Iceland is a parliamentary democratic republic whose representatives are elected periodically to the unicameral parliament through universal suffrage in free and fair elections. The President is head of state and is elected by popular vote for a 4-year term. The Prime Minister, appointed by the President, heads the government. The Althingi (parliament) constitutes the legislative branch of government.

In 2003, elections saw the incumbent Independence and Progressive parties re-elected to form a coalition government; the President was also re-elected. There are 19 women in the 63-seat Althingi and 3 women in the 12-person Cabinet. 2 of 9 Supreme Court justices are women. No minorities are in the legislature.

The judiciary is independent in law and in practice. The country has no military forces. Reports do not cite abuses by security forces. The market economy provides a high standard of living.

Freedom of speech and of the press are provided in law and in practice.
The media express a wide variety of views without restriction. Internet access is unrestricted.

The official religion, Lutheranism, receives state funding, and the clergy are paid as public servants. All citizens aged 16 and over pay a church tax of US$121 (isk 7,800). Those who are not members of a religious group make the tax payment to the University of Iceland.

Trafficking in persons is illegal, but reports tell of women trafficked for sexual exploitation, mainly in strip clubs or massage parlours.

School attendance is compulsory through age 15 and free through university. 85% of students attend upper secondary education. There are 2 universities, and some 40% of school-leavers attend university. Technical, vocational, and specialised schools, including a teachers' training college, are also available for postsecondary students. Christian religious instruction is provided in public schools, though students may be exempted from religious education classes.

Anti-bias and tolerance education are incorporated into the national curriculum in life skills and sociology courses. A Children's Ombudsman, independent of government, has a mandate to protect children's rights, interests and welfare.

A 3-year programme begins at age 3. At this level 5% of education is private. The Net Enrolment Rate (NER) is 91%. Of the 3,571 ECE teachers, 97% are women. The pupil/teacher ratio (PTR) is 5 : 1.

Education is compulsory for ages 6 to 16. Primary school begins at age 6 and continues for 7 years. The NER is 99% (46% female). All students who enrol in Grade 1 reach the last grade of primary school. There are 2,982 primary teachers (78% female). The PTR is 11 : 1.

Secondary education begins at age 13 and is completed in 7 years. 34% of students in upper secondary education study in technical vocational programmes. The NER is 86%. There are 2,788 secondary teachers, 1,252 (78% female) in lower secondary and 1,536 (48% female) in upper secondary education. The PTR is 11 : 1 in lower and 14 : 1 in upper secondary schools.

12,374 students (64% female) study in tertiary institutions, for a Gross Enrolment Rate of 62%. Icelandic students study abroad, mainly in Denmark (1,081), the USA (488), Sweden (434), the UK (317) and Norway (251).

Discrimination is prohibited against persons with disabilities in education or in other state services. Disabled persons receive assistance to live and work in society, and they are given preference for government jobs when they are as qualified as other applicants. However, advocates note that implementation falls short of this policy. Disabled persons constitute the majority of the poor. Special education programmes are provided for children with special needs.

The law provides for the granting of asylum or refugee status in accordance with the 1951 UN Convention Relating to the Status of Refugees and its 1967 Protocol, and the government has established a system for providing protection to refugees. Asylum-seekers, while their status is being determined, are eligible for health care, work permits and public education for their children. Refugee children receive special assistance and psychological and social support.

The population is largely homogeneous, but immigration is increasing the minority population. Immigrants of colour are referred to as "newcomers." Asian women and minority group children report being taunted. Social discrimination against minorities is becoming problematic.

Reports do not indicate any violations of academic freedom.

The Minister of Social Affairs appoints an Equal Status Council that makes recommendations to achieve equality for men and women in the labour market. A law enacted in 2003 allows both parents 3 months of paid leave upon the birth of a child, with an additional 3 months leave the parents can take individually or split between them. Parental leave is at 80% of salary and applies to the public and private sectors. Some 75% of women participate in the labour market. A comprehensive system of subsidised child care makes it possible for parents to work. Equal pay for work of equal value is mandatory, but a pay gap exists, with women earning 15% less than men. Only 22 of 147 professors at the national university are women.

Violence against women continues to be a problem; police statistics indicate that the incidence is low but many events go unreported.

The law prohibits the employment of children younger than age 16 in factories, on ships or in other places that are hazardous; the law is enforced. Children aged 14 or 15 may be employed part time or during school vacations in light work.

Workers have the right to form and join trade unions, and 85% of eligible workers are union members. Union dues of 1% of gross pay are deducted from salary at source and remitted to the unions. All employees, whether union members or not, help support disability, strike and pension funds. Collective bargaining is widely used and is done on an industry or sectoral basis. Collective agreements determine pay, hours and conditions of work. Strike action is prohibited only for public sector workers providing essential services in public health or safety.

Forced or compulsory labour is prohibited, and the provision enforced. The law does not establish a minimum wage. Wages are negotiated in collective contracts and provide a decent standard of living for a worker and family. The standard legal work week is 40 hours,