As the politically and socially embattled state of Greece is faced with financial chaos and austerity measures, it seems that it was only a matter of time until the past caught up with the present. Perhaps the precursory signs should have been the frustration of a people and, eventually its resignation towards the complacent corruption of the elite.
Perspective on Greece Modern History
Greece was repressed for some 500 years under the Ottoman Empire, whose collapse was preceded and followed by the craving of tribal groups to secure their own cultural territory. But, Ottoman forces were merciless in resisting their demise. Ethnic cleansing, in particular, and other mayhems of rampant anarchy, in general, subjected Greek people to a life of despair. This harsh reality is vividly depicted in the context of a historical novel by Jason C. Mavrovitis, Remember Us, published in 2007.
After the first declaration of independence by freedom fighters in 1822, Greece became an independent kingdom in 1830. But, freedom did not bring stability. Greece had to start over many times, each one with additional challenges such as newly acquired territories, and eventually the repatriation of one million landless peasants, ethnic Greeks who did not speak Greek, and who replaced the Turks and Bulgarians removed from the North of Greece. Integration was barely in the process when a series of trials left the country in shambles:
- 1912/1913: First Balkan War/Second Balkan War
- 1914-1918: WWI
- 1920: Invasion of Turkey and defeat - Repatriation of Greeks
- 1914-1923: 1.5 million Greeks died
- 1929-early 40s: World Great Depression
- 1939-1945: WWII
- 1946-1949: End of Greek Civil War-Restoration of the monarchy
- 1952: Greece becomes a parliamentary democracy.
- Early 50s-early 60s: Period of relative stability
- 1965-1967: Political instability- Military coup
- 1973/1974: Abolition of monarchy
- From 1990: Stability and an economic growth above that of the EU
Overview of Greece as a Modern Country
In retrospect, observers blame the crisis on three generations of Papandreou prime ministers: Georgios, Andreas and George.
Georgios Papandreou founded the Democratic Liberal Party in 1935. Focused on modernization, he reformed education. Andreas took over in the 60s and founded the first socialist government. To improve the standard of living, he doubled salaries and created (mainly governmental) jobs in the 80s. Greeks welcomed a better life, but, as reported recently by the New York Times, “...the money just went into the bureaucracy, not the people.” In fact, by 1993, Greece was already in financial trouble.
Today, George, born and educated in the United States, and a liberal leader, is faced with the reality of an inefficient government rooted in past inaction and paralyzed by corruption. But, globalisation brought a significant difference to the challenges of the past as Greece has become an inter-connected economic risk. If Greece fails, other entities will fall.
Greece Tourism in the Midst of Unionist Strike
For years, Greece was perceived as an idyllic holiday destination, envied for its people’s seemingly stress-free way of life. Today, the tourist season is perturbed by a second week of strikes by some 3,000 taxi drivers who are protesting the deregulation of the taxi business. Conversely, the federation of seamen decided to support tourism and postpone its own strike. As austerity measures get implemented, they will likely result in further Unions’ protests. As a consequence, travelers might bypass the Hellenic skies.
The Other Side of the Bailout Coin
Although the International Monetary Fund and the European Union granted a second bailout, Greece’s default is said to remain unavoidable, as are its repercussions on the European economy, and financial markets. Already, stock exchanges worldwide closed lower, additionally burdened by the United States’ own crisis. As a result, even if the Euro maintains its lead with the dollar, the Swiss Franc is returning as a safe haven currency, while gold keeps going up. More worrisome is the line-up of Spain, Italy, and Portugual as states on the verge of default.
Greece Corruption Problem in Numbers
The situation highlights extraordinary numbers. The Greek press reported a statement by Finance Minister Venizelos regarding tax evasion being owed by a very small number of people:
- 900,000 people owe 41.1 billion Euros.
- 5% owe 85 percent of the outstanding amount.
- 14,700 individuals/companies/organizations owe 37 billion.
- All considered 10,000 individuals will be investigated.
Consequently, riots are understandably fuelled by those who have already paid their dues. Whereas investigations will help recoup some of the outstanding tax revenue, in the meantime, and with the sale of state assets in the works, “Venizelos said Greece had already taken the toughest measures needed to steer the economy back to fiscal health.” This was reported last week. As seen above, each week is another story.
Sources
- BBC News: Greece Timeline
- Ekhateremini.com (Greek partner of the International Herald Tribune): Hired guns thought to catch tax thieves. July 18th, 2011. Seamen retract call for strike. July 27th, 2011.
- Foreign & Commonwealth Office: History of Greece.
- Le Monde.fr. Les Bourses en baisse, influencées par les dettes grecque et américaine. July 25th, 2011.
- The Canadian Press. “Greek finance minister says debt deal is ‘attainable,’2012 primary surplus on target.” July 19th, 2011. Striking drivers.... against licensing reforms. July 26th.
- The New York Times: Family differences, global issues. Landon Thomas Jr. July 12th, 2011.
Marie-Claude Arnott - Marie-Claude Arnott writes about topics that interest her, from experience and with passion.
