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CHAPTER 2. The impact of war on the economy of the Republic of
Cyprus.
Litroduction
Popular wisdom assumes that governments attempt (symbolic) foreign policy
successes to compénsate for economic failures, such as slow growth and/or
prolonged high unemployment. When domestic pólices are not producing popular
results, governments may attempt to divert attention to the international arena.
However, the world has directed its gaze (and the Government of the Republic of
Cyprus has acted to sharpen its focus) on this area of public policy, where Greek-
Cypriot policy makers have clearly failed. Until recently, little interest has been
directed to the policy areas that have succeeded. Domestic pólices have facilitated
sustained increases in living standards. The Republic of Cyprus rapidly regained
growth rates comparable with some of the world's fastest growing economies,
despite the loss of an estimated two-thirds of its resources, 1
following war and de
facto territorial losses in 1974. Yet this rapid recovery has received only cursory
academic examination. The object here is to widen the academic argument,
contributing research which assesses some of the positive elements of the recent
past.
Wilson R. 1992, Cyprus and the International Economy. Basingstoke: Macmillan, p.32.
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