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Greece: From Exit to Recovery?

Copyright Date: 2014
Published by:
Pages: 168
  • Book Info
    Book Description:

    Two Greek economic analysts explain the Greek financial crisis-from beginning to end.

    The first section ofGreece: From Exit to Recovery?explores the lead up to to Greece's adoption of the euro. Authors Theodore Pelagidis and Michael Mitsopoulos believe that the ensuing challenges were foreseeable. In fact, the authors posit that it was Greece's difficultly in dealing with those challenges that sparked the euro crisis.

    Section II analyzes discrete sectors of the economy, paying special attention to labor and finance-and the mistakes creditors made in focusing on reducing Greek incomes-rather than increasing competitiveness on non-labor costs.

    Section III investigates why Greek companies spend relatively little on research and development.? The authors' analysis indicates that policy decisions largely determine R&D performance in the private sector, and they advance a number of specific policy proposals to improve the situation.

    eISBN: 978-0-8157-2576-3
    Subjects: Political Science, Business, Economics

Table of Contents

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  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. Foreword
    (pp. ix-xiv)
    Kemal Derviş

    Sipping a lemonade on a perfect summer evening, near the Acropolis in Athens in 2005, I was thinking about how beautiful and lucky a country Greece was. Greece’s growth performance over the post–World War II period had been one of the best in the world, and per capita income had reached US$21,700 at market prices in 2005, making it a high-income country. More recently, the ratio of Greek to German per capita income had gone from 52 percent in 1995 to 64 percent by 2005. Greece had become a full member of the European Union and of the euro...

  4. Acknowledgments
    (pp. xv-xvi)
  5. List of Abbreviations
    (pp. xvii-xx)
  6. Introduction
    (pp. 1-3)

    This book attempts to identify strategic mistakes in the adjustment program of Greece and in that way to identify the improvements needed to achieve the ultimate and desirable goals of both improving the living standards of the Greek population and ensuring the solvency of the Greek sovereign. To do so we draw both on historical precedent and on an analysis of the more recent developments. Then we attempt to provide some additional insight into growth-enhancing policies that have yet to be explored in efforts to identify growth potential for the country. The first chapter explores the process that led to...

  7. 1 From La Dolce Vita to Collapse: The Sins of the 1990s and 2000s That Led Greece into Free Fall
    (pp. 4-40)

    The emergence of the current crisis and the way it has been handled by successive Greek governments once markets lost confidence in the Greek sovereigns has caused many opinion leaders and academics to doubt the wisdom of the Greek participation in the European Monetary Union (EMU). Similar doubts have been expressed about the decision of the European Union to accept Greece into the EMU.

    This chapter addresses three aspects of these questions and doubts. The first one deals with whether the Greek politicians who put Greece on the path to accession were aware of the challenges the country would face...

  8. 2 The Depression of the Century: Prejudice and Misguided Policies
    (pp. 41-84)

    This chapter investigates the extent to which the success of the “internal devaluation” (reduction of incomes and asset prices) strategy depended not only on quantitative aspects of the initiatives but also on qualitative implementation of those policy initiatives. While the apparent success of labor market reforms after 2012—that is, the stabilization and even gradual increase in employment levels after the large decline of the 2010–12 period—is noted, so are two other facts. First, as a result of widespread self-employment in Greece, the potential benefits of reducing private sector wage costs were limited, even before the adjustment program...

  9. 3 Unlocking Growth: Innovation as a Driver of Competitiveness and Prosperity
    (pp. 85-126)

    In most statistical surveys Greece appears to perform poorly in innovation, R&D, and related activities. The European Commission Innovation Scoreboard and the INSEAD Global Innovation Index are only two of the many publications that essentially identify Greece as a below-average innovator. Most of these studies agree on the weaknesses of the country’s innovation system. All of them also identify the challenges related especially to private sector funding, linkages between entrepreneurship and researchers, and the accumulation of intellectual assets. The latter two also figure in the Eurostat data demonstrating how before the crisis (2007–08) the bulk of the shortage of...

  10. Appendix A Cases of Corruption in the Greek Government, 2008–12
    (pp. 127-128)
  11. Appendix B Data and Statistical Analysis
    (pp. 129-138)
  12. Notes
    (pp. 139-146)
  13. References
    (pp. 147-156)
  14. Index
    (pp. 157-168)
  15. Back Matter
    (pp. 169-170)