Filenews 25 July 2021
Eleftheria Paizanos
In total lifting aspires to move Cyprus to become a model state by 2035 and one of the best places to live, work and operate professionally, however distant this goal seems to us today, given the current conditions...
If the recently presented long-term strategy for the sustainable development of Cyprus, entitled "Vision 2035", is realized, its designers believe that 14 years from now Cyprus will have nothing to envy from competitive economies of the world, such as England, Finland, Singapore, the Netherlands and Denmark, as it aspires to become a world-class economy!
As part of the implementation of the National Recovery Plan, which includes a series of reforms and actions to be implemented by 2026, the government has decided to change the country's economic model.
A few days ago, the Economic Council presented the Vision 2035 strategy. Technocrats set the bar high, aspiring the country to be described as a global and competitive economy. Through the long-term strategy, a concrete effort will be made to strengthen the resilience and competitiveness of the economy and to create a socially and environmentally sustainable model of future growth. In particular, the strategic direction of Vision 2035 and the National Recovery Plan is aligned so that funding through the European Recovery Fund for the implementation of the investments and reforms of the Plan will contribute to the promotion and implementation of the vision, which will form the core of strategic planning.
The pillars of "Vision"
Vision 2035 is based on three axes: the model state, the thriving and resilient economy and a fair and inclusive society.
In relation to the first axis, by 2035 Cyprus will (must) be a global model state, shaping its future with an effective state mechanism, serving citizens and businesses around the clock, through digital platforms. At the same time, regulators will maintain an open, transparent and fair market for local and foreign companies, supported by an effective judicial system that quickly resolves disputes. According to the analysis, policy-making will follow international best practices, in line with the European Union's guidelines and governance, while policies will be modified and adapted to local developments and ambitions.
It is estimated that in this way Cyprus assumes responsibility for shaping its future.
In relation to the economy, according to the strategy, the Cypriot economy should become thriving and resilient, with high levels of productivity. Indeed, because of its geographical location, as the country is at the crossroads of Europe and the Middle East, it will also be a hub for innovation. According to the analysis, the economic cycle will be much less dependent on natural resources and will be supported by the principles of digitisation and the green economy. It is estimated that the Cypriot economy will diversify and economic growth will be more sustainable and more resilient to external or internal factors.
We'll all be happy!
In relation to the axis of society, as analysed in the long-term strategy prepared by PwC on behalf of the Economic Council, "all citizens will enjoy a happy, healthy and safe life, with good rewards in their work and a high standard of living, in a fair and inclusive society". At the same time, it is noted that "we will take pride in a world-class education system, an excellent health service system and a society that operates on the basis of the principles of the rule of law and fights corruption and which provides equal access to opportunities for all in a sustainable way"!
Development of the green economy
Cyprus will follow, according to the strategy, a development model to become Europe's sustainable business and shopping centre. Essentially, combining the aspects of sustainability and digitisation in the central model will lead to a more resilient economy. Among other things, Cyprus should develop its "green" capabilities. In particular, it should actively encourage the development of the green economy, which includes low-carbon activities, the use of solar energy circular economy and green fuels, revealing some of the existing comparative advantages. In addition, it should proceed with the development of light industry and agriculture in order to make the economy more resilient and self-sufficient.
For the selection of the new development model of Cyprus, account was taken of the country's implementation capacities, as well as international economic trends. As stated in the long-term strategy, it is easy to implement the new economic model, as Cyprus already has an international reputation and comparative advantage as a business centre. It is also indicated that its transformation into a business and shopping centre in Europe is easy to implement, compared to other models of development. In fact, it will improve the existing advantage in the wider field of professional services, making Cyprus a more attractive place to do business, with a physical presence.
Indeed, because the world's three largest economies (US, EU and China) are aligned with the green economy, it creates the need for Cyprus to align itself with the sustainability agenda and offer opportunities. In addition, the coronavirus pandemic has accelerated digitization and new technologies. It will also help attract digital nomads to the economy after COVID-19. As noted, digitisation and technology will help to promote innovation in all types of businesses on the island.
High-Tech Capital
In addition, the country will seek to become a high-tech capital. According to the strategy, high-tech digital services can help Cyprus diversify its development model. In particular, the technology sector will be developed and a high-tech ecosystem based on attracting global talent, local universities and various financial sources will be created. The focus will be on e-health, agricultural technology and green technologies.
200 actions will be taken
200 actions are planned for the implementation of Vision 2035. These are horizontal and sectoral actions. Horizontal actions, which have a broad impact on the whole economy, society and the environment. These actions cover institutional, social, economic and environmental sectors to unlock potential throughout the economy and society. These are restructuring actions that Cyprus needs to implement to address its current structural issues, bottlenecks and barriers to business, investment and growth.
Among the actions are justice reform and digital transformation. As far as judicial reforms are concerned, priority will be given to unresolved cases on the basis of their complexity and risk and resources will be made available for their rapid resolution. Specialised courts will be set up and judges trained for them. the court and the filing system will be digitised.
In relation to digital transformation, a legislative framework for the development of e-commerce will be adopted. In addition, skills in Information and Communication Technologies (at all ages) will be expanded, developed and improved. Digital processes in the SME sectors will also be promoted. It will promote and digitise government interactions with citizens or businesses (including e-health, e-justice, electronic customs and e-public service activities).
In addition, sectoral actions concern development actions and focus on each sector with less impact. These actions aim to build the necessary conditions for sector-specific development, in accordance with Vision 2035, and to correct any sector-specific inconsistencies.
Detailed action plan for the three pillars of the new strategy
It is worth mentioning that a detailed action plan will be drawn up for the implementation of Vision 2035 concerning the three pillars of the strategy. Of the 200 actions, most concern the resilience of the economy. For this sector, 96 actions should be implemented, 56 of which concern the green economy, 15 innovation, 14 sustainable economy and 11 digitisation.
In addition, another 59 actions are planned on the axis of a fair society, of which 24 will concern the transformation of the education system into a global one, 20 will focus on equal access for all citizens, 9 on the fight against corruption and 6 on the health care system. Finally, the global model axis provides for 45 actions, 28 of which will concern an effective state mechanism, 21 in the transparent and fair market for local and foreign enterprises, ten in the upgrading of the judicial system.
