The World Bank has released a series of reports addressing the economic conditions in the Turkish Cypriot community, highlighting a decline in living standards from 2014 to 2021. The reports suggest that improvements can be made through enhanced data collection and fiscal reforms. Recommendations include conducting regular living standard surveys and population censuses to better inform policy discussions and resource allocation.
Funded by the European Commission under the "Supporting Economic Convergence and Integration in Cyprus" project, the reports note an increase in poverty from 11.2% to 13.9% and a rise in income inequality, as indicated by the Gini index climbing from 34.4 to 36.8 during the period studied. The reports emphasize that current data limitations hinder effective policymaking, especially as the last census was conducted in 2011.
Annely Koudstaal, World Bank Program Manager for Southern Europe, stated: “The economic impact of the pandemic has been profound, with the heaviest burden falling on the elderly, individuals with lower levels of education, and urban communities.” She added that while recovery signs appeared in 2022 and 2023, lack of up-to-date household-level data complicates understanding of current conditions.
The reports propose fiscal reforms such as enhancing progressive taxation and expanding social assistance to address poverty more effectively. Establishing an absolute poverty line is also recommended for better targeting aid to those most in need.
These findings underscore a need for timely policies based on reliable data to bolster resilience and improve living standards within the Turkish Cypriot community.