Contentious politics, grassroots mobilization and the Icesave dispute

Abstract

In 2008 Iceland experienced the deepest and fastest economic crisis ever recorded in peacetime, which included the total collapse of its financial sector, as well as significant erosion of its currency. This paper concerns a localized protest movement that occurred in the wake of the 2008 crash in Iceland: the mobilization of protest to a settlement deal, known as the Icesave settlement. We interviewed just over 30 actors involved in the mobilization, including politicians, activists, and academics. Our data show that both sides of the Icesave dispute drew on a set of three interwoven narratives, or framings of the debate, that respectively drew on ideas around natural justice, citizenship, and nationalism. Several key discursive intersections between these narratives and the political and economic landscape in the post-economic crisis not only rendered the Icesave dispute salient and commensurate with the experiences of Icelanders living through the crash, but also gave greater credibility to the no-Icesave campaign. We conclude by arguing that the Icesave dispute provides a unique lens onto central questions concerning democracy and the possibilities of meaningful citizen engagement and participation in an era of increasing globalization and of neo-liberal forms of economic governance. Our findings contribute to this literature by revealing some of the particularities of the Icelandic context that were important in creating the socio-historical moment that led to the success of the anti-Icesave movement.