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aiding the recovery from the coup and invasion, but only worked effectively in such
adverse economic and politicai conditions (Figure 2.23).
The role played by war on labour relations and the kinder, gentler, Greek on Greek
politics could be given as a possible economic benefit of defacto pacification and a
newly established national cohésion in culturally simplified Cypriot society,
although the consultative process probably played a role. In the aftermath of the
invasion, P.O.E., the AKEL (Communist) led trade union movement, headed by
Mr E. Papaioannou, agreed to an immediate 25% cut in pay, a wage freeze and a
ban on strikes (see Figure 2.23 below). With the massive rise in unemployment
which followed the structural dislocation of the invasion, it has been pointed out
that such a move by the trade union movement was motivated by "enlightened selfinterest"
90 . Yet it proved effective both in boosting productivity and reducing
inflationary pressures. An extension of the labour movement in Cyprus, the cooperative
movement, also played a significant role in reducing inflationary pressure
by holding prices down, following the disruption caused by de facto division and
distributing "refugee" relief through its then pervasive retail presence (so reducing
the need for more costly bureaucracy). The war and its effects, arguably, focused
the collective psyché on material advancement through the reconstruction and
maintenance of a successful mixed economy; in this "tripartism" and the
consultative process played a role. The open and bloody conflict of nationalist and
socialist agendas elapsed in a post-74 context. Public policy made greater
concessions to consensus politics, reflecting more homogenised expectations and
goals coinciding with the homogenous cultural conditions which then, and for the
first time, generally prevailed, though they were created and maintained by the ever
present perception of a continued threat from Turkey. In the immediate aftermath of
% The Economist, 27th August, 1974, "Miracle in Halfan Island", pp. 50-51.
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