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organisations (the CTCCB and Evkaf are almost as dominant) have had substantial
control. Regulation and price controls remained pervasive in many sectors of the
economy, well into the 1990s.
The leadership's priorities in the matter of public ownership and control reflects not
only the constraints facing the economy of northern Cyprus, but also the views of
Turkish advisors". It is said that Turkish-Cypriots knew what public ownership
meant in Turkey, costly inefficiency, so they wanted to avoid these problems in
Cyprus. According to Ozalp Sarica 100 , the tax exemptions in the co-operative sector
provide one reason for their continued relative success and widespread existence.
He has argued that if such tax exemptions were offered to encourage the purchase of
shares in public sector companies, share offers would have wider appeal, ultimately
providing greater accountability and greater efficiency. Traditional public ownership
in northern Cyprus is only half the story. In Sarica's view the benefits of full public
ownership, during future possible periods of instability, are wholly outweighed by
the costs associated with inefficient and bulky public organisations, top heavy with
inappropriate political appointments. However, the other institutions which seem to
provide the same functions are, in the case of the CTCCB no more efficient (see
Tables 4.3, 4.5, 4.6, 4.7 & Figure 4.1) or, in the case of the post reform Evkaf, no
more accountable. The lack of enthusiasm for wider private ownership and
privatisation may stem from a shortage of long term incentives. Whether tax breaks
can overcome the underdeveloped nature of the market, the international constraints
imposed by the lack of political recognition and the ever present problem with
property rights, is a matter for conjecture. The recent Nadir experiment also casts
doubt on the efficiency and accountability of large scale, private sector solutions.
"interview with Ozalp Sarica, op. cit.
m ibid.
223