Thursday, September 20, 2012

Planned Reconstruction of the Economy of Cyprus 3.5.1976

Cypriots have experienced a substantial  improvement in their living standards since World War II. Cyprus benefited from the war, and in succeeding decades its economy grew at rates that matched those of other countries that profited from the general West European boom that began in the 1950s and lasted up to the first oil price increase of 1973. Cypriot per capita income increased steadily through this period; the economy diversified and ceased to be that of a Third World colony. This success was achieved despite widespread turmoil stemming from shaking off British rule in the 1950s and intercommunal warfare during the 1960s.
Cyprus was affected in 1973 and 1979 by the first and second oil price increases, for it was almost completely lacking in domestic sources of energy. However, energy-related economic disruption was negligible compared with the effects of the Turkish invasion of 1974, which ended in the de facto partition of the Republic of Cyprus. The island's economy disintegrated as a third of its inhabitants fled their homes and livelihoods and many farming, manufacturing, and commercial relationships were shattered. Thereafter, the island's Greek Cypriot and Turkish Cypriot communities lived separated from one another. Each sought to recreate a functioning economy.
Greeks Cypriots were the more successful. Republic of Cyprus planners adopted an aggressive program of constructive deficit spending, economic incentives, and targeted investments that led the Greek Cypriot economy to reach pre-1974 levels within a few years. This was an astonishing accomplishment in that the island's partition had cost the republic much of its agricultural and manufacturing assets. 
The four stamps on the card depict just this aspect of Cyprus' efforts at bettering the economy - local craftsmanship and handicrafts, construction, agriculture and aviation for tourism. Thank you Merja for this nice FDC.

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