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AL GOMHOUREYA
Al Gomhoureya Correspondents: The Turkish Republic of Northern Cyprus
By Al  Sayed Hani

August 2, 2006

Despite isolation and sieges, the Turkish Republic of Northem Cyprus achieves the highest development rate in the world.The average income per person reached 11.000 US$ annually.The Minister of Economy and Tourism in the government of the Turkish  Republic of Northem Cyprus Dervis Deniz, declared that his country was able to achieve, during the last two years, a great economic development despite the commercial sanctions and that the average incomne for each person has reached almost 11.000 US$ anually. The Minister said, in a meeting with the representatives of different international newspapers that the Turkish Cypriots have suffered a lot from international isolation as well as the commercial, air and maritime sanctions imposed on them ever since they declared their state in 15 November 1983. At that time, their state was destructed and almost hasn't any infrastructure not to mention that there were no sources for income. The only "life tube" was coming from Turkey, which has acknowledged their country and remained the only gate for them to and from the external world. The Minister explained that these sanctions have prevented his country from achieving the desired economic development as the average income for each person remained within the limit of 4500 US$ annually until the year 2003, while it has jumped to 16.000 US$ in southem Cyprus, the mater that created a gap between the two sides. He added that the situation remained unchanged until the referendum made in the two sides of the island in 24 April 2004 on Annan' s plan to unify the island and share the authority. However, the Greek Cypriots refused the plan and Turkish Cypriots approved it. Since this was the plan sponsored by the UN and since it was an embodiment for the will of international community, the world started to reconsider its stance concerning the Turkish Cypriots and started to sympathize with them, put confidence in them and get convinced that their country could be a destination for tourism and investment.  A new era started in the history of the Turkish Republic of Northern Cyprus. The number of tourists increased from 250 thousand tourists every year in 2003, they were increased to 300 thousand with a 20% increase in just one year. The number has increased again in 2005 with another 15%. This fast increase in the number of tourists was accompanied with new investments and an increase in the number of touristic facilities. The investors started to arrive, started to buy lands and construct touristic projects. From our side, we encouraged them by giying them the lands for free and exempted them from any taxes or custom fees on the materials they import from outside the country for ten years. The country started to witness great construction activities in its different areas and infrastructure projects were extended to reach everywhere. Foreign investments were increased and we expect it to reach 1 billion with the inauguration of new touristic areas during the coming three months.

The Minister added that this sudden development in tourism and construction fields led to case of great economic booming and this led the average of annual income for each person from 7500 US$, in 2004, to reach 10.5 thousand US$ in 2005 and now it is getting close to 11.000 US$. This is considered as the fasted growth rate in the world. The Minister said "we could achieved all this while we are still under isolation and sanctions and while we face difficulties in import, export and aviation as people cannot come directly to our country and they should go first to Turkey and then to us. Can you imagine what would have happened if there were no difficulties, we would have achieved more and more economic development. Our county is beautiful and the government encourages people on working and investing.

Turkey's assistance

After he finished talking to journalists, the Minister opened the door for discussions. The first question addressed to the minister was regarding Turkey' s role in this economic upturn, in the Turkish republic of northem Cyprus, he replied by saying that the Turkish aids to his country are going in two channels. The first is the funding of deficiency in government budget, which is less than 50 million dollars annually. And the second is supervising the projects of developing and expanding the infrastructure that includes the construction of roads and extension of water, electricity and communications networks.  The minister also added that his country has signed, last year, an agreement with Turkey with 550 million US$ for the development of infrastructure. Answering another question regarding the EU aids for the Turkish Republic of Northern Cyprus and its role in the improvement of economic situations, the minister has totally denied any kind of aids from the EU to his country.


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