Unlike in many other countries where austerity measures were implemented in the same period, in north Cyprus, austerity measures were not introduced to address the adverse yet temporary effects of the Great Recession on public finances. But rather these policies were devised to overhaul the politico-economic structure of a small, de facto state, which has been isolated from the rest of the world for half a century and dependent on financial assistance from Turkey. The change in attitude of Ankara towards the Cyprus problem, with the coming to power of the Justice and Development Party (AKP) in Turkey in 2002, also led to a change in economic policy towards the northern part of Cyprus. Ankara has become more reluctant to finance what it sees as the profligacy of Turkish Cypriot politicians. Hence the belt-tightening.