BY ISMAIL KUCUKKAYA
AKSAM- Turkish Union of Chambers and Commodities Exchanges (TOBB) head Rifat Hisarciklioglu has opened the economic dimension of the Cyprus issue up for discussion. While everybody else is busy focusing on politics in the countdown to this Saturday’s referendums, Hisarciklioglu yesterday organized a luncheon meeting highlighting the possible economic impact of UN Secretary-General Kofi Annan’s Cyprus plan. Turkish Republic of Northern Cyprus (TRNC) Prime Minister Mehmet Ali Talat and Deputy Prime Minister Serdar Denktas plus scholars and journalists were all in attendance. During the meeting, Foreign Minister Abdullah Gul gave a speech on the economic dimensions of the plan. As I was also among the speakers, I noticed beforehand that all the suggestions for the economic development of Northern Cyprus depend on a ‘yes’ answer in the referendums. If the Turkish side says ‘yes’ and the TRNC’s isolation is ended, even gradually, Northern Cyprus can thrive and prosper. But if the embargo continues and the TRNC isn’t recognized, this is pie in the sky. During the meeting, the disagreement between Serdar Denktas and Talat could be seen clearly, but they reached a consensus on the final aim.
In his speech, Gul urged Turkish businessmen to explore avenues for investment in the TRNC. I liked these words of his the most: ‘Whatever the result of the referendums, Turkey will always stand with the TRNC.’ As for the economics of the Cyprus issue, when we look at the economy of the North, we can see the domestic Turkish economic picture of 1960-83, that is, high inflation, low productivity, lack of investment, a high foreign trade deficit, consumption but no production, inflated public expenditures, the public sector dominating employment, a broken tax system, unfair promotion, and only 30% tourism occupancy due to a lack of marketing. Things could be done to correct this picture. Structural measures can be taken and reforms done, but the embargo must be lifted and free trade agreements signed. The TRNC’s small and medium-sized enterprises (SMEs) should be supported under the TOBB’s leadership and when its isolation ends, alternative funds other than those from the International Monetary Fund (IMF) and the World Bank should be used. In sum, the referendum’s result should be ‘yes.’ I don’t think we’ll have another chance.