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secure whilst the Greek-Cypriot economy has had relatively easy access to ali forms of
international finance. As a conséquence, between the 1960's and the late 1980's, the
Republic of Cyprus moved from being one of the lowest debtor countries, amongst ali
11 peers (in Figures 7.3 and 7.4 above), to being one of the highest, and the growth in
the total tax bürden has reflected this (see Chapter 2). However, borrowing has clearly
boosted investment rates which have contributed to the rebuilding and restructuring of
the economy as it concentrated itself in the south. Investment levels appear to have led
to significant economic expansion. Investment rates in the north have been
considerably lower, partly because of the lack of international récognition but also
because of the way the economy has been organised (see Chapter 4), the economic
role of government, along with the degree of openness to international trade and
competitiveness, problems over property rights and levels of transparency 10 .
On the surface however, the degree of openness of the two Cypriot économies appears
to be the most similar of the key indicators highlighted here. Figures 7.5 and 7.6
compare net foreign trade (imports plus exports divided by two, divided by the
respective régions GNP) in the two économies of Cyprus. Both économies look
similarly open to international trade, a positive signal in the search for sustainability 11 .
It is also something to be expected of two micro économies with levels of development
resulting in their resource bases being neither wide, nor deep enough to fulfil complex
consumption patterns.
10 See Scott J. "Property Vahles; Ownership, Legitimacy and Land Markets in Northern Cyprus", in
Hann C.M. 1998. Property Relations; Renewing tlie Anthropological Tradition. Cambridge:
Cambridge University Press, pp 142-159.
11 Boltho, A. 1996. "The Assessment: International Competitiveness", Oxford Review of Economic
Policy, Vol. 12, No. 3, (Autumn), pp. 1-16.
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