Eradicating Cronyism and Corruption in Greece

Eradicating Cronyism & Corruption

Aristides N. HatzisAssociate Professor

Philosophy of Law & Theory of InstitutionsPh.D. (Law & Econ, U of Chicago)

Emergency Economic Summit for GreeceEmergency Economic Summit for GreeceMay 18, 2015May 18, 2015

Economic Freedom and CorruptionEconomic Freedom and CorruptionHigh scores indicate low corruptionHigh scores indicate low corruption

0102030405060708090

100

Cor

rupt

ion

Rat

ing

(o

ut o

f 100

)

Least FreeQuartile

3rd Quartile2nd QuartileMost FreeQuartile

Sources: The Fraser Institute; Transparency International, CorrSources: The Fraser Institute; Transparency International, Corruption Perceptions Index, uption Perceptions Index, 2014 available at http://2014 available at http://www.transparency.orgwww.transparency.org..

Most Free Most Free …………………………. Least Free . Least Free

Greece is not a free-market economy!

Index of Economic Freedom-2015: 130/178– Last in the EUEconomic Freedom of the World-2014: 84/152– Last in the EUGlobal Competitiveness Report-2014/5: 81/144– Last in the EUICC Open Markets Index: 48/75– Last in the EU

Mostly Unfree...

Greece’s neighborhood

1974-2005

171.600 regulations!– 3.430 laws– 20.580 presidential decrees– 114.905 ministerial decisions– 32.585 local government decisions

Institute for Regulatory Policy Research

Extractive economicinstitutions: Designed by the politically powerful elites toextract resources from the restof society.

Inclusive economic institutions: Secure property rights, law and order, markets and state support (publicservices and regulation) for markets; open to relatively free entry of newbusinesses; uphold contracts; accessto education and opportunity for the great majority of citizens, i.e., createincentives for investment and innovation and a level playing field.

Greek Extractive Institutions

Index of Economic Freedom

Long-term score change (since1995)

Like there is no tomorrow!

An inefficient welfare state

The indicator of the efficiency of social benefits in alleviating property is the worst in the E.U. (13%, where the EU average is 35% and some Scandinavian countries were as efficient as 70%!).

In 2002 the indicator was a poor 4% with a EU average of 31%.

A helping hand to the rich

Low levels of trust

Government: 14,6% (51,7%)Courts: 40,2% (52,6%)Education system: 51,8% (66,1%)Other people 16,5% (24,2%)

Philanthropy: 9% (28,9%)Volunteerism 10% (20,9%)

Global average in parentheses

A political culture of

StatismProtectionismCorruptionCronyismNepotismRent-seekingIrresponsible spending

What’s best for the rule of law;

For political, civil and social rights?

Economic Freedom and Political RightsEconomic Freedom and Political Rights

Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, rld Country Ratings, 2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.


Economic Freedom and Civil RightsEconomic Freedom and Civil Rights

Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, rld Country Ratings, 2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.


Income of the Poorest 10% and Income of the Poorest 10% and Economic FreedomEconomic Freedom

Sources: The Fraser Institute; The World Bank, World DevelopmenSources: The Fraser Institute; The World Bank, World Development Indicators, t Indicators, 2013.2013.


Thank you!Thank you!

[email protected]

http://www.phs.uoa.gr/ahatzis

Eradicating Cronyism and Corruption in Greece

News & Politics

Transcript of Eradicating Cronyism and Corruption in Greece