Articles

THE IMPORTANCE OF THE CYPRUS DIASPORA FOR CYPRUS

Written by Melina Pyrgou,

Advocate – Managing Director at Pyrgou Vakis Law Firm

It is estimated that more than 800.000 Cypriots live outside Cyprus. This diaspora has a very important role to play for Cyprus in terms of how Cyprus is promoted abroad and what benefits could be derived internally.

Members of the Diaspora as Ambassadors of Cyprus in their country of residence

The members of the Diaspora are very well connected among themselves and maintain ties between them as part of their need to create a sense of community in their home abroad whereby at the same time and maintaining the ethics, culture and traditions of their home country.

Over the years we have seen Cypriots abroad taking positions in local and central government like MPs and counsellors. Through these positions these persons could affect decision-making regarding the political issues that are important to Cyprus. A strong communication flow of information between Cyprus and these persons is of utmost importance to ensure that the messages and the targets are aligned.

The Diaspora observes the government policies and is often disheartened when promises do not deliver results. In recent history events like the haircut of 2013 and thereafter inclusion of Cyprus in various scandals like the Cyprus Papers are frowned upon by the Diaspora and create an insecurity for their property in Cyprus or an unwillingness to invest in the country or worse, unwillingness to promote investments in the country to third parties.

As regards the political problem members of the Diaspora are front-line lobbyists in their country of residence and the government would benefit from taking advantage of the strong ties. Similarly other international related policies that affect Cyprus could be promoted through the Diaspora network. This area engages the members of the Diaspora as there are many interests to find a viable solution.

Furthermore the Cypriots of the Diaspora are keyholders to markets abroad and their contribution to providing market connections to local businesspeople to promote trade and services. Through their network the Cyprus business community can expand abroad opening up possibilities for selling Cyprus products not only to the members of the Diaspora but also to others.

Knowledge transfer

Members of the Diaspora have over time developed into key persons in various industries. Their expertise flows back to Cyprus either through their contributions to the industry in Cyprus at conferences and more specifically in cases that they may be dealing with in Cyprus through collaborations or through their willingness to accept to train young Cypriots who study abroad. With the right conditions skilled members of the Diaspora return to Cyprus to take on roles to help the local community flourish and the government could provide incentives for such return especially in fields where the local market is lacking.

Investment

Diaspora members are always looking for opportunities to invest their money in their country of origin either by acquiring properties, renovating family homes or simply investing on other products contributing to economic development. This has been evident over the years and many examples exist. Some governments in other countries are issuing government bonds geared towards their diaspora and in this way attract the interest of the diaspora back to their home country where the members of the diaspora take interest in how the local community is progressing.

Tourism

Members of the Diaspora travel to Cyprus for holidays to visit their families and attend family events and there is significant incoming tourism from this sector which helps boost the tourist industry with these persons having higher spend per capita than cheap tourism.

The promotion of arts and culture both to the Diaspora and from each third country back to Cyprus are also of great importance and assist in tourism and trade.

Payments to family members

Very often wealthier family members who live abroad will send money back to Cyprus to support parents or other family members.

National Strategy on Cyprus Diaspora 2023-2028

The Cyprus government has recognised the importance of the Diaspora and has created a Registry of Diaspora Cypriots with the aim of strengthening ties with their homeland and in 2023 introduced a National Strategy on Cyprus Diaspora for the period 2023-2028 intending to be a framework for action. The main pillars of this strategy are:

1. The Diaspora
2. Federations and organisations
3. The new generation of the Diaspora
4. Our culture
5. The Cyprus problem
6. International parterships
7. Repatriated Cypriots

In conclusion it can be said that  both Cyprus and the Diaspora have much to gain through maintaining and strengthening ties and there are mutual benefits to be taken advantage of. Personally through my work as a lawyer I have identified that there are many opportunities for provision of services to members of the Diaspora on the one hand and on the other our need to connect with professionals in the various countries where members of the Diaspora live to understand local laws and how these would affect legal advice that we are giving in Cyprus. The cross-border element of transactions is inevitable and complicated at times and needs to be addressed through the eyes of Cyprus and foreign laws. It is for these reasons that our firm decided to participate in the Cyprus Diaspora forum as a sponsor.