Cyprus
The Development Challenge
USAID assistance to Cyprus began as a humanitarian relief operation in the summer of 1974 and has since evolved into a multi-sectoral development program aimed at increasing the quality and quantity of interaction between the estranged and geographically-separated Greek Cypriot and Turkish Cypriot communities. USAID assistance supports cooperation between individuals and organizations from the two sides in order to reduce tensions and promote a climate that will foster reconciliation and a durable peace settlement.
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The division of the two physically separated communities is reinforced by economic differences. While Greek Cypriot per capita GDP is approximately $16,400, Turkish Cypriot per capita GDP is approximately $5,263. During recent years, the continuing depreciation of the Turkish Lira and Turkey's growing economic problems have exacerbated economic hardships in the Turkish Cypriot community. The disenchantment of the Turkish Cypriot community is reflected in an ongoing process of emigration, including many of the young, and a resulting brain drain.
Facilitating a resolution to the Cyprus dispute, defusing tensions between NATO allies Greece and Turkey, and promoting stability in the Eastern Mediterranean remain key U.S. foreign policy priorities. The United States supports the mission of the United Nations Secretary General in working to achieve a just and lasting settlement that protects the legitimate interests of both Greek Cypriots and Turkish Cypriots. The international community, especially the United States, has been encouraging resumption of negotiations between the two sides on the basis of the Annan Plan, to arrive at a permanent solution before the Republic of Cyprus formally joins the EU on May 1, 2004. This remains a challenge since the December 2003 parliamentary elections in the northern Cypriot parliament resulted in a deadlock between the pro-European Union (EU), pro-settlement opposition, and long-dominant hard-line parties.
The USAID Program: The U.S. Congress' objectives for Cyprus, reflected in the annual Congressional appropriations language, include reunification of the island, reduction of tensions, and promotion of peace and cooperation between the two communities on Cyprus. The USAID approach supports Congress' objectives by focusing on increasing and strengthening cooperation and mutual tolerance between Greek Cypriots and Turkish Cypriots and provides initiatives that support a comprehensive settlement. The resulting cooperative relationships and activities are expected to strengthen each side's ability to compromise on a just and lasting settlement; provide opportunities for multi-sectoral contacts to increase the number of stakeholders in a solution; provide tangible examples of the benefits of cooperation and permanent settlement; and promote tolerance and mutual understanding between the two communities in support of a comprehensive settlement.
USAID's $60 million ESF grant to the United Nations Development Programme (UNDP) for the Bicommunal Development Program (BDP) supports technical assistance, commodities, and training and workshops related to agriculture and veterinary science, education, civil society and non-governmental organization (NGO) strengthening, information technology, communication, and telecommunications. Other activities involve public infrastructure, environmental management, public health, economic development, urban renewal, and historic restoration and preservation. The program has fostered cooperation despite an unevenly enforced prohibition on bicommunal meetings by the Turkish Cypriot leadership. According to the UNDP Annual Report (October, 2002), there were over 155 bicommunal meetings in 2001. In 2002, the number of BDP-facilitated bicommunal meetings (over 200) far exceeded the number that took place in 1996, previously considered the highpoint of bicommunal activities. The opening of the checkpoint between the north and south in April 2003 has enabled a deepening of bicommunal activities. Meetings between Greek Cypriots and Turkish Cypriots to plan and implement projects of island-wide interest are commonplace, as are activities that bring the two communities together for a common cause. There are approximately 40 ongoing activities with the authorities of the two Cypriot communities, with 60 more initiatives being implemented by NGOs in both communities.
The Program Data Sheet provides additional detail on the program for which USAID is programming FY 2004 funds and requesting FY 2005 funds. These funds are implemented through a major grant to the UNDP for the BDP, which averaged approximately $10 million in annual obligations. Other agencies' activities include the U.S. State Department's Cyprus-America Scholarship Program, implemented by the Cyprus Fulbright Commission with $4.3 million obligated in FY 2003 funds, and the Bicommunal Support Program, implemented by the U.S. Embassy in Nicosia with $2.0 million obligated in FY 2003 funds.
In case of actual political settlement, the program would support the terms of the approved peace agreement in strategic areas, facilitate the transition, and be dedicated to the success and viability of the UN-brokered agreement between the two communities.
Other Program Elements: None.
Other Donors: The United States is the principal donor supporting bicommunal activities in Cyprus. The EU and, separately, a number of European countries, including Germany, Norway, Slovakia, and the Czech Republic, are funding bicommunally-oriented initiatives focused on civil society, urban restoration, women, political parties, entrepreneurs, journalists, and labor unions. As Cyprus advances towards EU membership, it is expected that the EU, which is the largest overall donor to Cyprus, will also become the largest donor to bicommunal programs.
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