Can money alone buy peace?

With President Dr. Derviş Eroğlu repeatedly denying that talks with the Greek Cypriot side were in a deadlock and even Greek Cypriot opinion makers accusing Greek Cypriot leader Nikos Anastasiades of becoming a “conservative Christofias” interested only in stalling tactics, a paper stressed the peace dividend would radically change communal and individual prospects.

The report by the Peace Research Institute Oslo (PRIO) Cyprus Office was written by economists Fiona Mullen, Alexander Apostolides and Mustafa Besim. Introducing the report to the Turkish public at a presentation hosted by the Economic Policy Research Foundation of Turkey (TEPAV), Besim stressed that a solution might considerably push up income per capita “in both states of the federation.” Still the impact will be felt more so on the Turkish side, and thus help to bridge economic disparity – which has already narrowed considerably with Turkish contributions to the Turkish Cypriot North, as well as because of the financial crisis in the Greek South. Besim stressed that per capita incomes in a post-settlement Cyprus could increase very seriously. A settlement, he said, would have a tremendous impact on economic growth, with the Turkish area living with an average 7.5 percent annual growth over the next 20 years and the Greek Cypriots at a lower 4.5 percent over 20 years. Even that lower figure, compared to the northern Turkish Cypriot economy, would be considerably higher as the Greek Cypriot economy is expected to annually expand only 1.6 percent without a solution.

While a settlement would help Turkish Cypriots under economic, social and political isolation by reaching out to the international community, prosper with direct flights, increased economic...