The Creation of a Democracy - Cyprus Development Bank

Cyprus's economy is a small, vigorous and well yielding economy that has showed its ability of adaption in upheaval conditions. Classically Cyprus's economy is characterized by a steady economic pace in growth. The hard fact is that for the last 50 years, from the establishment of Cyprus's Democracy in 1960, the grass was not always green, and this makes it even more special for Cyprus that nowadays, in a worldwide financial crisis keeps the country in low annual unemployment and inflation rates.

The Creation of a Democracy

The underdeveloped economy that Cyprus inherited from several past Colonizers in 1960, switched over in a modern economy with steady headway towards all sociologic and economic sectors, with dynamic services in all entrepreneurial sections, high social constitution and successful manufacturing and farming sectors.

In 1963, Cyprus Development Bank (CDB) was set up and set the pace until today as a public company which propels the economic development in Cyprus. Cyprus Democracy and the European Development Bank are the two main shareholders. CDB primarily sponsored the hedge of a massive range in the production field of the economy, with stress in the sectors of manufacturing and long-term financial loans for new entrepreneurs (special attention had been given in the entrepreneurs' capital risk and investment). From 1963 to 1974 the annual sponsored money given to several economic fields was on average £210million Cyprus pounds. (Statistics given by personal interviews of the assistant secretary of the Exchequer).

The black year

The first positive investment feedbacks start to rise in the late 60's where tourism had a determinative role for the whole economy. For 5 years (1969-1974) Cyprus was established as a main tourist attraction centre in the whole Mediterranean. But this did not last for long, in July 1974 after the first Turkish onslaught and later, in August 1974 with a second invasion the Turkish army "blows over" everything. They pillaged the Cyprus Democracy while they still held in violation of the law around 37% of the Island. 70% of the island's rich producing resources were lost; the tourist industry lost 65% of its hotels and tourist accommodation, and the industrial sector lost 46%, and mining and quarrying lost 56% of production. The port of Famagusta that had been lost, handled 83% of the general cargo while the remaining 17% was handled by Kyrenia Port, which was lost as well. The closure of the Nicosia International Airport (the only airport by that time) in the buffer zone cost a lot to Cyprus which through one night, found its self cut off from the whole world. Just after 14 years of liberty Cyprus became a hostage of a non prior economic doubt. (Statistics by CCCI, CDB, Fileletheros newspaper journals, Wikipedia).

A new start

Although