Opinion – Greece’s Problem Is More Complicated than Austerity – HBR – John Gelmini

The short answer to Dr Alf’s question is ‘never’.

With regard to the Michael Jacobides article, the problems faced by Greece are considerably more complex than just austerity and its application.

Forcing the Greek government to remove barriers to competition and innovation will help but on their own they will not be enough.

Measures to change cultural values, like early retirement on a full pension, lack of productivity, tax evasion, corruption and theft of monies from the public purse will also be needed.

Then, the Greek economy needs restructuring, plus marketing to bring in wealthy tourists and conference attendees. After that university degrees need to be matched to the skills the country needs – there’s too much waste in Greece’s education system.

John Gelmini

Greece’s Problem Is More Complicated than Austerity – HBR

German Logo of the ECB.

German Logo of the ECB. (Photo credit: Wikipedia)

This is an outstanding article by Michael Jacobides, professor of entrepeneurshship and innovation at London Business School, published by HBR.

Greece’s Problem Is More Complicated than Austerity – HBR.

The article concludes that ‘by forcing the government remove institutional barriers to competition and innovative the deal will create a sound basis for economic growth and development’.

The historical summary of the Greek crisis is excellent, especially the role of the ECB and the IMF, who protected German and French banks exposed to Greek debt – this was at the potential cost of European taxpayers.

Let me ask an open question:

When will the troika (ECB, IMF and EC) be held accountable for their mistakes in Greece?

Thoughts?