Hannes Hólmsteinn Gissurarson
Encyclopedia
Hannes Hólmsteinn Gissurarson (born February 19, 1953 in Reykjavik
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...

, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

) is a professor of political science
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...

 at the University of Iceland
University of Iceland
The University of Iceland is a public research university in Reykjavík, Iceland, and the country's oldest and largest institution of higher education. Founded in 1911, it has grown steadily from a small civil servants' school to a modern comprehensive university, providing instruction for about...

 and a frequent commentator on current affairs in the Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

ic media. He is best known as a controversial spokesman for free market policies, and for neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

 or classical liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....

.

Education and career

Hannes was born in Reykjavik
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...

, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

. Graduating from the Reykjavík Grammar School in 1972, Hannes completed his B. A. in philosophy and history and his M. A. in history from the University of Iceland
University of Iceland
The University of Iceland is a public research university in Reykjavík, Iceland, and the country's oldest and largest institution of higher education. Founded in 1911, it has grown steadily from a small civil servants' school to a modern comprehensive university, providing instruction for about...

, before going on to study politics at the University of Oxford
University of Oxford
The University of Oxford is a university located in Oxford, United Kingdom. It is the second-oldest surviving university in the world and the oldest in the English-speaking world. Although its exact date of foundation is unclear, there is evidence of teaching as far back as 1096...

 where he received his DPhil. in 1985 for a thesis on “Hayek’s Conservative Liberalism”. At Oxford, he was in 1984-5 the R. G. Collingwood Scholar at Pembroke College
Pembroke College, Oxford
Pembroke College is one of the constituent colleges of the University of Oxford in England, located in Pembroke Square. As of 2009, Pembroke had an estimated financial endowment of £44.9 million.-History:...

; and he founded, with some like-minded friends, the Oxford Hayek Society. From 1988, Hannes has taught at the University of Iceland
University of Iceland
The University of Iceland is a public research university in Reykjavík, Iceland, and the country's oldest and largest institution of higher education. Founded in 1911, it has grown steadily from a small civil servants' school to a modern comprehensive university, providing instruction for about...

, becoming professor of political theory in the Faculty of Social Science in 1995. In 1984, he became a member of the Mont Pelerin Society
Mont Pelerin Society
The Mont Pelerin Society is an international organization composed of economists , philosophers, historians, intellectuals, business leaders, and others who favour classical liberalism...

, serving on its board of directors in 1998-2004. He was also a member of the board of the Central Bank of Iceland 2001-2009. He has been a Visiting Scholar at the Hoover Institution
Hoover Institution
The Hoover Institution on War, Revolution and Peace is a public policy think tank and library founded in 1919 by then future U.S. president, Herbert Hoover, an early alumnus of Stanford....

, Stanford University
Stanford University
The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...

, UCLA, George Mason University
George Mason University
George Mason University is a public university based in unincorporated Fairfax County, Virginia, United States, south of and adjacent to the city of Fairfax. Additional campuses are located nearby in Arlington County, Prince William County, and Loudoun County...

 in Virginia, Tokyo University of the Fisheries, LUISS in Rome and International Centre for Economic Research, in Turin. He has twice been a Fulbright Scholar in the U. S. A. and once a Sasakawa Scholar in Japan. In 2005, Hannes organised a regional meeting of the Mont Pelerin Society
Mont Pelerin Society
The Mont Pelerin Society is an international organization composed of economists , philosophers, historians, intellectuals, business leaders, and others who favour classical liberalism...

 in Iceland, devoted to “Freedom and Property in the 21st century”.

Influence

Hannes Hólmsteinn Gissurarson was an assistant to the editor of Eimreiðin, a magazine published in 1972-5 by a group of young classical liberals or libertarians in the Independence Party
Independence Party
Independence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Independence Party *Independence Party *Independence Party...

. The group included Davíð Oddsson
Davíð Oddsson
Davíð Oddsson is an Icelandic politician and the longest-serving Prime Minister of Iceland, holding office from 1991 to 2004. He also served as Foreign Minister from 2004 to 2005. Previously, he was Mayor of Reykjavík from 1982 to 1991, and he chaired the board of governors of the Central Bank of...

, Þorsteinn Pálsson
Þorsteinn Pálsson
Þorsteinn Pálsson or Thorsteinn Pálsson is a former Prime Minister of Iceland for the Independence Party. He served from 8 July 1987 to 28 September 1988...

, Geir H. Haarde, Baldur Guðlaugsson, Brynjólfur Bjarnason
Brynjólfur Bjarnason
Brynjólfur Bjarnason was an Icelandic communist politician. He became a student at the University of Copenhagen, and in 1923 he became a communist during a stay in Berlin. After returning to Iceland, he became a teacher...

, Kjartan Gunnarsson
Kjartan Gunnarsson
Kjartan Gunnarsson is an Icelandic lawyer, best known for serving for 26 years as the executive director of the Icelandic right-wing Independence Party, from 1980 until 2006. He has also worked for Landsbanki bank. He is a longtime supporter and friend of former Icelandic Prime Minister Davíð...

 and Magnús Gunnarsson. The group became very influential within the Independence Party
Independence Party (Iceland)
The Independence Party is a centre-right political party in Iceland. Liberal conservative and Eurosceptic, it is the second-largest party in the Althing, with sixteen seats. The chairman of the party is Bjarni Benediktsson and vice chairman is Ólöf Nordal....

 in the late 1970s and onwards, Þorsteinn Pálsson
Þorsteinn Pálsson
Þorsteinn Pálsson or Thorsteinn Pálsson is a former Prime Minister of Iceland for the Independence Party. He served from 8 July 1987 to 28 September 1988...

 being party leader in 1983-91, Davíð Oddsson
Davíð Oddsson
Davíð Oddsson is an Icelandic politician and the longest-serving Prime Minister of Iceland, holding office from 1991 to 2004. He also served as Foreign Minister from 2004 to 2005. Previously, he was Mayor of Reykjavík from 1982 to 1991, and he chaired the board of governors of the Central Bank of...

 in 1991-2005 and Geir H. Haarde since 2005. The group is widely seen as having made the Independence Party
Independence Party
Independence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Independence Party *Independence Party *Independence Party...

 much more libertarian than it used to be. Hannes is a personal friend of Davíð Oddsson
Davíð Oddsson
Davíð Oddsson is an Icelandic politician and the longest-serving Prime Minister of Iceland, holding office from 1991 to 2004. He also served as Foreign Minister from 2004 to 2005. Previously, he was Mayor of Reykjavík from 1982 to 1991, and he chaired the board of governors of the Central Bank of...

 and served as his informal adviser during his 13 years as Prime Minister of Iceland, 1991–2004 (after which Oddsson was Foreign Minister for one year, and then Governor of the Central Bank 2005-2009).

In 1979, Hannes, with a few young friends, founded the Libertarian Association in Iceland which operated for ten years. It brought about visits by the three Nobel Laureates Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...

, James M. Buchanan
James M. Buchanan
James McGill Buchanan, Jr. is an American economist known for his work on public choice theory, for which he received the 1986 Nobel Memorial Prize in Economic Sciences. Buchanan's work initiated research on how politicians' self-interest and non-economic forces affect government economic policy...

 and Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...

 in the early 1980s. Those visits were widely discussed in Iceland and had quite an impact on the discussion of ideas. Also, the Libertarian Association published, in 1980-1988, a magazine called Frelsið which also had some influence, especially on young people.

In 1984, from 2 to 10 October, Hannes, with Kjartan Gunnarsson
Kjartan Gunnarsson
Kjartan Gunnarsson is an Icelandic lawyer, best known for serving for 26 years as the executive director of the Icelandic right-wing Independence Party, from 1980 until 2006. He has also worked for Landsbanki bank. He is a longtime supporter and friend of former Icelandic Prime Minister Davíð...

, operated an illegal radio station, to protest against the government monopoly of broadcasting. (At the time, the employees of the Public Broadcasting Service had closed it down, because of a wage dispute.) The police first searched unsuccessfully for the station, then raided it and closed it down. Hannes and Kjartan were indicted and later given a fine for breaking the law on broadcasting. But the operation of the station and the subsequent police raid on it turned many in the leadership of the Independence Party, previously reluctant in the matter, towards supporting the abolition of the government monopoly. The Icelandic parliament abolished the monopoly in 1985, and the law came into effect in 1986.

In early 1990, Hannes published a book on fisheries management, an important subject in Iceland whose main export article is fish. It was entitled The Fish Stocks in the Icelandic Waters: The Property of the Nation or of the State? There, Hannes advocated (as he had done in an article in the Journal of Economic Affairs in April 1983) a system of individual, transferable quotas, ITQs, in the Icelandic fisheries, where initially the quotas would be given free of charge to the owners of fishing vessels, in order to gain their support for what was tantamount to the enclosure of the Icelandic fishing grounds. This book probably had some effect on the leadership of the Independence Party
Independence Party
Independence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Independence Party *Independence Party *Independence Party...

 who became the staunchest supporters of the ITQ system. The Independence Party
Independence Party
Independence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Independence Party *Independence Party *Independence Party...

 held the Ministry of Fisheries 1991-2009.

In 2002, Hannes published a book under the title How Can Iceland Become the Richest Country in the World? There, he outlined the opportunities that Iceland would have as an international financial centre, offering low corporate taxes and a stable political environment. In the book, he discussed the example of Luxembourg and Ireland — two European countries in some respects similar to Iceland — and that of some small islands, such as the Channel Islands, the Isle of Man and the Cayman Islands. Hannes’s initiative may have had some influence on the leadership of the Independence Party. At least, since the early 1990s, the corporate incomes tax in Iceland has been lowered from 50% to 18%, and the net wealth tax has been abolished.

The free-market reforms of the Davíð years, 1991–2004, were quite comprehensive. Two commercial banks, large fishmeal factories and the Icelandic telephone company were privatised, as well as many smaller companies; corporate taxes were lowered; freedom in the financial markets was significantly increased; and the public debt was greatly reduced. The Icelandic economy is much more open now than it used to be. In this period, moreover, the purchasing power of the ordinary worker rose by more than 30%. There is however no consensus on who is to thank, or to blame, for those changes. Some argue that it was the entry of Iceland into the European Economic Area (EEA) which was crucial in opening up the economy and unleashing the dynamism which is now apparent. Others say that it was the policy initiatives of Davíð, and his advisers like Hannes, which were conclusive in bringing about those changes.

Controversy

Hannes Hólmsteinn Gissurarson has from the beginning of his public career managed to stir up controversy. It began when he first had a weekly radio talk show, at the Public Broadcasting Station, in 1976-7, introducing his audience to writers like George Orwell
George Orwell
Eric Arthur Blair , better known by his pen name George Orwell, was an English author and journalist...

, Arthur Koestler
Arthur Koestler
Arthur Koestler CBE was a Hungarian author and journalist. Koestler was born in Budapest and, apart from his early school years, was educated in Austria...

, Friedrich von Hayek, Ludwig von Mises
Ludwig von Mises
Ludwig Heinrich Edler von Mises was an Austrian economist, philosopher, and classical liberal who had a significant influence on the modern Libertarian movement and the "Austrian School" of economic thought.-Biography:-Early life:...

 and Karl Popper
Karl Popper
Sir Karl Raimund Popper, CH FRS FBA was an Austro-British philosopher and a professor at the London School of Economics...

. This radio show was harshly criticized in the Socialist newspaper Þjóðviljinn. Later, in the early 1980s, Hannes and one of his former philosophy teachers at the University of Iceland, Þorsteinn Gylfason
Þorsteinn Gylfason
Þorsteinn Gylfason was an Icelandic philosopher, translator, musician, poet, art enthusiast and intellectual. Þorsteinn was born and raised in Reykjavík, the capital of Iceland. His parents were Guðrún Vilmundardóttir and Gylfi Þ. Gíslason, a university professor and government minister...

, had a very public feud in the newspapers where Þorsteinn called Hannes “a sheep in sheep’s clothing”, and Hannes responded by praising Þorsteinn as one of the “oldest and most promising philosophers in Iceland”.

In early 1984, Hannes Hólmsteinn Gissurarson had a heated exchange with Ólafur Ragnar Grímsson
Ólafur Ragnar Grímsson
Ólafur Ragnar Grímsson is the fifth and current President of Iceland. He has served as President since 1996; he was unopposed in 2000, re-elected for a third term in 2004, and re-elected unopposed for a fourth term in 2008. He is the longest-serving left-wing president in the history of...

, then acting editor of the Socialist newspaper Þjóðviljinn. Ólafur Ragnar had quoted articles in The Guardian in England to the effect that Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...

, the “guru of the Icelandic libertarians”, had, in his manipulation of his statistical data, acted dishonestly. The reference, by The Guardian and hence by Ólafur Ragnar, was to a recent critical study of Friedman’s empiricial research, by David Hendry, a professor of statistics at the University of Oxford
University of Oxford
The University of Oxford is a university located in Oxford, United Kingdom. It is the second-oldest surviving university in the world and the oldest in the English-speaking world. Although its exact date of foundation is unclear, there is evidence of teaching as far back as 1096...

. Hannes wrote to Hendry who replied, saying that he had never accused Friedman
Friedman
Friedman, Friedmann, and Freedman are surnames of German origin, and from the 17th century were also adopted by Ashkenazi Jews.They may refer to:-Art:* Arnold Friedman , an American painter* Drew Friedman, cartoonist...

 of any dishonesty, and that their disagreement was one on methodology. The publication of Hendry’s letter ended the dispute in Iceland.

When, in the summer of 1988, the Minister of Education, Mr. Birgir Isleifur Gunnarsson (a leading member of the Independence Party
Independence Party
Independence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Independence Party *Independence Party *Independence Party...

), appointed Hannes Hólmsteinn Gissurarson assistant professor of politics in the Faculty of Social Science at the University of Iceland, the Faculty and the University protested loudly, as the Faculty had strongly recommended to the Minister another applicant for the job. A special committee appointed by the Faculty had argued that Hannes was only partly qualified for the position, since his first University degrees were not in politics, but in philosophy and history. But the Minister of Education presented written reports by Hannes’ teachers in England, Dr John Gray
John Gray (LSE)
John N. Gray is a British political philosopher and author, formerly School Professor of European Thought at the London School of Economics....

, then of Jesus College, Oxford, later professor at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...

, and Professor Norman Barry of the University of Buckingham
University of Buckingham
The University of Buckingham is an independent, non-sectarian, research and teaching university located in Buckingham, Buckinghamshire, England, on the banks of the River Great Ouse. It was originally founded as Buckingham University College in the 1970s and received its Royal Charter from the...

 that Hannes was fully qualified for a job as a teacher of politics. Later, the Faculty of Social Science confirmed Hannes’ appointments, first as an associate professor, then as professor.

In the 1990s, Hannes Hólmsteinn Gissurarson was a vocal critic of an Icelandic businessman, Jón Ólafsson
Jón Ólafsson
Jón Ólafsson is the name of:*Jón Ólafsson from Grunnavík*Jón Ólafsson...

, who was the chief owner of the private television channel, Stöð tvö. Jón Ólafsson was then seen by many as one of the bitterest enemies of Prime Minister Davíð Oddsson
Davíð Oddsson
Davíð Oddsson is an Icelandic politician and the longest-serving Prime Minister of Iceland, holding office from 1991 to 2004. He also served as Foreign Minister from 2004 to 2005. Previously, he was Mayor of Reykjavík from 1982 to 1991, and he chaired the board of governors of the Central Bank of...

, Hannes’ friend and ally. In a paper (originally in English) to a conference of journalists in Reykholt
Reykholt
There are two villages with this name in Iceland:-Reykholt :The village is situated in the valley of the river Reykjadalsá, called Reykholtsdalur....

 in the autumn of 1999, Hannes made some disparaging remarks about Jón Ólafsson’s past, which he subsequently put on his homepage (in English, as in the original). In 2004, on the basis of those remarks on Hannes’ homepage, Jón Ólafsson took Hannes to court in England, for libel, and obtained a judgement of £100,000. (Jón Ólafsson had sold all his property in Iceland in 2003, and moved to England.) This was a judgement by default, as Hannes did not, on the advice of the Icelandic Ministry of Justice, and also the lawyer of the University of Iceland, defend himself before the English court. Hannes appealed this judgment, arguing that a correct procedure had not been implemented against him, since he had not been served the claim form, or writ, according to Icelandic rules. The Royal High Court of Justice in London ruled in Hannes’ favour and invalidated the decision against him on 8 December 2006. However, the case is far from over and a ruling in March 2008 allowed the case to continue before English courts.

Hannes Hólmsteinn Gissurarson informed the public, in the summer of 2003, that he was in the process of writing a three volumes’ biography of Halldór Kiljan Laxness, the Icelandic Nobel Laureate in literature, and the leading Socialist intellectual in Iceland in the 20th century, When the first volume of Hannes’ biography of Laxness was published in late 2003, Helga Kress wrote a long and critical review of it, arguing that Hannes was guilty of plagiarism
Plagiarism
Plagiarism is defined in dictionaries as the "wrongful appropriation," "close imitation," or "purloining and publication" of another author's "language, thoughts, ideas, or expressions," and the representation of them as one's own original work, but the notion remains problematic with nebulous...

 since he had in his book drawn heavily on the accounts of Laxness’ childhood in his four volumes of memoirs without proper attribution. Hannes responded that he had clearly stated in the afterword to the first volume that he used Laxness’ accounts of his childhood. In late 2004, Laxness’ widow sued Hannes for an alleged breach of copyright
Copyright
Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time...

. On 10 November 2006, Hannes was acquitted by the Reykjavík District Court. The judge held that while Hannes had indeed broken copyright by his extensive use of Laxness’ memoirs, no damage had been proved to the copyright holder. The Supreme Court did however find Hannes Hólmsteinn guilty of the copyright breach on 13 March 2008, and ordered him to pay substantial damages. His supporters and friends organised a collection for the damages.

Main Writings

  • Hayek’s Conservative Liberalism (doctoral thesis, in English). Garland, New York 1987.
  • Sjálfstæðisflokkurinn í sextíu ár (The Independence Party in Sixty Years). Sjálfstæðisflokkurinn, Reykjavík 1989.
  • Fjölmiðlar nútímans (The Modern Media). Stofnun Jóns Þorlákssonar, Reykjavík 1989.
  • Island (Iceland, in Swedish). Timbro, Stockholm 1990.
  • Fiskistofnarnir við Ísland: Þjóðareign eða ríkiseign? (The Fish Stocks in the Icelandic Waters: The Property of the Nation or of the State?) Stofnun Jóns Þorlákssonar, Reykjavík 1990.
  • Jón Þorláksson forsætisráðherra (Prime Minister Jón Þorláksson, a biography). Almenna bókafélagið, Reykjavík 1992.
  • Frjálshyggjan er mannúðarstefna, Greinasafn (Libertarianism is Humanitarianism. Collection of Essays). Stofnun Jóns Þorlákssonar,Reykjavík 1992.
  • Pálmi í Hagkaup (Pálmi in Hagkaup, a short biography). Framtíðarsýn, Reykjavík 1994.
  • Hvar á maðurinn heima? (Where does Man Belong? Essays in the history of political ideas). Hið íslenska bókmenntafélag, Reykjavík 1994.
  • Íslenskar tilvitnanir (Dictionary of Quotations). Almenna bókafélagið, Reykjavík 1995.
  • Benjamín Eiríksson í stormum sinna tíða (Benjamín Eiríksson, a biography). Bókafélagið, Reykjavík 1996
  • Hádegisverðurinn er aldrei ókeypis (There Ain’t No Such Thing as a Free Lunch). Hið íslenska bókmenntafélag, Reykjavík 1997.
  • Stjórnmálaheimspeki (Political Philosophy). Hið íslenska bókmenntafélag, Reykjavík 1999.
  • Overfishing. The Icelandic Solution. Institute of Economic Affairs, London 2000.
  • Fiskar undir steini. Sex ritgerðir í stjórnmálaheimspeki (Twists in the Tales. Essays in political philosophy). Háskólaútgáfan, Reykjavík 2001.
  • Hvernig getur Ísland orðið ríkasta land í heimi? (How Can Iceland Become the Richest Country in the World?) Nýja bókafélagið, Reykjavík 2002.
  • Halldór. Fyrsta bindi ævisögu Halldórs Kiljans Laxness (Halldór, first volume of a biography of Halldór Kiljan Laxness). Almenna bókafélagið, Reykjavík 2003.
  • Kiljan. Annað bindi ævisögu Halldórs Kiljans Laxness (Kiljan, second volume of a biography of Halldór Kiljan Laxness). Bókafélagið, Reykjavík 2004.
  • Laxness. Þriðja bindi ævisögu Halldórs Kiljans Laxness (Laxness, third volume of a biography of Halldór Kiljan Laxness). Bókafélagið, Reykjavík 2005.
  • Ísland og Atlantshafsbandalagið. Þrír heimildaþættir fyrir sjónvarp (Iceland in NATO. script for three television documentaries). 1999.
  • Tuttugasta öldin. Átta heimildaþættir fyrir sjónvarp (The Twentieth Century, script for eight television documentaries). 2002 (co-author).

External links

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