The Consequences of Division and Economic Challenges of Reunification

Abstract

Since 1974 Cyprus has been a divided island with, in effect, two separate economies. The economic links between north and south are insignificant, largely as a result of deliberate policy decisions by both sides, and the climate of mutual hostility. What have been the economic costs of this division? So far in this book attention has been mainly focused on the economy of the Republic of Cyprus, the Greek Cypriot controlled economy of the south. How does the northern economy differ? Is the gap between north and south becoming wider? Could it be bridged in the event of a settlement? What would be the cost of re-absorbing the economy of the north into a unified or federated Cyprus?