Following is a Web version of a document from USAID's 1997 Congressional Presentation. Please note that some formatting may have been lost in the automated conversion of the original file. This document is also available for download in its original WordPerfect 5.1 format.

FY 1997 ESF Request: $15,000,000

Cyprus continues to feel the strain of inter-ethnic conflict and current distrust and misunderstanding. The divided island of Greek and Turkish Cypriots could be a flashpoint for regional problems. Approximately 200,000 Cypriots, almost one-third of the total Cypriot population, were displaced during the July 1974 coup and Turkish military intervention. The U.S. Government has continued to provide funds which, over the years, has shifted in emphasis from relief to long-term reconstruction and development activities. The United Nations High Commission for Refugees (UNHCR) and the Fullbright Commission have acted as the implementing agency for the U.S. program through a series of program grants. The UNHCR and the Fullbright Commission have the ability to work with both Greek and Turkish Cypriots and are well positioned to promote bicommunal cooperation.

The Development Challenge.

Both the Greek and Turkish communities on Cyprus confront varying economic problems, but the GDP per capita on the Greek Cypriot side has risen to nearly $13,000; while on the Turkish Cypriot side it has stagnated at around $3,000. Cyprus is moderately indebted with total external debt of $2.4 billion in 1993. USAID assistance helps to address some economic constraints, but the main focus is directed at facilitating a political solution on the island.

Other Donors.

Emergency humanitarian assistance was provided to both Greek and Turkish Cypriots by the International Committee of the Red Cross and by the United Nations High Commissioner for Refugees (UNHCR) with contributions from the United States and other countries. In 1994, the top five ODA donors to Cyprus provided $41million in assistance with the United States share equal to 53%. Subsequently, donors other than the U.S. have discontinued assistance. The US is the only major donor still active in Cyprus and provides the only financing to the UNHCR program.

Cross-cutting and Special Initiatives

Working through the UNHCR and the U.S. Information Service (USIS), USAID funding promotes activities which require and encourage participation by representatives of both communities. This bi-communal approach will hopefully demonstrate the positive, substantive results of cooperation. Further, the linkages established between individuals and groups from a variety of society's sectors will contribute to: (1) the possibility of pressuring each side's leadership to compromise on an equitable solution or (2) at least, providing acquaintances and stakeholders in seeing that a solution succeeds.

The Bicommunal Development Project implemented through the UNHCR and the Cyprus Red Cross includes agricultural activities such as forestry and pest control, environmental programs improving air and water quality, health components which build infrastructure to support prevention and treatment of illnesses, and sewage treatment and rehabilitation of areas near the green line.

The Scholarship Project implemented through USIS and the Cyprus Fullbright Commission offers U.S. scholarships for undergraduate and graduate degrees, and short-term bicommunal training in conflict resolution and business management.

Director, Office of European Country Affairs: David Cowles