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USAID Search: Cyprus

Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997

Last updated: 29

 
  

(text taken from the FY 2003 Congressional Budget Justification)

Image of Cyprian flag

THE DEVELOPMENT CHALLENGE: Following the provision of humanitarian relief assistance after the events of 1974, USAID shifted its program emphasis to multi-sector development activities, structured to engage individuals and organizations from both communities. USAID assistance is designed to increase multi-sectoral contact between Greek and Turkish Cypriots, reduce tensions on the island and improve cooperation between individuals and organizations from the two sides.

There is both a physical and economic division between the two communities. . While the GDP per capita is approximately $16,400 on the Greek Cypriots side, it isapproximately $5,263 on the Turkish Cypriot side. The depreciation of the Turkish Lira in 2000 and Turkey's economic problems have exacerbated the economic hardships in the Turkish Cypriot community. An economic austerity package in the north led to strikes and public protests, and the failure of several banks reinforced the climate of economic deterioration. 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 remains a key priority of U.S. foreign policy. The U.S. supports the UN-led effort to achieve a just and lasting settlement that protects the legitimate interests of both Greek Cypriots and Turkish Cypriots.


THE USAID PROGRAM:

FY 2002 Estimate: $15 million FY 2003 Request: $15 million

The USAID approach is to focus on increasing and strengthening cooperation between the communities on initiatives that support the goal of a comprehensive settlement. Consistent with the Congressional earmark for Cyprus, the purpose of this program is to promote activities that encourage tolerance and cooperation among Greek Cypriots and Turkish Cypriots. These 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; and
  • promote tolerance and mutual understanding in support of a comprehensive settlement.

The program funds technical assistance, commodities and training/workshops related to agriculture, education, participant training, civil society/NGO strengthening, information technology, education, communication, and telecommunications. Other activities involve public infrastructure, environmental management, public health, urban renewal, and historic restoration and preservation. The program has fostered cooperation on activities of mutual interest and increased understanding between the two sides despite an unevenly enforced prohibition against on-island bicommunal meetings by the Turkish Cypriot leadership. It is expected that USAID, in consultation with the State Department, would reconsider development needs in Cyprus in the event of a settlement

The Program Data Sheet provided below provides additional detail on the program for which USAID is requesting funds during FY 2002 and 2003. The $15 million in Economic Support Funds (ESF) is requested to continue ongoing programs in FY 2002. These consist of a major grant to the United Nations Development Programme (UNDP) for the Bicommunal Development Programme, and activities of other agencies including the U.S. State Department's Cyprus-America Scholarship Program (CASP, implemented by the Cyprus Fulbright Commission); the Bicommunal Support Program; (implemented by the U.S. Embassy in Cyprus) and the U.S. Department of Interior's U.S. Geological Survey for the Bicommunal Data Base for Water Management.

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, including those focused on civil society, urban restoration, women, political parties, entrepreneurs, journalists, and labor unions.

Program Data Sheets


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Last Updated on: May 29, 2002