Some small countries with stable political and monetary arrangements have become quite wealthy by offering a business-friendly environment and low tax rates to individuals and corporations: Switzerland, Luxembourg, and the two Channel Islands, to name a few. Recently, Iceland has joined their ranks with great success.

For the last ten to eleven years, the Icelandic government, led by Prime Minister David Oddsson, has implemented a series of reforms that have turned the economy around. Iceland is now one of the fastest growing countries in Europe (5 percent a year on average for the last ten years). In the 1990s, the corporate income tax was cut from 50 percent to 30 percent. In 2002, the Icelandic government cut its corporate income tax from 30 percent to 18 percent. Please join AEI in welcoming the prime minister as he discusses Iceland's sustained economic growth and how future policies aim to enhance growth further.