A comparison between the dominant economic actors of the Northern and Southern Cyprus

Abstract

Two disputing communities living in Cyprus have difficulties in interpersonal, intercultural, interethnic, identity-based and political conflict. Historically divided Greek and Turkish Cypriot communities have different views about the reunification of Cyprus. Beginning with having independence from United Kingdom in 1960, Cyprus is ethnically divided between the Greek and Turkish Cypriots. After Turkey’s 1974 action to protect the Turkish Cypriots from the threat of a coup intended in the Greek Part of the island, Turkish Republic of Northern Cyprus (TRNC) has been established as being protected and solely recognized by the Turkish Republic (TR). Reunification of Cyprus between the Turkish and Greek communities will enhance a European Identity shared by the cultures, as The Republic of Cyprus (TRC) is joined in the European Union (EU) as representing all the island. The partitioning of the land Cyprus had bed effects of the island’s economy. According to TRC, one-third of the population had been left in TRNC. Losing part of the land and personal property in the area of TRNC, especially Fagamusta –the only deepwater port- and Nicosia International Airport were some of the results. So the gross domestic product (GDP) decreased by one third in this period. Afterwards, great effort had been taken and concluded with an annual rate of growth by nearly 10%. Since 1983, economy developed remaining the unemployment and inflation rate lower. Tourism, upgrading technology in a lot of areas, establishing a center of international transit trade, merchant shipping, banking and similar services improved the economy. Special tariff arrangements and having acceptance in EU, euro is the national currency in TRC. On TRNC side, Turkey is the subsidizer in the economy. Two economies ceased the trade in between each other; however TRC supplies electricity to TRNC and TRNC supplies some municipality services to TRC.