Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
CYPRUS
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Economic Support Fund $15,000,000 $15,000,000 $15,000,000
Introduction
Cyprus continues to feel the strain of inter-ethnic conflict, distrust and misunderstanding. The divided island of Greek and Turkish Cypriots could be a flash point 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, have shifted in emphasis from relief to long-term reconstruction and development activities.
The Development Challenge
Both the Greek and Turkish communities on Cyprus confront varying economic problems: the GDP per capita on the Greek Cypriot side has risen to over $13,000; while on the Turkish Cypriot side it has stagnated at around $3,000. While USAID assistance helps to address some economic constraints, the main idea is to promote bicommunal participation in programs that benefit both island communities. This assistance is directed at underpinning our efforts to reduce inter-communal tension and facilitate a political solution on the island. The United Nations Development Program (UNDP) and the Fulbright Commission act as the implementing agencies for the U.S. program through a series of program grants. UNDP and the Fulbright Commission have the ability to work with both Greek and Turkish Cypriots and are well positioned to promote bicommunal cooperation. In FY 1996, as many as 65 students were studying at U.S. universities. More than 60 Cypriots were selected for short-term training in the U.S. The Nicosia Master Plan and the Nicosia Sanitary Sewerage System projects are two examples of programs that have been planned and implemented by both communities and from which each community derives benefit. Thirty-eight bicommunal meetings were held in FY 1997 to implement these projects.
Other Donors
After 1974, 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 1974, the top five Official Development Assistance (ODA) donors to Cyprus provided $41 million in assistance with the United States share equal to 53%. Subsequently, donors other than the U.S. have discontinued assistance. In 1997, the UNHCR ceased to act as an implementing agent for the US. The US is the only major donor still active in Cyprus and since early 1998 provides financing to the UNDP program.
The FY 1999 Program
Working through UNDP and the U.S. Information Service (USIS), USAID funding promotes activities which encourage participation from representatives of both communities, such as the NGO development conference held in December, 1997. This bicommunal approach is designed to demonstrate the positive, substantive results of cooperation. Further, the linkages established between individuals and groups from a variety of sectors will contribute to: (1) increasing the pressure on each side's leadership to compromise on an equitable solution; or (2) providing opportunities for contacts
and increasing the number of stakeholders in a solution.
The Bicommunal Development Project implemented through the UNDP and the Cyprus Red Cross includes bicommunal activities in the fields of health, environment, forestry, water resource management, education, historic preservation, and urban renewal especially in areas near the dividing line.
The Scholarship Project implemented through USIS and the Cyprus Fulbright Commission offers U.S. scholarships for undergraduate and graduate degrees, and short-term professional training and bicommunal training in conflict resolution and business management.
CYPRUS
FY 1999 PROGRAM SUMMARY
(in Thousands of Dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting / Special Initiatives Total -- -- -- -- -- -- Cross-cutting / Special Initiatives -- -- -- 15,000a/ 15,000 TOTAL -- -- -- 15,000 a/ 15,000
a) Economic Support Fund
Director, Office of European Country Affairs: David Cowles
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