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The principal purpose of planning has been to provide for the most efficient
use of ail human, physical and financial resources... Expérience during the
last fifteen years or so has shown that the market mechanism cannot be relied
upon to ensure the desired restructuring of the economy... Without some
Government intervention... Cyprus may well be subject to a répétition of the
economic turbulence and ups and downs of the 1950s. 26
In terms of the structure of the economy: the composition of employment, the
composition of GDP and the relative contributions to national income of the main
sectors of the economy, the developments of the first decade of independence
appear to have had little impact. The main structural changes over the decade were
in the foreign exchange earning sectors. Essentially, this saw a shift in the
composition of exports from overwhelming dependence on one type of primary
product, minerals, to two, agricultural producís and minerals (see Figures 2.3 and
2.4). The decade also saw the possible beginnings of a shift away from
overwhelming dependence on one invisible earner, the stationing of foreign troops
on the island, to another, tourism 27 . Where successful economic development is
plainly visible is in the growth in per capita income and in its growth performance
relative to other economies. By 1970 average per capita income (again in
comparable, purchasing power parity terms) had risen to
over $1400 28 , which
meant that out of 133 countries, for which there was comparable data, Cyprus
would be ranked 36 th on the basis of its per capita income in 1970. So not only had
it moved up 5 places, but its per capita income was nearly 30% of US per capita
income, as apposed
to nearly 20% in 1960. Again, Cypriot per capita income
relative to the US in 1970 was, like the 1960 figure, slightly less than Greece but
26 Republic of Cyprus 1966. The Second Five Year Plan 1967-71. Nicosia: The Planning Bureau,
p.l.
27 In 1961 income from foreign military expenditure represented 67% of invisible earnings, whilst
income from travel represented 20%. In 1971 income from foreign military expenditure had fallen to
47% of invisible earnings, though income from travel had changed little, being equal to 19% of
invisible earnings. Republic of Cyprus 1966 [& 1970]. The Second í& Thirdl Five Year Planisi
1967-71 í& 1972-761. Nicosia: The Planning Bureau, p. 52 & pp. 67-68 respectively.
28 (International $s at 1970 international prices.) Summers & Heston 1994. op. cit.
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