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 We
inaugurate today the 29th Cyprus International Fair which rightly has been
established through the years as the most important commercial and economic
event of the year. I have no doubt that this year’s Fair will be the most
successful that has ever been organized and will constitute a landmark in
our efforts for the revitalization of our productive activity and
particularly of industry. Undoubtedly it is an institution of creative
contribution to our commercial and industrial world and also of substantial
contribution to the social and economic development of our country.
I welcome all our distinguished guests, Cypriot and foreign exhibitors, and
the representatives of participating countries. I interpret their presence
here as proof of the importance they attach to the further strengthening of
their commercial and economic relations with our country and also as an
indication of their confidence in the Cyprus economy.
A few days ago a great course has been completed and a strategic target of
historic, economic, political and cultural importance has been attained. The
Cyprus Republic is now a full and equal member of the European Union.
Our accession to the European family is not the end of our efforts but only
the beginning. A new era is being inaugurated and new horizons are being
opened. The turning of this new page in the modern history of the Cyprus
Republic, apart from the new opportunities and the great perspectives, is
also fraught with uncertainties. These uncertainties do not constitute a
threat to us, but a welcome challenge and a historic wager which we have to
win. The concealing and covering up of any difficulties, which are not at
all negligible, would constitute an unforgivable act of wishful thinking.
Our transition to the new European reality can be neither easy nor linear.
Without delay, regressions, hesitation and attachment to past attitudes and
behaviour, we are called to reform and modernize our institutions and
structures and to activate mechanisms and possibilities which will determine
the future of the coming generations. We have raised the bar because
throughout the years we have proved that we can achieve the best.
The Government, with vision, method, planning and modern strategy, is
creating the necessary policy framework for the development of those
initiatives that will make Cyprus a bridge which will unite the European
Union with the Middle East. Besides, we have played this role for thousands
of years. This is what the EU expects from us. This is what our traditional
friends from neighbouring countries expect. With our policy and our
initiatives we will create a relationship of cooperation which will reflect
European interests in the wider region and will also meet the expectations
and hopes of neighbouring countries. This combination of legitimate
interests will bring important political and economic benefits to Cyprus as
well.
Within this new world and European competitive environment, we are being
called upon to overcome outdated practices and conceptions and to fully
utilize the competitive advantages we have. The rapid development of the
services sector proves the quality we can offer and the great capabilities
that the Cyprus economy has.
It constitutes an undoubted fact that the model of economic policy we were
following until a few years ago, which was basically relying on
protectionism, is now a thing of the past. Modern demands call for the
adoption of a new flexible strategy without bureaucratic and unproductive
distortions. A strategy that will safeguard economic development and the
prosperity of the citizens, in conditions of stability, social justice,
cohesion, convergence and consensus.
The Government, having in mind the above realities, processed and formulated
a development policy which is reflected in the new Strategic Development
Plan 2004-2006. This plan aims at the social and economic modernization of
the country, having man and his needs at its centre. 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 the citizens through the constant upgrading of their quality of life.
The new Strategic Development Plan 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.
The Government strategy of social and economic development is based on the
new circumstances, faces the weaknesses of the productive sector and
strengthens the sectors in which Cyprus has competitive advantages. It is
the product and the result of dialogue with its economic and social
partners, and not an arbitrary policy.
In the Strategic Plan, special emphasis is placed on the expansion and
upgrading of infrastructures in the sectors of energy, telecommunications
and transport and the connection of Cyprus with inter-European
transportation networks. The expansion and upgrading of infrastructure does
not only cover existing weaknesses, but also contributes to ensuring the
necessary requirements for sustainable development, given the
complementarity of investment in infrastructure and private sector
investments. Today, progress and development can be achieved only through a
harmonious and creative relationship between the state and the private
sector.
Additionally, the creation of infrastructure for research in applied
technology is essential. In the 21st century it is not enough for a country
to buy knowledge. The societies and economies that produce knowledge will
stand out. It is for this reason that we have put the transformation of
Cyprus into a Regional Research Centre high in our priorities. Our
geographical position, our accession to the European Union, our qualified
professionals are factors that we must utilise creatively.
We are hoping that Cyprus will soon have its own Technological Park, which
will host research centres of international repute. The development of
research, a sector in which Cyprus was behind in relation to other European
countries, will allow us to aim at the creation of high tech industry, a
sector in which Cyprus may prove to be very competitive.
The competitiveness of out products and services is directly related to the
productivity and the utilisation of possibilities that the information
society opens up. The utilisation of technology and information technology
may allow us to effectively deal with any problems due to the small size of
our market. It is within this framework that the Government commissioned a
study for the formulation of a strategy on e-commerce and on electronic
economic activities. The Government will soon announce a comprehensive
policy and an action plan in this field.
Among the measures to help competitiveness which the Government has
formulated, I note inter alia, the ones that aim at the utilisation of
modern technology and the promotion of innovations, the enhancement of
productivity and the specialisation of business units, the provision of high
quality and added value products and services.
I would like to make special reference to the support of small and medium
enterprises. It is generally accepted at the European as well as the
international level that small and medium enterprises contribute
substantially to economic development. They create employment and act as
dynamic agents for the productive assimilation innovations and application
of modern technology. To this end, specialized programs are in progress,
while the Government is considering the creation of a specialised Centre for
the Support of Small and Medium enterprises.
Additionally, I would like to say that within the framework of the 2004-2006
Plan, specialised programs have been submitted to the European Commission,
on the basis of which actions and works for the benefit of manufacturing and
SMES from European Union funds will be co-financed. Such plans include the
Programme to Help Women Entrepreneurs, the Plan to Help Young Entrepreneurs,
which was a pre-election commitment of the President of the Republic, the
Plan to Develop Small and Medium Manufacturing Units in rural areas, the
Plan to Enhance Business in downgraded urban areas of Nicosia and the Plan
to improve the levels of safety and health in small and medium Manufacturing
Units.
Parallel to that, in the sector of commerce and promotion of our exports,
the Government’s policy aims at the creation of the appropriate business
environment and structure, which will help Cypriot enterprises cope
successfully in the new competitive environment and to positively respond to
commercial opportunities that our accession to the European market opens up.
Within this framework, the Government is taking a series of measures,
compatible with the acquis communautaire, as always. Our enterprises must
acquire a clearly export-oriented character. They must utilise Cyprus’
geographic location, that borders with a market of three hundred million
consumers in the Middle East and the large European market.
We also attach great importance to the projection and promotion of
professional services that Cyprus can offer which are recognised for their
very high standard and quality. Our services compare favourably with the
services offered by other developed countries. It is worth mentioning that
the importance of the services sector to our society can be shown by the
high percentage of its contribution to the Gross Domestic Product which is
around 72%.
Our labour and professional manpower constitutes the basic productive factor
of the Cyprus economy. Our aim is to encourage its further development so as
to become our unquestionable comparative advantage. The promotion of
equality between the sexes as well as the implementation of measures to
eliminate the social exclusion of sensitive social groups constitute the
basic philosophy of Government policy.
The economic development which was observed in the last decades and
especially after independence was not characterised by a balanced approach
and resulted in regional inequalities by focusing economic development on
urban centres and coastal regions.
The great decrease of the population and reduction of economic activities in
several areas tends to under-grade valuable elements of the human and
natural environment in them. We believe that the quality of the environment
determines the quality of man´s life to a great extent. The citizen and
consumer, the meeting of his expectations and the protection of his rights
and interests constitute the permanent concern of the Government.
The Strategic Development Plan attaches particular importance to the
implementation of a rational regional policy aiming at a balanced
development of all the areas of Cyprus and at strengthening social and
economic cohesion. We aim to attain the development of the rural areas
through a geographically and socially balanced policy both as regards the
tourist sector and the industrial and manufacturing sectors as well.
In an era in which the state has a limited entrepreneurial role whereas the
private sector bears the responsibility for the development of initiatives,
the Government attempts to create the right environment that would lead to
the upgrading of Cyprus industry.
The Government aims to create a simplified, legal and administrative
framework regarding the operation of industrial units, improve the financial
environment and introduce projects and plans to facilitate their long-term
access to financial means. The Government also aims to improve their access
to research, technological renovation, training and information services as
well.
In order to attain the above objectives, the Government has decided to take
or is in the process of implementing, inter alia, the following actions and
measures:
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To set up a Council for Industrial Development in which all those
involved can participate. The Committee will study the various problems of
the sector and submit suggestions on how to deal with them and on the
formulation of Government policy concerning this sector. The unanimous
decisions of the Council will be binding on the Government.
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To strengthen existing and introduce new Grant Schemes. The new Schemes,
some of which will be co-financed by European Union funds, have already been
announced and are being implemented.
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Infrastructural works for industry, such as industrial estates, are being
established or improved, while generous incentives are being given for the
establishment of laboratories for quality control of products, etc.
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Support is given to business community organizations to carry out studies
for various manufacturing sub-sectors in order to identify their comparative
advantages and the particular problems facing them, which through the taking
of suitable measures will ensure high levels of competitiveness.
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The Centre for assisting foreign investors will be strengthened and will
be turned into a private organization with a view to attracting and
efficiently serving foreign investors.
Concluding my speech, it would be an omission if I did not refer to the big
and vital chapter of tourism.
There is no doubt that the year 2003 was a difficult year for Cyprus
tourism, as political and economic developments and the well-known
international events have affected the sector on a world-wide scale.
The Cyprus Government, in close cooperation with the Cyprus Tourism
Organisation and the private sector, reacted immediately to these
developments, by taking all the necessary preventive and supportive measures
to prop the tourist sector. As shown by the relevant figures, these measures
proved to be effective, given that the decrease in tourist arrivals was
limited to only 4.76% and in revenues to 10.36%.
Fully conscious of the difficulties we are encountering, I express optimism
about the current year and stress that we shall continue to monitor closely
developments and that the cooperation between the Government and those
involved in the tourist industry will continue to be productive and
creative.
The implementation of the Tourism Strategy we inaugurated in 2003 aiming at
making Cyprus a quality tourist destination, is becoming more necessary than
ever. It has to be the basic target for all private and public bodies, as it
is this strategy that will make our tourist product more attractive and
competitive.
A modern economy must be based on many pillars and be in a position to make
use of know-how and technology in all sectors of activity.
It must also be characterized by social sensitivity and be able to
contribute in the equal progress of all social classes without exclusions
and marginalizations. Man is the biggest capital that Cyprus has. To
develop, to be able to create and contribute in economic development man
must be perceived not as a means but as a carrier of progress. The
Government develops its policy based on this philosophy and on the will to
support in practice all the sectors of the economy and all the productive
classes.
I express optimism that the 29th Cyprus International Fair, we inaugurate
today will play successfully its role which is to project the growth of the
Cyprus economy and confirm that our vision for a better future for our
country is feasible.
In concluding, I would like to warmly congratulate the Chairman and the
members of the new Board of Directors, as well as those of the former Boards
and also the personnel of the Cyprus State Fairs Authority for the work that
they perform. I wish every progress and success to the Cypriot and foreign
exhibitors who with their participation contribute in the successful
organisation of the 29th International Cyprus Fair.
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