E A S T E R N M E D
4 July 2023
Although the ongoing war in Ukraine and the recent pandemic took lives of millions of people, and triggered the biggest geoeconomic and geopolitical destabilisation, at least, since the end of the Cold War, nobody should have illusions about the long-term devastating effects of the stagnation, which gradually but inadvertently corrodes the very fabric of life of the modern world – the world, whose. [...] The complex global crisis, which erupted back in 2008 and was aggravated by the local banking crisis of 2013, demonstrated that by playing the role of the intermediary between the rich and the developing countries, Cyprus was rather the financial agent of the latter and not of the former, because it was servicing the money of the periphery and not that of the core of the world economy. [...] The post WW2 political and institutional system was also helping the Republic of Cyprus to successfully appeal and block the recognition of the “TRNC”, since the majority of countries adhered to the international norms and respected the UN resolutions on the Turkish invasion of the island. [...] It is vital to understand how the mechanism of stagnation works: the farther the country (financially and technologically but not necessarily geographically) from the core of the global economy, the less it is integrated with the center, thus, the more primitive its economic structure is and the more peripheral the economy is. [...] The membership in the euro zone provides the valuation of the national economy and of the personal assets in one of the two global reserve currencies, but even more importantly, it brings the country under the umbrella of the ECB, second most powerful after the Fed monetary stimulation and stabilization institution in the world, whose role will only be growing for years to come.