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institution of the Cyprus International Fair, apart from its contribution to
economic development, constitutes the place which over time has projected
the progress and the level of growth of the Cyprus economy. At the Fair
there is visible proof of the Cyprus people’s capabilities for business,
modernization and flexibility.
This year’s 28th International Fair opens its gates under the influence of
two very important events. On the one hand, the aftermath of the war in the
sensitive Middle East area and its effects on the Cypriot and International
economy and on the other hand the signing in Athens of the Accession Treaty
of Cyprus to the EU.
Despite the negative international environment which has been created by the
war in Iraq, the International Fair, this year too, fulfils with success the
role that it has undertaken. That is to give a new boost and contribute to
the collective effort to expand commerce, to modernize and revitalize
industry and expand services by making good use of the unlimited
possibilities offered by technology.
With great pleasure and satisfaction but also with faith in the future, I
welcome our distinguished guests as well as Foreign and Cypriot businessmen
participating in the Fair. I would especially like to welcome to the Cyprus
Fair the Deputy Minister of Foreign Affairs of Greece Mr Andreas Loverdos,
the EU Commissioner Mrs Anna Diamandopoullou as well as the presidents and
representatives of the Greek Chambers of Commerce and Industry.
I interpret their presence here as recognition of the Fair’s
multidimensional role which draws experiences from the past, is based on
today’s realities, looks to the future, marks the perspectives and outlines
the answers to the challenges of tomorrow.
Our accession to the great European family, which as a result of its
enlargement will become the biggest economic force in the world, marks the
beginning of a new perspective for our country and our people and sets the
conditions for a better, more humane, safer and creative future.
The harmonisation with the acquis communautaire is not a theoretical or
legal concept, nor can it be achieved through the work of a limited number
of people or by the State alone. On the contrary, it requires the
participation of all and especially of the enterprises and of the working
people. We should, in no way, consider the harmonization process as a
restrictive framework but as a challenge for modernization. Collectively, we
can make Cypriot enterprises even more flexible and effective in order to
successfully face the challenges in front of us. The Government will be
active in this effort through the use of new programmes and in the framework
of a modern economic policy.
The International Fair, as the biggest economic event in the Cyprus, is
ideal for immediate communication with the business world, as well as with
the representatives of all the productive classes, in general. It is the
natural venue for outlining the strategic directions of the Government for
its development policy and its social index.
The development policy of the Government is reflected in the new Strategic
Development Plan 2004 – 2006 which aims at the social and economic
modernization of the country placing man and his needs above everything. It
aims at constant progress and development mainly through the boosting of
competitiveness and the development of human resources as well as the
improvement of the welfare of citizens through the constant upgrading of
their quality of life.
Social cohesion is the cornerstone of our development strategy, since the
marginalization of social groups is unacceptable in a contemporary state.
The new Development Strategy aims mainly at achieving a satisfactory rate of
sustainable development and at gaining the biggest possible benefit from the
accession of Cyprus to the European Union, thus contributing to a greater,
real convergence with the EU member states.
In brief the development priorities to achieve these strategic objectives
are the following:
First:
Extension and upgrading of infrastructures
Special emphasis is given to the extension and the upgrading of
infrastructures in the fields of energy, research, telecommunications and
transport and to the connection of Cyprus with the Inter - European
Transport Networks.
Strong encouragement should be given to the area of research both within and
outside businesses as well as for the utilization to the maximum degree of
the possibilities opening up in the information society.
The creation of infrastructure for the research into applied technology
fields is imperative. Technological parks or centres have been established
in almost all developed countries as places where scientists and researchers
can work. In the case of Cyprus these people constitute a very important
capital in view of the lack of other natural resources and raw materials.
Cyprus has a well trained scientific personnel, while there are many
internationally distinguished Cypriot scientists. The Government aims at
creating the necessary infrastructure for research and attracting
researchers from big Research Institutes or Research Units of multinational
enterprises, thus placing Cyprus on the map of research.
The extension and the upgrading of infrastructure will not only cover the
existing weaknesses, but will also contribute to safeguarding the necessary
prerequisites for continuous and sustainable development given the
complementarity between investments in infrastructures and the investments
of the private sector. In the modern world progress and development can be
achieved only through a harmonious and creative relation between the State
and the private sector.
Second:
Boosting competitiveness
In the context of this priority special emphasis is given to strengthening
small and medium size enterprises. Specialized programs are under
development, while the time is ripe for the creation of a Centre to support
Small and Medium Size Enterprises.
It is generally accepted both at European and International level that small
and medium size enterprises contribute greatly to economic growth. They
support employment substantially and act as dynamic factors of production,
innovative ideas and modern technology applications.
For this purpose and within the framework of the Development Plan 2004 –
2006 which was submitted to the European Union, we have included specialised
plans for co-funding such as the Programme to Help Women Entrepreneurs, the
Plan to Help Young Entrepreneurs, the Plan to Develop Small and Medium size
Manufacturing Units in rural areas, the Plan to Enhance Business in
downgraded urban areas of the Nicosia and Saint Dometios Municipalities and
the Plan to improve the levels of safety and health in small and medium size
Manufacturing Units.
Through a series of programmes the Government will support and reinforce all
the efforts aiming at developing high technology and innovative enterprises
in Cyprus.
Cyprus as a small and open economy has no other choice but to be outward
looking and turn to international trade.
In these new international conditions business activities have acquired a
trans frontier character with significant export opportunities.
More specifically, the Government’s policy in the field of trade aims at
creating the appropriate business environment through an organisational
framework, harmonised with the demands of the European Union, which by
implementing a series of programmes and schemes would assist Cyprus
enterprises to cope successfully with the new competitive international
environment and to take advantage of the commercial opportunities created by
Cyprus’ accession to the European Union.
Electronic Commerce, (eCommerce) which is becoming increasingly important in
the international market has slowly found its way in Cypriot enterprise. The
elimination of geographical distances which information technology allows,
as well as the smaller capital which is needed, offer great possibilities to
the small and medium size enterprises of Cyprus to conduct international
trade. These prospects must be considered by the Cypriot businessmen on the
basis of a comprehensive programme.
The Government also attaches great importance to the projection and
promotion of professional services that Cyprus can offer, which are of a
very high standard and compare favourably with the services offered by other
countries. The field of services has evolved into a dynamic and continuously
growing sector and as a result of this we export services to central and
eastern Europe, the Middle East, even to the United States. The importance
of the field for our economy can be shown by the high percentage of its
contribution to the Gross Domestic Product (GDP) which is around 65%.
Third:
Human Resources development – promotion of equal opportunities
and strengthening of social cohesion
Human Resources constitute the basic productive factor of Cyprus economy.
Therefore within the framework of the plan, the continuous further
development of human resources is targeted, in order to become the
comparative advantage of Cyprus´ economy. In parallel and in the spirit of
the times, programmes are being prepared which will make cooperation
possible between the University of Cyprus and other institutions and
businesses so that knowledge can become a productive force.
Emphasis is given to the promotion of equality between the sexes as well as
the promotion of measures to encourage young business people and women.
Fourth:
Balanced rural development
In the Strategic Development Plan particular emphasis is given to the
implementation of rational regional policy which aims at a balanced
development of all the regions of Cyprus.
The industrial policy of the Government can meet this target. The
manufacturing sector, especially after the abolition of protectionism
continues to face serious problems of competitiveness which are the result
of the conditions in which it was created.
In the Government programme of President T. Papadopoulos basic directions
are included for improving industrial policy. Small units may mean limited
production and high cost. Quality is the answer to the cost problem
characterizing small markets. In parallel, we aim to establish manufacturing
units in the countryside by providing specific incentives.
Fifth:
Protection of the environment and upgrading of the quality of life
In the plan particular importance is given to the protection of the
environment and the improvement of the quality of life. The citizen, the
consumer, the satisfaction of his expectations and the protection of his
rights and interests are a permanent concern for the Government.
The new Government also attaches great importance to the effective
implementation of the policy and legislation for the protection of consumers
and the creation and preservation of conditions of healthy competition in
the market for the benefit of consumers, the business community and the
economy at large.
Within the framework of decentralization and on the basis of creating
flexible infrastructure, the Government has submitted a proposal to the
municipalities for the creation of a Service for the Protection of the
Consumer by local authorities. I would like to express my pleasure for the
positive response of the municipalities, with which we shall start soon a
systematic dialogue for the implementation of this proposal.
Allow me now to refer to the big and vital chapter of tourism.
It is a fact that both 2002 and 2003 are difficult years for Cyprus´ tourism
since various factors such as the 11th September 2001 events and the recent
crisis in Iraq have affected us. But the tourism of many other countries is
also facing problems because this sector is particularly sensitive to
international developments.
The Government even before the war started in Iraq had reacted without delay
by taking preventive and other measures to support the tourist industry.
Understanding fully the difficulties we are facing, I express my optimism
for this year and I point out that developments will continuously be
monitored with great care and the cooperation of the Government with the
tourist industry will continue to be productive and creative.
Special emphasis will be accorded to expanding tourist markets as well as to
systematic development of specialised tourism such as conference and sports
tourism. We laid down the foundations for the development of sports tourism
by signing an agreement with the Olympic Committee of Great Britain. Cyprus
will soon become the most attractive tourist destination for the preparation
of athletes with the new support programmes and the infrastructure of sports
facilities which the Cyprus Sports Organisation is planning.
The Strategic Plan for Tourism will be enriched with new modern ideas and
projects for infrastructure and a strict timetable for its implementation by
the year of 2010 will be drawn. The implementation of the Strategic Plan
cannot be the responsibility of the state alone. The private sector must
undertake its own share of projects with the support of the Government so
that we can have the desired result.
The Cyprus Tourism Organisation will have to adapt itself to the new
conditions. Thus its role will be redefined and its services restructured so
as to enable the Organisation to effectively meet the challenges of our
time.
Concluding I would like to express the certainty that the Cyprus economy
will have significant possibilities in the future. I believe that our
objectives are attainable. With our policy and the measures that we are
promoting in cooperation with all productive classes, we are ready to face
challenges and create the necessary conditions setting new and faster
rhythms of development for our economy.
Finally, it would be an omission on my part if I did not express my deep
appreciation for the work of the State Fairs Authority which is a task
closely related to the economy of the country and development in general. I
warmly congratulate the Chairman and the Members of the Board, the staff of
the Authority, the exhibitors and all those who have contributed to the
successful organisation of the 28th Cyprus International State Fair.
I wish and hope that Turkish Cypriot exhibitors will participate in the 29th
Cyprus International Fair in a reunited Cyprus which by that time will be a
full member of the European Union.
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