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a majority of Cypriots the economy worked as it had for centuries, as one rather
than in the interests of two competing nationalisms 8 .
The problem with choosing an earlier period when the island was at peace and the
economy more integrated, is that the data does not exist. There were no national
income accounts published before 1950. Another problem is the speed of
development. Before 1950 and particularly before the Second World War 9 , the
structure of the Cypriot economy was différent. Modern property rights had only
been created with the land reforms of 1939 and 1944 10 . What the 1950-63 data does
have in its favour is that it is a fairly long and relatively unbroken time sériés,
encompassing the economic activities of both communities (but alas also that of the
colonial power's), the peaks and troughs of economic activity, some the resuit of
endogenous phenomena, many exogenous (British military expenditure, the rise and
then collapse of citrus and copper prices in the 1950's, the bad harvest in 1957).
Paradoxically, this is probably as good a selection of random shocks as any, unique
though the period was. A small economy is bound to be continuously affected by
major exogenous shocks even if the main exercise here is to discount for the ones
originating from ethno-national conflict. Essentially, with a disordinately distorted
economy, cross-checking is necessary. The 1950-63 national income data provides a
reference point for slightly more sophisticated yardstick projections attempted later.
The object of these alternative yardsticks is to avoid dependence on data derived
exclusively from Cyprus in this period which, because of the unusual nature of the
8 Between 1955-59 there was a Greek boycott of British goods and a Turkish boycott of the dominant
Greek Cypriot economy.
9 The Second World War had been good for the Cypriot Economy. The first time it had looked like
having any strategic significance to the British meant large scale investment in fixed capital
formation, admittedly for military purposes but employing Cypriot labour and providing significant
additional Cypriot income.
10 The 1939 "Law to consolidate and amend the law relating to land tenure", simplified and
modernised immovable property rights on the island. Govt, of Cyprus, 28 February 1939, The
Cyprus Gazette, pp 149-194, legislation no, 161. Nicosia: Govt. Printing Office. In 1944 "A law to
Provide the conversion of the categories of immovable Property hitherto known as Vakf Idjaretein
and Arazi Mevkoufe Takhsisat into Mulk and Arazi Mirie respectively and for matters incidental
thereto", transformed large areas of land formerly leased from Evkaf (a legacy of Ottoman rule) to
freehold property in the name of the leaseholder, who became liable to a Land Registration Fee of
3 % of the value of the property. Govt, of Cyprus, 6 April 1944, The Cyprus Gazette, pp 80-86,
legislation no. 231. Nicosia: Govt. Printing Office.
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