In a world where most countries invest billions in defense budgets and railway infrastructure, Iceland stands out by having neither. This island nation of roughly 375,000 people has no trains running across its volcanic landscape and no soldiers marching in formation. Yet somehow, it's one of the most peaceful and functional countries on Earth.

The Missing Railway System

Iceland is the only European country without a railway system. There have been trains on the island—briefly. A narrow-gauge railway helped build Reykjavík's harbour from 1913 to 1928, and another was used during the Kárahnjúkar hydropower project in the 2000s. But permanent passenger rail? Never happened.

The reasons are surprisingly practical:

Brutal geography: Iceland sits on a volcanic hotspot where the earth literally splits apart. Building railway tracks on ground that can crack, shift, or get buried in lava isn't ideal.
Tiny population: With only 375,000 people total—and most living in or near Reykjavík—there simply aren't enough passengers to justify the massive expense.
Better alternatives: Roads, buses, and domestic flights handle transportation efficiently. Why build a railway when cars work fine?

There was talk of a "Lava Express" connecting Reykjavík to Keflavík Airport, but it never materialized. Instead, Iceland is planning Borgarlína, a bus rapid transit system for the capital area, set to open in 2031.

The Country Without an Army

Iceland doesn't just lack trains—it has zero active military personnel. No army, no navy, no air force. It's been this way since independence, making Iceland one of the few sovereign nations to operate without a standing military.

But Iceland isn't defenseless. The country maintains a Coast Guard with about 1,000 personnel, plus 250 trained peacekeepers and special police units. More importantly, Iceland joined NATO in 1949 and signed a bilateral defense agreement with the United States in 1951.

Here's how it works: Iceland provides strategic territory (especially the critical Keflavík Air Base), and in return, NATO allies—particularly the U.S.—provide defense capabilities. American forces periodically rotate through for air policing and surveillance missions. Iceland's location in the North Atlantic, perfectly positioned between North America and Europe, makes it invaluable for maritime surveillance and submarine detection.

Why This Strategy Actually Works

Iceland's lack of military isn't pacifist idealism—it's pragmatic economics. With such a small population, maintaining a credible defense force would consume a ridiculous percentage of the national budget. Instead, Iceland leveraged its geographic value to secure protection from the world's most powerful military alliance.

The strategy has proven remarkably stable. Iceland consistently ranks among the world's most peaceful nations, and in 2025, the country presented its first formal defense policy to parliament, reinforcing its commitment to NATO while exploring enhanced security cooperation.

No trains, no army, no problem. Iceland proves that sometimes the smartest move is recognizing what you don't need—and finding creative alternatives for what you do.

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