Exploring the Past of Reykjavik

Reykjavik, the capital city of Iceland, has a rich history that dates back to the first settlers more than 1,100 years ago. The city’s name translates to “smoky bay,” as it was named after the steam rising from the hot springs in the area.

Settlement and Early Years

The first permanent settler of Reykjavik was Ingolfur Arnarson, who arrived in the area in 874 AD. He chose the location for its natural hot springs, which provided warmth and a reliable source of water. Over the centuries, Reykjavik grew slowly, serving as a center for trade and fishing.

Becoming the Capital

Reykjavik officially became the capital of Iceland in 1845, but it wasn’t until the 20th century that the city truly began to flourish. The arrival of modern infrastructure, such as electricity and paved roads, transformed Reykjavik into a modern city.

Modern Reykjavik

Today, Reykjavik is a vibrant city with a thriving arts and culture scene. It is home to a bustling harbor, innovative architecture, and a growing tourism industry. The city continues to evolve while preserving its unique history and charm.

Unveiling the History of Reykjavík

Reykjavík, the world’s northernmost capital city, has evolved from a farmstead into a vibrant cultural hub that now houses two-thirds of Iceland’s population. Delve into the fascinating history of Reykjavík to understand its journey.

Reykjavík Today: A Fusion of Charm and Urban Energy

Presently, Reykjavík is renowned for its lively and eccentric atmosphere, blending a small-town charm with the conveniences of city life. Almost all travelers to Iceland will find themselves in Reykjavík, with a majority opting to spend at least a night in this dynamic city. Visitors flock to explore its cultural attractions, partake in its diverse festivals, savor the local cuisine at top-notch restaurants, experience the vibrant nightlife scene, and use it as a launching pad to explore the rest of Iceland.

It is only fitting that a city as vibrant as Reykjavik originated from the first permanent settlement on the island, providing ample room for growth over a thousand years.

Throughout most of its past, Reykjavik did not showcase its impressive beginnings or its promising future; instead, it thrived as a wool production center in a country primarily focused on fishing. The city’s evolution to its current state has been influenced by colonization, conflicts, trade, and population movements, predominantly within the last three centuries.

Settlement Era

In ancient times, Ingólfur, Hallveig, along with their slaves, became the first permanent settlers in Iceland.
Photo from Wikimedia, Creative Commons, by Johan Peter Raadsig. No edits made.

Early History of Iceland

Information regarding Iceland’s earliest history is primarily derived from the Book of Settlements, also known as Landnámabók, authored by Ari Þorgilsson in the late 11th or early 12th century. This detailed record outlines the initial settlers in Iceland, their settlements, and their descendants. According to the book, Ingólfur Arnason and Hallveig Fróðadóttir were the first permanent settlers in Iceland, arriving in Reykjavík.

Ingólfur Arnason and Reykjavík

In 874, Ingólfur Arnason and his family founded their home in Reykjavík, marking the beginning of Iceland’s settlement. The choice to settle in Reykjavík was deliberate, with Ingólfur throwing his high seat pillars, symbolic of his chieftainship, into the sea. He then followed their direction along the coast to determine his settlement location, eventually discovering a site rich in steaming hot springs. This location led to the naming of his new home Reykjavík, meaning ‘Smoky Bay’ in direct translation.

Ingolfur Arnarson: A Key Figure in Icelandic History

Ingolfur Arnarson had a significant impact during his lifetime and continued to be highly respected even after his passing. He possessed extensive land holdings that he believed would secure his family’s power for generations to come, a belief that held true for some time.

Legacy of Allsherjargoði Title

The male descendants of Ingolfur and Hallveig were granted the prestigious title of ‘Allsherjargoði,’ which denoted their roles as both religious and political leaders. This family played a crucial role in establishing a system of collective governance in Iceland. They established the Kjalarnes Assembly, bringing together chieftains from the southeast to peacefully resolve disputes, promoting civil resolutions over violent conflicts.

Formation of the Althing

Other clans and assemblies in Iceland felt that the dominant institution in Reykjavík needed to be balanced by spreading power across the nation. In 930 AD, with the support of the descendants of Ingólfur and Hallveig, the Alþingi, or National Assembly, was established. This marked the end of the Settlement Era and the beginning of the world’s longest-running parliament.

The creation of the Alþingi not only formed an Icelandic Commonwealth but also shifted the power dynamics within the country.

The Establishment of Alþingi at Þingvellir

Power shifted to Þingvellir when Alþingi was founded, marking a significant historical event.

Ingólfur’s Descendants and Land Division

As time passed, Ingólfur’s descendants led to the division of his land, gradually disappearing from records after 1000 AD. Reykjavík remained obscure for over 700 years before regaining prominence as Iceland’s focal point.

From Commonwealth to Colony

In the late Middle Ages and Early Modern Period, Reykjavík had limited significance within Iceland and globally. The country itself experienced significant transformations, including a Civil War and integration into the Kingdom of Norway in the 13th Century. Subsequently, it became part of the Kalmar Union, dominated by Denmark, in 1380 and remained under Danish control after the union’s dissolution.

During this period, Iceland also faced religious conflicts. The 11th Century saw the adoption of Christianity on the island, while the 16th Century witnessed the Reformation, leading to the country’s Lutheran conversion. After the Reformation, Reykjavík lost its prominence as two Episcopal Sees took over as the most influential locations in the absence of religious support.

Challenges Faced by Icelandic Locals

The challenges faced by the people of Iceland, such as limited resources, a volatile climate, and the increasing control of Denmark over the country’s lands, made their lives incredibly difficult. These issues, compounded by the lack of economic independence, created significant hardships for the local population.

From Colony to Independence

Reykjavík’s journey to reclaiming its power began with the arrival of Dane Skuli Magnusson in the 18th Century. He settled on the farmland and set up wool workshops, bringing employment and ensuring high-quality products. Recognizing this, the Crown authorities granted trading charters to Iceland’s settlements in 1786, with Reykjavík being the sole recipient of a permanent charter.

Over the following decades, Reykjavík grew into a significant port city. When the Alþingi, which had been dormant since 1798, was reinstated, it found its new home in Reykjavík. This shift of power to the southeast elevated the ‘town’ – a mix of government buildings, makeshift homes, and farms – to the status of the colony’s capital.

Economic Growth and Independence

Reykjavík saw a significant boost in its economy in 1855 when free trade with all nationalities was allowed by the Crown. The economic independence of Icelanders was further solidified with the establishment of their first Constitution in 1874. A pivotal moment came in 1880 when the Danish Monopoly finally came to an end, granting Iceland more autonomy.

Cash Transactions and Economic Development

A turning point in Icelandic history occurred when cash started being used for trading goods, marking a shift from the traditional bartering system. As Reykjavík was the largest port in the country, a substantial amount of money circulated through the city.

Growth during Turbulent Times

Reykjavík experienced significant growth in the first half of the twentieth century, especially during the years of World War I. The demand for Icelandic wool surged between 1914 and 1918 due to the devastation in Europe, leading to a boom in the agricultural sector.

Transformation During War and Post-War

After the war, the benefits of the conflict were mostly enjoyed by the locals in Iceland. This era marked the liberation of Iceland from its colonial status, as Denmark granted it Home Rule in 1918, renaming it the Kingdom of Iceland.

The interwar period brought challenges for rural Icelanders, with much of the land falling into the hands of the wealthy elite. This led to disparities as the affluent class could afford advanced agricultural machinery, leaving the common folk unable to compete, prompting a mass migration to Reykjavík.

World War Two played a significant role in shaping Reykjavík and Iceland as a whole. The conflict created a high demand for fish from the Allies, which Iceland could supply, despite losing contact with Denmark due to Nazi occupation. Britain’s invasion of Iceland in 1940, followed by the US’s protective occupation in 1941, safeguarded the vital fisheries due to Iceland’s strategic location in the mid-Atlantic.

Independence of Iceland

In 1944, Iceland officially declared its independence from Denmark, marking a significant moment in its history. Despite protests from the Crown, Iceland chose not to re-enter the Kingdom and established Reykjavík as its capital, solidifying its status as a newly independent nation. This decision set the stage for a period of cultural, social, and economic growth, with 1945 being a pivotal year in Iceland’s development.

Post-World War II Period

After the conclusion of World War Two, Iceland found itself in a unique position. Despite experiencing greater prosperity, the country still heavily relied on fishing and agriculture in a rapidly advancing technological environment. While achieving independence for the first time in 700 years, Iceland lacked a national armed forces and was situated between the competing powers of the USA and USSR.

The presence of US troops in Iceland following the war played a pivotal role in the nation’s development. Amidst the onset of the Cold War, the American forces stationed in Keflavík sought opportunities for socializing and cultural engagement in Reykjavík. However, they encountered a lack of diverse entertainment and cultural offerings in the city.

Transformation of Reykjavik Social Scene

As Iceland welcomed the presence of military personnel, a shift in the social scene of Reykjavik began to unfold. Bars emerged in the downtown area, offering entertainment for the soldiers during weekends. This change not only attracted Icelanders to join in but also sparked a newfound enthusiasm for socializing and extending their social interactions. The longstanding isolationist attitude that historically defined the country started to fade as a curiosity for international cultures and influences took root.

Controversy Surrounding the US Base

While the US military presence brought about a transformation in Reykjavik’s social dynamics, it was not without its controversies. In 1949, Iceland witnessed significant protests against the decision to join NATO, marking some of the largest and most violent demonstrations in the country’s history. Many locals opposed those who embraced American values, particularly targeting women who formed relationships with American men, leading to their ostracization.

Impact on Icelandic Men

Despite the tensions surrounding the US base, the women of Reykjavík gravitated towards men who valued dancing over combat. This preference pushed the traditional rural Icelandic men to adapt, eventually evolving into the multifaceted ‘renaissance men’ seen in modern times.

Reykjavik’s Evolution in the Mid-20th Century

During the mid-20th century, Reykjavík experienced a significant transformation fueled by financial influx from American taxes and increased trade. This led to the development of stadiums and training centers for athletes, enabling them to compete internationally and showcase their athletic prowess. Moreover, the city started to prioritize the arts, exemplified by the establishment of the National Theatre in 1950 and the inception of the National Symphony Orchestra. Various cultural festivals emerged, marking Reykjavík’s transition into a more contemporary metropolis.

Simultaneously, advancements in electronics and automobile usage became more prevalent, while improved flight connections to and from Europe facilitated greater interaction with the outside world for Icelanders. Despite these positive developments, a significant portion of the population recognized disparities in progress compared to other nations. Subsequent protests played a pivotal role in raising awareness and solidifying Iceland and its capital on the global stage.

1975 Women’s Day Off in Reykjavík

The 1975 Women’s Day Off in Reykjavík was a significant event that sent shockwaves through the local establishment and had global repercussions. This unprecedented strike by Icelandic women, who were frustrated by the gender pay gap and unequal distribution of domestic duties, garnered international attention and inspired similar movements worldwide.

The impact of this strike extended beyond Reykjavík, marking one of the first instances when the city made headlines in the international media. The bold action taken by Icelandic women during the 1975 Women’s Day Off put Iceland on the map and brought global awareness to their fight for equality.

The Reykjavík Summit of 1986

In 1986, the world’s attention was captured by the meeting between President Reagan of the US and Chairman Gorbachev of the USSR at Hofdi House in Reykjavík. The main agenda of the discussions was focused on the potential ban of ballistic missiles, along with other topics like human rights, the emigration of Soviet Jews, and the Soviet invasion of Afghanistan. While the negotiations ultimately fell apart, both sides recognized the concessions they were willing to make, leading many to view this summit as the beginning of the end of the Cold War.

Increased Attention and Tourism

Following the Reykjavík Summit, Iceland experienced a surge in global attention and tourism, which in turn benefited the nation’s economy. This growth also had a positive impact on the development of sports, arts, and culture in Reykjavík. In recognition of its cultural richness, Reykjavík was honored as one of the nine European Cities of Culture in 2000.

Boom and Bust in Iceland

Such a massive economic growth spurt inevitably led to a major economic downturn. Iceland experienced this alongside the rest of the world during the 2007-8 financial crisis, but with even more severe consequences than many other countries. At one point, it appeared that Iceland’s economy would be irreparably damaged.

Financial Crisis Impact

During the preceding years, Icelandic banks had expanded rapidly and irresponsibly, amassing debts that were over seven times the country’s entire GDP. A significant portion of this debt was owed to the UK and the Netherlands. When the Icelandic banks collapsed, it seemed impossible for Iceland to repay these debts. The decision to bail out the banks to repay these foreign funds was met with strong opposition from the Icelandic population, who ultimately bore the burden through increased taxation for many years to come.

The Kitchenware Protests in Reykjavík

Welcome To Iceland: The Kitchenware Protests in Reykjavík began as a solo demonstration led by singer, activist, and LGBTQ rights advocate Hörður Torfason. However, it quickly escalated to become the most significant protests in Iceland’s history. These protests attracted thousands of participants, including the then-President’s wife, and were characterized by their disruptive, unwavering, and impactful nature.

The Impact of the Kitchenware Revolution

Referred to as the ‘kitchenware revolution’ due to the noise from banging of pots and pans, this movement in Iceland resulted in significant changes. Numerous politicians had to step down from their positions, a new constitution was drafted, and eighteen individuals involved in the financial crash were incarcerated. Additionally, the Icelandic government refused to repay debts to the UK and the Netherlands, leading to a legal battle that they ultimately won in the Court of Justice of the European Free Trade Association States.

The Aftermath and Recovery

Despite the implementation of new measures to shield the population from the aftermath of the crash, Iceland was still enduring economic hardships in 2010. Nevertheless, the country’s situation was relatively better than that of other nations like Greece and Portugal. The eruption of Eyjafjallajökull that same year, while causing chaos with flight disruptions and stranded travelers, actually turned out to be a silver lining in disguise.

Recovery After Eyjafjallajokull Eruption

After the eruption of Eyjafjallajokull in 2010, Iceland experienced a surge in tourism as people were intrigued by the event. This sudden interest in Iceland helped boost the country’s tourism industry significantly. Once the initial fascination with the eruption subsided, a wave of visitors came to Iceland, sustaining the tourism sector through positive word-of-mouth reviews. This influx of tourists played a vital role in reviving Iceland’s economy and solidifying Reykjavík’s status as a bustling capital city once again.

Reykjavík Today

Presently, Reykjavík is experiencing a peak in tourism, with a growing number of visitors exploring its attractions, opportunities, and rich culture. The city thrives with a vibrant arts scene, encompassing musicians, comedians, theater performers, filmmakers, drag artists, and burlesque acts. Its art and architectural scene is flourishing, while its museums, concert venues, and galleries are lively hubs of activity.

Moreover, Reykjavík has evolved into an exceptionally welcoming destination. Iceland has consistently been hailed as the world’s safest country by the Global Peace Index on ten occasions. Additionally, for the past eight years, the Global Gender Gap Index has recognized Iceland as the most gender-equal country. With its progressive attitudes, Iceland is widely regarded as one of the most inclusive and accepting places for LGBTQ+ individuals worldwide.

Reykjavík: The Cultural Hub of Iceland

With two-thirds of Icelanders calling Reykjavík home, the city’s essence reflects this demographic concentration.

Today, Reykjavík stands out as a global festival hub, drawing in both locals and tourists for events like the Reykjavik Arts Festival, Iceland Airwaves, Gay Pride, RIFF (The Reykjavik International Film Festival), Culture Night, and Food & Fun.

The city’s trajectory seems set to accelerate with each new visitor arrival. Yet, the locals hope that Reykjavík will maintain its charm amid the rising number of Airbnbs and the transformation of the downtown area to cater more towards tourists than its residents.

From its humble beginnings to its current status, Reykjavík has firmly established itself as Iceland’s political, cultural, and social focal point, unrivaled by any other. The founder, Ingólfur Arnarson, could never have envisioned the staggering heights his settlement would reach in modern times. Welcome to a city that intertwines history, vibrancy, and progress in a unique Icelandic tapestry.