The paper subjects grand theories to critical appreciation and argues that the state played a central role in transforming the Cypriot economy which is characterised as a small economy heavily dependent on export industries such as textiles and tourism. The relationship between the Cypriot ‘economic miracle’ and globalisation is investigated in the light of the experience of the export-led textile industry suffering from the consequences of American destabilisation of the Libyan economy—historically Cyprus' major export market.
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