Strong Growth and Weak Institutions : The Greek Paradox Re-Considered

The Greek economy of the 90's poses a unique international paradox. It combines strong economic performance that is rapid GDP growth and strong productivity growth, with a very weak performance on many other fronts that range from poor labor/product market institutions and low competitiveness, to poor environmental protection and high levels of corruption. A detailed presentation of a wide range of available evidence helps to explain initially this paradox. It also helps to describe and reveal the nature of the powerful redistributive, numerous rent-seeking groups that keep markets closed and distorted, resisting reforms in Greece today. This process allows us to obtain also an overview of the problems that reform-minded politicians face in Greece today. It also allows us to attempt the proposal of realistic reform strategies