In Iceland, there are about 200 volcanos. The island rests atop a "hot spot", which is a place where the earth's crust is thinner so the magma rises higher than it usually would. This causes many eruptions, which can be very damaging.
In April, 2010, a volcano erupted beneath the Eyjafjallajokull glacier. The volcano spewed silica and ash into the air, and when this contacted the cold ice, it melted some of the ice and caused lots of flooding. Worse, the ash and silica became laden with airborne solidified glass particles, which caused both and environmental hazard and a major hinderance of air travel in Northern and Eastern Europe, as well as parts of Asia.
The eruptions can have devastating effects of the natives, and unfortunately, since volcanic activity is a process that occurs naturally and is out of our control, there is nothing the nation can do to stop the eruptions.
The only thing they can realistically do is take the steps necessary to protect people, and evacuate the areas that would be affected by a particular eruption.