In 1960, the island of Cyprus obtained independence from Britain after years of organized resistance. Three years later, ethnic tensions between the Greek Cypriot majority and the Turkish Cypriot minority led to violence in Nicosia, the capital city. United Nations peacekeepers were deployed in 1964, but sporadic violence continued. After intervening to put down a Greek-led revolt a decade later, the Turks gained control of a third of the land area of the island, proclaiming it the Turkish Republic of Northern Cyprus. However, other nations have refused to recognize Turkey's claim to this area. An attempt by the United Nations to resolve differences failed in 2004, and the island of 780,000 people continues to operate under divided loyalties.

Cyprus operates dual economies. With a per capita ...

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