Being a small, sparsely populated island nudged up against the
edge of the Arctic Circle hasn't stopped Iceland from nurturing
a rich and varied design industry.  While Viking runes, vintage
Northern architecture and eons-old natural elements inspire much
of the country's design and craft work, "the field is young, and
we've taken steps to develop the industry as a whole," says Sari
Peltonen, spokeswoman for the Icelandic Design Center. The first
national design policy was published this spring, and the
Iceland Academy of the Arts gave its first master's degrees in
design.  Peltonen says much of modern Icelandic design speaks to
the island's rugged geography, history and folklore (full of
epic sagas and tales of magical wee folk).  The country's
signature sheep's-wool sweater is known as lopapeysa; the wool
has two layers, making it light, airy and water-resistant. You
can find not only the sweater but its Nordic yoke pattern on
porcelain mugs, candles, even paper napkins. (www.alafoss.is;
www.nammi.is)  Gerd