Culture is a crucial, but underestimated, factor in socio-economic progress. It influences the perceptions of national authorities and citizens and defines their approach to addressing challenges and interactions with the markets.

For Cyprus, the path towards further socio-economic progress is intertwined with cultural modernisation and requires overcoming anachronistic mindsets, such as the perception that “we are different”.

We are not different! We have similar characteristics to other small European countries whose openness requires flexibility and adaptability to changing conditions and continuous improvement of competitiveness. We are a small economy that is part of the largest single market in the world with multiple benefits, including access to high-level institutional, technical and financial support. However, in critical areas for our future, such as artificial intelligence, digital economy and energy, we lag behind.

Certain small European countries provide valuable lessons on utilising culture as a lever for economic growth. Estonia has evolved into a digitally innovative state, combining the e-residency programme and a thriving technology industry, with investments in the arts, thus creating a balanced economy. Malta has developed its creative industries, while modernising its public administration, thereby strengthening, in parallel, its cultural and business footprints.

Recognising the significant potential for development of our country, we put forward the following suggestions:

  • (a) Change of mentality: While this may appear surprising, cultural development is at the heart of modern ideas about economic progress. Our high educational level is not enough. We must change our way of thinking to build a modern state. It must respect institutions, utilise its cultural heritage and think positively about its future and capabilities, in the light of ever-present challenges. The state must develop initiatives in this direction and set an example to be followed.
  • (b) Modernisation of the public sector: Priorities include the timely delivery of high-level justice and upgrading of the administrative and operational capacities of ministries and local authorities. The public sector must be tasked with setting the general guidelines and the institutional and legal framework, with a view to facilitating the development of the private sector and society, guided by the exploitation of the comparative advantages of our economy and the upgrading of the quality of life, through the protection of the environment and our cultural heritage.
  • (c) Upgrading education: The goals should be to strengthen cultural literacy, cultivate emotional intelligence, as well as technological skills, aiming to prepare the new generations for innovation and the changing labour market.

In Cyprus, promoting the above reforms is not an easy process, and it is not one which can be achieved by addressing individual problems in a piecemeal manner. Action is required at multiple levels (strategic-institutional-regulatory), with the target of creating an effective framework for the development of entrepreneurship and society, based on the broader interests of the country.

Stagnation leads to regression and for this reason we must remain vigilant, aiming for continuous modernisation, through a perpetual process of reforms that is fueled by new ideas and actions.