Cyprus — an advanced and high-income country with a GDP per capita of around $34800— has economic and other development potentials. But, according to multiple sources, there are economic, ethnic and other development challenges. A high level of public debt, challenges to economic growth, investment and trade, a lack of sustainable water resources and limited access to quality healthcare services are some notable development challenges. Additionally, energy dependency on imported sources, high unemployment and political divisions between the Greek Cypriot and Turkish Cypriot communities pose significant development challenges. Among others, there is discrimination against minority groups, a lack of accountability, harsh prison and detention conditions for asylum seekers and arbitrary arrests and detention.
Cyprus has made steps to address its development challenges aiming to improve financial stability, promote sustainable development and enhance the overall quality of life. Cyprus has implemented economic reforms to promote growth and stability, promoted investment in key industries, invested in infrastructure to support sustainable development and implemented fiscal reforms to reduce government spending and increase revenue. Notably, Cyprus has diversified its agrarian economy into one based on services including a large tourism sector and light manufacturing successfully. Partnerships with international organizations and neighboring countries are also being fostered in Cyprus to assist in water management, address common challenges and promote regional cooperation. Among others, peace initiatives and other steps are taken to address tensions between Greek Cypriots and Turkish Cypriots.
But there are policy based, implementation related and other flaws in the steps taken to address economic, social and other development challenges to Cyprus, which is a vital financial hub for investors from Eastern Europe and other countries and has an excellent quality of life for its people. Inadequate allocations of funding for the interventions on economic, social and other development challenges and a lack of effective coordination among government agencies and stakeholders, which hinder effective implementation of development initiatives, affect the scale and impact of development interventions in Cyprus many times. Among others, a lack of transparency in decision-making processes, inadequate focus on sustainable development practices and insufficient steps to address income inequality are some crucial limitations.
There is also a lack of effective measures to address discrimination against minority groups and a lack of accountability and transparency within the government in Cyprus, which gained independence from Britain in 1960. But national and international efforts are not desirably effective in mitigating disputes between Greek Cypriots, who control two-thirds of the internationally recognized Republic of Cyprus, and Turkish Cypriots, who have a de facto entity in the island’s north and control a third, whose relations have soured since 2017 anew. There are, among others, limited/ineffective measures to address arbitrary arrests and detention of asylum seekers in Cyprus — a multicultural hub at the intersection of Africa, the Middle East and Europe.
Steps need to be strengthened to address economic and other development challenges faced by Cyprus. But implementing debt restructuring plans, improving infrastructure, fostering economic diversification through trade agreements, innovation and technology and investing in sustainable water management practices need to be continued to overcome diverse challenges and achieve long-term prosperity in Cyprus. Enhancing collaboration between the government, private sector and non-government organizations including civil society to identify and prioritize key development challenges may also be helpful for Cyprus. But implementing targeted policies and programs can be immensely helpful in addressing the challenges to Cyprus including income inequality, unemployment and sustainable development.
Increased collaboration with international organizations for assistance in water management and fostering partnerships with neighboring countries for trade agreements and sharing resources may be helpful for Cyprus, a major tourist destination in the Mediterranean. But the emphasis also needs to be given by Nicosia to measures including implementing confidence-building measures and promoting cultural exchange between Greek Cypriot and Turkish Cypriot communities to reduce tensions and bring peace. Along with the international steps, the good intentions of the parties are also vital. Among others, addressing arbitrary arrests and detention is crucial.
