Saga of survival in Iceland

Level 2 Intermediate
1 Warmer: Guess the words

WritedowntenwordsthatyouwouldexpecttondinanewsarticleaboutIceland.
_________________ __________________ _________________ _________________ ________________
_________________ __________________ _________________ _________________ ________________

Nowskimreadthearticle.Canyoundyourwords?

2 Key words

a) Write the key words from the article into the sentences below. The paragraph numbers are given to help you.

GDP (gross domestic product) go bust shame and humiliation docks

outpost exploiting privatize entrepreneur earner
saga ination plunge spendingspree fundamentals

1. A story about what happens to a group of characters over a long period of time. ____________________ (title)

2. An enclosed area of water in a port where ships unload their goods. ____________________ (para 1)

3. Nouns to describe the feeling of guilt and embarrassment. __________________________________ (para 2)

4. A short period of time in which people buy a lot of things. ____________________ (para 2)

5. A place far away from the place it belongs to. ____________________ (para 4)

6. To sell a business or industry owned by the government so that it becomes a private business.
____________________ (para 4)

7. Someone who uses money to start businesses and make deals. ____________________ (para 4)

8. The total value of goods and services that a country produces in a year. ____________________ (para 6)

9. To suddenly drop or become much lower. ____________________ (para 7)

10. An economic process in which prices rise so money becomes less valuable. ____________________ (para 7)

11. To go bankrupt, have no money left to be unable to pay your debts. ____________________ (para 7)

12. The most basic and important aspects of something. ____________________ (para 8)

13. Takingadvantageofasituationandusingittoyourbenet.____________________(para9)

14. Awayofbringinginormakingmoney.____________________(para9)

b) In your own words, explain what you understand by the phrase global credit squeeze.
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NEWS LESSONS / Saga of survival in Iceland / Intermediate

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Saga of survival in Iceland
Level 2 Intermediate
Saga of survival in Iceland
Nobody knows what will happen next in the
bankrupt country.
Jon Henley
November 7, 2008
1 Reykjavik docks smell of herring, haddock,
halibut,whitinganddeepsearedsh.Eggert
Gudmundsson,bossofIcelandsbiggestshing
business, HB Grandi, looks at the docks in a
philosophicalmoodashereectsonhiscountrys
nancialcrisis.Wearehardworking,weIcelanders,
but if we see a way to make quick money, we will
jump. Now we are all going to have to work very
hardtogethertogetourselvesoutofthis.Wewill
have to go back to what we know.
2 The artist Jn Saemundur Audarson, in his studio
offthemainstreet,says:Theresshame,yes,
and humiliation. And anger at the country losing
so much, all because a few bankers were playing
around with other peoples money. But this whole
thing, this long big spending spree, it was just a
phase. It hasnt changed Iceland. This could even
be good for us. Take us back to what we really are.
3 Palme Vidar, with the wisdom of 73 years, says:
Therehavebeenterribletimesbefore.WhenIwas
aboy,ifyouwenttotheharbourtoshandyou
gotwet,youcouldnotshagainuntilthenextday, 9 Itsgoingtobealongandrockyroadgettingoutof
because you had only one pair of trousers. Today
people have too many trousers.
4 In1943,Icelandwasstillaforgottenoutpostof
Denmark.Inthe1970s,itfoughtaseriesofnasty
shingwarswithBritain(andwon).Ithadnoreal
stockmarketuntil1990.Then,inthemid1990s,it
privatizeditsbanks,cutbusinesstax,andacoupleof
Viking entrepreneurs made a load of money in Russia.
5 Last year Iceland was at the top of the UN Human
DevelopmentIndexofthemostdevelopedcountries
intheworld,anditwas,perhead,thefthrichest
nation on earth. Icelandic companies bought up London
toyshop,Hamleys,WestHamUnitedfootballcluband
US department store chain, Saks Fifth Avenue.
6 Iceland borrowed way too much, until its debts were
ten times the entire GDP. Iceland borrowed money
from abroad, and now in a global credit squeeze the
debts cannot be repaid.
Macmillan Publishers Ltd 2008
NEWS LESSONS / Saga of survival in Iceland / Intermediate
7 The Reykjavik stock market has also disappeared
(it reopened recently after a short closure, and
instantlyplunged76%)andinationisrmly
indoublegures,thequestioniswhetherthe
government can help everyone out. At present,
itseemsnot.Twentyyearsago,aworldnancial
crisis might not have touched Iceland. Today the
country is suffering more than the rest of us. If a
couple of banks go bust in the US, said Icelands
PrimeMinister,GeirHaarde,itsdramatic,butnot
fatal.IfacoupleofbanksgobustinIceland,this
countrysentirenancialsectordisappears.What
Icelandhaslearnedfromthisfrighteningexperience,
heconcludes,isthatitisnotwiseforasmallcountry
to take a lead in international banking.
8 Icelandmight,eventually,beallright.The
fundamentals are good, is the mantra repeated
on the streets of Reykjavik, and it is, largely,
true. At least, Iceland has a real economy. It has
spectacularnaturalresources:sh,andgreen
energy(itisaworldleaderingeothermalpower,
heatingmorethan90%ofitshomesthiswayand
attractingbiginvestmentfromenergyintensive
industries such as aluminium). The average age is
just 37, unemployment currently (though maybe not
for much longer) stands at 1%, and women account
for 46% of the workforce.
this, predicts Finnur Oddsson, managing director
of Iceland Chamber of Commerce.Butlonger
term,Icelandissolid.Wereonlyexploitingabout
30% of our energy potential right now. Tourism
looks like being an important earner: with the krona
nowworthhalfwhatitwasinApril,interestinightsto
Iceland from the UK alone is up 400% in a month.
10 Gudmundsson also has reason to be optimistic.
Ivejustcomefromameetingwiththecompanys
employees,hesays.TheywereworriedItold
themtheyneedntbe.WhatIcelandneedsabove
allisforeigncurrencyfromexports.Fisharehalf
ofIcelandsexports,andthiscompanyis10%of
Icelandsshingbusiness:weareresponsible
foroneinevery20eurosIcelandearns.Werea
company this country really cannot do without.
Guardian News & Media 2008
First published in The Guardian, 07/11/08
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Saga of survival in Iceland
Level 2 Intermediate
3 Comprehensioncheck:Trueorfalse?

Arethestatementstrue(T)offalse(F)accordingtotheinformationinthearticle?

1. HBGrandiisIcelandsbiggestshingbusiness.

2. PalmeVidarsaysthatpeoplehavebecomeusedtoluxuries.

3. Iceland borrowed much more money than it is able to repay.

4. Icelandiscurrentlysufferingnanciallybecauseitstoppedexportingsh.

5. Icelandhasplentyofcleanenvironmentallyfriendlypower.

6. TheshingandgreenenergyproductionarethetwomajorindustriesinIceland.

7. Iceland currently still has a very low rate of unemployment.

8. WomenmakeupoverhalfoftheIcelandicworkforce.

9. Icelands economy is likely to recover.

10. Iceland is currently an attractive tourist destination for people from Britain.

4 Vocabulary: Prepositions

Write in the missing prepositions then look at the article to check your answers.

1. Reykjavikdockssmell__________sh.

2. EggertGudmundssonreects__________hiscountrysnancialcrisis.

3. ... anger __________ the country losing so much.

4. This could be good __________ us.

5. ... it fought a series __________ wars ...

6. Ithadnostockmarket__________1990.

7. ...thefthrichestnation__________earth.

8. Iceland borrowed money __________ abroad.

9. Inationisrmly__________doublegures.
10. Fisharehalf__________Icelandsexports.
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NEWS LESSONS / Saga of survival in Iceland / Intermediate

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Saga of survival in Iceland
Level 2 Intermediate
5 Discussion: Geysers, midnight sun and the northern lights

Tourismlookslikebeinganimportantearner:...interestinightstoIcelandfromtheUKaloneisup400%...
(paragraph9)

DoesaholidayinIcelandappealtoyou?Why,whynot?

6 Webquest: An Internet treasure hunt

In pairs or small groups visit all or some of these websites that contain information about Iceland.
http://www.icetourist.is/
http://www.iceland.org/
http://en.wikipedia.org/wiki/Iceland
http://www.icelandtouristboard.com/news.php
https://www.cia.gov/library/publications/theworldfactbook/geos/ic.html
http://www.lonelyplanet.com/iceland

Write ten questions about Iceland for another pair or group to answer. Make sure the answers can be found
on the Internet and that you know what the answers are!

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Macmillan Publishers Ltd 2008

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NEWS LESSONS / Saga of survival in Iceland / Intermediate

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