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major economic force, one that was criticai to the post-(74)-war recovery of the
Greek-Cypriot economy 49 .
It is interesting that no one has yet dissected private investment in the period
following the de facto division of the island. The problem seems interesting enough,
however to justify some preliminary analysis pertinent to the current debate. In
terms of investment décisions and economie behaviour, the Church and/or the cooperative
movement are neither a public nor, strictly, private institutions. It is
argued here that in instances such as the shocks of 1974, both acted more like the
state than as the large, private, institutional investors that they are categorised as.
The nature, structure and strategie implications of the Church's and the Cooperative
movement's investment made it far less mobile; in neo-classical terms the
discount rate it faced was more like that facing the state.
Figure 5.14 Looking for "crowdìng out"; the share of public and private gross
fixed capital formation (GCF) in current prices, 1973-1982.
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Source: Rep. of Cypius. Economic Reports. Nicosia: Dept. of Statistics and Research, 1981: p.69, 1995: p.84.
49 The material on the Church's economic rôle dérivés from an interview with Elias Pantelides, the
Director of the Church of Cyprus Audit Dept., and Executive Chairman of Ledra Palace Hotels Ltd,
(26/9/95).
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