“How Similar to South-Eastern Europe were the Islands of Cyprus and Malta in terms of Agricultural Output and Credit? Evidence during the Interwar Period”

The paper is part of an ongoing process of estimating the GDP of Cyprus and Malta for the interwar period. The islands of Cyprus and Malta have always been considered as similar economically to other South-Eastern European states, despite the lack of historical evidence to prove it. The paper uses recently complied primary sector output estimates for the interwar period (1921 – 1938) to evaluate that the economic structure of the islands was different from each other, as well as from other South-Eastern European states. The output of the agricultural sector per capita indicated that the islands were not keeping up to other Southern-European States. Recovery of the primary sector in Cyprus came from the rapid expansion of copper mining and not from the growth of agriculture. The different growth trajectory of the islands lies partly to their differing economic structure. Malta’s economy was exceptional due to the high urbanisation of the island, leading to the economy’s dependency on the presence of the British navy. Cyprus shared the South-Eastern European problems of high population growth rates, fragmented land holdings, and poor rural credit institutions which combined in such a way to prevent a shift towards other agricultural products. The inefficiency of the credit system in Cyprus was particularly important in checking the agricultural sector’s growth.Cyprus; Malta; Depression; Rural Credit; Historical National Accounts; South Eastern Europe

Economic Growth or Stagnation during the Interwar Period: Reconstruction of Cypriot GDP 1921-1938

This paper explores the macro-economic history of Cyprus in the inter-war period. It constructs the first detailed estimates of output at aggregate and sector levels, enabling the analysis of economic growth and the sectoral structure of the island’s economy. It evaluates its performance within the context of economic change on Europe’s South Eastern periphery and, specifically, in light of the experience of British colonial rule. The thesis argues, first, that economic growth was slow in wider European comparison and as sluggish as in neighbouring countries. It was so despite the island being far less exposed to the political upheavals of the First World War than most other economies in South Eastern Europe. Cyprus experienced a prolonged agricultural crisis, but participated in the post-depression recovery through the growth in international demand for the output of its copper mining industry. The colonial government remained committed to balanced budgets and non-intervention in the economy, limiting their ability to combat the effects of the great depression. As a result, the deteriorating economic situation increased the political tension between the islanders and the colonial government. The reluctance to mount an effective policy response to the great depression acted as a catalyst to political polarization, leading to violence and the suspension of the island’s constitution.National Accounts; GDP; Great Depression; Rural Credit; Historical National Accounts; South Eastern Europe

Development theory and development in practice : a dialogue

In the age of ever increasing connectivity, it is hard to remain disinterested in the plight of people who are either near us or thousands of miles away. People are willing to learn about the issues troubling others, and frequently they are willing to organise themselves and sacrifice both their time and hard-earned income to support a cause which they identify with. In fact, a Euro barometer survey indicates that within the European Union, Europeans show solidarity even in times of [economic] crisis... [up to] 85% find development aid very important or fairly important (Euro barometer, 2011). This is encouraging for the European Union: despite the global economic crisis, the solidarity towards the need to help others in developing countries has changed very little since 2009 (Euro barometer, 2012). At a more global level, there are greater attempts made for international coordination on issues such as poverty reduction, environmental sustainability and accountability.peer-reviewe