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emained a highly controlied, war economy is yet to be fully explored (see next chapter). Until 1976, however, the essential organisational structure of the Turkish-Cypriot community did not change much. Executive power lay with the local military Commanders and the "Executive Committee" (and subsequently, with the "Executive Council of the Provisionai Administration"). The military command dérivés from three separate forces: the Local Defence Force (previously the Turkish Fighters), headed by a Turkish Major General, the Turkish Contingent provided for under the Zurich and London agreements, commanded by a Turkish Colonel, and since 1974 the "Peace Force" headed by a Turkish General. Ultimately the power hierarchy works in reverse order with, since 1974, the "Peace Force" acting as the command centre. Before 1974 the Turkish military contingent, with its Nicosia command, represented the ultimate source of executive authority 93 . A limited reorganisation of the administration began immediately after the "Peace Operation". As Turkish-Cypriots, with Turkish military assistance, gained control of a more extensive area of Cyprus, new mayors were appointed in 1974 by the "Provisionai Administration" for newly acquired areas under their control. The élections in 1976 filled local and regional administrative positions. Except for the police force in northern Cyprus (which still remains, for strategie reasons, directly under Turkish military command 94 ), démocratie and accountable institutions took over much of the functions formally assumed by military structures. 93 The Turkish Cypriot weekly Zafer admitted that Colonel Cemal Coskun (known as "Bozkurt" or "Grey Wolf) the Turkish Military Attaché, was "the commander of the Turkish Cypriot Fighters", also alleging that he was "the real leader of the Turkish Cypriot community", reported in the Cyprus Mail 25/2/1967. Patrick (1976. op. cit., p. 86) has generally confirmed tliis, adding that: "This commander was attached to the Turkish embassy, but the relationship between him and the ambassador was unclear; most certainly it could not be assumed that Bozkurt was subordinate to the ambassador. " 94 Although under Turkish military command, accountability at an individuai level (meaningful in a small scale society), is ensured by recruiting the police force in northern Cyprus locally. 159
The first five-year pian, published in 1979, set out economic policy objectives. Planning was central to the création and maintenance of a separate Turkish-Cypriot economy and was to be "imperative for the public sector and indicative for the private sector" 95 , the objective being an "open" and "competitive" economy. As the private sector played a very limited role during the period of the implementation of the First Five-Year Development plan, so imperative planning for the public sector meant imperative planning for almost the whole economy. To assist planners, input / output tables were created. In democratic politicai terms, the right has dominated the Turkish-Cypriot community since the création of a national identity. The National Unity Party, (NUP) was founded by the Iong-term leader of the Turkish-Cypriot community and "président" of the self proclaimed republic, Rauf Denktash. Most subséquent changes in the identity of a Turkish-Cypriot politicai entity in Cyprus, owe their origin to his, and the NUP's, leadership. By his admission Denktash stands for selfdetermination, regional and ethnie ségrégation and will not compromise the security guarantee of a strong and prevalent Turkish military presence in northern Cyprus 96 . For the purpose of more long-term security, the party advocates further integration with Turkey. The main focus of opposition has been Turkish-Cypriots who feel that northern Cyprus is being swamped by Turkish immigrants, an integral feature of post '74 developments, undermining their unique cultural identity and which they fought Greek-Cypriots to preserve. 95 "Turkish Federated State of Kibris", February 1979, Extracts From tlie First Five Year Development Plan (1978-82). "State" Planning Organisation, north Nicosia, p.2. 96 Interview with Rauf Denktash, in his office, 28/7/95.
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ACKNOWLEDGEMENTS I would like to th
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ABSTRACT This thesis examines the e
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Table Of Contents Page Change in ec
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List Of Figures 2.27 Revenue from t
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List Of Figures 5.25 Main destinati
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List Of Figures 7.8 The degree of o
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List Of Tables 6.7 All island, Gree
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This thesis will examine the econom
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Vassiliou's classic work 5 publishe
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As many questions raised by economi
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Figure 1.1 The structure of recent
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In terms of the topic of this thesi
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political landmark coincides with a
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were the mechanisms which encourage
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however, Chapter 5 concentrates on
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Defining the title The first priori
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such? Is northern Cyprus simply run
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unlike Greece in 1923, were already
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itself as having been literally und
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economic history, Christodoulou's s
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incurred as a resuit of eonfl ict.
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Christodoulou has concentrated his
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any credit for successful economic
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anking technology, administrative c
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(which usually has a regressive imp
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contribution did labour remittances
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having been inspired by Zetter's in
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econstruction also provided a means
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Conclusion In analysing the extent
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he drew distinct analogies with the
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in Cyprus. The main objective is a
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The war proved a watershed in many
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Uruguay, Japan, Trinidad and Tobago
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financial, property and business se
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By 1960 exports represented over 20
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Table 2.1 Domestic Exports FOB in 1
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the period (1960-73), the différen
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Figure 2.4 Principal exports as a p
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producing 12% of GDP. Tourism (rest
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considerably more than Turkey, whos
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income. Mining and quarrying (now m
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Figure 2.10 Principal exports as a
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Figure 2.12 The Destination of the
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Figure 2.14 Ambiguous indicators: T
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Figure 2.15 Sìze of manufacturing
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By 1980 the economy of the Republic
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The scale of the disruption in the
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Whether taking the optimists approa
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financing from financial markets pi
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grew rapidly. In the immediate afte
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One of the major problems facing th
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coming, only concerning policy make
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with particular bottlenecks affecti
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"We attributed this finding to the
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Page 111 and 112: employment: rapidly rising real ear
Page 113 and 114: Until the intervention of public fi
Page 115 and 116: to pick the Republic of Cyprus as t
Page 117 and 118: of offshore companies registered in
Page 119 and 120: Figure 2.27 Revenue from the offsho
Page 121 and 122: Figure 2.29 The changing compositio
Page 123 and 124: The structure of the economy, the c
Page 125 and 126: CHAPTER 3. The foundations of Takis
Page 127 and 128: Famagusta enclaves would be over-ru
Page 129 and 130: The historical context of separate
Page 131 and 132: generally concentrated in the lower
Page 133 and 134: agreed Constitution. Seemingly Clar
Page 135 and 136: séparation of the communities bega
Page 137 and 138: UN. 37 Some additional supplies mus
Page 139 and 140: Seemingly, by 1970 the Nicosia encl
Page 141 and 142: was made on the basis of a fixed in
Page 143 and 144: derived from Turkish transfer payme
Page 145 and 146: Patrick has offered a more complica
Page 147 and 148: spare parts and maintenance materia
Page 149 and 150: Emphasising the growing divisions b
Page 151 and 152: Chamber, Rauf Denktash, said people
Page 153 and 154: Figure 3.2 Thepossible economic eff
Page 155 and 156: produced by them rises significantl
Page 157 and 158: Committee" was the area military co
Page 159: February 1975 the latter bodies set
Page 163 and 164: CHAPTER 4. The construction of a Tu
Page 165 and 166: Whilst the Turkish-Cypriot leadersh
Page 167 and 168: of supply, and/or marketing, in key
Page 169 and 170: shipment of 2000 tons of foodstuffs
Page 171 and 172: Eti still operateci out of Nicosia,
Page 173 and 174: institutions in northern Cyprus amo
Page 175 and 176: with multipurpose co-operatives, a
Page 177 and 178: A few new co-operatives were formed
Page 179 and 180: loans. Savings Banks do have access
Page 181 and 182: espectively. The Famagusta branch w
Page 183 and 184: Cypriot) Government in the 1960s, t
Page 185 and 186: increasing costs 31 . This is perha
Page 187 and 188: packages imported raffinate, supply
Page 189 and 190: a monopoly respectively. Where ther
Page 191 and 192: Evkaf is an Islamic organisation fo
Page 193 and 194: Evkaf had a largely obscure economi
Page 195 and 196: Meanwhile a little noticed phenomen
Page 197 and 198: After the summer of 1974, the Turki
Page 199 and 200: monitored Ledra Place check-point,
Page 201 and 202: the early eighties, when Turkish ar
Page 203 and 204: Figure 4.3 Number of tourists from
Page 205 and 206: the situation that had existed prio
Page 207 and 208: stay arrivais or diminish with the
Page 209 and 210: competing with the longer establish
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flexibility of family business stru
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Ltd., Turkish-Cypriots eventually g
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dominateci by: textiles, footwear a
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force of national cohésion, change
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Figure 4.9 Main Citrus Exporters in
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Ismail Bozkurt (who secured 32.1% o
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Table 4.9 Citrus exports from north
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Ultimately the failure to act on pr
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CHAFTER 5: Re-establishing economic
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prospects of their respective de fa
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Figure 5.1 Change in Cypriot GDP as
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{0 perceive the de facto situation
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Turkey maintains that her objective
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parliament during the unstable peri
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case study, he argues that given en
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Specifically, it is analysis of nat
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imports (Figure 5.5). The extent to
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(which includes the increasingly im
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If "a leading sector in the process
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Just to put minds at rest that manu
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encouraged private sector action, t
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Figure 5.13 Gross domestic fixed ca
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major economic force, one that was
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they account for around a third of
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dominates international transfer pa
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a "development resource" 54 , rathe
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able to spearhead a revival aided,
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path, policy objectives moved to co
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overwhelming dependence on a genera
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In the difficult times that followe
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independence from total Turkish fin
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Figure 5.20 Orange production as a
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e exchanged for new "TRNC" (or, as
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Unlike the vineyards where most of
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Although not important in the initi
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Having said this, constant improvem
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compensation arrangements in the no
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some of the labour intensive stages
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Figure 5.24 Proportion of citrus ex
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to treat exports from the whole of
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seem more politically motivateci an
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Figure 6.1 Percentage change in GNP
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initially. The more immediate probl
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historical phenomena (large externa
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It has been argued that if politics
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share of National Income to somethi
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Figure 6.6 Communal income in 1980,
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Selecting peers as proxies for pan-
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growth potential to Cyprus in 1960,
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was that compatible data should be
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Figure 6.9 Micro Economies; average
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Figure 6.11 Micro Economies; averag
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Figure 6.13 The level of government
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Figure 6.14 "More Developed Medìte
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Figure 6.17 "More DevelopedMediterr
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Cypriot growth rate, should not dis
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Figure 6.22 Structure of production
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Figure 6.26 Degree of openness in t
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economic growth 49 (variables 6-9:
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implication, developmental différe
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spectrum in 1980 at 38%. Perhaps le
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namely investment rates 54 (in phys
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instruments, the justification for
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Figure 6.28 Average annual growth i
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Figure 6.29 How Cyprusfared in 1980
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Figure 6.30 Total Cypriot income 19
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o.zö; may reveai someimng 01 ine e
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developments elsewhere. The relativ
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unified economy) of 1963, Cyprus is
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CHAPTER 7. Conclusion 348 Comparati
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Turkish-Cypriot economy stagnateci.
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So it is worth looking again at the
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stand out however, revealing enough
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Figure 7.3 Gross domestic investmen
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Figure 7.5 "TRNC netforeign trade a
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Figure 7.8 The degree of openness i
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control. There seems to be ampie ex
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The role of tourism in the economic
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seem to be able to grow in line wit
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Comparisons throughout this thesis
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The Cyprus Mail Hellenic Group. Nic
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I.M.F. International Financial Stat
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1982. Fourth Emergency Economic Act
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"Turkish Federated State of Kibris"
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leadership of the two communities o
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"administrations" and key economic
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Bicak, H.A. (June) 1990. "The Impac
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Hudson, J. and Dyniotou-Jensen M. 1
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Mcdonald, R. 1989. The Problem of C
Page 389 and 390:
Solsten, E. (ed.) 1993. Cvprus: A c
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