The INTERDEPENDENCE project is a UNDP-ACT funded project to be implemented by the Cyprus Chamber of Commerce & Industry and the Turkish Cypriot Chamber of Commerce. The project activities commenced in April 2009 and are scheduled to be completed in July 2011.

Following the Second World War, the Peoples of Western Europe soon realized that the only way to permanently avoid future conflict was to create such a level of economic interdependence that the only way ahead would be reconciliation. Thus were laid the seeds of European Unity. On a smaller scale, the same imperative applies in Cyprus, a small island whose economy can only benefit from increased intra-island business to business partnerships. Irrespective of whatever permanent solution emerges to finally address the Cyprus question its sustainability will require a large amount of economic convergence.

In Cyprus, the UNDP-ACT sponsored projects “Cyprus Producers’ Network” and “Corporate Environmental Responsibility Survey” revealed a significant gap in terms of knowledge by producers of consumer needs in the other community. In particular, although many Greek Cypriot and Turkish Cypriot businesspeople would like to trade with the other community, they have no idea what the needs of the other community are. In addition they face difficulties in locating the right/suitable business contacts in the other community as well as a number of other problems) that hinder/make difficult the further (significant) expansion of business relations/cooperation between the two communities. There is also a number of other studies conducted in Cyprus that have produced similar results.

This project will contribute to reunification through an increase in intra-island trade/business cooperation and the enhancement of economic interdependence, encouraging cooperative planning to benefit the economy island-wide, creating more opportunities for partnerships, and helping the business communities in each community to identify and understand new and existing interdependent economic relationships. In this direction it will capitalize on all relevant projects/studies/surveys that have been conducted to date but will also significantly build on them and undertake to implement a range of new activities/schemes/measures in order to achieve its objectives.

The overall strategy is to implement a series of confidence-building measures (e.g. B2B events, partnerships, seminars, business directory, trade fairs etc) while conducting in-depth research on the current state of economic interdependence on the island for its further reinforcement in all areas/sectors taking also into consideration the opportunities that will be presented from the solution of the Cyprus problem.

The confidence-building measures will lead to a more conducive environment for increased business to business contacts, whilst the research will lead to a series of recommendation on how to build on the existing economic interaction between the two communities to pave the way for reconciliation. In addition, a framework for the construction of a common development plan will be developed that will also assist and prove to be useful in the efforts for reconciliation.

There are four major groups of interventions/activities. These are:

·     Assessment of current economic interdependence between the two communities and recommendations for its further reinforcement

·     Drafting of propositions for a joint economic development plan

·     Establishment of bi-communal business partnerships and enhancement of the volume of trade between the two communities

·     Conduct of a public awareness campaign (mainstreamed across the other three activity groups)

This project will contribute to reunification an increase intra- island trade/ business cooperation and the enhancement of economic interdependence, encouraging cooperative planning to benefit the economy island-wide, creating more opportunities for partnerships, and helping the business commuinties in each community to identify and understand new and existing interdependent economic relationships. In this direction it will capitalise on on all relevant project/studies/surveys that have been conducted to date but will also significantly build on them and undertake to implement a range of new activities/schemes/measures in order to achieve its objectives.