Northern Cyprus: A Brief Analysis of a De Facto State's Challenges

July 2024

Reform Against Underemployment, Education Gaps, and Crime to Secure a Brighter Future in North Cyprus

The situation in Cyprus, particularly regarding the Turkish Republic of Northern Cyprus (TRNC), is not only a political dilemma but also a reflection of profound socioeconomic challenges. 

Since the island's division in 1974, the TRNC has faced significant challenges including international isolation, reliance on Turkey for economic support, and various internal issues such as labour market difficulties, educational shortcomings, a justice system that has spiralled beyond control and increasing crime rates. As North Cyprus sets its sights on 2030, tackling these pressing matters is essential for ensuring its future stability and growth.

Labour Market: Challenges of Employment and Informal Work

The labour market in Northern Cyprus is plagued by high unemployment, underemployment, and a significant informal economy. As reported, the unemployment rate reached 7.8%, whilst issues of underemployment and job insecurity persist. Many individuals, particularly those in low-wage positions, do not receive sufficient social protections, which worsens poverty and inequality in the state. A pressing issue is the informal economy, which accounts for approximately 30% of the workforce, a highlight of a 2020 report by the European Commission. Home to many undocumented migrant workers, mainly from Turkey and nearby countries, exploitation and limited access to legal rights and social services remains a problem. The absence of proper regulation in the labour market not only jeopardises workers' rights but also contributes to illegal activities, including human trafficking and unregulated labour practices. The relationship between labour, employment, and underemployment is intricately linked to education and skills. Education and skill development are fundamental to enhancing the employability of individuals, equipping them with the necessary competencies to meet the labour market demands of North Cyprus. However, mismatches between low-skilled work opportunities vs. the skills acquired through education is leading to underemployment.

Underemployment, Education and Universities: Concerns of Quality, Access, and Crime

The state of education in Northern Cyprus raises considerable concerns. The public education system suffers from a lack of funding and overcrowding, with an average investment of only 2,000 USD per student from primary to high school, starkly contrasting with the OECD average of 11,700 USD. These financial constraints result in a diminished quality of education, especially in public institutions where resources are scarce. Notably, 40% of the student population comprises non-TRNC citizens, and many teachers face challenges due to low pay and insufficient training. 

On the other hand, the private education sector, particularly universities, significantly impacts the TRNC’s economy, contributing a substantial percentage to the GDP. However, this sector is not without its issues. Numerous universities attract students from Turkey, the Middle East, and Africa, yet they often face criticism for their low academic standards and lack of proper oversight. Even more concerning is the connection between some universities and illegal activities, such as the trafficking of undocumented migrant workers. Many individuals labelled as "students" exploit educational visas to enter Northern Cyprus, only to engage in illegal work or criminal behaviour. This exploitation of the education system has led to issues like fake certifications and fraud, contributing to rising crime rates and placing additional strain on public resources, particularly in law enforcement.

Rising Crime Rates: The Impact of Uncontrolled Migration

Uncontrolled migration, particularly through the abuse of student and worker visas, has contributed to a significant rise in crime in Northern Cyprus. The country has seen an increase in organised crime, including drug trafficking, human trafficking, and illegal gambling. According to a 2023 report The Global Organized Crime Index highlights the presence of numerous individuals wanted by Interpol in Northern Cyprus for human trafficking, arms smuggling, drug-related offenses and money laundering. The Index reports on the relatedness of education visas and crime and ranks Cyprus 29th in the global organised crime index and 6th in the South European region.

The lack of effective immigration controls and the misuse of the education system as a route for illegal entry have made it difficult for authorities to manage the growing population of undocumented individuals. This situation has not only exacerbated crime but has also strained the social fabric of the country, leading to growing tensions between locals and migrants.

Addressing the Challenges Ahead

The path to 2030 for Northern Cyprus is fraught with challenges, but also opportunities. The country’s labour market, education system, and crime rates are all interconnected issues that require a comprehensive approach to address. The current socioeconomic issues are deeply rooted, but targeted reforms and potential political resolutions could lead to significant improvements.

Recommendations: A Call to Action. To move forward, a multifaceted approach is necessary:

  1. International Involvement: The United Nations and the European Union should intensify efforts to mediate between the parties involved in the Cyprus problem, encouraging dialogue and facilitating confidence-building measures. These efforts could help pave the way for a comprehensive solution that would end the state's isolation and allow for greater economic integration.
  2. National Leadership: Leaders in both the TRNC and the Republic of Cyprus must prioritise the welfare of their citizens over political rhetoric. They should work towards economic cooperation, even in the absence of a full resolution, by establishing joint projects in areas like energy, environmental protection, and tourism.
  3. Economic and Social Reforms: The TRNC government needs to focus on diversifying the economy, improving public services, and strengthening the rule of law, particularly in labour rights and immigration control. This would not only enhance the quality of life for its citizens but also make the state more attractive for investment and cooperation.

By addressing these recommendations, Northern Cyprus can begin to overcome its current challenges and move towards a more stable and prosperous future.

 

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