FUTURE CYPRUS 2018-2030:

I-Government, Eco Regions, Smart

Cities and Communities
How to Make the Country Prosperous, Smart, Inclusive and
Sustainable

Dr Azamat Abdoullaev

iworld@worldxxi.com

http://www.worldxxi.com

Background

How to Make the Country Prosperous, Smart, Inclusive and Sustainable The Mediterranean island is to
go through a critical stage in its long history: to transform towards a smart, sustainable, and inclusive
society, to become a world-class destination for investors, businesses, citizens and visitors.

The Sustainable Nation Strategy is aimed to create an Eco-Smart Land of all-sustainable future society,
with healthy environment and green urban communities, integrated infrastructure, innovative industry
and smart green economy, quality tourism, intelligent banking system and financial services, progressive
logistics and the maritime services, intelligent ICT services, smart government, world-class healthcare,
eco-intelligent cities and communities, innovational education and research, creative work and
sustainable living.

Dr. Azamat Abdoullaev is director of EIS LTD, one of the first innovative entities dealing with the smart
world strategies, models, technologies and platforms. He is the promoter of smart nations, future cities,
global artificial intelligence and intelligent sustainable world.

168490 978-620-2-08040-8

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The Mediterranean island is to go through a critical stage in its long history: to
transform towards a smart, sustainable, and inclusive society, to become a world-
class destination for investors, businesses, citizens and visitors.
The Sustainable Nation Strategy is aimed to create an Eco-Smart Land of all-
sustainable future society, with healthy environment and green urban communities,
integrated infrastructure, innovative industry and smart green economy, quality
tourism, intelligent banking system and financial services, progressive logistics
and the maritime services, intelligent ICT services, smart government, world-class
healthcare, eco-intelligent cities and communities, innovational education and
research, creative work and sustainable living.

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CONTENT
THE STATE OF NATIONAL AFFAIRS 5
THE SMART REVOLUTION IN CYPRUS 13
SUSTAINABLE DEVELOPMENT GOALS 14
THE SMART CYPRUS STRATEGY 16
NOs TO WHAT ARRESTS THE FUTURE GROWTH 18
THE FUNDAMENTAL INNOVATIVE CHANGES TO PERFORM 19
Cyprus Problem 20
Smart Green Economy 21
Smart Cities and Communities 23
Smart Jobs: the Work of the Future 25
Smart Government-Business Partnership: QUANGOs 26
Smart Social Security 27
Home and Family 28
Smart Infrastructure 29
Smart Energy 31
Smart Shipping: the Silk Road Maritime Routes to Europe 32
Smart Transportation 33
Smart Building and Sustainable Construction: Real estate and land
developing 34
Smart and Green Tourism 35
Smart Education 37
Smart Health 38
Smart Finances: Non-performing loans sustainable solution 39

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Smart Research and Innovation: Future and Emerging Technologies 40
Smart Taxation: The Unified Tax Reform Framework 41
Smart Government: technological integration of the citizens, the executive, the
legislative, and the judicial 43
Smart Fiscal Policy 44
Smart Court System 45
Smart Anti-corruption Environment 46
Smart Natural Environment 48
Foreign Military Bases 50
Smart Defense: a National Cyber force 51
Smart Space 52
Smart Cyprus Immigration Policy 53
Smart Property Financing: Smart Cyprus Bonds Investment 54
Smart Cyprus Investment by EU Funds 55
Smart Cyprus International Investment 56
Smart Mega Investment: Maritime Cyprus in the Maritime Route 57
FUTURE CYRUS Growth Programs 2018-2030 61
Smart Eco Island Development Projects 2018-2030 62
Smart Cyprus 2018-2030: Innovation Growth Programs and Development
Projects 63
Rebuilding Cyprus as an Innovation Nation: the (RTDI) System 64
Why to be SUSTAINABLE and SMART Nation is Crucial for the Future 67
THE STATE OF FUTURE AFFAIRS 2018-2030 68
Original Resources 69

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 THE STATE OF NATIONAL AFFAIRS
Background
Cyprus is an island country in the Eastern Mediterranean and the third largest
island in the Mediterranean. It has a strategic transit location at the middle of three
parts of the world: Asia, Africa and Europe, lying south of Turkey, west of Syria
and Lebanon, northwest of Israel, north of Egypt, and southeast of Greece.
Cyprus was settled by Mycenaean Greeks in two waves in the 2nd millennium BC.
The earliest known human activity on the island dates to around the 10th
millennium BC, archaeological remains from this period include the Neolithic
village of Khirokitia. In antiquity, Cyprus was a major source of copper, having the
remnants of old copper mines.
Cyprus is home to some of the oldest water wells in the world. But now it is
suffering from a chronic shortage of water relying heavily on rain to provide
domestic and household water, with supply exceeding demand due to more
frequent droughts, local population growth, foreigners moving to Cyprus and a big
number of visiting tourists.
As a strategic location in the Middle East, Cyprus was subsequently occupied by
several major powers, including the empires of the Assyrians, Egyptians and
Persians, from whom the island was seized in 333 BC by Alexander the Great.
Subsequent rule by Ptolemaic Egypt, the Classical and Eastern Roman Empire,
Arab caliphates, the French Lusignan dynasty and the Venetians, was followed by
over three centuries of Ottoman Empire between 1571 and 1878 (de jure until
1914). Cyprus was placed under British administration based on the Cyprus
Convention in 1878 and formally annexed by Britain in 1914, but won its
independence in 1959.
Cyprus was proclaimed an independent State, the Republic of Cyprus, on 16
August 1960, based on the Zurich-London Agreements between United Kingdom,
Greece and Turkey, which were signed by the Greek Cypriot and the Turkish
Cypriot Communities.
The Constitution of Cyprus was ratified on August 16, 1960, being Cyprus's first
and only constitution to date. The Constitution of the Republic of Cyprus has been
in force for 57 years and it has been amended 10 times and 20 Articles of the 199
were modified since 1960.

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The Constitution serves as the framework for the Cypriot government, providing
for a presidential system of government with independent executive, legislative
and judicial branches added with a system of checks and balances.
The head of state and of the government is elected by universal suffrage for a five-
year term. The executive power is exercised by the government; the legislative
power is in the House of Representatives; the Judiciary is independent of both the
executive and the legislature.
The Constitution protects Turkish Cypriots, due to Article 6, ensuring the Cypriot
government has no right to discriminate against either Turkish or Greek Cypriots.
The constitution also ensures, in Article 1, that the Vice-President of the country is
a Turk and the President is a Greek.
Since 1964 the Cypriot government became dominated by Greeks; for the
Constitution collapsed in 1963 due to dispute between the Greek and Turkish
Cypriots. The running of the republic by the Greek community alone has been
legally defined as "Justice of need". Following the Turkish invasion of 1974, the
State acts as a surrogate for the properties of displaced Turkish Cypriots.
The Republic of Cyprus has de jure sovereignty over the entire island, including its
territorial waters and exclusive economic zone, with the exception of the Sovereign
Base Areas of Akrotiri and Dhekelia, which is still remain under British control.
Cyprus is administratively divided into six districts: Nicosia, Famagusta, Kyrenia,
Larnaca, Limassol and Paphos, with four exclaves, belonging to the British
Sovereign Base Area of Dhekelia.

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Besides, Cyprus is de facto partitioned into two main parts: the area under the
effective control of the Republic, located in the south and west, and comprising
about 59% of the island's area; and the north, administered by the self-declared
Turkish Republic of Northern Cyprus, covering about 36% of the island's area.
Nearly 4% of the island's area is covered by the UN buffer zone.
Except Turkey, all international community considers the northern part of the
island as territory of the Republic of Cyprus occupied by Turkish forces. The
occupation is illegal under international law, also appearing as illegal occupation
of EU territory as Cyprus became a member of the European Union.
The Republic of Cyprus has been a member of the Commonwealth since 1961,
being a founding member of the Non-Aligned Movement until it joined the
European Union on 1 May 2004. On 1 January 2008, the Republic of Cyprus
joined the Eurozone as well.
Now, Cyprus is a member of the following international groups: Australia
Group, CN, CE, CFSP, EBRD, EIB, EU, FAO, IAEA, IBRD, ICAO, ICC, ICCt, I
TUC, IDA, IFAD, IFC, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ITU, MIG
A, NAM, NSG, OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UNHCR, UNID
O, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO.

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Before 2012, as it was affected by the Eurozone financial and banking crisis,
Cyprus had an advanced, high-income economy and a very high Human
Development Index.
The 2012–2013 severe Cypriot financial crisis led to a forced agreement with the
Eurogroup in March 2013 to split the Cyprus Popular Bank (Laiki Bank) into a
"bad" bank and a "good" bank to be absorbed by the Bank of Cyprus. In return for
a €10 billion bailout from the European Commission, the European Central Bank
and the International Monetary Fund, the "troika", the Cypriot government
imposed a haircut on uninsured deposits, exceeding €100,000.
Cyprus is still a base for offshore businesses for its low tax rates. Tourism,
financial services and shipping are significant parts of the economy. Being a major
tourist destination in the Mediterranean, Cyprus has an innovation-resistant
touristic economy.
Recently significant quantities of offshore natural gas discovered in the area known
as Aphrodite in Cyprus' exclusive economic zone (EEZ) are giving hopes for
diversification of national economy.
Beside of lack of dynamic diversified economy, Cyprus marked by slow
governance system and non-efficient corrupted political system. Its House of
Representatives has 59 members elected for a five-year term, 56 members by
proportional representation and 3 observer members representing the ethnic
minorities. 24 seats are allocated to the Turkish community but remain vacant
since 1964. It is dominated by the liberal conservative Democratic Rally, the
communist AKEL, the centrist Democratic Party, the social-democratic EDEK and
the centrist EURO.KO.
The Council of Ministers, as the executive branch of the Cypriot government,
consists of 11 ministers, chaired by the President of Cyprus, and the ministers
heading executive departments of the government. The President and his ministers
administer the government and the various public services.
Current Council of Ministers: Composition

MINISTRY
1. Mr Ioannis Foreign Affairs
Kasoulides
2. Mr Haris Georgiades Finance

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3. Mr Constantinos Interior
Petrides
4. Mr Christoforos Defence
Fokaides
5. Mr Costas Kadis Education and Culture
6. Mr Marios Transport, Communications
Demetriades and Works
7. Mr Georgios Energy, Commerce, Industry
Lakkotrypis and Tourism
8. Mr Nicos Kouyialis Agriculture, Rural
Development and Environment
9. Mrs Georgia Labour, Welfare and Social
Emilianidou Insurance
10. Mr Ionas Nicolaou Justice and Public Order
11. Mr George Health
Pamporidis

NATIONAL STATISTICS
POPULATION: 1,221,549 (July 2017 est.)
GDP: €17.7bln (agriculture: 2.3%; industry; 10.4%; services: 87.2% (2016 est.)
Fiscal balance for 2017 is estimated in the region of 0.6% of GDP compared to
0.3% of GDP in 2016.
GDP for 2016 is €17.7bln with a growth rate of 2.7 per cent.
The government expects GDP to rise to €18.3bln in 2017 with an estimated growth
rate of 2.8 %.
Government Spending to GDP (all government consumption, investment, and
transfer payments): 30% of GDP.
The state’s wage bill is projected to reach €2,342 million up 3.7% compared with
2016, whereas social transfers, that include welfare benefits, are projected to reach
€2.573 million marking an increase of 1.3% compared with €2.539 in 2016. Debt
servicing expenditure for 2017 is estimated to reach €499 million.

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Revenues: the budget provides for €6.96bln in revenues, €7.06bln in expenditure.
2.8% growth in 2016
5-year compound annual growth is negative
UNEMPLOYMENT: 11%-15%
Labor force: 415,100 (2016 est.)
Employed Persons: 367,300
Unemployed Persons: 44,965
Youth Unemployment Rate: 20%-40%
Unemployment, youth ages 15-24:
total: 35.9%; male: 37.4%; female: 34.6% (2014 est.)
Unemployment for 2017 is projected to reach to 11.0%
Youth and long term unemployment remain as key challenges
INFLATION (CPI): –1.5%
Credit Rating 36.25 (BB-; BB+; Non-investment grade, Speculative, like in
Mongolia or Sri Lanka)
FDI INFLOW: $4.5 billion
PUBLIC DEBT: 108.7% of GDP
[The high level of public debt (at €19.3 billion or 107.8% of GDP for 2016]
[The high level of private debt (estimated to be close to 300% of the GDP for non-
financial companies and households]
[The high level of private debt led to the rise of the non-performing loans (NPLs)
to extremely high levels (around 50% of the total loan portfolio of the banking
sector)]
NPL: 150% of GDP
MGI of 480 euros
Age structure:
0-14 years: 15.6% (male 97,955/female 92,648)
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15-24 years: 13.81% (male 91,846/female 76,853)
25-54 years: 47.04% (male 303,297/female 271,364)
55-64 years: 11.45% (male 67,053/female 72,854)
65 years and over: 12.09% (male 63,870/female 83,809) (2017 est.)
Life expectancy at birth:
total population: 78.7 years
male: 75.8 years
female: 81.6 years (2016 est.)
country comparison to the world: 53
Total fertility rate:
1.47 children born/woman (2017 est.)
Distribution of family income - Gini index: 34.8 (2014 est.)
Taxation: the top personal income tax rate is 35 percent; the top corporate tax rate
is 12.5 percent. Other taxes include a value-added tax and a real estate tax. The
overall tax burden equals 36.3 percent of total domestic income.
Government spending has amounted to 41.3 percent of total output (GDP) over the
past three years, reaching an all-time high of 48.40 percent in 2014, and budget
deficits have averaged 2.1 percent of GDP.
Finance Needs 2013-2017: Expenses and Resources
The total financial needs of Cyprus: €23.5b, excluding a recapitalisation of banks
or any new burden on depositors, supported by the Memorandum and the loan
agreement
EXPENSES: €13.5b for the banks
€10b are for public finances
€5b for debt renewal
€5b for deficits
SOURCES:

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€10b from the EU bailout: €9b will be covered by the ESM, €1b from the IMF
€10.6b from the Laiki and BoC restructuring
€0,6b from memorandum measures
€0,4b for the sale of gold
€1.4b for privatisation
€1b rollover
€0.1b from the Russian loan
The Island’s AROPE (at risk of poverty and social exclusion) indicator is to exceed
30% in 2016, what demands radical and comprehensive social and techno-political
innovations.

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THE SMART REVOLUTION IN CYPRUS
We know that the existing socio-economic and political system in Cyprus is deeply
anachronistic and ineffective unable to meet the new challenges and systemic risks
in the 21st century’s world.
Our Nation is in need of the smart revolution driving fundamental innovations
across the entire society, polity, government, economy and territory.
Revolutions are disruptive forces aimed to change the system of government, the
economic system, the cultural beliefs and values, or the whole social structure as
the obsolete and inefficient social order.
Best human minds believed in the necessity of revolution as:
“a cyclical alterations in the form of government” (Aristotle); “creating a new
order reflecting the needs of the people” (Milton); “a force for the advancement of
the mankind” (Kant); or “the fulfillment of human destiny” (Hegel).
The human history has been undergoing big transformations due to several kinds
of revolutions:
Technological Revolutions (Agricultural Revolutions; Industrial Revolutions;
Scientific Revolutions; Information Revolutions)
Socio-Political Revolutions (the English, French, American, Chinese, Russian,
Eastern European, Arab,…) forceful alterations in government, its related
structures and associations.
Smart Revolution is a universal techno-political revolution of peaceful profound
change in government, society, economy, science and technology, culture and
lifestyle, all types of social, political and economic relations, by means of
disruptive innovations, social technologies and intelligent systems.
Smart Revolution is the massive economic, social, political, cultural, and
technological accelerating changes brought about by converging modern
scientific-technical revolution, industrial revolution, green economy revolution,
digital revolution and information revolution.
Smart Revolution applies fundamental innovations and smart demographic, socio-
economic, cultural, territorial, and technological growth strategies, replacing
socio-political institutions by intelligent governance systems.
Smart Revolution implements Smart Nation Agenda aiming to reach sustained
prosperity for all and everyone.

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SUSTAINABLE DEVELOPMENT GOALS
New Cyprus of the Future 2018-2030 is to emerge as a model nation in
implementing the UN Sustainable Development Goals (SDGs), translating the
goals as below into national legislation, developing national strategies, and
allocating a budget, being open for public-private-citizen partnerships:
Goal 1: No Poverty
Goal 2: Zero Hunger
Goal 3: Good Health and Well-being
Goal 4: Quality Education
Goal 5: Gender Equality
Goal 6: Clean Water and Sanitation
Goal 7: Affordable and Clean Energy
Goal 8: Decent Work and Economic Growth
Goal 9: Industry, Innovation and Infrastructure
Goal 10: Reduced Inequalities
Goal 11: Sustainable Cities and Communities
Goal 12: Responsible Consumption and Production
Goal 13: Climate Action
Goal 14: Life Below Water
Goal 15: Life on Land
Goal 16: Peace, Justice and Strong Institutions
Goal 17: Partnerships for the Goals

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We translate the goals into national legislation, developing national strategies,
allocating a budget, drawing sustainable investment, being open for public-private-
citizen partnerships.
New Cyprus 2018 is to become an example Member State of Europe 2020 Strategy
driven by three priorities:
1. smart growth (fostering knowledge, innovation, education and digital
society),
2. sustainable growth (making EU production greener and more resource
efficient while boosting competitiveness),
3. inclusive growth (enhancing labor market participation, skills acquisition,
and the fight against poverty).

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THE SMART CYPRUS STRATEGY
The Smart Cyprus Strategy revolves around 6 pillars—single nation, innovation
and technological growth, intelligent governance, economics, the environment and
infrastructure, hard and soft, —all with the smart citizens at the centre.
Smart is a fundamentally innovative concept that helps the state and its citizens by
enhancing the overall sustainability and livability of the country, its regions, cities
and communities.
In the critical times for our nation, my presidential program reveals optimal ways
to improve lives of our people with different incomes, making basic services of the
government accessible and affordable.
The national wealth will be created by the combination of materials, labour, and
land, with the critical role innovations and smart technology.
In all, Smart Cyprus is to integrate 21st century fundamental innovations and
disruptive technologies to meet territorial, political, economic, environmental,
infrastructure, social, cultural and demographic challenges.
Smart Cyprus meets the triple goals of fundamental innovations, sustainable, smart
and secure future and improvement in the quality of life.
Sustainable and Smart Cyprus has a two-pronged approach: top-down
(government-led) to build foundations to promote and stimulate bottom-up
(community-driven) innovation to conduct local sector-specific initiatives, such as
delivering innovative services by citizens and local Small and Medium Size
Enterprises.
The Smart Cyprus Development Strategy is to determine the key strategic
objectives and policy priorities of the Government for the next 5 years.
It is to enrich the current development strategy framework of the strategic plans of
all Ministries, activity-based budgets, and public investments, as consisting of:
• the “Government Strategy Statement” (provide the policy direction for the
preparation of the sectoral Strategic Plans by the Ministries)
• the “Fiscal Strategy Statement” (set out the maximum expenditure ceilings
for each Independent Authority / Ministry)
• the "Human Resources Policy Statement" (set out the government’s policy
in relation to personnel and employment issues).
The Smart Cyprus Development Strategy is also to cover the Smart Specialization
Strategy for Cyprus (S3Cy) with its priority areas: Energy, Tourism, the Structured
Environment/Construction Industry, Transport/Marine, Agriculture/Food Industry
and Health; centralizing Information and Communications Technology,
Environment and Human Resources.
This will enable the most optimal exploitation of resources from the European
Structural and Investment Funds forming the advanced National Research and

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Innovation System and enhancing Research and Innovation (R & I) during the
programming period 2014-2020 and BEYOND.

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NOs TO WHAT ARRESTS THE FUTURE GROWTH AND
PROSPERITY
No to dividing the Cyprus territory and its national communities
No to collapsing the Cyprus economy, destituting the Cypriot people and
“haircutting” the prospects for the future
No to corrupted and incompetent political institutions, as the present presidency,
the government, the parliament, and the judicial
No to privatizing the public utility organizations
No to anti-social policies and social insecurity, as foreclosing/auctioning the prime
family household
No to youth unemployment and massive emigration, brain drain and human capital
flight
No to anti-social state of poverty and inequality, injustice and violence, with all
privileges for the few and nothing for the majority of the people
No to political corruption, bribery, payoff, abuse of power, conspiracy, collusion,
nepotism, arrogance, fraud and incompetence
No to any foreign military bases, British or Turkish.
YES to the SMART CYRUS of the CIVIL SOCIETY and CIVIL OWNERSHIP
DEMOCRACY for building a safe and secure, innovative and sustainable, fair and
inclusive, wealthy and prosperous Cyprus.

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THE FUNDAMENTAL INNOVATIVE CHANGES TO PERFORM
To develop Smart Cyprus as the Innovation Nation of
Smart Territory
Smart Economy
Smart Cities and Communities
Smart Public Policy
Smart Polity and Public Administration
Smart Institutes
Smart Growth
Smart Citizens
Smart Infrastructure
Smart Industry
Smart Commerce and Business
Smart Energy
Smart Transportation
Smart Telecommunications, Smart Future Internet, IoT, and IoE
Smart Tourism
Smart Construction
Smart Safety and Security
Smart Defense
Smart Healthcare
Smart Youth
Smart Environment
Smart Education, Science, Technology, Research & Development &
Innovation…

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Cyprus Problem: The Unified Republic of Cyprus or Federal
Republic of Cyprus
The Cyprus problem dominates Cypriot political life for several decades. Its
solution might determine the whole future of the nation, its state and communities.
The current government is badly failing to resolve the Cyprus problem, collapsing
the peace talks backed up by the UN and the EU.
It is thus incapable to restore the nation's physical integrity and territory.
The government is unable to safeguard the national sovereignty, territorial
integrity, citizenry and other forms of national security, military security,
socioeconomic security, geopolitical security, financial security, energy security,
environmental security, etc.
The main stumbling blocks for a solution are still there: the property issue,
bizonality, Turkish mainland settlers.
Smart Cyprus Reunification Strategy is advancing a sustainable federal union of
Cyprus, its two major and minor communities, Greek Cypriots and Turkish
Cypriots, with the following key characteristics and principles:
Common Constitution with Direct Democracy, Federal Relationship, and National
Union of two States, where the Republic of Cyprus is a leading legal entity;
Decentralization and diffusion of political power;
Territorial Democracy to ensure areal division of power, neutrality and equality,
political integration and democratic government;
Sense of Common Nationality binding the constituent polities and people together
by Geographic Necessity and Common Sustainable Future;
Balance in Territories, Politics, Law, Wealth and Population among the
Constituent Polities;
Sustainable Federalism, popular government, smart sharing of policy making,
financing and administration, complete governing institutions at national and
communal levels;
High Quality Human Resources and Intellectual capital;
Development of a new governance system to steer the society towards social
equity and the economy towards knowledge economy and circular industry, green
tourism, resource productivity, quality employment and high competitiveness;
Direct Democracy, Intelligent Government, Social Equity, Economic Growth and
Employment;
Innovative, Smart, Efficient, Resilient and Sustainable Community of Wealth and
Prosperity
Historically, Federal Systems, even following old traditional federal principles,
have been among the most stable and long-lasting of polities, as USA, Australia,
Canada, Germany or Switzerland.

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Smart Green Economy
The construction industry and real estate, with tourism and financial services, are
considered as the backbone of the Cypriot traditional economy, accounting for
nearly 80 percent of GDP.
Manufacturing accounts for only 10 percent and agriculture for 2 percent.
On the expenditure side, household consumption is still the main component of
GDP and accounts for 70 percent of its total use, followed by high government
expenditure (16 percent) and disproportionally small gross fixed capital formation
(11 percent).
Cyprus economy looks as slowly becoming stable but badly lacking substantial
growth and innovation.
Considering that Cyprus has been emerging from a severe economic recession
compounded by the collapse of its financial system in 2013, it is in need of
fundamental innovations with sustainable environment of integral development
and economic growth for new jobs, new businesses and FDIs.
The present economic policy has focused mainly on improving fiscal discipline
and some structural reforms to manage a hard situation – a full-blown crises, with a
shocking unemployment, fiscal imbalances, prohibitive interest rates to borrow
from financial markets, rising public debt level and extremely high private debt
level, with a banking system virtually in ruins with huge losses for depositors and
shareholders and harmful amount of NPLs.
As a result, the GDP (PPP) is reduced to 0.02% share of world total, with loss of
national wealth, intolerable youth unemployment, harmed social and economic
security, and dragging R&D&I expenses.
Cyprus’ ranking in the Index of Economic Freedom is 48 world rank and 24 of
regional rank, being worse than Kosovo, Romania or Bulgaria.
Economic challenges to stabilising the economy include:
o non-innovative traditional economy
o high government spending
o high public debt
o high unemployment
o high non-performing loans
o high risk of doing business
o lack of innovative business
o state bureaucracy and slow procedures
o state corporations privatisation initiatives
o growing mass poverty and low domestic demand, etc.
The banking sector’s nonperforming loans are equivalent to about 150 percent of
GDP, what badly affects the national economy.

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Our New Presidency is to launch a New Smart Economy as the Primary Driver of a
Thriving National Community having the following features and dimensions:
Innovative
Digital (Electronic, Online, Networked, Internet,Virtual)
Technological
Green
Resilient
Climate
Circular
Social
Inclusive
Intelligent
Smart economy implies the knowledge economy where innovations and
technologies, as AI, robotics, machine learning and automation, are the most
important driving forces. It is using human capital, knowledge, skills, creativity,
transforming ideas into valuable processes, products and services.
A Smart economy in Cyprus will be developed as the intersection between the
New Economy dimensions and Smart Cities and Green Communities National
Strategy.
Thus we plan to create much demanded quality jobs, sharply reducing the youth
unemployment, improving economic income for the most labor force, reaching an
economic growth rate of 6-8% by 2023.

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Smart Cities and Communities
One of the principal the UN SDGs is Goal 11: Sustainable Cities and
Communities.
Our cities and communities should be places of advanced social progress and
environmental regeneration, as well as places of attraction and engines of
economic growth based on a holistic integrated approach in which all aspects of
sustainability are taken into account.
In Smart Cyprus, urban and rural sustainability, innovation, and intelligent
connected technology will be prioritized as key drivers of new smart and green
economy. The Sustainable Smart Cities and Green Communities National Strategy
is to become one of the key presidential actions.
The Smart and Green City Strategy involves developing our territory, urban and
regional areas, as citizen friendly, interconnected and sustainable.
The developments as guided by the Smart Green City planning could be as
different as:
5th generation mobile networks, solar energy urbanization, rural eco farms,
advanced sewage treatment plant, waste water recycling and smart metering, green
housing project, smart learning in municipal schools, public transit project, green
mobility, affordable housing, clean environment, urban knowledge centre, smart
class rooms, muni WiFi, smart LED streetlights, intelligent traffic management
system, city surveillance, and command and control centre.
The strategic components of territorial development in the Smart Cities Mission
are to be as follows:
Centralized intelligent control, monitoring and management of urban systems and
resources; Smart Citizens digital platform and the Urban Internet of Things;
Pan-city initiatives in which Smart and Green Solutions are covering larger parts of
the city, as applied to the existing critical urban infrastructure.
The smart green Cyprus territorial development strategy is to be implemented as
the following programs:
Smart Municipality Clusters: Smart Nicosia, Smart Larnaka, Smart Limassol,
Pafos Smart Eco District;
East Eco Coast of Smart Municipalities: Derynea-Sotira-Paralimni-Protaras-Agia
Napa;
Eco Community Clusters, Green Connected Communities: West Eco Coast of Eco
Villages: Makounta-Argaka-Gialia-Agia Marina-Nea Dimmata-Pomos-
Pachyammos;
South Eco Coast of Eco Villages: Timi-Mandria-Kouklia
Smart Cyprus Seafront Innovation Eco Corridor:
Industrial Parks, International Port Development Parks, Smart Cities and Eco
Communities, from Pyrgos to Pomos to Polis to Pegeya to Pafos to Pafos
23
International Airport to Kouklia to Pissouri to Akrotiri to Limassol to Zygi to
Larnaka International Airport to Larnaka to Xylofagou to Agia Napa to Protaras to
Paralimni to Deryneia to Famagusta.
The Smart Cyprus Development Fund is to be responsible for implementing the
mission in collaboration with the local authorities of the respective cities and
communities.
It is five-year program, where all of the Cypriot territories are participating except
the North Cyprus, while the reunification agreement to be reached. Financial aid
will be given by the Smart Cyprus Development Fund between 2018 - 2023 to the
cities and communities and the mission starts showing results from 2023 onwards.
Each city and community will create the SPV as a public sector company to
implement the smart city/community mission. The execution of projects may be
done through joint ventures, subsidiaries, development companies, public-private
partnership (PPP), municipal bonds, subsidies and grants, bilateral and multilateral
borrowings, turnkey contracts, civic associations, NGOs, etc. The Smart Cyprus
Development Fund will provide a designated funding to the entity, as equal
contribution of each. The entity has to raise additional fund from the financial
market as a debt or equity.
The strategic components of territorial development in the Smart Cities Mission
are to be as follows: 1. city/community improvement (retrofitting), 2.
city/community renewal (redevelopment), 3. city/community extension (greenfield
development using innovative planning, plan financing and plan implementation
tools), 4. combination thereof, 5. pan-city initiative in which Smart Solutions are
covering larger parts of the city, as applied to the existing city-wide infrastructure.

24
Smart Jobs: the Work of the Future
It is critical for future Cyprus to create quality jobs, essentially reducing the
unemployment rate, which stands at over 15 percent, with the highest in Europe
youth unemployment and massive brain drain.
The Smart Cyprus Strategy plans sharply reduce the number of people at risk of
poverty and social exclusion reaching 30%.
In Smart Cyprus, future jobs are created by implementing large-scale smart Cyprus
investment projects, added up with innovative growth-enhancing structural
reforms:
Smart, green, knowledge, inclusive economy, new industry 4.0, advanced digital
infrastructure, sustainable urbanization, research, development and innovation,
health reform, smart social security, or basic guaranteed income.

25
Smart Government-Business Partnership: QUANGOs
Cyprus quangos, quasi-autonomous non-governmental organization, with elements
of both non-government organizations (NGOs) and public sector bodies, are pillars
of our economy and society.
Cyprus quangos employ about 6,000 people and generate about €1.5 billion each
year, and designed by the outgoing president for €1.4b privatisation.
Cyprus Quangos management was marked by embezzlement and fraud,
bureaucratic waste and excess, while being supported by (funding) by the
government and managed by private entities, missing government control and
supervision.
The Smart Cyprus Strategy plans to hold the Cyprus quangos, as the EAC and
CYTA, as the Government Sponsored Enterprises, but with the following business
innovations:
• Deploying intelligent government management platform;
• Presenting a smart business plan to improve the productive performance and
generate sustainable growth with a dividend payment every year;
• Centralizing on investing in R & D & I activities.
Centralized general management of the government will be completed with the day
to day operations of private companies who are experts in the field of each
organisation.
We believe that this will motivate quangos to create new products and services for
the local and global market, become competitive with the private sector in terms of
price and quality, speed, savings and security, increase technology and
infrastructure spending to service their clients faster and increase spending on
training their staff to compete in the marketplace.
We consider organizing new innovative QUANGOs, with a mission to provide
growth and sustainability for the home mortgage market place, for the student loan
lending marketplace, for the green sustainable agriculture and other innovative
sectors of the economy.

26
Smart Social Security
Social security is enshrined in Article 22 of the Universal Declaration of Human
Rights, which states: Everyone, as a member of society, has the right to social
security and is entitled to realization, through national effort and international co-
operation and in accordance with the organization and resources of each State, of
the economic, social and cultural rights indispensable for his dignity and the free
development of his personality.
The total number of people at risk of poverty or social exclusion is sharply
increasing. In 2016, 230,000 individuals, or 27.7 per cent, were at risk of poverty
in Cyprus, which is set at 60 per cent of the national median equivalised disposable
income, up from 180,000 in 2008.
The number of persons severely materially deprived rose to 13.6 per cent, having
living conditions constrained by a lack of resources and experience at least four out
of nine deprivation items. The cannot afford: to pay rent/mortgage or utility bills
on time, to keep home adequately warm, to face unexpected expenses, to eat meat,
fish or a protein equivalent every second day, a one-week holiday away from
home, a car, a washing machine, a colour TV, or a telephone, including mobile
phone.
The Smart Cyprus Strategy will introduce a Guaranteed Minimum Income (GMI),
as a Universal Basic Income, a social welfare provision to guarantee that all our
citizens or families have an income sufficient to live on and have better access to
comprehensive social security.
The at-risk-of-poverty threshold for single adult families makes €8,412, and for
families with two adults and two children younger than 14, to €17,665 euro in
2016.
To avoid mass poverty, the GMI is to be €800 per month, with the minimum wage
no less then €1000.

27
Home and Family
Home and family are the pillars of Cyprus’ society and economy. The traditional
family housing system is under a threat of foreclosing/auctioning the prime family
household.
The Smart Cyprus Strategy plans to negotiate all the household non-performing
loans in the Bank of Cyprus to stop anti-social policies and social insecurity, as
foreclosing/auctioning the prime family household.
The mortgaged household properties will be the key assets of a Safe Home
Authority, with a mission to provide safety and security, growth and sustainability
for the home mortgage market place.
Non-performing loans in the Cypriot banking system, badly affecting the national
economy and social security, make €22.4bn, or 45% of total credit of €49.8bn, of
which the household non-performing loans make only about 10%.

28
Smart Infrastructure
Smart infrastructure enables Smart and Green Cyprus. It is the foundation for
future growth, smart jobs, smart economy, smart government, smart people, smart
communities, cities and districts.
To increase public expenditure and public works is very effective tools in smart
economic growth and high quality jobs.
My presidency is planning to focus on the government infrastructure investment
and RTDI spending along with transfer payments including basic income,
replacing welfare (financial aid) and social security, and subsidies to innovative
businesses (firms).
These two types of government spending will make the one of the major
components of gross domestic product.
Up to 50% of the government expenditure will be allocated for public spending on
integrated innovative infrastructure (physical, ICT, social, research, economic,
tourism, land development, military, rural, urban and environmental).
The Smart Cyprus Strategy is to bring the Critical National Infrastructures (CNI)
Protection Plan, covering all national assets, systems, and networks, whether
physical or virtual, vital for our society, economy, and environment, providing
national safety and security, economic security, political security, cybersecurity,
national public health, military security, etc.
Some of the key innovations of the Smart CNI include:
Centralized intelligent management of CNI systems
Intelligent monitoring including sensor data acquisition, data processing and multi-
source data fusion
Architectures for cyber-physical systems and/or Internet of Things (IoT) for
monitoring and control
Real time data processing for control and optimization of critical infrastructures
Data validation, fault diagnosis and fault tolerant control of critical infrastructures
Data visualization and development of decision support tools for human in the loop
control and optimization of critical infrastructure systems
Cybersecurity in the context of monitoring and control of critical infrastructures
Enabling technologies for emergency management and response
Modeling and simulation of critical infrastructure systems
Reliability, fault tolerance and security at all system levels of critical
infrastructures
Design, integration, validation & test of software and hardware components
Sustainable Critical Infrastructure is to provide for our communities, urban or
rural, economic growth and social well-being, and operation of other basic
infrastructures (hospitals, schools, banking, tourism, etc.).

29
The Smart Cyprus Strategy considers creating a unified CNI legal basis: [SMART
CYPRUS Infrastructure Bill: FIBER-OPTIC, 5G MOBILE, SUSTAINABLE
ENERGY, INTELLIGENT TRANSPORTATION INFRASTRUCTURE
SYSTEMS Deployment ACT of 2018]
The most financing is to come from the EU Funds, Junker’s Fund for Strategic
Investment, National Development Funds and Foreign Sustainable Investment
Funds.

30
Smart Energy
To take the Green Cyprus climate change commitments essentially exceeding the
new EU targets:
• 60%/40% cuts in greenhouse gas emissions (from 1990 levels),
• 50%/27% share for renewable energy,
• 50%/27% improvement in energy efficiency.
All is to be implemented in 2020 and to be achieved by 2028.
The Smart Green Cyprus Strategy implies applying Intelligent Gasfield
Technologies to optimize the gas production from the reservoir, through the wells,
and surface facilities by means of intelligent technologies and systems.
The Smart Cyprus Renewable Energy Sources (RES) capacity will be raised up
from 212MW to 500 MW covering multiple advanced eco-engineering
technologies including wind, solar, geothermal, biomass and wave energy systems.
The smart government’s RES planning is to be many-pronged, consisting of smart
grids, photovoltaic systems for home use, storage batteries, e-cars, etc.
The national electric grid to be fuelled by natural gas will no longer simply be a
system of power lines and structures. Instead, it will be a data-rich smart power
grid network equipped with advanced ICT, autonomous sensors, connected asset
management platforms, and a constant flow of critical infrastructure information.
The Smart Cyprus plans to advance smart RES schema at industrial (solar eco
farms) and individual scales for public buildings and householders; to date only
some 10,000 households have installed photovoltaic systems and the RES
penetration in overall electricity consumption stands at around 10 per cent.
It is planned to stop burning heavy fuel oil (HFO) and diesel for power generation
before 2020 importing LNG for power generation by placing periodically short-
term supply tenders in the open market.
For after 2020, Cyprus will incur serious carbon emission penalties, to be imposed
by the European Commission, to be passed to the Cypriot consumers of electricity,
creating a backlash.
To facilitate DEFA’s plan to import LNG by the end of 2019 so that electricity
production in Cyprus can switch to gas-fired power generation early 2020.
To provide LNG imports through a floating storage and regasification unit based at
Vasilikos, with the estimated investment €340million, 75% from the ‘Connecting
Europe Facility-Energy’ programme.

31
Smart Shipping: the Silk Road Maritime Routes to Europe
Cyprus is at a crossroad of three continents, the first EU country next to the Suez
Canal, making it a huge smart hub in the future.
Cyprus’s shipping infrastructure constitutes an invaluable national asset, both for
the expanded Europe and for the international shipping community in general.
The shipping’s contribution, Registry and Shipping Activity, to the Cyprus
economy is between 6% and 7% of our GDP.
Currently employing about 4,500 people on the island, with some 140 shipping
companies registered here, the Cyprus fleet is amongst the 11 largest in the world
and takes third place in the EU, with a 12% share. This is a drop in comparison to
the past.
Contributing approximately €1bn per year, with a fleet of 1,000 ocean going
vessels of a gross tonnage exceeding 23 million, attracted by the tonnage tax
system.
The Smart Cyprus is to develop smart green shipping program, strengthen shipping
administration, raise the bar for women in shipping, strengthen the local offices,
use the private sector to promote the green Cyprus flag, and all stimulating
measures to attract ships and companies to Cyprus.
To develop Smart “Maritime Cyprus” as
• the largest ship management centre in Europe,
• one of the largest in the world,
• one of the world’s most significant sustainable shipping hub.
The Maritime Cyprus, with the third largest shipping fleet within the European
Union and over 12 per cent of the total fleet of the 28 EU member states and
strategic geographical location, is naturally a key transit hub of the Silk Road
Maritime Routes to Europe.

32
Smart Transportation
Environmental impacts of transport systems include land waste, air, water and soil
pollution, traffic congestion and automobile-oriented urban sprawl, consuming
natural habitat and agricultural lands. By reducing transportation emissions, there
will be significant positive effects on air quality, acid rain, smog and climate
change.
The Smart Cyprus Strategy is to advance Clean Green Cyprus, creating the
Integrated Mobility Master Plan, restraining urban sprawl, promoting the
domination of clean public transit, as electrical buses, the introduction of
Intelligent Transport Systems, smart parking, the use of bicycles, and incentives
(through legislation) for the purchase of car with low CO2 (including electric cars),
eco taxation for fossil-fuel transportation, etc.
Special priority will be given to making sustainable transport infrastructure: roads,
airways, waterways, canals and pipelines and terminals such as airports, bus
stations, warehouses, trucking terminals, refueling depots (including fueling docks
and fuel stations) and seaports.

33
Smart Building and Sustainable Construction: Real estate and land
developing
The construction industry and real estate, with tourism and financial services, are
considered as the backbone of the Cypriot traditional economy, accounting for
nearly 80 percent of GDP.
Manufacturing accounts for only 10 percent and agriculture for 2 percent.
On the expenditure side, household consumption is still the main component of
GDP and accounts for 70 percent of its total use, followed by high government
expenditure (16 percent) and disproportionally small gross fixed capital formation
(11 percent).
The Smart Cyprus is to advance future-proof public works construction to meet
present day needs without compromising the ability of future generations,
promoting sustainable real estate and land development.
The Smart Cyprus is to recognize our responsibility to minimize environmental
impact while advancing innovative solutions for our communities.
To harmonize the built, natural and social environments — we apply digitally
integrated technological, environmental, economic, and socio-cultural
sustainability into every construction project.
All new construction mega projects are to implement green building rating systems
and eco strategies, incorporating economic efficiency, environmental performance
and social responsibility – and contributing to architectural quality, technical
innovation and transferability.
Green building construction is to cover innovative nature-wise residential and non-
residential, commercial and institutional, as government buildings, educational,
civic or cultural buildings; medical facilities, hospitals; service facilities,
infrastructures and utilities, schools, hotels, airports, etc.
Eco industrial construction is to include future-proof gas plants, refineries, process
chemical, green power generation, and waste-energy and water treatment
manufacturing plants.
Sustainable Infrastructure is to include large public works, dams, bridges,
highways, energy, water or wastewater and utility distribution, as the basis for
creating a smart national economy and smart city and green community
redevelopment.

34
Smart and Green Tourism
The Smart Cyprus Strategy will pursue comprehensive, integrated, and
implementable sustainable tourism policies and climate change strategy in the
whole island context.
Tourism is one of the most important sectors of the Cypriot economy, with a high
contribution to GDP and employment. The sector faces structural and other
weaknesses and loss of competitiveness due to lack a sustainable tourism strategy;
regulatory inefficiencies and weak governance.
Tourism dependency is a concern for Cyprus, as one of the largest Mediterranean
islands, be-cause it means that our livelihoods are dependent on outside interests,
on British or Russian tourists.
The Smart Cyprus Strategy is to create a Smart Sustainable Tourism Strategy for
the period to 2028, with the advanced institutional framework and legislation and
procedures of the tourism sector, as the new regulatory framework.
Aims are to improve the performance and revenue yield of the tourism sector and
establish a sustainable tourism model, by improving the competitiveness of the
industry, developing an enriched and diversified tourism products and services and
a smart ecotourism brand, expanding and diversifying tourism markets, and
solving the seasonality problem.
Sustainable tourism policies will address to climate change in different sectors
from community design, building, or construction to health, energy,
transportation and water, as well as upgrading quality of tourism services and
accommodation and extending seasonality.
The key idea: Cyprus should adopt a premium green tourism strategy, aiming
for higher spending tourists rather than just maximizing tourists’ arrivals.
Smart Cyprus is to become a Leading Travel Destination of High-Quality Tourism.
Smart Tourism is the business of providing smart services to tourists.
Some innovations for sustainable and smart high-quality tourism are as follows:
Ecotourism, tourism to unique territorial ecosystem to preserve nature and observe
wildlife
i-Cyprus Guest Portal: Tourism & Hospitality & Shopping Web Platform
Smart Property Platform
Quality Tourism, BTMITCE, Business Travel, Meetings, Incentive Travel,
Conventions and Exhibitions, BTMITCE visitors contribute most of the total
visitor arrivals
Smart Digital Steward, Custodian, Keeper, or Intelligent Travel Agent Portal
provides new integrated experience, seamless interactions, and personalized
information (on culture and history, national plans and projects, conference
schedules, attractions, tours, shopping and retails, etc.) and one-stop services,
commercial and public, through mobile internet for full life cycle trip (pre-trip,
35
during trip and post-trip): Personalized Portal, Digital Travel Plan, Online
Booking, Visa Registration, Airport/Seaport (arrival), Accommodation, Hotel,
Beach, Sights and Activities, Shopping and Eating Facilities, Country’s Touring,
Leisure and Entertainment, Airport/Seaport (departure), Personalized Portal
Monitoring
Target: Triple tourism receipts, double quality visitor arrivals, create smart tourism
jobs
Intelligent Travel Agent System as a commercial module of the i-Cyprus Platform
needs to merge offerings form the various service providers, testing its added-value
service chain with the BTMITCE visitors.
It requests from the Government to introduce standard identity management
system (biometrics, tourist card, mobile code access, etc.), coordinate various
content providers, to stimulate companies to provide focused services, and to
supply a free internet access anytime and anywhere to the required infrastructure,
as wireless broadband network, and services, as NFC payments and location-based
content and services, private and government, via the i-Government portal.

36
Smart Education
Many countries are now changing the way they educate their citizens. The world is
changing at fast rate, our school and university programs become obsolete and
inaccurate.
The emphasis is therefore shifting to teaching the skills of learning, self-education,
to picking up new knowledge quickly as possible.
Educational innovations and intelligent technologies will be applied at all stages as
preschool or kindergarten, primary school, secondary school, college, university,
or apprenticeship and long-distance learning and life-long education.
The Smart Cyprus is to invest in Advanced School Teachers Education Programs,
innovating Smart School digital infrastructure, technologies and services at all
public schools.
Smart classrooms are to be connected to the Internet through Wi-Fi or wireless
broadband and are equipped with desktop PCs, notebooks, tablet or mobile
devices. The next-generation classrooms are evolving from isolated learning
environments into interactive and collaborative learning environments for, as part
of global collaborative learning centers. Fast internet access in schools, along with
digital content development and learning management systems, is to foster real-
time communication between students and teachers.

37
Smart Health: Innovative, Efficient and Sustainable Health Systems
The Euro health consumer index based on waiting times, results, and generosity
ranked Cyprus 26th of 35 European countries in 2016, commenting that it did not
really have a public healthcare system in the general European meaning of the
term. For instance, it has the highest rate of caesareans in the world.
The Smart Cyprus Strategy will prioritize government spending on social
infrastructure, specifically, preventative health care, saving hundreds of millions of
euros per year, because, for example, cancer patients are more likely to be
diagnosed at Stage I where curative treatment is typically a few outpatient visits,
instead of at Stage III or later in an emergency room where treatment can involve
years of hospitalization and is often terminal.
The Smart Cyprus is to attract investment in digital health and launch Smart Public
Hospital Network project as part of developing Smart Healthcare Strategy in
Cyprus.
The goal is to develop the first-class hospitals that will integrate smart medical
technologies and healthcare systems in all hospital clinics and departments,
including the emergency room, operating rooms, intensive or acute care areas,
treatment areas such as emergency, radiology and radiation oncology, as well as
specialty areas, including central supply, pharmacy, and biomedical engineering.
Healthcare in Cyprus accounted for 7% of its GDP, with a multi-payer health care
system that consists of a public and private sector. The public sector is funded by
payroll, earnings taxes, and employer contributions providing a social insurance
for the employed, self-employed, and for several types of civil servant.
The Ministry of Health is responsible for the organisation of the health care system
in Cyprus, its National Health Schema/Service/Insurance System and state-
financed health care services to 65-75% of the population.
Health care in Cyprus is mostly delivered through public services, its four main
general hospitals in Nicosia, Limassol, Larnaka and Pafos.
The current healthcare system is to be replaced with a National Health System to
provide universal coverage includes or dental, mental health and pharmaceutical
services, and general public health resources.
The proposed NHS is designed to meet the challenges of the current system and
achieve universality in coverage, good quality of care, equity, solidarity and long
term financial sustainability.
Essentially, the proposed NHS is lacking advanced medical infrastructure and new
services, quality specialists and modern medical equipment, with relatively low
National Healthcare Expenditure.

38
Smart Finances: Non-performing loans sustainable solution
Major concern of Cyprus: Private Banks, NPLs and Repossessions Bill.
The nation is standing the geopolitical and economic risks to be thrown to
insecurity, poverty, destitution and insolvency, mainly, due to the governance,
supporting the troika-induced repossessions law and property foreclosures to
handle on NPLs.
The banking sector has been unstable and nonresilient, with the ratio of
nonperforming loans (NPLs) at 60 percent, equivalent to 150 percent of GDP,
adversely impacting the national economy.
The present presidency is planning to sell Cyprus cheaply, the most Cyprus
properties and development projects to private companies, just paying from 1% to
80% of the total loan and becoming the legal owner (creditor) of our national non-
performing assets.
Bad loans are arising from bad lending practices of the banks, and the restructured
non-performing loans are becoming non-performing again and again.
Given the social, economic and political repercussions, our smart strategy for
stimulating a new economy is to relieve the Cyprus’ households and innovative
companies from any NPLs.
Worldwide, the most common and successful approach towards NPL management
is the establishment Asset Management Companies to avoid selling Cyprus to
private companies paying from 1% to 80% of the total loan and becoming the legal
owners of our national assets.
The Smart Cyprus Strategy considers establishment of the Smart Cyprus Asset
Management Company using public or bank funds to remove NPAs from the bank
books for the first homes as well as innovative and sustainable land development
projects.
All nationally significant large-scale development projects registered in the bank
books as non-performing assets will come under the management of Smart Cyprus
Asset Management Company.

39
Smart Research and Innovation: Future and Emerging Technologies
The Smart Cyprus is to sharply raise the public R&D&I budget, stimulating
universities and private sector smart investments. Around the world, governments
spend more than $1.7 trillion a year on research and development, with economists
suggesting 20% return.
To create Cyprus’s science and technology base and competitive research and
innovation, our presidency is to sustain researchers and innovative companies,
aiming to solve techno-societal challenges – in infrastructure, ICT, energy,
healthcare, climate, security, food, water, waste, transport, human communities,
and social cohesion.
The Smart Cyprus will advance research and innovation by Future and Emerging
Technologies Megaprojects, or national flagships, as integrating ICT; health and
life sciences; energy, environment and climate change, being supported by the
national development fund and the EU funds.
Smart Cyprus Investment Fund will provide initial seed money for promising ideas
on topics ranging from artificial intelligence, machine learning, robotics and
automation, to nanotechnology, new materials, green energy production,
conversion and storage devices, and projects that offer new insight in advanced
manufacturing, eco-engineering, human biology and social life.
The projects to support will cover living technologies, socially interactive
technologies, artificial organs, human cryogenics, and micro-energy technologies.
There will be support for projects that develop intelligent community platforms,
digital smart territories, new smart algorithms, software, big data analytics, and
intelligent hardware, developed with international partners providing their own
funding.

40
Smart Taxation: The Unified Tax Reform Framework
The tax relief plan will strengthen the middle class, grow the innovative economy,
and unleash economic comeback.
The smart taxation plan consists of few innovations: special contribution for
Science, Research, Technological Development and Innovation (SRTDI), tax cuts
for hard-working Cypriotes, a simpler tax code, lower smart business tax rates,
wealth tax, land tax, research and innovation tax, and bringing wealth back to
Cyprus.
Presently, the top personal income tax rate is 35 percent; the top corporate tax rate
is 12.5 percent. Other taxes include a value-added tax, 19%, and a real estate tax.
The overall tax burden equals 36.3 percent of total domestic income.
My presidency will introduce the top personal income wealth tax rate to be raised
to 45 percent from 35%, to finance smart Cyprus infrastructure projects.
The value-added tax, 19%, will be structured as 15% plus 4% SRTDI taxes. Basic
food taxes should be reduced to 10%.
The top corporate tax rate is to become 15 percent including 2.5% innovation taxes
on SRTDI.
The overall tax burden must be reduced from 36.3 percent to 30% of total domestic
income.
Consolidate the existing 5 tax brackets for taxable income 0%, 20%, 25%, 30%,
35% to 4 brackets: 12 percent, 25 percent, and 45 percent.
This unequal distribution of national wealth causes social and economic instability
in Cyprus. The Smart Cyprus Strategy is to introduce a one-off wealth tax, capital
tax, equity tax, or net worth tax, 15%, both for natural persons and legal persons
such as corporations on any net assets above €800,000.
The Smart Cyprus Strategy plans a land/location value tax, a site valuation tax,
split rate tax, site-value rating, as an ecotax to reduce inequality and secure
balanced urban and territorial development.
It is also planned an ecotax (ecological taxation on fossil-fuel energy sources)
levied on activities harmful to the environment to promote eco-social market
economy.
Increased government revenue from a wealth tax, and tax and ecotax could be used
to promote public investment in services like urban development, health and
education, science, research, and innovation, telecommunication and transportation
infrastructure. Increased government revenue from a wealth tax coupled with
reasonable government spending would reduce public debt and so free more credit
for the private sector to promote business. A strong, steadily growing economy
could in turn increase tax revenues further, allowing higher quality of life and more
inclusive society.
Last not least, it is streamlining the tax filing process online to a single page.
41
The present tax system in Cyprus based on the current tax legislation and practice
is rather complicated to allow tax evasion:
Income Tax - Individuals; Income Tax - Companies; Profits from Intellectual
Property; Special Contribution for Defence; Profits from Shipping Activities;
Capital Gains Tax; Special contribution; Estate duty; Immovable property tax ;
Value added tax; Trusts; Transfer fees by the department of land and surveys;
Social insurance; Stamp duty; Companies Registrar Rights and Fees; Capital duty,
etc.

42
Smart Government: technological integration of the citizens, the
executive, the legislative, and the judicial
The New Government through the use of fundamental innovations and i-
government technologies is to become smart, sustainable and innovative, or
effective and efficient and friendly to citizens and businesses.
I-Government (short for intelligent government, also i-gov, smart government,
virtual/online cyber government, or smart connected government) is digitally
intelligent interactions between a Government (Executive, Judiciary and
Lawmakers) and citizens (G2C), government and businesses/Commerce (G2B),
government and employees (G2E), and government to governments /agencies
(G2G).
I-Government succeeds smart government, transformational government, as well
as e-government, with its subdivisions: m-government (mobile government), u-
government (ubiquitous government), and g-government (GIS/GPS applications
for e-government).
4I-Government Platform provides an ultimate vision of an integrated portfolio of
government activities and public projects, like optimal budgeting, smart civil
technologies, natural resources protection, public space management, intelligent
policing, finance control, transportation efficiency, etc.
The new smart government is to automate and put in place intelligent systems such
as authentication, identification, electronic signature, workflow systems, etc.
To eliminate bureaucracy, all types of interactions with the government will be
done on-line, through the internet and/or through Smart Citizens Centres.

43
Smart Fiscal Policy
The Smart Cyprus Strategy will rationalize government spending as a major
component of fiscal policy to advance diversity, equality and inclusion and
stabilize the macroeconomic business cycle.
Of all the public expenditure, government consumption, investment, and transfer
payments, we will prioritize government spending on social security and
innovative critical national infrastructures, physical and social, and their facilities
for sustainable and smart:
 agriculture and marine aquaculture of blue economy, food production and
distribution;
 transportation systems (fuel supply, airports, harbours, shipping);
 electricity generation, transmission and distribution;
 gas/oil production, transport and distribution;
 ICT and telecommunication;
 water supply (drinking water, waste water/sewage, stemming of surface
water (e.g. dumbs, dikes sluices, rainwater systems);
 heating (e.g. natural gas, fuel oil, district heating);
 public health (hospitals, ambulances);
 financial services (banking, clearing);
 security services (police, military).
The state’s wage bill is projected to reach €2,342 million up 3.7% compared with
2016, whereas social transfers, that include welfare benefits, are projected to reach
€2.573 million marking an increase of 1.3% compared with €2.539 in 2016.
The Smart Cyprus considers optimizing operating expenses, subsidies and
transfers, capital expenditure and interest payments on debt, and staff costs.

44
Smart Court System
The Cyprus judicial process is traditional and has undergone no innovation or
modernisation for many years.
As a result, there are 10-15 years delays in the administering of justice in Cyprus
ending with huge citizens’ expenses and biased judgments, while feeding the slow
and ineffective justice system and thousands of lawyers.
The smart reforms of the Court System are based on 5 pillars:
• innovative court reform,
• diversification of courts, administrative, criminal, commercial, family, civil,
• amendment of civil procedures,
• introduction of an i-justice system,
• replacement of human judges by innovative decision-making systems, legal
knowledge bases, ML algorithms, and AI-supported legal systems.
The setting up of a court administration/management smart information
system for the courts (i-justice) will be initiated.
The smart court system will essentially result in the computerization of all
administrative processes between legal and physical persons and the courts’
administration as well as all processes within the courts’ procedures.
This is anticipated to result in a smoother, swifter and effective functioning of the
courts. The procurement of the system has been initiated and it is anticipated that
the system will become operational by Q3 2018.

45
Smart Anti-corruption Environment: effects on politics,
administration, and institutions
According to 2016 results of Corruption Perception Index of Transparency
International, Cyprus ranks 47th place out of 176 countries.
The Smart Cyprus Strategy acts as an anti-corruption policy not falling into a
kleptocratic state of political corruption, where the government officials using
powers for illegitimate private gain, undermining democracy and good governance.
The Nation reads of all forms of corruption: all sorts of fraud, land scam, bribery,
extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft,
and embezzlement. It affects the judicial system, the police, public services, land
administration, tax administration, customs administration, public procurement,
banking system, etc. This all facilitates criminal enterprises as drug trafficking,
money laundering, and human trafficking.
The government is virtually doing nothing to enquire into the causes of the 2013
banking sector crisis instigated by an unhealthy corrupted relationship between
politicians and bankers. Banks had written off loans to politically connected
debtors, and many others had benefited from insider information before the
imposition of capital controls.
One should add up the public allegations and counter-allegations of corruption
between the Attorney General and his deputy; criminal proceedings for bribery of a
former governor of the Central Bank of Cyprus; a criminal trial against the former
officials of Marfin Laiki Bank; corrupt dealings of the Paphos Sewerage Board
involving two former mayors, now in jail, and town councilors, new allegations of
corrupting practices of all leaders of big political parties; plus the land scamming
of the government the granting of the use of state land to individuals on a
preferential basis businesses, including Turkish Cypriot properties; most largest
developers and land owners are publicly alleged in the land scamming instigating
the real estate and construction crises
On the top add the wasting of the taxpayers’ money by the government before
presidential elections, as the recent decision by the Council of Ministers to
subsidise the qualification practice of unemployed 1200 law graduates, while
Cyprus needs researchers, scientists, IT specialists and engineers.
There is currently no legislation obliging politicians or high-level officials to
disclose their assets, as being “incompatible with constitutional provisions on
privacy”. There is the dead Law on the Illicit Enrichment of Public Officials and
Officers, which codifies the offence of illegal acquisition of property by ministers,
members of parliament, mayors and other senior officials and officers of the state.
It provides for assets acquired in breach of its provisions to be confiscated, but no
prosecutions under it have ever been reported.

46
Parliament amended Article 15 of the Constitution with effect from 4 April 2016 to
allow asset disclosure for reasons of transparency of public life and prevention of
corruption. This enables legislative changes regarding the disclosure of assets of
the president, ministers and members of parliament as well as other public
officials.
As it stands now, corruption erodes the institutional capacity of government for
formal procedures disregarded, resources are siphoned off, and public offices, as
well as political parties are bought and sold.
The Smart Cyprus Anticorruption Strategy to systematically counteract, prevent
and detect, corruption in elections and in the legislature reducing accountability
and distorting representation in policymaking; corruption in the judiciary
compromising the rule of law; corruption in public administration resulting in the
harmful or inefficient provision of services, as corruption in public procurement at
national and local level; corruption in the funding of political parties; and corporate
corruption offences; while supporting active citizen reporting on crimes and
corrupt practices.
Specifically, the Smart Cyprus Strategy is to legalize the disclosure of assets of the
president, ministers and members of parliament as well as other public officials.
The Smart Cyprus Anticorruption Strategy will take into account the provisions of
International Conventions on Corruption, the recommendations by GRECO, the
European Commission and the United Nations, as well as the good practices of
other countries, existing laws and the outcomes of consultations with stakeholders
from the public and private sector.

47
Smart Natural Environment
[Low-carbon green development strategy, resource efficiency, renewable energy,
water, waste, pollution, green infrastructures, climate policies; green cities and
communities; Natura 2000 Network]
Cyprus has a semi-arid climate and limited water resources for domestic and
irrigation depending mainly on rainfall. Droughts and water scarcity is a major
challenge for Cyprus, having the least available water per capita among the EU
Member States.
The Smart Cyprus will implement the most optimum use of non-conventional
water resources, such as desalination, recycling and rain water collection systems,
promoting smart water supply projects and urban wastewater treatment plants.
It will be created an Environmental Legal Framework for the Water and Soil
Pollution Law, the Air Pollution Law, the Waste Law, and the Industrial Emissions
Law, with an integrated environmental permitting and inspection system.
Smart Waste Management Strategy is a comprehensive, integrated 5-year
management strategy on waste streams to ensure a high level of protection of the
environment and human health, as well as the achievement of the high quantitative
targets set in the European Waste Directives and Europe 2020. Almost 80% of the
quantities of municipal waste produced is landfilled; there are illegal landfills
(Nicosia and Limassol) to be closed and rehabilitated.
The basic objective is to achieve by 2023 a 60-70% recycling of paper, plastic,
metal and glass a 70% separate collection of municipal waste.
Smart Water Management to provide effective water demand management for the
exercise and application of a sustainable water policy strengthening the resilience
of the aquatic ecosystem to adapt to climate change. To this end, various
innovative measures, as smart meter infrastructure, aiming at improving the water
consumption and reuse are to be implemented, considering the Water Framework
Directive 2000/60/EC (WFD).
The Smart Cyprus plans to optimize the use of water in agriculture, applying eco-
engineering systems and smart technologies to reduce the cost of food and make
Cypriot products more ecological and competitive abroad.
In the field of waste water, the priority is the full implementation of the Urban
Waste Water
Treatment Directive within the Smart City National Strategy.
We are to protect the Natura 2000 network as key part of Smart Green Cyprus
Plans investing in Natura 2000 for the benefit of Nature and People, namely:
Protecting Flora and Fauna Areas
To this day seven (7) Nature Protection Areas have been declared totaling an area
of 4788,4 hectares, all included in NATURA 2000:
1. Tripylos; 2. Pikromiloudi; 3. Livadi tou Pashia
48
4. Chionistra; 5. Presidential Residence
6. Madari; 7. Mavri Gremmi
NATIONAL FOREST PARKS
In Cyprus ten (10) National Forest Parks have been declared, covering a total area
of 15627,22 hectares

EU NATURA 2000: the European network of protected areas

The Habitats Directive. The Birds Directive. Council Directive 92/43 EEC on the
conservation of natural habitats and of wild flora and fauna.
In all, Smart Cyprus will provide the innovative national system for eco-
sustainable policies and measures and projections, the sustainable community
development, the low-carbon development strategy, climate policies and measures
and greenhouse gas management.

49
Foreign Military Bases
Cyprus has the foreign military bases on the island disrupting its national security.
The Smart Cyprus is to remove all foreign military forces from the island, British
Sovereign Base Areas, as well as Turkish military bases as part of a future
settlement of the Cyprus dispute.
The Sovereign Base Areas of Akrotiri and Dhekelia is a British Overseas Territory
on the island of Cyprus, created in 1960 by the London and Zurich Agreements,
when Cyprus achieved independence from the British Empire.
Akrotiri and Dhekelia cover 3% of the land area of Cyprus, a total of 254 km2
(split 123 km2 at Akrotiri and 131 km2 at Dhekelia), of which 40% is controlled
by the Ministry of Defence as the Crown leasehold land plus territorial waters of
5.556 km as claimed and 22.224 km as reserved.
Drew up plans to withdraw the UK's 3,000 strong garrison and end the use of
Cyprus as a staging point for ground forces.
Besides the national security issue of being involved in the global surveillance
network, code-named "ECHELON", under the UKUSA Agreement, there several
other reasons for removing the British bases: historical, legal, ecological and
political.
The areas have their own colonial legal system, distinct from the Republic of
Cyprus, consisting of the laws of the Colony of Cyprus as of August 1960.
The areas have ancient Cyprus monuments and antiquity (Kourion, the Sanctuary
of Apollo Hylates near Kourion, the Stadium of Curium and the Church and
remains of the Holy Monastery of St Nicholas of the Cats).
The Sovereign Base Areas covers 5 Special Areas of Conservation (SACs):
Akrotiri, Episkopi, Cape Pyla, Dhekelia and Agios Nikolaos, which under the
Protection and Management of Nature and Wildlife Ordinance and key part of the
network (NATURA 2000) of SACs in Cyprus. It is estimated that over 2 million
birds were killed in 2015 including over 800,000 on British Territories. Besides,
the beaches in the British Sovereign Base Areas (SBAs) are important nesting sites
for the endangered green Chelonia mydas and loggerhead Caretta caretta turtles.
Brexit, the prospective withdrawal of the UK from the EU, makes Cyprus as a
Member State to reconsider its international agreements with Britain.
The freed territory is to serve as EU Signals Intelligence Center of the Cyprus
Ministry of Defence and the European Defence Agency to provide a vital strategic
part of the national and European communications intelligence and electronic
intelligence gathering, monitoring and management network in the Mediterranean
and the Middle East.

50
Smart Defense: a National Cyber force
The Cypriot forces are presented by the National Guard (Εθνική Φρουρά, Ethnikí
Frourá), which is the combined arms military force, consisting of Air, Land, Sea
and Special Forces, integrated with its first and second line reserves, as well as
supporting civilian agencies and paramilitary forces.
The Cyprus National Guard has since 2016 aimed to move towards semi-
professionalization, the military serviced time was reduced to 14 months, whilst
about 3, 000 professional soldiers were hired. The way in which the semi-
professionalization has been conducted has been publicly criticized as
unprofessional and undermining the ability of the military force.
Still, Cyprus is military occupied having the foreign military bases on the island
damaging its total national security.
The Smart Cyprus will remove all foreign military forces from the island, British
Sovereign Base Areas, as well as Turkish military bases as part of a future
settlement of the Cyprus dispute.
The freed territory is to serve as EU Signals Intelligence Center of the Cyprus
Ministry of Defence and the European Defence Agency.
The goal is to build a modern National Guard with integrated Cyber force devoted
to cyberwarfare, cybersecurity and counter-cyberwarfare, defending the national
critical infrastructures from attacks that may occur in cyberspace.
It is to provide a vital strategic part of the national and European communications
intelligence and electronic intelligence gathering, monitoring and management
network in the Mediterranean and the Middle East.

51
Smart Space
The Smart Cyprus Strategy is to launch Cyprus into the new space era, advancing
the space exploration, astronautics and astronomy and fostering a close
collaboration with the European Space Agency and the space-faring nations in
space science and planetary missions
The Smart Cyprus will support Cyprus Space Exploration NGOs promoting space
education and scientific research and development in space exploration,
astronautics and astrophysics.
The Future Cyprus is to be placed on the space industry map, via supporting:
Space related R & D,
Innovation through the development of a local internal market for space,
Developing the local space industry,
Local high-technological competitiveness,
Native intellectual human capital,
Education and training for the future generation of space scientists and engineers,
from an early school age,
Academic and industrial collaboration through joint space project participation.

52
Smart Cyprus Immigration Policy
The Smart Cyprus Strategy is to launch Smart Citizenship Schema for the highly
qualified third country nationals to increase the human capital by attracting the
world-class scientists and engineers, researchers and innovators.
The acting the Investment Citizenship Schema will be subjected to the following
alterations.
Minimum smart investment is €2mln for five years.
€1mln additional financial donations to Smart Cyprus Fund for RTDI and Inclusive
Development or providing 10 high quality jobs for knowledge workers
Cyprus passport within 6 months
Investment to be kept for 5 years
Wide range of investments – research and innovative activities, eco construction
projects, innovative residential or commercial properties, smart Cyprus investment
funds, shares of innovative companies, smart government bonds.

53
Smart Property Financing: Smart Cyprus Bonds Investment
Sustainable development involves intelligent eco vision/planning and latest
technological innovations for new or retro-fit projects at various phases is
emerging global investment priorities.
Aims of Smart Government Bonds is to advance smart cities and eco-communities
development programs and large eco-smart development projects, eligible for
innovative investment from the EU’s funding agencies and credit institutions as
European Investment Bank (EIB).
As part of the scheme, the Bank of Cyprus, the Group’s Investor Relations
Department, is to be stimulated in the Investment Program, BOC-EIB "Smart
Cities & Sustainable Communities & Property Developments".
The Program involves the financing through a Framework Loan of large smart
economic investments in Cyprus for a total amount in excess of EUR 1 bn.
The Program is to support an innovative approach by a number of Cyprus
municipalities and advanced property developers of the concept of "smart cities &
sustainable property development", with the common purpose of improving land
use and environmental sustainability, urban regeneration, infrastructure and
buildings, mobility, energy efficiency and local eco economy, see the link below.
The Program is to transform key collateral assets as high projects, rendering urban
or rural areas as environmentally, economically and socially sustainable, thus
maximizing both the financial IRR (assets portfolio, capital efficiency, and
mortgage repayment), and the ERR for socio-economic benefits.
The Smart Cyprus is to promote the EIB-Cyprus-EIP 10bn smart development
financing scheme rebuilding Cyprus as a model Member State committed to
sustainable development of land, infrastructure, building, community, or city.

54
Smart Cyprus Investment by EU Funds
To restructure the economy, create new jobs and safeguard social cohesion, only
€956mln has been allocated to Cyprus for the Programming Period 2014-2020
from the European Structural and Investment Funds (ESIF), as follows:
European Regional Development Fund (ERDF), European Social Fund (ESF),
Cohesion Fund
(CF) and Youth Employment Initiative (YEI): €784mln.
European Agricultural Fund for Rural Development (EAFRD): €132,2mln.
European Maritime and Fisheries Fund (EMFF): €39,7mln.
The funding priorities should be as follows:
1. The competitiveness of Cyprus economy,
2. Human resources, employment and social cohesion,
3. Protecting the environment and promoting the efficient use of resources.
In order to attain the aforementioned priorities, the present government
confusingly spending the allocated ESI Funds as the following Thematic
Objectives: 1. Research & Innovation €72,27mln; 2. Information and
Communication Technologies (ICT) €73,82mln; 3. SME Competitiveness
€116mln; Energy €80,59mln; 5. Climate Change €23,07mln; 6. Environment
€203,4mln; 7. Transport €99,25mln; 8. Employment €92,55mln; 9. Social
Inclusion and Poverty €55,55mln; 10. Education-Life Long Learning €80mln 11.
Institutional Capacity and Public Administration €5,06mln; Technical Assistance
€27,04mln; €32,7mln to European Territorial Cooperation, €48,4mln to
Connecting Europe Facility.
The Smart Cyprus is to secure from the Post-2020 EU Funds for Smart
Cyprus Strategy up to €6--7bn.

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Smart Cyprus International Investment
As the first steps, we propose to consider organizing the following organizational
structures:
1. Cyprus-China “Smart Maritime Silk Road” Commission
2. Cyprus-China “Smart Maritime Silk Road” Foundation
The Silk Road Economic Belt and 21st Century Maritime Silk Road - the One Belt
and One Road Initiative (OBOR), the Belt and Road (B&R) and the Belt and Road
Initiative (BRI) (OBOR) - is China’s megaproject to advance global trade and
economic development.
It focuses on connectivity and cooperation between Eurasian countries, including
the land-based Silk Road Economic Belt (SREB) and the oceangoing Maritime
Silk Road (MSR).
At its core is a debt-financed infrastructure development strategy realized by the
newly created financial institutions, the $100b Asian Infrastructure and Investment
Bank (AIIB) and $40b Silk Road Fund.
Stretching from Asia to Europe, it encompasses more than 60 countries, the
territories rich of natural resources, 63% of the world population and $21 trillion of
economic potential. Anticipated cumulative investment is put at US$4 trillion or
US$8 trillion, with official figures stating that there are 900 deals underway
currently.

56
Smart Mega Investment: Maritime Cyprus in the Maritime Route
The Silk Road Economic Belt and 21st Century Maritime Silk Road (MSR) - the
One Belt and One Road Initiative (OBOR), the Belt and Road (B&R) and the Belt
and Road Initiative (BRI) (OBOR) - is China’s megaproject to advance global
trade and economic development.
It focuses on connectivity and cooperation between Eurasian countries, including
the land-based Silk Road Economic Belt (SREB) and the oceangoing Maritime
Silk Road (MSR). At its core is a debt-financed infrastructure development
strategy realized by the newly created financial institutions, the Asian
Infrastructure and Investment Bank (AIIB) and Silk Road Fund.
Stretching from Asia to Europe, it encompasses more than 60 countries, the
territories rich of natural resources, 63% of the world population and $21 trillion of
economic potential. Anticipated cumulative investment is put at US$4 trillion or
US$8 trillion, with official figures stating that there are 900 deals underway
currently.
Considering Cyprus strategic location in the Maritime Route, about 3 years as we
had been proposing the president to take an active part in the Belt and Road
Initiative [“On the maritime Silk Road” Article in the Cyprus Weekly (December
19, 2014)]. In May 2017, Cyprus has finally become a full member of the AIIB,
with the prospects of access to investment funds.
We share a vision of the China-Cyprus MSR smart cooperation strategy which
opens considerable investment opportunity for the new Cyprus government and
corporations for a wide range of nation’s infrastructure projects, including
sustainable transport, construction and building, water and waste, energy,
telecoms, social and health. Who to benefit from the Smart China-Cyprus MSR
include local authorities, corporates and professional services companies, from
engineering to telecommunications, from banking to legal services, as well as our
citizens.
The Silk Road was a key factor in the development of the civilizations of China,
India, Persia, Rome, Central Asia, Africa, Europe, and Arabia, providing political,
economic and cultural interactions between the civilizations and cultures.
The Silk Road represents a historical lesson of political, economic and cultural
integration due to inter-regional trades and cultural communications.
The revival of the Great Silk Road was first proposed by the former European
Commission (EC) when the Central Asian countries – Kazakhstan, Kyrgyzstan,
57
Tajikistan, Turkmenistan and Uzbekistan – became independent nations in 1991.
The EC’s Silk Road was to connect Europe with Central Asia through the
International Transport Corridor Europe-Caucasus-Asia (TRACECA)
Latter the US introduced the ‘Silk Road Strategy Act’ in 1999, update with the
‘Silk Road Strategy Act of 2006’, to secure long-term US interests in the Central
Asia and the South Caucasus and later Afghanistan, advance regional security and
cooperation, as exemplified with the Turkmenistan-Afghanistan-Pakistan-India
(TAPI) gas pipeline.
The UN planned to revive it as a trans-Asian highway. Conceived as a
transcontinental railway linking Russia and China with Europe via Kazakhstan, the
Eurasian Land Bridge is sometimes referred to as the "New Silk Road".
A Bold Initiative
A year ago, China’s president, Xi Jinping, has come with a multiregional
innovative initiative to revive a Silk Route economic belt, proposing “to open the
strategic regional thoroughfare from the Pacific Ocean to the Baltic Sea, and
gradually move toward the set-up of a network of transportation that connects
Eastern, Western and Southern Asia”, with the routes as shown in the new map.

The Belt and Road initiative is geographically structured along 6 corridors, and the
MSR.
New Eurasian Land Bridge, running from Western China to Western Russia
China–Mongolia–Russia Corridor, running from Northern China to Eastern Russia
China–Central Asia–West Asia Corridor, running from Western China to Turkey
China–Indochina Peninsula Corridor, running from Southern China to Singapore

58
China–Myanmar–Bangladesh–India Corridor, running from Southern China to
Myanmar
China–Pakistan Corridor, running from South-Western China to Pakistan
Maritime Silk Road, running from the Chinese Coast through Singapore to the
Mediterranean
Restoring our historical position
Lying at the intersection of Africa, Asia and Europe, Cyprus was a key transit
island of the Silk Road Maritime Trade Routes, as indicated in the old map.

Cyprus could much benefit by restoring its historical place in the China’s New
Maritime Silk Road, contributing to “a five-way progress in policy
communication, infrastructure connectivity, trade link, capital flow and
understanding among peoples”.
Maritime Cyprus, with its port facilities, could be a key transit port in the Med Sea,
as supported by the Silk Road Fund.
Cyprus could be the best sustainable Maritime Silk Route link to Europe and the
Trans-European Transportation Networks.
OBOR as a Great Silk Smart Route
The Smart City “X” Consortium, a founding member of the European Innovation
Partnership on Smart Cities and Communities presented the “Smart Silk Road”
Integrated Strategy for the key stakeholders of the major project of the 21st century.
Combining the EC’s “Great Silk Road” and the US “New Silk Road”, it is
advancing China’s Silk Road Economic Belt and 21st Century Maritime Silk Road

59
as the East-West Innovation Corridors of Sustainable Nations and Smart Eco Cities
and Communities.
The 21st century Great Smart Silk Road is planned as an interconnected network of
sustainable transportation routes across the Asian continent connecting east, south
and west Asia with the Mediterranean region, as well as north and northeast Africa
and Europe and Russia.
The whole idea is to restore the Great Eurasian Silk Roads as a transmission
channel of people and goods, ideas, beliefs and inventions, knowledge and
technologies, providing economic, political, social, cultural and territorial unity for
the regions and states concerned.
Covering a 3 billion population and more, the 21st century Great Silk Smart Route
is to bring peace, progress and prosperity for a substantial part of the world’s
population, including Cyprus and the unstable regions of the North Africa and the
Middle East.
The Maritime Cyprus, with the third largest shipping fleet within the European
Union and over 12 per cent of the total fleet of the 28 EU member states and
strategic geographical location, is naturally a key transit hub of the Silk Road
Maritime Routes to Europe.

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FUTURE CYRUS Growth Programs 2018-2030
National Program of Intelligent Sustainable Infrastructure (Telecommunications,
Energy, Transportation, Water, Waste, Construction, Environment)
National Program of Innovative ICT and Broadband Knowledge Economy
National Program of Smart Eco Territories (communities, villages, towns, cities,
districts, and country)
National Program of Science, Research and Innovation (Strategy for Research and
Innovation)
National Program of Knowledge Industry
Innovation centers,
knowledge clusters,
university research parks,
science and technology parks,
healthcare parks,
technopolises,
business innovation parks,
industrial clusters, organic agro-clusters,
smart villages, open economic zones, etc.
National Program of Smart Social Infrastructure (Governance, Economy, Society,
institutions, data, policies, laws, regulations and standards)
National Program of Smart Cities and Green Communities
National Program of Smart Government Agencies and State Corporations
National Program of Smart Industry, Corporations and Intelligent Business
Management
National Program of Smart Lifestyle, Creativity and Knowledge and Persistent
Learning
National Programs of the Smart Health System and Sustainable Social Insurance
System

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Smart Eco Island Development Projects 2018-2030
i-Cyprus Governance Platform as an i-Europe Platform Pilot
Integrated Intelligent Infrastructure: ICT & Energy & Transportation & Utilities &
Smart Gas and Oil Fields
Smart Municipalities and Eco Communities Projects (2018-2028; Conception,
Design, Legislations, Promotion and Implementation)
Sustainable City and Community Development and Redevelopment Projects
(2018-2028)
Sustainable Property Development and Redevelopment Projects
Smart Green Building Development and Redevelopment Projects
Future Cyprus Industries:
Modern tourism, smart housing industry, intelligent ICT industry, green economy,
knowledge service industry, intelligent banking system, smart gas/oil industry,
intelligent energy.
The smart green Cyprus territorial development strategy is to be implemented as:
Smart Municipality Clusters: Smart Nicosia, Smart Larnaka, Smart Limassol,
Pafos Smart Eco District;
East Eco Coast of Smart Municipalities: Derynea-Sotira-Paralimni-Protaras-Agia
Napa;
Eco Community Clusters, Green Connected Communities: West Eco Coast of Eco
Villages: Makounta-Argaka-Gialia-Agia Marina-Nea Dimmata-Pomos-
Pachyammos;
South Eco Coast of Eco Villages: Timi-Mandria-Kouklia
Smart Cyprus Seafront Innovation Eco Corridor:
Industrial Parks, International Port Development Parks, Smart Cities and Eco
Communities, from Pyrgos to Pomos to Polis to Pegeya to Pafos to Pafos
International Airport to Kouklia to Pissouri to Akrotiri to Limassol to Zygi to
Larnaka International Airport to Larnaka to Xylofagou to Agia Napa to Protaras to
Paralimni to Deryneia to Famagusta.

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Smart Cyprus 2018-2030: Innovation Growth Programs and
Development Projects
With Smart Cyprus 2018-2028, a comprehensive strategy has been put forward to
foster smart, inclusive and sustainable Cyprus and to provide a framework for the
island to emerge strengthened from the current financial and economic crisis.
Ubiquitous Innovation is to be placed at the heart of the smart nation strategy as
Cyprus' competitiveness and capacity to create new jobs depends on driving
innovation in society and economy, governance and business, health and
education, science and technology, products and services.
It is also the best means of successfully tackling major societal challenges, such as
social and economic security, cost of living and quality of life, jobs and
unemployment, as well as climate change and energy efficiency.
The Smart Cyprus Development Strategy 2018-2030 is to deliver the social and
economic growth by advancing smart economy, smart cities, and green
communities, as well as sustainable land development and green construction,
green transportation, intelligent energy, business innovation, smart commerce,
intelligent industry, sustainable tourism infrastructures and cutting-edge facilities.
Its strategic business model is a multi-level partnership of the government,
innovative business groups, state utilities, municipalities and communities,
academia and research institutions, with active citizen engagement and
involvement.

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Rebuilding Cyprus as an Innovation Nation: i-Cyprus: the Cyprus
Research, Technology Development and Innovation (RTDI) System
The Smart Cyprus Strategy is aimed to recreate Cyprus as the Smart Territory of
the Future,
Innovative/Smart/Digital/Technological//Green/Resilient/Climate//Social/Inclusive
/Intelligent.
The present RTDI system in Cyprus is one of the worst in Europe. Cyprus has been
among the few European countries without an academy of science, letters and arts
to promote the development of sciences, arts, research and innovation.
The main barriers to the development of the RTDI system relate to:
• the absence of a long-term strategy for RTDI,
• the human capital flight, brain drain,
• the low enrolments in STEMM (Science, Technology, Engineering,
Mathematics & Medicine),
• the inflexible governance structure,
• the weak coordination between the stakeholders,
• the weak cooperation between the research and academic community with
the business world,
• the low involvement and investments of the private sector in R&I activities,
• the weak S3Cy,
• the limited commercialization of the Cyprus RTDI system.
Total Gross Expenditure on Research and Development (GERD) for 2015
accounted to €85,3m, or 0,48% of GDP.
The R&D intensity target has been set just at 0,5% of GDP by 2020, which is
badly low compared to the overall EU target (3%). Researchers (Full Time
Equivalent) in Cyprus accounted for 0,25% of total employment in Cyprus (2014
data).
A main obstacle for the low number of human resources for research activities is
considered the weak demand from local business and old traditional industry.
There is a sharp contrast between the high number of tertiary education graduates
and the very low number of human resources engaged in research.
This is explained by a hostile environment for research activities leading to a
substantial brain-drain of tertiary education graduates to other countries, mainly the
United Kingdom and the United States.
In addition, businesses involvement in research and development activities is very
limited, mainly due to the lack of big companies and high-tech industrial activity.
The business sector is focused on touristic or financial services and is dominated
by very small enterprises that have not developed an R&D culture yet.

64
Besides, the recruitment of researchers in posts in the Government is closed and
nontransparent.
As a result, Cyprus marked by the small size of the research community, the
orientation of the economy in low value-added products and services and the very
small size and low involvement of Cypriot private and public companies in R&D
activities in terms of participation and expenditure in R&D.
Taking into consideration the above, the Smart Cyprus is to promote various
initiatives and studies and projects for restructuring and upgrading the R&I
governance structure in Cyprus.
The major obstacles for the development of i-Cyprus are to be addressed by the
smart policies, programmes, measures and investment schemes included in the
Smart Cyprus Action Plan, such as:
 creating national innovation ecosystems of smart communities, city
laboratories, technopolises, geo clusters, academic cities, research institution
networks, and the centres of excellence;
 advancing the first-class physical and social infrastructure systems
(sustainable public works, ecotourism, smart financing, green construction, smart
health and education, etc.);
 prioritizing Innovative Technologies / Scientific Fields: 1. AI and Machine
Learning, 2. ICT- Information and Communication Technologies, 3.
Nanotechnology, Advanced Materials and Advanced Manufacturing and
Processes, 4. Biosciences, Biomedical Sciences and Technology and
Biotechnology, 5. Micro-Nanoelectronics and Photonics (MNE);
 innovating the smart cyber-physical systems of Internet of Things, the
semantic web-based sensor networks, embedded systems, automation, AI, ML and
advanced robotics, computational intelligence, intelligent control and intelligent
networked design, big data processing and multi-source data fusion;
 providing intelligent monitoring, control, security and management of
critical infrastructures, as energy systems, water systems, waste treatment systems,
transportation systems, telecommunication networks, emergency management and
response systems, digital territory monitoring and measurement networks, urban
infrastructure and natural ecosystems;
 providing risk financing (loans, guarantees, access to venture capital funds)
to firms and other organizations for R&I activities;
 attracting talents, professionals, innovators, and knowledge workers via
adopting smart citizenship schema;
 cultivating the Research and Innovation culture in all three levels of the
educational system; the importance of RTDI in society, promoting activities
(competitions, awards, exhibitions, workshops, and other activities); the
acknowledgement of excellent scientists and entrepreneurs, and the public
65
awareness of RTDI, among the scholars, youth, consumers, the public sector and
the policy makers;
 increasing the number of Researchers and Innovators by Smart Citizenship
Program for the highly qualified third country nationals, reducing native brain
drain and creating the conditions and opportunities for innovative doctoral training
programmes and employment of new researchers;
 securing for post-doctoral researchers a special social security statute,
insured under the General Social Security Scheme as employed or self-employed;
 supporting the ecosystem of academic, government, civil and entrepreneurial
innovation; linking academy, research, business, education and government (the
knowledge pentagon), by the innovation value chain and knowledge transfer
mechanism while respecting intellectual property rights;
 fostering symphony, synergies and complementarities between Horizon
2020, ESIF and national funds;
 supporting innovative business (SMEs, Start-ups), R& D Centres and
Universities to introduce to the global market innovative products, technological
platforms and smart services;
 creating a national academy of science, letters and arts to promote the
development of sciences, arts, research and innovation;
 securing public spending on integrated innovative infrastructure (physical,
ICT, social, research, economic, tourism, land development, military, rural, urban
and environmental) up to 30-35% of GDP.

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 Why to be SUSTAINABLE and SMART Nation is Crucial for the
Future
I. Our citizens must enjoy all safety and security, food and health, personal and
social, economic and financial, information and cybersecurity, geopolitical
and environmental, communal and urban
II. Our citizens must have equal access to the national wealth and power, justice
and law, jobs and finances, healthcare and education, opportunities and
chances
III. Our citizens must live in livable, workable, green, clean, smart, and
sustainable cities and communities
IV. Our citizens must have the smart government ruled by the by the Sustainable
National Development Policy
V. Our citizens must have the presidency with anticorruption, antifraud,
antipoverty and anti-inequality gender policy, promoting women
participation/representation in high level positions and integrating the gender
equality in the recruitment policies
VI. Our citizens must have a social and environmental investment fund for a job
security, basic income, minimum wages, pension protection, poverty
eradication, wealth tax, equality between men and women, future
community development and smart growth
VII. Our citizens must have the presidency with smart future strategy for
sustainable, innovative and inclusive growth
VIII. Our country must attract knowledge, innovation, talent, creativity, high
value jobs and investment with stimulated enrolments in STEMM (Science,
Technology, Engineering, Mathematics & Medicine)
IX. Our citizens must top the human development index and the global
happiness rankings for high real GDP per capita, social support, healthy life
expectancy, freedom to make life choices, generosity, honesty, income,
gender equality, and good governance
X. Our citizens and young generation must live free of fear of the future.

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THE STATE OF FUTURE AFFAIRS 2018-2030
Innovative
Smart
Digital
Technological
Green
Resilient
Climate
Social
Inclusive
Intelligent
Prosperous
CYPRUS

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Original Resources
Future Cyprus 2020
http://www.slideshare.net/ashabook/future-cyprus-2013-2020
New Cyprus 2013-2020
http://www.slideshare.net/ashabook/new-cyprus
Sustainable Nations Global Initiative Cyprus
http://www.slideshare.net/ashabook/sustainable-nations-global-initiative-cyprus
Project CYPRUS XXI: Federal Republic of Cyprus: Federal CYPRUS Smart and
Sustainable Investment Plan
https://www.slideshare.net/ashabook/saving-cyprus
Smart Europe
Market Place of the European Innovation Partnership on Smart Cities and
Communities: https://eu-smartcities.eu/blogs/azamat-abdoullaev-asha?page=21
SUSTAINABLE CYPRUS Political Manifesto
https://www.slideshare.net/ashabook/presidential-political-manifesto-future-
cyprus-20182028/1
Sustainable Cyprus presidential election manifesto: Small Cyprus as a case of
Sustainable, Smart and Inclusive Territory of the Future
https://www.slideshare.net/ashabook/sustainable-cyprus-presidential-election-
manifesto
Smart Revolutions in XXI Century: the Creative Destruction of the World
https://www.slideshare.net/ashabook/smart-revolution
The EU 2020 Strategy for Smart, Sustainable and Inclusive Growth
https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-
coordination/eu-economic-governance-monitoring-prevention-
correction/european-semester/framework/europe-2020-strategy_en
Cyprus National Strategic Reference Framework Program for Cohesion Policy,
2014-2020
http://www.fundingprogrammesportal.gov.cy/easyconsole.cfm/page/programme/fI
d/420/cat/7/lang/en

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