Buried
beneath the mountain of verbiage and breathless news reports about the Greek debt
negotiations lies a little-noticed role reversal. While the new Greek
government Syriza adopts the dramatic plumage, media savvy and rhetoric of ‘revolutionaries’ they are, in fact,
staunchly defending the Greek status quo – the very status quo that brought
Greece to its knees. The usually media-shy, grey and drab Eurocrats in Brussels
would shiver at the comparison, but they have become the real revolutionaries
who want to change Greece and bring it kicking and screaming into the 21st
century.
The Greek state, with its bountiful
patronage and rigid control, has dominated the Greek economy and protected
politically loyal interests for generations. Every party in power has used the
state coffers to reward voters with jobs in government or in state-owned
enterprises regardless of aptitude or knowledge of the job at hand. The
combination of hapless, inefficient state economic enterprises and bloated bureaucracy
whose main goal was to strangle at birth any innovation that might reduce its
numbers has slowly but surely deprived the Greek economy of the vitality and
oxygen needed for real growth. Who in his right mind was going to spend the
energy required to fight through the swamp of bureaucracy and closed professions to
start something new that just might offer a lower priced, better service or
product to all consumers? Far better to stuff your idiot cousin into
well-protected state job.
Is he the revolutionary ... |
This is what Syriza wants to defend
at all costs. It is, after all, the source of the party’s political power. And
this condition is exactly what the bureaucrats in Brussels want to change.
Syriza loves to play on the image of the hard-hearted Germans insisting that
impoverished Greeks tighten their already tightened belts a few more notches.
Greeks respond ‘What belt? I sold that
long ago.’
Even
brilliant economists like Paul Krugman weigh in against the follies of relying
on austerity to bring a country out of depression. It is not every day that I take
issue with a Nobel Prize-winning economist, but Krugman may be only half right
in this case. I agree completely that austerity by itself accomplishes nothing
but misery. How can any country, or company, for that matter prosper on a diet of nothing more than the economic equivalent of kale and
tofu?
It
is the flip side of the austerity coin that has been obscured in all the
concern for the long-suffering Greek people. So far, Syriza and its vocal
supporters have said very little about the vital structural reforms required to
get Greece off the welfare rolls. What about opening up the economy to
newcomers and, God forbid, foreigners? What about amending the bureaucracy to
encourage instead of discouraging enterprise? We know that Syriza is firmly
against selling or even leasing state assets to raise funds that could be used
in much-needed social welfare programs. But why, precisely? Do the party
leaders really believe that the state can run things like the railroad, ports
or power corporations more efficiently than private owners? The real tragedy is
that without these long-overdue structural reforms the pain of reduced spending
over the last few years will be wasted. Greece will remain mired in a welfare
trap, unable to claw itself out of debt and unable to grow.
Or is he the real revolutionary? |
The
revolutionaries in Brussels want to change the story line. They are well aware
of the desperate state of many Greeks, but they would like to help Greece grow
out of the welfare trap rather than remain on the EU’s life-support system. An
obvious deal is on the table. Greece’s debt conditions are eased in return for
real movement on the economic reforms. Will Syriza pick up this deal? Or will
it continue to play the role of the defiant revolutionary defending the
barricades with cries of ‘national
sovereignty over all else’? One
wonders if Greece’s rulers have ever explained that the price of joining the EU and then the Euro was a loss of total sovereignty. The club has
rules that one is supposed to obey. One
didn’t hear much about a ‘loss of
sovereignty’ when EU funds were flowing in to improve the country’s antiquated
physical infrastructure. But now when the club secretary reminds members that
the club is joint enterprise with certain obligations we hear cries of anguish
from many Greek politicians.
If
there is no agreement in Brussels in the next couple of days Syriza could
possibly elect to hold a referendum on the Euro. It could ask the Greek people to
decide if they want to stay in the Euro even with the ‘odious’ conditions imposed by heartless Germans - or do they want to
return to the ‘proud and sovereign’
drachma regardless of the economic pain that might cause. Such a step could
give Syriza political cover regardless of the outcome. In any case, we won’t
have long to wait for the end of this melodrama.