Founded by Viking adventurers around AD 870, Reykjavik, the most northerly capital city in the world, is paradoxically a young city. Though it is home to the Althing, one of the oldest existing democratic institutions in the world, it was not until the eighteenth century that it developed from an isolated fishing village into a small town. It survived natural disasters and famine, a harsh climate and foreign meddling. Impoverished and marginalized under Danish rule, it was only with the Second World War, occupation by Allied forces and independence that Reykjavik grew into an important commercial and cultural centre. More recently Reykjavik has witnessed a dramatic cycle of boom and bust as its short- lived financial industry collapsed, creating unprecedented social friction in this most consensual of cities. As the city and country recover from the crash of 2008, Iceland has reassessed its role in the world economy and embraced new forms of tourism. Reykjaviks rapid growth and modernization stand in contrast to the resilience and permanence of its traditions. In art, literature and many forms of popular culture the citys people look back to a not-so-distant past of farming and fishing villages. Despite the advent of modernity, the city retains the feel of a small town, where family and community remain important.