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could still be characterised by small, and very small, family run businesses, (30%
of ail establishments employing under 10 people and nearly 70% employing under
50 in 1989 43 ), using old technology, organisational and management techniques,
consequently still revealing low labour productivity 44 .
In the early post-invasion period manufacturing grew despite relatively few
government incentives; seemingly later it failed to grow regardless of them. Flaws
in the planning process can be seen not in the generality of recovery, but in the
spécifiés of sectoral growth rates. The Government failed to maintain the growth of
the manufacturing sector after the immediate post-74, Middle East driven, boom
and also failed to encourage the modernisation of the sector. In the post invasion
period Government also failed to control the growth and avoid the subsequent
dominance of the tourist industry 45 . The impact of 1974 was so profound because of
the regional spécialisation that had previously occurred. Before 1974 the Cypriot
economy was dépendent on four sectors for its foreign exchange: agriculture
(particularly citrus production), revenue from the stationing of foreign troops on the
island, tourism and the mining sector, three of which were heavily concentrated in
the north. If one word could sum up the objectives of post-74 war development
policy, it would be "diversification". In this sense, little had changed from earlier
planning objectives:
Furthermore, in the case of Cyprus there are many exogenous factors
influencing the economy and, although Government cannot control such
factors, yet it can plan to minimise their impact on incomes, employment, and
pr ices. 46
43 Republic of Cyprus 1994. Labour Statistics 1993. Nicosia: Ministry of Finance, Dept. of Statistics
and Research, pp. 42-44.
44 Republic of Cyprus. Five Year Development Plan. 1989 - 1993. Nicosia: Central Planning
Commission, pp. 104-105.
45 An objective of 3rd and 4th Emergency Action Plans observed by Matsis & Charalambous (1989.
"Development Planning in Cyprus", The Cvprus Review. Vol. 1, No.2, pp. 28-30
46 Republic of Cyprus 1966. The Second Five Year Plan 1967-71. Nicosia: The Planning Bureau,
p.l.