And we didn't "crowd-source" our constitution (which hasn't been changed yet, btw). The committee of 25 people simply maintained a website where they could collect opinions. They had no significance other than being input to the work of that committee. But I suppose many Icelandic are happy to let this kind of misunderstanding propagate, rather than explaining how we messed up the election of those 25 people, how their suggestion for a new constitution is actually only "advice" for the parliament, and how nothing has happened yet as we still have the same old constitution.
We also don't like to mention that there is little wrong with our old constitution. It's pretty standard. The suggestions for the new one, as far as the banking crisis goes, are about more transparency in government. Other changes are about different things (such as ownership of natural resources, etc.)
There is a lot of misinformation and hype in the foreign media around how Iceland has handled the crisis. As an Icelander living abroad, talking about this topic mainly consists of telling people "actually, that's not what happened..".
I think Iceland (and other countries) could do well looking at Alaska and their oil fund for inspiration: http://en.wikipedia.org/wiki/Alaska_Permanent_Fund
Haven't read these in detail, but the look ok on a quick glance:
http://en.wikipedia.org/wiki/2008%E2%80%932012_Icelandic_fin...
It's highly relevant because of the stark contrast in the manner in which Iceland prosecuted the bankers like the criminals they are, versus the crazy manner in which bankers are treated in the US and Europe.
One law for the corrupt, rich, and connected bankers, and much harsher laws for ordinary people who are not connected, wealthy and powerful (e.g. individuals targeted for illegal downloads versus bankers blowing up the global economy causing untold economic hardship). This sends out a strong message from a government to it's electorate: fuck you, you miserable peasant. Not only will you go along with these bailouts, you'll cheer loudly for your bought candidate when he's re-elected.
I'm from Ireland, and we should have copied Iceland to the letter. The difference is we're in the EU and our government is happy to be Angela Merkel's little bitch, and take the pain (sovereign debt burden) to maintain the illusion that everything is rosy in the garden.
Iceland even had the balls to crowd-source it's new constitution, giving real, tangible power to it's people (you couldn't even imagine this in most countries). Talk about real democracy compared to crony capitalism:
http://gigaom.com/2012/10/22/icelanders-approve-their-crowds...
Great article on Iceland from Michael Lewis (Wall Street on the Tundra):
http://www.vanityfair.com/politics/features/2009/04/iceland2...