The Political and Economic History of North Cyprus: A Discordant Polity (Palgrave Studies in Economic History)

This monograph provides a comprehensive analysis of the political economy of the Turkish Cypriot governance in the northern part of Cyprus after 1974. Examining the political and state structure, labour market, social security, state economic enterprises and allocation of land, Ekici shines a light on the turbulent history of North Cyprus. What is its relationship with Turkey and the South? How does economic development compare across Cyprus? Who are the potential perpetrators of post-1974 developments? Such questions are addressed in this much-needed book. As a self-proclaimed internationally unrecognised state, neglected by the international community and scholarly literature, this book marks an important development in the study of North Cyprus and Turkey's role in its economy and politics. Foreword 7 Acknowledgements 11 Chronology of Key Events 13 Contents 36 Abbreviations 38 List of Tables 40 List of Boxes 41 1: Introduction 42 A Turkish Cypriot’s Tale 42 A Tale of a Discordant Polity 48 Outlining the Discordant Polity 52 A Brief History of Pre-1974 Cyprus 56 References 68 2: What Kind of Polity? 70 The Emergence of a New Governance Regime 70 A Conceptual Vocabulary for the Analysis of Northern Cyprus 72 De Jure and De Facto States 73 Endemic Clientelism 76 From Rentierism to Rent-Seeking (and Back Again) 79 Colonialism, Neo-colonialism or No Colonialism 83 References 87 3: Economic and Institutional Foundations of Turkish Cypriot Governance and the ‘ITEM’ Law 90 The Political Parties and the Early Years 94 Cumhuriyetçi Türk Partisi (CTP, Republican Turkish Party) 95 Ulusal Birlik Partisi (UBP, National Unity Party) 97 Toplumcu Kurtulus Partisi (TKP, Communal Liberation Party) 98 Demokrat Parti (DP, Democratic Party) 100 Type of Governance and Elections 101 Parliament (or General Assembly) 109 The State Offices 113 Municipalities 115 Original Accumulation: The First Rentier Distribution 117 Law for Housing, Allocation of Land and Property of Equal Value (İskân Topraklandırma ve Eşdeğer Mal Yasası, ITEM Law) 118 References 135 4: From Separation to Convergence: The Economic Development of the Republic of Cyprus and the Turkification of Northern ­Cyprus 137 An Overview of Developments in the South 138 Drawing Closer to Turkey 145 Turkish Aid to Northern Cyprus 151 References 161 5: The Labour Market 163 Labour Demand in Civil Services 165 Labour Supply in Civil Services 170 Private Sector Employment 173 The Labour Unions 179 References 188 6: Social Security System 190 Social Insurance for Non-civil Service Employees: The Self-Employed and Probationary Civil Servants 192 Pension System for Civil Servants: The Retirement Fund (Emekli Sandığı) 199 Provident Fund (İhtiyat Sandığı) 201 Single Social Security System (SSS) (After 2007) 205 References 209 7: State Economic Enterprises and Revolving-Capital Enterprises 210 Individual Histories of Some of the SEES 218 Kıbrıs Türk Hava Yollari (KTHY): Cyprus Turkish Airlines 218 Kıbrıs Türk Sanayi İşletmeleri Holding Ltd. (Sanayi Holding) (Cyprus Turkish Industrial Enterprises Holding) 222 Kıbrıs Türk Turizm İşletmeleri Ltd. (KTTI, Cyprus Turkish Tourism Businesses Ltd.) 230 Cypfruvex (Cyprus Fruit and Vegetable Exports) 233 Revolving-Capital Establishments (Doner Sermayeli Kuruluslar) 238 Süt Endüstrisi Kurumu (SUTEK, Milk Industry Board) 239 Kıbrıs Türk Elektrik Kurumu (KIBTEK, Cyprus Turkish Electricity Board) 242 Toprak Urunleri Kurumu (TUK, the Agricultural Products Board) 247 References 255 8: Private Sector Development 258 European Court of Justice (ECJ) Decision 259 Agriculture and Animal Husbandry 262 Tourism 266 Higher Education 271 Financial Sector 273 The Central Bank 278 The Development Bank 283 References 291 9: Conclusion 293 The Usual Suspects 296 The Three Musketeers 297 ‘Motherland’ 300 The People 304 The Bermuda Triangle 306 Now and Future 308 References 317 Index 318 Front Matter ....Pages i-xliii Introduction (Tufan Ekici)....Pages 1-28 What Kind of Polity? (Tufan Ekici)....Pages 29-48 Economic and Institutional Foundations of Turkish Cypriot Governance and the ‘ITEM’ Law (Tufan Ekici)....Pages 49-95 From Separation to Convergence: The Economic Development of the Republic of Cyprus and the Turkification of Northern Cyprus (Tufan Ekici)....Pages 97-122 The Labour Market (Tufan Ekici)....Pages 123-149 Social Security System (Tufan Ekici)....Pages 151-170 State Economic Enterprises and Revolving-Capital Enterprises (Tufan Ekici)....Pages 171-218 Private Sector Development (Tufan Ekici)....Pages 219-253 Conclusion (Tufan Ekici)....Pages 255-279 Back Matter ....Pages 281-283