being and sound mental
health so that the average
measurements on the WHO-5 well-being
index rise from 64 in 2009 to 72 in 2020.
Iceland 2020
•20 measurable objectives
–5 Welfare
–5 Knowledge
–5 Sustainability
–3 Economic
–2 Development
•30 first steps towards the
objectives
6.
To reduce the percentage of Icelanders aged
between 20-66, who have not received any
formal secondary education, from 30% to 10%
by 2020.
7. That 4% of the GDP be allocated to research,
development and innovation, and the
percentage of companies’ contributions to
research programmes will rise to 70% against a
30% contribution from the state.
8. That by 2020, Iceland be in the top 10 nations
on the E-government development index and Eparticipation Index measured by the United
Nations.
9. That by 2020, the high-tech industry will
account for 10% of the GDP and 15% of the
value of exports.
10. That by 2020, the skills of Icelandic elementary
school pupils be comparable to those of the
top 10 nations classified by the OECD
Programme for International Student
Assessment (PISA) in the domains of reading
and mathematical and scientific literacy.
Iceland 2020
•20 measurable objectives
–5 Welfare
–5 Knowledge
–5 Sustainability
–3 Economic
–2 Development
•30 first steps towards the
objectives
11. That a minimum of 20% of the fuels used
in the fisheries industry will be ecofriendly by 2020 and that 20% of all fuels
used in transport will be eco-friendly.
12. That by 2020 Iceland shall have made
commitments comparable to those of
other European nations with regard to
the United Nations’ Framework
Convention on Climate Change.
13. That eco-innovation and its products be
the main growth sector of this decade,
with an annual growth in turnover of
20%, which will double between 2011
and 2015.
14. That by 2020, 75% of new vehicles
weighing less than five tons will run on
eco-friendly fuel.
15. That the percentage of domestic food
consumed by Icelanders will have
increased by 10% by 2020.
Iceland 2020
•20 measurable objectives
–5 Welfare
–5 Knowledge
–5 Sustainability
–3 Economic
–2 Development
•30 first steps towards the
objectives
16.That public debt shall not exceed
60% of the GDP by 2020.
17.That, by 2020, inflation shall be
no more than two per cent
higher than inflation in the three
EU member states with the
lowest inflation rates.
18.That, by 2020, long term interest
rates shall be no more than two
per cent higher than the interest
rates in the three EU member
states with the lowest interest
rates.
Iceland 2020
• 20 measurable objectives
– 5 Welfare
– 5 Knowledge
– 5 Sustainability
– 3 Economic
– 2 Development
• 30 first steps towards the objectives
19.That the UN’s Human Development
Index (HDI) for Iceland shall be
comparable to those of the top five
nations on the index.
20.That the Genuine Progress Indicator
(GPI) shall always remain on a level
with the growth in GDP.
 The 10 ministries are jointly
responsible for the 20 objectives
Integrated planning
Integrated planning
Four main categories of plans:
1. Regional plans of action
2. Investment plan for the development of infrastructure,
employment, human resources and the community
3. Reforming public administration and services
4. Simplification, reduction and coordination of government
polices and plans
Regional plans of action
• Based on work done in the Moving Iceland Forward initiative
• Related to other initiatives such as the strengthening of local governments
• Founded on the objectives of Iceland 2020
– Regional strategies
– Plans for the development of a core transport network
– Simplification and restructuring of the employment and regional
development framework
– Labour market plans
– Education plans
• Cooperation between local governments
• Cooperation between ministries
• Regional plans
Investment plan
Simplification, reduction and coordination of
government polices and plans
Simplification, reduction and coordination
of government polices and plans
• PMO together with other ministries
• All major policies and action plans have been analyzed
• Recommendations in 2011
• Is connected to ongoing reforms in central government.
Possible scenario
Governmental
policies
Welfare police
Economic activity
plan
Industry Policy
Economic policy
Environmental and
resources policy
Education, science
and culture policy
Interior policy
(telecom, transport
and law
enforcement)
The Industrial policy will be a part of a
larger Policy Mix
ICELAND 2020
Economic Policy
Res. &Environ.
Educ.& science
Industrial Policy
Other policies
Conclusion
• Extensive work has been done over the last two years in
policy making and planning at the national and regional level
– More milestones will be reached in 2011
• Reforms have been made in the central government
– More to come
• Work is compatible with EU policies
Further information on the PMO´s
website:
eng.forsaetisraduneyti.is/iceland2020
See especially two reports
Iceland 2020 and
Moving Iceland Forward
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