Iceland is a nation.
Iceland . In 2013 , it was ranked as the 13th most-developed country in the world by the United Nations ' Human Development Index . Iceland has the smallest population of any NATO member and is the only one with no standing army , its lightly armed coast guard being in charge of defence . An island country is a country whose primary territory consists of one or more islands or parts of islands . The Nordic countries or Nordics are a geographical and cultural region in Northern Europe and the North Atlantic , where they are most commonly known as Norden ( lit. : The North ) . Reykjavík . It has a latitude of 64 ° 08 ' N , making it the world 's northernmost capital of a sovereign state , and is a popular tourist destination .