In the recent years, aid from Turkey has touched over $400 million per annum. ("Cyprus: CIA -- the World Factbook," n. d.) In 1878, political conflicts started between the two communities when the Turkish Cypriots rejected the Greek Cypriots' desire for ENOSIS for Union with Greece. A campaign of armed terror was initiated by the Greek Cypriots in 1955 for uniting the island with Greece which was rejected by the Turkish Cypriots. The International Treaties of 1960, by having Great Britain, Turkey and Greece as the guarantor powers, gave Cyprus its freedom from Great Britain and named the Republic of Cyprus. The 1960 partnership Republic was not for the sake of a fully independent Republic but for the purpose of self-preservation. The independence of Cyprus was restricted by the International Treaties of 1960 which did not allow Partition or Enosis; thus leading to the creation of a bi-national partnership state and not a nation. However, shortly after the origin of the Republic solemn differences cropped about the interpretation and implementation of the constitution between the two communities. It was argued by the Greek Cypriots that the complex system which was introduced to protect the interest of the Turkish Cypriots was creating a hindrance for efficient governance. President Makarios, on 30th November, 1963 laid down a series of constitutional amendments named "13 Points." These were designed for eliminating some of these special provisions. However, such changes were opposed by the Turkish Cypriots. In December, 1963 the confrontation led to rampant inter-communal fighting, after which the participation of the Turkish Cypriot ceased in the central government. On 4th March, 1964 the United Nations Security Council adopted a resolution 186 after the Turkish Cypriot community was attacked brutally by the Greek Cypriots. The resolution was for stationing UNFICYP -- United Nations Peace Keeping Force in Cyprus for restoring law and order and to prevent the recurrence of any fight. The Republic of Cyprus though founded in 1960 ended in 1963. This was because the participatory right of the Turks which was guaranteed by the 1960 Constitution was disregarded by the Greek organs of administration, government and legislation. ("Cyprus History: 1964-1974," n. d.)

In the Resolution 186 of 1964, the Government of Cyprus was referred to by the UN Security Council in such a way that it implied that the legitimate Government of Cyprus was the government which was manned only by the Greek Cypriots. From then onwards the titles of the bi-communal state are usurped by the Greek Cypriots. The Republic of Cyprus which exists today was created during 1963-74 when in a revolutionary process the Greek Cypriots seized control over a certain section of the island's territory. ("Cyprus History: 1964-1974," n. d.) the invasion of Cyprus in 1974 by Turkey, the ethnic cleansing which was undertaken by the army of Turkey and the occupation of almost 38% of the territory of Cyprus, has altered not only the negotiating equilibrium among the two communities but has also changed the demographic structure of the island. The organized invasions of the mainland settlers of Turkey who now seem to outnumber the population of Turkish Cypriots have added a new facet to the problem. Washington's policy of Cyprus post-1974 has tried to limit the outcome of the Turkish invasion on the relations between Greece and Turkey; while engaging in efforts for peacemaking in Cyprus...

This balancing act recognizes continuity of the Republic and the Government of Cyprus while at the same time it reflects traditional attitudes of the Americans on the strategic and economic importance of Turkey ensuing in the avoidance of international or American sanctions on Turkey. Hence, America focused its attention on getting compromises from the Greek Cypriots so that the peacemaking front would get moving. Turkey and the Turkish Cypriots acknowledged this since they expected that their goals would be fulfilled through an intransigent, long-term and consistent policy which expected the Greek Cypriots to accept the reality created by the occupation and invasion of 1974. The peacemaking initiatives and policy statements of the Americans during the period 1974-78 are a reflection of this balancing act. (Couloumbis; Kariotis; Bellou; Ex-terik-s, 2003)
Cyprus' de facto partition due to the Turkish invasion resulted in a lot of suffering; almost a third of each ethnic community's population had to leave their homes and devastation ensued in the economy of Cyprus. Intensive intervention and economic planning by the government on both sides brought about an improvement in the standard of living of the people. Political systems based on the European structure were formulated by both the communities, with political views which were conventional in nature represented by the parties from left to the right. The Greek Cypriots had two parties which were present from before 1970 and new ones were formed after 1974. However, the progress of the Turkish Cypriots to parliamentary democracy was not as smooth; they had to build a new state first. The "Turkish Federated State of Cyprus" was proclaimed in the year 1975. Through a unilateral form of declaring independence in the year 1983 the TRNC was created by the Turkish Cypriots; however, till the early 1990s it was recognized as a nation only by Turkey. ("Country Studies: Developments Since 1974," n. d.)

Exhibit 1: Percentage share of various sectors in total GDP of Turkey