A/HRC/28/59/Add.1 B. Can the Icelandic experience be useful in other contexts? 71. The Independent Expert intends to discuss more thoroughly in a future report how States can respond in a human rights-compliant manner to debt and financial crises. He would, however, like to make some remarks in the present report on how the lessons learned in Iceland could be fruitful for other countries. 72. First of all, certain particularities should be considered. Before the banking crisis, Iceland enjoyed, in comparison with other countries, particularly high levels of realization of social and economic rights. The country ranked very high on the Human Development Index, had one of the lowest infant mortality rates in the world, enjoyed unemployment levels below 2 per cent and had a high degree of gender equality, despite persistent pay gaps. 73. The government of a highly developed country similar to Iceland, may find it easier to respond in a human rights-compliant manner to an economic shock when it can still depend on significant revenues, a modern infrastructure and well-equipped, mostly functioning, public institutions with well-trained officials. 74. Iceland was able to rely on its social welfare system, which proved largely capable of absorbing the shock of the economic crash. Before the crisis, a social security benefit of last resort was already in place to guarantee some basic protection to all. Iceland also had a guaranteed minimum old-age pension and other social benefits that could be adjusted to respond to the crisis. The Icelandic experience underlines the critical role that a comprehensive social security net can play in protecting economic, social and cultural rights in the event of an economic downturn. 75. The economic crisis was largely rooted in one sector, which helped the response. Furthermore, Iceland had a track record of responsible public debt management and was therefore able to take on new debt to recapitalize its Central Bank, downsize its financial institutions and expand its social spending in response to the crisis. Instead of Iceland engaging in a policy of internal devaluation, the sharp fall of the krona helped the country to come out of the economic crisis through export-driven demand and a tourist boom. 76. With a population of 320,000, the country is small, with strong interconnections. It has an active civil society, well-rooted democratic traditions, a high degree of trade union organization, a long tradition of collective bargaining and conflict resolution through dialogue and compromise, and a public administration that is overwhelmingly willing and competent to respond to its citizens’ needs. In response to public discontent after the banking crisis, the Government resigned, which opened the way for early elections, and referenda were held to allow citizens to express their views on certain decisions. There was increased dialogue with and among citizens. While some reform projects have not been completed or have been abandoned, the banking collapse changed the political culture of the country. 77. The way in which Iceland dealt with its banking collapse underscores the importance of the indivisibility of civil, political, economic, social and cultural rights to ensure human rights-compliant responses to a financial crisis. Despite the particularities outlined above, the Independent Expert believes that bigger and less developed countries, with more complex problems, can learn from the policy responses of the Government of Iceland and cherish the value of having a social security net in place to ensure a basic protection floor for all. Of course, those countries must adopt and adjust solutions to meet their particular needs and circumstances. 78. International financial institutions can also learn from the successful implementation of the adjustment programme in Iceland, which included capital controls, sheltering the social welfare system from cuts and a strong focus on revenue generation and redistribution through taxation policies. In the Independent Expert’s view, the efforts of the IMF to 22