A to-do list for an Honest State

10+1 thoughts on economic growth and social rights

By Achilleas Demetriades

Cyprus has, over the years, managed to achieve consecutive cycles of economic growth and development. Nonetheless, the country has also experienced severe crises which restrict consistent progress and highlight the serious gaps in social welfare, communal solidarity and social cohesion. Formulating a new model of economic development is feasible, and necessary, as we envision an Honest State.

The coordinating state

1. The state has a very important role to play. It has to set up the framework and the regulations to facilitate economic development and secure a sound business environment. Strengthening the investment climate and improving productivity link to better working conditions and help the fight against unemployment.
2. The state promotes sound economic growth and adopts policies which reduce social inequalities. To achieve this, the state has to combat corruption, improve Cyprus’ image as a reliable investment destination and make the most of the country’s human resource potential.
3. The state supports the productive and working sector, by adopting a different approach to the problems people are facing which relate to the significant inequality in income, medical care, social security, gender and the prospects of the new generation.
4. Semi-government organisations are a contributing factor to economic development. Their public status should be retained while at the same time improving the way they are organised and managed. Those selected by the president to be appointed as chairmen of the large semi-government organisations should proceed before a hearing of the House committee responsible for each organisation – a consultative process which would add credibility to the selection process.

Our model for economic development

5. It is imperative that Cyprus switches to a real, viable, socially just and sustainable economy. The state has the responsibility to strengthen the social welfare system through targeted social safety nets for the financially vulnerable by applying existing tools and developing new ones.
6. There is a need to invest in the future, with an increased expenditure in the educational system, in parallel with investments in training and reintegration of people back into the labour market. Our time period is marked by new employment models, life-long education and a mixed employment system – the traditional one, and the one working remotely. We also need to invest in literacy, universities, research centres, scientific, business and other areas in order to turn, in a decisive manner, towards research, innovation, start-ups and social businesses through a cooperation between the public and the private sectors.
7. Cyprus is still lagging behind in digital skills. The transition to digital governance, which is a necessary tool, enables public organisations to serve the public faster, cheaper and better. The state, the ministries and the public services have an obligation to act as the workhorse that leads to a digital transformation for the whole of the economy.
8. We need to have a more targeted utilisation of the EU development funds as well as national funds (Recovery Fund, Structural Funds and other funding tools). This has to be done through prior consultations and transparency, giving priority to sustainable development and reforms to address social inequalities.

A social safety net

9. The state has a responsibility towards its citizens in safeguarding new social rights:

(a)  Access to medical care by improving the general health system (Gesy).

(b)  Retraining, technical and life-long education.

(c)  Developing digital skills with free access to the internet, beginning with public access areas.

(d) Respect to the environment as a standalone right.

The above constitute a universal commitment by the state towards all its citizens.

10. A state of sound economic growth and social justice formulates innovative policies for an effective tax system and establishes a transparent system of financial incentives for promoting economic growth and the use of the national wealth, as part of an overall framework for corporate, social and environmental responsibility that benefits the society as a whole.

Honest state

10+1. To succeed in this, it is imperative that leaders lead by example, with transparency, with emphasis on the rules of good governance and with regulations that prevent the conflict of interest in exercising their authority. The Honest State is the basis of achieving our specific goals and improving the quality of public life.

We owe this to our children. We have to claim it.

Achilleas Demetriades is a partner at the Lellos P Demetriades law office LLC