Critical assessment of the Cypriot economic development model

The current debate regarding the economic model of Cyprus highlights a conflict between macroeconomic growth metrics and the welfare of the local population. While the country reports positive growth rates, investment numbers, and large-scale construction projects, concerns have been raised about the impact on small and medium-sized enterprises. Critics argue that the economy has become overly dependent on sectors like land sales and the former citizenship-by-investment scheme, often referred to as 'golden passports'. This reliance is said to exacerbate social inequality and undermine the middle class. Small businesses, self-employed individuals, and young people face challenges such as rising rent costs and declining commercial viability in traditional markets. Advocates for a shift in policy argue that the government should prioritize productive, socially beneficial entrepreneurship. They emphasize that strengthening small businesses is essential for social mobility and employment. The debate frames the current economic trajectory as not just a technical issue, but a major social and democratic concern.