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(Figure 5.25), Greek-Cypriots are right in considering the effects of their economic sanctions as having been fairly limited 7 . Perhaps embargo and culture have made a contribution to a divergent growth performance; more important and more obvious however are some of the standard measurable déterminants of economic growth. The preceding chapters have presented some of this divergence in terms of différent institutional development; the adaptation to différent exogenous constraints. Using a similar analysis to the one that determined the proxy growth rates (detailed in Chapter 6), the graphs below (Figures 7.2 to 7.12) underline that point but also illuminate more controllable reasons for economic différences north and south. Essentially, these are the conséquence of policy, politics and the différent institutional responses to de facto division, north and south of the UN Buffer Zone. One of the main background factors, per capita income, appears to be fairly similar in the early stages of regionally distinct economic development (Figure 7.1). From the evidence available a key conditioning factor, human capital development, looks fairly similar too, north and south, in terms of school registration and higher éducation ratios 8 . All other things being equal, economic growth in the Greek and Turkish- Cypriot économies should therefore have been similar. Three other key indicators p.97), quotes the head of the Cyprus Tourism Organisation, A. Andronicou as saying: "The Greek Cypriot culture may... be described as competitive and individualistic... The Turkish Cypriot culture differs in not attaching such great importance to achievement and wealtli, and the Turkish community was therefore relatively less well represented in the business and economic life of the island." 7 Christodoulou, D. 1992. Inside The Cvnrus Miracle. Minnesota: University Of Minnesota, Modern Greek Studies Yearbook Supplement, Vol. 2, p. xlvi. 8 In 1960 Turkish Cypriots made up a higher proportion of the total University Graduated population (19.5) than their share of the population warranted (18.3). Kitromilides P.M. "From Coexistence to Confrontation: The Dynamics of Ethnie Conflict in Cyprus", in Attalides M.A. 1977. (ed.) Cyprus Reviewed. Nicosia: The Jus Cypri Association witli the Co-ordinating C'tee of Scientific and Cultural Organisations, p.61. Witli five Universities in the north and only one in the south, the impression is that Turkish Cypriots have managed to retain a similar higher éducation ratio as Greek Cypriots, despite the relatively high proportion of the latter engaged in tertiary éducation abroad (nearly 40% more than reeeived it locally in 1993). Comparable data is veiy limited but as a rough guide an internal Civil Service study reported that in 1988, 10.5% of working women in the "TRNC" had graduated from some form of tertiary éducation, ("Some Indicators of the Female Population of the TRNC", Unpublished 1988 Study by the State Planning Authorily - in Turkish). Conversely in 1987 12% of Greek Cypriot females over the age of 20 had graduated from some form of tertiaiy éducation, Republic of Cyprus, 1995. Statistical Abstract 1993. Nicosia: Ministiy of Finance, Dept. of Statistics and Research, p.84, (based on a sample survey). 352
stand out however, revealing enough significant différences between the two Cypriot économies to offer some explanation for their différent performances. These indicators: the government share of economic activity, the average level of domestic investment and the level of openness to international trade, also offer something of a guide to subséquent performance, and therefore the sustainability of growth trends achieved so far. These bald statistics should be read in the context of the preceding pages (Chapters 1-5) which serve as a supporting, historically informed narrative to the conclusions derived here. The graphs below (Figures 7.2 to 7.4, 7.7 to 7.12) illustrate that, particularly in the north, some of the key measurable factors afFecting growth seem to be widely at variance with developments elsewhere (clearly not helped by some of the exogenous factors outlined above, such as the lack of international récognition). The most obvious différence, north and south, is the economic role of government as detailed in Chapter 4. Figure 7.2, below, offers a rough Statistical illustration of the narrative history provided here. Figure 7.2 The economic role of government in Cyprus, north & south, as a % of national income 1977-1990. Source: "Economic Rcporti", Nicosia ; Cetin Ugural, 1993. " An Analyst of Inilaticil & the Financial Structure of the TRNC." Lcfkosia, p.87. Despite the fact that, due to data limitations, the statistics are not wholly compatible, it does provide a guide to the différences in the economic role of government, north and 353
Page 1 and 2:
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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aiding the recovery from the coup a
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employment: rapidly rising real ear
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Until the intervention of public fi
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to pick the Republic of Cyprus as t
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of offshore companies registered in
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Figure 2.27 Revenue from the offsho
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Figure 2.29 The changing compositio
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The structure of the economy, the c
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CHAPTER 3. The foundations of Takis
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Famagusta enclaves would be over-ru
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The historical context of separate
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generally concentrated in the lower
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agreed Constitution. Seemingly Clar
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séparation of the communities bega
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UN. 37 Some additional supplies mus
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Seemingly, by 1970 the Nicosia encl
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was made on the basis of a fixed in
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derived from Turkish transfer payme
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Patrick has offered a more complica
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spare parts and maintenance materia
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Emphasising the growing divisions b
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Chamber, Rauf Denktash, said people
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Figure 3.2 Thepossible economic eff
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produced by them rises significantl
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Committee" was the area military co
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February 1975 the latter bodies set
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The first five-year pian, published
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CHAPTER 4. The construction of a Tu
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Whilst the Turkish-Cypriot leadersh
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of supply, and/or marketing, in key
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shipment of 2000 tons of foodstuffs
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Eti still operateci out of Nicosia,
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institutions in northern Cyprus amo
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with multipurpose co-operatives, a
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A few new co-operatives were formed
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loans. Savings Banks do have access
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espectively. The Famagusta branch w
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Cypriot) Government in the 1960s, t
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increasing costs 31 . This is perha
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packages imported raffinate, supply
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a monopoly respectively. Where ther
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Evkaf is an Islamic organisation fo
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Evkaf had a largely obscure economi
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Meanwhile a little noticed phenomen
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After the summer of 1974, the Turki
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monitored Ledra Place check-point,
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the early eighties, when Turkish ar
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Figure 4.3 Number of tourists from
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the situation that had existed prio
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stay arrivais or diminish with the
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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
Page 303 and 304: Figure 6.6 Communal income in 1980,
Page 305 and 306: Selecting peers as proxies for pan-
Page 307 and 308: growth potential to Cyprus in 1960,
Page 309 and 310: was that compatible data should be
Page 311 and 312: Figure 6.9 Micro Economies; average
Page 313 and 314: Figure 6.11 Micro Economies; averag
Page 315 and 316: Figure 6.13 The level of government
Page 317 and 318: Figure 6.14 "More Developed Medìte
Page 319 and 320: Figure 6.17 "More DevelopedMediterr
Page 321 and 322: Cypriot growth rate, should not dis
Page 323 and 324: Figure 6.22 Structure of production
Page 325 and 326: Figure 6.26 Degree of openness in t
Page 327 and 328: economic growth 49 (variables 6-9:
Page 329 and 330: implication, developmental différe
Page 331 and 332: spectrum in 1980 at 38%. Perhaps le
Page 333 and 334: namely investment rates 54 (in phys
Page 335 and 336: instruments, the justification for
Page 337 and 338: Figure 6.28 Average annual growth i
Page 339 and 340: Figure 6.29 How Cyprusfared in 1980
Page 341 and 342: Figure 6.30 Total Cypriot income 19
Page 343 and 344: o.zö; may reveai someimng 01 ine e
Page 345 and 346: developments elsewhere. The relativ
Page 347 and 348: unified economy) of 1963, Cyprus is
Page 349 and 350: CHAPTER 7. Conclusion 348 Comparati
Page 351 and 352: Turkish-Cypriot economy stagnateci.
Page 353: So it is worth looking again at the
Page 357 and 358: Figure 7.3 Gross domestic investmen
Page 359 and 360: Figure 7.5 "TRNC netforeign trade a
Page 361 and 362: Figure 7.8 The degree of openness i
Page 363 and 364: control. There seems to be ampie ex
Page 365 and 366: The role of tourism in the economic
Page 367 and 368: seem to be able to grow in line wit
Page 369 and 370: Comparisons throughout this thesis
Page 371 and 372: The Cyprus Mail Hellenic Group. Nic
Page 373 and 374: I.M.F. International Financial Stat
Page 375 and 376: 1982. Fourth Emergency Economic Act
Page 377 and 378: "Turkish Federated State of Kibris"
Page 379 and 380: leadership of the two communities o
Page 381 and 382: "administrations" and key economic
Page 383 and 384: Bicak, H.A. (June) 1990. "The Impac
Page 385 and 386: Hudson, J. and Dyniotou-Jensen M. 1
Page 387 and 388: Mcdonald, R. 1989. The Problem of C
Page 389 and 390: Solsten, E. (ed.) 1993. Cvprus: A c
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