Resource Exploitation in the Eastern Mediterranean; Panacea or Pandora's Box for Cyprus?
Published 28 January 2014
Summary
Resource exploitation in Cyprus could potentially prove calamitous for the country unless adequate regulation is provided to the industry by the state and proper negotiations are conducted with foreign investors and neighboring countries, following consultation of the experience of other provinces successful in the field.
The geopolitical situation of the Republic of Cyprus presents different peculiar characteristics, which could potentially expose the country to different threats. The paper is looking the challenges that could be faced by the Republic of Cyprus in regards to three pillars; the likelihood of the occurrence of resource curse, the health and safety and environmental perspective and the political instability in the area.
The author provides recommendations in order to avoid these dangers and the opening of Pandora's box with all the harms that this entails. The general idea lies in the establishment of an adequate regulatory regime, which would enable the administration and control of the overall hydrocarbon activities. The Republic will then be able to utilize its hydrocarbons to the maximum, and perhaps solve the majority of its internal problems.