External actors’ role in solving local collective action problems in a post-conflict setting: A case study of Turkish Cypriot beekeepers

Abstract

In addition to legal constraints and social-psychological barriers, in a post-conflict setting mutually beneficial economic transactions might not occur due to the widening gap between the health, quality, and environmental standards of the parties. A lack of incentives during the years of conflict prevent the members of the weaker party, the one economically isolated from the rest of the world, from engaging in the collective learning necessary to upgrade the health and packaging standards of their commodities. In this study, we detail the technical, political, and legal challenges external actors must consider in order to successfully help small businesses in a post-conflict environment. Specifically, we explain how the EU helped Turkish Cypriot beekeepers by supplying funds to support training and educational programs, and upgrade the equipment used by the beekeepers. We demonstrate that third parties, like the EU, can provide the impetus for domestic institutions—such as producers associations, chambers of commerce, and cooperatives—to overcome their collective action problem. [JEL codes: D74, H56, O1]