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overwhelming dependence on a generally sluggish Turkish economy. Ultimately, a
relatively rich resource endowment has proved a disadvantage in developmental
terms by perpetuating the rural or the traditional sector's dominance of the
economy.
A small population moved into a relatively resource rich region 68 formerly devoted
to agriculture, mining, tourism and a small but growing manufacturing sector
(particularly concentrated in the suburbs of Famagusta and the northern suburbs of
Nicosia) between the late summer of 1974 and 1975. Though apparently spoilt for
choice, the new population had to exploit the resources that were available in the
context of international isolation. The mining industry largely collapsed due to the
immediate withdrawal of the US corporation (Cyprus Mines) which had formerly
operated the major extractive installations of the region. International tourism from
countries other than Turkey, seemed to offer few possibilities for growth in the
immediate aftermath of the war, partly because of continued transport difficulties
and skill shortages. That left agriculture and industry. With three times the
cultivated land available to Greek-Cypriots 69 , agriculture offered the most rapid
population and employment absorption prospects and demanded the least short term
capital investment, though it did not prove necessarily a perfect resource match
(skills match) or offer the most dynamic prospects for long term economic revival.
68 In terms of the immediate economic requirements of food and shelter: the 37 % of the territory that
came under Turkish administration contained 41 % of non-irrigated and 44.4% of irrigated land,
partly because most ground water resources are located in the north (while most surface water
resources are located in the Troodos mountains in the south). Greek Cypriots surrendered 50,000
housing units in the north, whilst Turkish Cypriot vacated 15,000 in the south. 95% of quarries for
sand, gravel, road aggregate, building stone, marble, the lime producing industry and the island's
brick making capacity; in all representing 77 % of the total capacity of the construction materials
industry. Rep. of Cyprus. 1975. (Unpublished). "Economic Consequences of the Turkish Invasion
and Future Prospects of the Cyprus Economy." Nicosia: The Planning Bureau, pp.5-7, 17-19, 21.
69 (on a per capita basis) Rep. of Cyprus. 1975. (Unpublished). "Economic Consequences of the
Turkish Invasion and Future Prospects of the Cyprus Economy. " Nicosia: The Planning Bureau,
p. 18.
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