Iceland is recovering faster than other countries after taking a hard line with bankers.
The world is still reeling from the global financial crisis in many places, but some countries seem to be recovering faster than others.
Greedy bankers were blamed by many fall the crash of the stock market, as they rode the wave of giving away cheap credit with little regard for the repercussions.
The dangerous way they gambled with other people’s money was not punished in many places, but seemed to be overlooked with many governments bailing out the bakers with billions of dollars, leaving them unscathed, unpunished and ready to do it again.
In Iceland however, they acted differently – punishing the bankers at fault with hefty prison sentences, which has has created a marked improvement for the economy.
Iceland is set to be the first European country to ‘surpass its pre-crisis peak of economic output’ which could be attributed to the pro-active way the country acted in the wake of the crisis, according to the IMF.
Many governments including the U.S and the U.K acted by bailing out the banks which were said to be ‘too big to fail’.
The fear of simply letting the banks fail and the uncertainty that would bring was the catalyst for the massive amounts of money that were thrown at the problem.
In Iceland, they acted in a harsher and braver way – by letting the banks fail and then picking up the pieces, instead of treading water in regards to the problem.
Olafur Hauksson was a special prosecutor called upon to be on the board in charge of jailing the criminal bankers.
He poignantly said:
“Why should we have a part of our society that is not being policed or without responsibility?”
The intrinsic way in which money is kept for the rich and those in power can perhaps be attributed to the way in which the governing bodies seem to keep the bankers sweet, to ensure the special friendships were not damaged, even when people at fault should have been held accountable.
The success of Iceland over other countries should be highlighted and the way the acted should be encouraged to other countries in the wake of the way nepotism can be detrimental to the success of the country as a whole.