The article below is dedicated to the Cyprus of tomorrow. It was the result of a concerted effort made by the younger members of our Team, who would like to express their ideas, concerns and thoughts with regards to the way in which Cyprus is developing, as opposed to how it could be developing now and in the future. That is mainly with regards to economic, social and political pillars, as well as everyday life on the island in general.
Upon signing the American Constitution, Thomas Jefferson bellowed that “The care of human life and happiness, and not their destruction, is the first and only object of good government”. One may infer from this that the care of human life rests in true and healthy development, future outlooks, and the desire for sustainable growth. Nevertheless, crucial events and circumstances are the defining traits of this generation and, as thus, a leading government which is to ensure the safety and prosperity of its people, must evolve in a Darwinian fashion to tackle all arising problems. On the cusp of the 21st century, a turning point for humanity (to be justified as such by numerous incidences such as the Financial Crisis which started in 2007, the covid-19 pandemic and the most recent Russian-Ukraine conflict), Cyprus seems to be in a dire need of modernization. Even though we do not consider ourselves policy experts (and in fact we are not), we feel that it is our obligation and duty to highlight several of what seem to be major (sometimes interconnected) issues impinging our society and the welfare of its people, both short and long-term.
To begin with, life on the island of Cyprus is marred by bureaucratic chokeholds of paperwork, technocratic redundancies and delays. The energy sector still relies on gas and coal (outdated means), and heavily imports said energy use, driving up costs within people’s wallets. Worse still, one of the major hidden problems of Cyprus is its incredibly heavy car-based infrastructure. Although the British left behind certain good blueprints such as modern roadwork (for the standards back in the day), major towns/cities are lacking from effective planning, suffering from the fact that only 3% of all transfers are being conducted through public transport.
As such, this article will act as a document of certain ideas that could help revolutionize Cyprus into a new era. This does not mean that all ideas can easily be materialized, but rather form the foundation for thought, research and future upcoming policies. We will look extensively at what are affectionately the 6 pillars of modernization:
- Bureaucracy.
- The Law.
- Public Transport.
- Alternative Energy.
- Innovation.
- Targeted Industries.
To that effect, a companion piece, the highly lauded “Cyprus vision 2035”, was launched recently by the government. The project was a tantamount research effort from the Ministry of Development in collaboration with PWC, that provided certain general ideas as to the potential economic model of Cyprus in the next 15 years, and the areas of focus for maximum growth and efficiency. The plan in itself is well researched and easy to understand, outlining certain key issues and factors that need to be tackled to solve the bottlenecks hindering our progress. The focus below is on the 6 most important pillars of a successful future framework, outlining our own specific thoughts and measures on said issues.
A.Bureaucracy:
We must firstly look at the source of most ailments within the Cypriot flow of life: the public sector. The bureaucratic, Kafka-esque approach to project approval is sub-par. For example, inquiries for permits from foreign investors may take months to be responded to, which often leads to resubmitting talks of the same documents over and over again, causing a loop of ineffectiveness for cases which would otherwise be considered as the most straightforward of the lot. Daily typical examples of bureaucratic behaviors are being witnessed relating to the process of establishing building permits, tax documents and identification papers, which all encompass time consuming, multi-layered affairs. It is evident that the course of digitalization, seen by the dial-up era governmental web, may have experienced some leeway. On top of the stockpile of public inefficiency, the Financial Crisis of 2013 came to add severe bureaucratic processes of a compliance nature to the Banking sector. The abuse of the system during the previous decades via corruptive means has eventually led to the exact opposite effect, that being even more paperwork, lack of decisiveness and avoidance of responsibility in Cypus’ Credit Institutions and the public sector.
What could really create an impact is the collective digitalization and streamlining of all bureaucratic Al (Artificial Intelligence) processes. Payment systems have been successfully used for the past 5 years, but most paperless services seem to correspond to the extraction of cash. Less paper-based and more paperless-inclined infrastructure for all faucets of bureaucracy, including permits, car registrations, town planning, project approval, etc. would actually change the game and constitute a modern European point of reference for our country. A possibility, for example, would be to install such elements within the Government websites, with it offering a hub for all paper transactions to be completed seamlessly and at moment’s notice, removing the slow middleman from the process. Examples such as the paperless (to a great extent) GHS (“ΓΕΣΥ”) system administering all Cypriot residents in recent years, should lead the way. Furthermore, less paper (where it is now required most) would also provide a cleaner, more sustainable and environmentally friendly approach.
B. The Law:
The legal system is in need of reform, with a shocking bottleneck of 720 days necessary to complete a legal trial on average (as opposed to 28 in the European country of Denmark). The requirement of court documents from various different outlets is a factor which slows the process down immensely. The congestion of court rooms is also seen due to the limited available time of judges and defenses accordingly. As such, fair-use policies must be implemented (for example, setting deadlines on cases), so that we may be able to cut down the average metric shown above and come closer to a more justifiable time period where a dispute can be settled. Modernization of court document submitting and due processes must also come into play, as their enactment would cut down timeframes significantly. This may be combined with the idea of higher specialization and training programs for judges and court staff, which would help to avoid bog-downs and margins for error. As the saying goes, “late justice is no justice”. A way to solve this is by investing more in the methods of mediation and arbitration (alternative dispute resolution methods). With a large majority of disputes being for under €15,000, out-of-court solutions should become more commonplace in a country like Cyprus.
C & D. Public Transport & Alternative Energy:
Cyprus’s car-based infrastructure rivals America. A tantamount issue of CO2 emissions and noise arises as a result. As we’ve seen with gas prices rising at over 50% their original cost since July of 2021 before dropping later in August, Cyprus needs radical public transport development now more than ever before. Alternative approaches may include an intercity monorail system, or electrified buses, wholly powered by solar parks and renewable energy, and/or other modern and forward-thinking solutions (that would also utilize the renewable resources that Cyprus has to offer in vast amounts, such as sunlight). Such solutions would attract more tourists, but most importantly locals, who at the moment claim to have more efficient ways of travelling across the country, whilst also reducing the need for expensive gas haulage for transports in commerce and resources. In the case of Limassol, although EMEL (the current public transport company under contract) is doing leaps and bounds to revitalize public transport, buses are still being looked down upon, with over 15 minutes of waiting time, periodic break downs, and missed stops on inefficient journeys. Substantial advancements should be scheduled, however, to take place during and until the end of the current decade, with new contracts now being implemented and underway for these semi-public corporations. Even so, it also serves as a fact that private car ownership is an indicator of prestige in Cypriot society, so an effective public transport system must incentivize the people to use it: modern, sleek, on-time and cheap would provide net-gains in the near future for our carbon footprint, as well as our road congestion. It would also improve inter-city commuting to a great degree. To achieve partial elimination of cars in the city center, at least during later hours, would do wonders both aesthetically and practically.
Regarding the transportation infrastructure in general, as EU regulations against gas-powered cars are on the cusp of manifestation, electric charging point networks need to become a relative norm until 2030. Should electric car ownership continue to rise in Cyprus, electric charging points also powered by renewable resources would be both beneficial to the consumer, as well as negate the rising cost of gas. Just to describe the “extreme” scenario for Cyprus’ standards, one can only imagine what a solar-powered infrastructure, complimented by long-storage batteries (as done in Melbourne Australia by “Tesla”), would do for the development and ethos of the island. This is something which may have to be taken into consideration at an increasingly holistic level, considering the price of Kilowatts per hour have now risen by 110% to €28.86 euro per KWH (as opposed to €13.67 euro per KWH). Cyprus currently pays more than €100 million in fines for the emissions released by its power plants. The government and private sector may also have to work together to put to good use the empty internal space of Cyprus. For example, research demonstrates that it would only require around 30 square miles of total land area to power the whole of Cyprus. Therefore, if a financially feasible/sustainable approach can be identified in the near future with regards to promoting strategic subsidization as opposed to taxation, then this would contribute to tackling what looks like an urgent matter for the future of our electricity production and modern infrastructure.
E & F. Innovation & Targeted Industries:
The problem is compounded when we look at Research and Development (R & D). At one of EU’s lowest, Cyprus invests €103 euro per person for research projects, with the EU average more than doubling that at €244. Cyprus has been lauded as the potential new business hub for green corporations and has attracted large venture capital firms and tech companies. The cusp on the horizon is a potential new “Silicon Valley” for our country, but government R & D limitations and paperwork essentialism often cut the proverbial Achilles heel, negating future prospects from ever shooting off. A green-corporation and sustainable-company haven could be the image of Cyprus in the not-so-far-away future, if we allow room for the major pioneers of tomorrow to set up shop (always under a controlled and legit framework). Revisiting research and development grants, technological tax breaks and eco-incentives for green companies may be worth to consider, as these could be the elements to act as honey pots for the digitalization of the public sector. It is a tragedy that passport incentives were mainly used for the purchase of property and not the creation of targeted companies and business models that would add to productive progress within the economy. It is never too late to achieve this strategic switch. It is also essential and urgent that the modernization of the state catches up with that of the island’s private sector, so that the two are kept aligned at all levels.
Innovation also comes hand-in-hand with two other major sectors: Education and Health. For the former, it is obvious that as the skill-gap and wage-gap grows, Cyprus may very soon have to consider partly altering the course of its education system and focus in becoming more specialized, as more foreign resources and influences penetrate the island. This would allow for a wider transfer of specific skills of high quality into the job market and would also put Cypriot students in a better position to directly compete against other foreign workers whose education was placed in establishments with much more funding and prestige. It is true, however, that the issues usually begin at secondary education level, where the concept of the pay-to-win scheme of “Frontistiria” (additional private afternoon classes) utilized by the majority of Cypriot families (as there are no real substitutes or alternatives if one cannot afford private education) essentially implies that “time is not money” in Cyprus. Inefficiencies and loopholes from the lack of targeted public education are being recovered during afternoon hours, with the opportunity cost for young adults being spending this time in other activities (leisure and hobbies) that help build character, amongst others. Furthermore, we live in the era of division of labor. No one unit can perform all tasks in a professional environment with the same accuracy and precision. Substantially revamping the public education system would create a new elite generation of geared, educated individuals ready to tackle the specific complexities of our time.
In Health, further R & D funding would certainly bring benefits to the economy, as well as investments in related sectors. What stands as proof is pharmaceutical production, which has already showed a larger number of exports and financial inflows generated by the country. Nevertheless, further internal innovation within Cypriot hospitals could help establish the island on the healthcare hub map in the following years, especially when considering the excellent location of Cyprus which stands in the middle of three continents of the world. One can only imagine how incredible the health-care system might become if it stands at the forefront of innovation. Naturally, this would flourish hospitals with high profile doctors, specialized procedures, and an influx of medical tourism. Further investment in the creation of more successful medical schools and research centers would also cause positive outflows in the public and private sector and create further cross-selling and cooperation between education (universities) and practice (hospitals) in a win-win environment.
Wrapping it up:
To conclude on the above, the elephant in the room could be no other but the powers that prioritize and implement actions at all levels. Now, by no means are we claiming that our ideas are easy or cheap to implement, or that they are all a perfect fit for the case of Cyprus. However, if we are to start off with building upon strong foundations to achieve the desired results slowly and gradually, then so be it. The key element is restless, genuine desire. Should those in charge lack this quality, or restrict innovation, renovation and evolution, wherever this is required (this could be for a list of various reasons, such as corruption, nepotism, profiteering, inefficiencies in the system, etc.) the task of forming a better future for ourselves and the generations to come may very well remain the light at the end of the tunnel we see today. However, as the collective manifest grows to realize that power corrupts absolutely, a way forward into the future may slowly and steadily be carved. The road will be tough, no roses will be scattered along the way, but the light that shines at the end is bright, and it is magnificent.
“THE REVITA TEAM”
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