An article I read on CNN.com prompted me to take stylus to iPad and begin writing this commentary. The article talked about Greek Americans to the rescue -- organizing to help the homeland in her time of need. The headline was intriguing enough to warrant a click through from my Facebook newsfeed. Unfortunately, the story itself was not. Instead of a story about Greek American innovators, investors, entrepreneurs and old fashioned business people organizing to use their knowledge, resources and skills to help, I read about people planning their summer holidays to "go and spend their dollars in Greece" and not elsewhere. That's just baloney. Or in the spirit of this story, loukaniko. A couple of thousand Greek Americans flying USAirways, Continental or worse yet Lufthansa... Staying with yiayia or Theia Marika in the village outside Tripoli, and dropping a few hundred euros (and later complaining about the cost) for a bottle of whiskey at the bouzoukia isn't going to help Greece. No. Greece needs more than that right now. For starters, you can stop feeding the stereotype beast. And we are all guilty. Your cousin Niko might be lazy and sit in coffee shops all day drinking his frappe (or freddo if he's hip) -- but this is not a fair description of the vast, vast majority of Greeks.
In fact, the Organization for Economic Cooperation and Development (OECD) ranks the Greeks second in the world -- that's right, the entire world and that includes the USA in it -- as the second hardest working people after the South Koreans. If you don't believe me, take it from Forbes. That would make your cousin Mitso in Astoria or on Halsted Street much lazier than cousin Niko -- the one in the village back in Greece. Secondly, I've heard over and over again that the "coffee shops are full and the bouzoukia are jammed." Yes, they very well might be -- and no one's saying that everyone in Greece is suffering and that some people can't afford a cup of coffee or a night out, but the simple truth of the matter is there are less coffee shops today than there were a year ago. And with regards to the ubiquitous bouzoukia... At one time in Greece's recent memory, a night out on the town could have meant a weekday. Today, you're lucky to find open bouzoukia even on a Friday night, making the few clubs that are still operating full and "jamming" on a Saturday -- the only night of the week they are probably working. Finally, enough with the jokes about Greeks not paying taxes. The truth is (and statistics prove it) that it's the richest of the rich Greeks who don't pay their taxes, not the average citizen. Unfortunately, the violations of these doctors, lawyers, nightclub singers and others in high society are so egregious that it's their antics that make the front pages of the New York Times and soon -- we all start fanning the rumors and start to believe that no Greeks pay taxes. Besides, let's see what happens when the role of the IRS is diminished in this country. Watch -- just watch -- how law-abiding taxpayers quickly become tax-evading lawbreakers.
And how about all those Greek-owned cash businesses... Diners in New Jersey, restaurants in Chicago, donut shops in Boston... Are we naive enough to believe that all (Greek) Americans pay all of their (our) taxes? Who are we kidding?
Furthermore -- remove highway patrol from America's roads and see how quickly they turn into the autobahn. It's human nature, folks -- Greeks are breaking the law because they can. They are evading taxes, and driving like madmen, and parking on sidewalks, and smoking in no-smoking areas -- because they can. Because they know there is no fear of prosecution.
I'm not becoming an apologist for Greece and Greeks. There are definitely problems and I'll be the first to admit that Andreas Papandreou started a huge party that is now coming to an end and someone's got to pay for it. Napoleon Linardatos talks about the party eloquently here. It's definitely worth a read.
And yes -- the public sector is out of control, the entitlements, pensions, retirement age requirements are insane -- to the point that an entire generation of people have been indoctrinated (brainwashed) into believing that this is normal that the government is there to take care of its citizens from cradle to grave.
But again -- I don't blame the average citizenry. I blame the corrupt politicians vying for votes and the corrupt union bosses who lobbied for more, more, more to fuel their populist flames and increase their own unions' membership ranks and power.
It's a sick and vicious cycle that ensnared common people by feeding them a sweet tasting fruit that was too good to say no to. That fruit was a job for life -- stability for a son or daughter in exchange for a vote in an uncertain world. It's a fruit that any vulnerable person would taste -- Greek or non-Greek. What Greece really needs right now from the Diaspora -- (and I'm tugging at your philotimo strings right now) -- is a series of serious initiatives that are both possible (given our ingenuity and success), and realistic.
Let's gather the wealthiest Greeks in America and the world and the financial whiz kids that populate Wall Street -- there are about a dozen billionaires I can name off the top of my head right now -- and engage their expertise to create a revenue-generating fund to serve both as collateral and support for the Parthenon, the Palace of Knossos, the Akrotiri settlement on Santorini and other sites critical to Greece's cultural heritage. A $100 million fund (owned and managed by the donors) per site could generate $5 million annually at 5% interest -- enough to preserve the sites, keep them open with experienced, private staff -- and out of the grasp of the public sector that is often subject to civil strife, strikes and shortages in staff and resources.
Israel does it. India does it. And their diaspora communities are nothing compared to ours and the passion, love and dedication we have for our homeland. Let's gather some of the nation's top Greek American venture capitalists--and here too, I can name a dozen or so -- to create a fund called Greece Future -- because we believe in the future of Greece and we want to invest in the future of Greece. This fund could seek out the great Greek innovators and encourage them to stay and build their businesses in Greece and not be forced to re-locate to Silicon Valley or London.
Again, other diaspora communities of nations like Israel and India have a bond mechanism that allows average citizens to support their homelands with shares as low as $1,000. Why can't we do this? The truth is, it was proposed already -- by the Greek Government. The problem is that it's the same, corrupt Greek government bureaucrats that got the country into this mess in the first place that want to the run this proposed "Diaspora Bond." Message to the Ministers who propose this: When hell freezes over I'll give you my hard-earned money to build your villa and buy your apartment overlooking the Acropolis. (You know who you are).
What I propose is something like Israel Bonds. Supported primarily from U.S.-based Jews, the Development Corporation for Israel/State of Israel Bonds is one of the world's most dependable economic financial vehicles with 60 years of success. Worldwide sales have exceeded $30 billion and proceeds have played a vital role in transforming Israel into a regional superpower with unparalleled infrastructure. The key to the success of this proposal: diaspora involvement in the investment and management of the fund.
***
These are but three ideas -- and certainly there are others.
Of course, in order for any of these ideas to materialize, you need stability in Greece and a government willing to support the change that is necessary. Although I have a lot of faith in the conviction and dedication of the country's current Prime Minister George Papandreou, it is those around him who I fear will be most resistant to change.
What I know about Papandreou is that he cares about his country deeply. When he speaks, his passion for Greece is evident. Unlike his father, he appears not to have a corrupt bone in his body. I may be wrong -- or I don't know enough to offer a valid opinion. Of course, it's easy for me to speak (or write this) from my apartment on Michigan Avenue in Chicago, where I look out the window and see the streets bustling with traffic, people on their way to work. It's easy for me to speak about Papandreou -- without feeling the pain that so many Greeks have felt from the austerity measures that his government has passed; or to feel the burning of the tear gas that his police forces have lobbed at crowds who were merely there expressing their inalienable democratic rights.
And I do apologize to the Greeks who might be offended by my simplistic opinion of their Prime Minister, which is based solely on what I see and read -- primarily in the international media -- that he is a forward-thinker, an internationalist and a product of a global upbringing who has a big picture approach to Greece and is making important decisions today, that will be written about in the history books a century from now. I want to believe that his decisions will be right for Greece -- albeit a difficult pill for many already impoverished citizens to swallow.
I should also note that my opinion is not one that is supporting the political party Pasok, or its socialist tendencies and policies, which I believe were the cause of Greece's demise. My opinion is in support of an individual who I believe is "big" enough to realize that it was his own father's policies that resulted in the Greece of 2011 and that he must stare the ghosts of the past in the face, tell them he is no longer afraid of them and create the new Greece.
Something else I believe in is the spirit of Greece and the ultimate force that brings her people together in times of crisis and need. Anyone who doubts me need only read the last hundred years of this tiny nation's history and its ability to not only reinvent itself, but to play an important role in the history of the entire world.
Furthermore, I do believe that what Greece faces today is child's play compared to the trials and tribulations of the earth-shattering events of 1922 when the humanitarian crisis in Asia Minor spilled into the Greek islands and mainland and millions of impoverished Greeks who fled war were sleeping amidst the ruins of the Parthenon and housed temporarily in theaters and other public buildings.
Furthermore, Greece was again tested a few decades later during the German occupation and ensuing Civil War during which time one eighth of the entire population perished and over 3000 towns and villages were burned to the ground.
Mark Mazower, the Columbia University historian and expert on Modern Greece said it much more eloquently than I ever will in his New York Times editorial.
Yes, these are trying times, but Greece will prevail.
Follow Gregory C. Pappas on Twitter: www.twitter.com/@gregpappas
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“Theia Marika” and “Cousin Niko” whom Pappas ridicules, for some of us are the only link to our Greek roots. They are also the ones who unfairly suffer the most.
Going to Greece this summer not only will help the economy but it will contribute to tighten the bonds of the Greek Diaspora to the Homeland. Isn't it what the Jewish Diaspora does successfully for decades?
Finally, by sending the message that we are going to Greece, is a counteraction to the present negative climate . And who knows? This movement may motivate the wealthiest to do their own duty!
Pappas’ suggestions are excellent but he hasn't invented the wheel. They are floating around for years. Another more important one is to invest in Greece. But these who can contribute – the wealthiest Greek Americans – have not shown the same interest.
Is this a reason to discourage the non wealthy Greek Americans to show their patriotism by the only mean they have?
Sincerely
Apostolos Zoupaniotis
Publisher/Editor
Greek News
www.greeknewsonline.com
apostolosz@greeknewsonline.com
In those situations, you need to back up.
The first alternative route is a left turn back to the nation's monetary sovereignty - and this route takes Greece outside the EMU.
Therefore, the independence-through-default path is the one that the Greek people need to be working on. Any Greek or friend of Greece who is incapable of seeing that Greece's prosperity will be renewed much earlier down this path than the path of austerity-privatization poverty leading to generations of increasing debt-servitude needs to do some political-economic math.
Greece's greatness will come about one drachma at a time, when all of the country is pulling for its own national well-being, rather than the GS's of the world who hold all that CDS crap.
This requires the re-nationalization of Greece's sovereign money system.
You go, Greece.
Also, how about convincing rich Greek shipowners to show their pride and passion for Greece by flying under the Greek flag - rather than flying under other countries flags to avoid paying their taxes?
BTW, the OECD study you referenced only logs the number of hours Greeks claim they work. It doesn't reflect efficiency. Greece has a high rate of self-employed workers, who tend to "fix" the number of hours they work.
(e.g., see the office of the Ombudsman, founded
in 1998: www.synigoros.gr/en_what_is.htm), or are
too naive and vague ("strengthening civil society",
really? Ok then. Thanks for that insight.)
Re. shipowners: First, just to get things straight,
so-called "flags of convenience" for ships are an
international phenomenon, not a practice that is
peculiar to Greek shipowners:
www.cbc.ca/news/background/martin_paul/flagsofconvenience.html
It's also a perfectly legal practice, just like
American companies outsourcing jobs (and btw, I don't
see any US companies bringing jobs back here from India
and China, even though the US has itself been having some
serious economic troubles). But most importantly, the additional
tax that would be collected by changing registration flags
would most likely be negligible compared to the infusion
that is currently needed (unless you have official numbers
demonstrating otherwise); Pappas's ideas would likely
be much more effective.
Finally, your claim about OECD's methodology is plain
wrong; they use a wealth of data sources and a much
less naive algorithm than what you suggest to compute
their statistics.
Despite the Ombudsman's Office you referenced, Greece has the weakest civil society of all developing countries. See, http://www.civicus.org/new/media/CSI_Greece_Executive_Summary.pdf.
"The study of civil society’s structure revealed widespread apathy and a lack of civic
engagement among Greek citizens. The majority of Greeks do not participate in non-partisan political activities, nor engage in any voluntary work....CSOs have been unable to gather resources to monitor the state and corporate sector."
There is a strong linkage between the countries with the most corruption (of which Greece is number one according to Transparency International) and weakest civil society (again, which Greece is number one among developing countries).
I love how Greeks always bring up the U.S. to defer a conversation about Greece. Yes, I am quite familiar with the legality of outsourcing to save money (not sure what the relevance of that was in your argument, as outsourcing wasn't part of the article or my point). Pappas' argument was that wealthy Greek Americans should show passion and love for Greece by investing - it's hard to convince Greek Americans to do that when wealthy Greeks aren't even doing that.
I disagree that anyone should take the "sweet tasting fruit" from Greeks' mouths. I don't see what is wrong with treating the working man and women well. I don't blame them for the mess, as I know you do not either. If Greeks default and go back to the drachma, there will be some difficult times in the beginning when people will make do with less (as they already are doing), but when the economy picks up again, Greece could keep their priorities the way they are and treat the working people and elderly as well as Greece can afford, unlike here where every working man and women is frightened they will lose their job, and so they put up with often intolerable conditions.
I also do not agree with your assessment of Papandreou. He appears mild mannered and harmless. But I believe he is doing the country great harm. Below is an excellent article describing first hand the events that took place when the Greek police waged war on its citizens on June 29. Even if Papandreou or his party did not order this, they could have called it off. He is Prime Minister, after all.
http://www.exandasdocumentaries.com/gr/news/interesting-articles/243-flirting-with-death
A developed country with the 22nd highest human development and quality of life indices in the world, Greece is a member of the European Union, the eurozone, the OECD, the World Trade Organization and the Black Sea Economic Cooperation Organization.
Revenue is 39.1% of GDP (2010 est.)
Expenses 49.5% of GDP
So the fellow that keeps screaming they spend 150% of income - you are incorrect
As to Socialism - it works around the work quite well - and Greece had 15 consecutive years of economic growth,before Greece entered recession in 2009.
And in your haste to blame US bankers, please do your homework. It's the EUROPEAN bankers who are on the hook. The Economist lists ten banks with high Greek debt exposure in their recent issue, 6 of which are Greek banks (the EU banks are in bad shape too, but American banks get no mention). And the Greek pensions are stuffed with Greek bonds. Did bankers from the USA do that too?
BTW: you'll probably say "Goldman was complicit in misleading the world about Greece's debts!" Read the book "Bust: Greece, the Euro and the Sovereign Debt Crisis" by Matthew Lynn. He shows that this "grand deceit" caused Greece's debt to GDP to be understated by less than 2 percent points (about 104% versus about 105% at the time). That was not the prime mover in any of this mess. Like a lawyer, GS told them what was permissable legally. The Greeks didn't have to go that route. But they did.
In Greece the early retirement - before age 61 - is limited to the gov workers hired before 1992.
"spirit of Greece" violent thugs lead by communists and anarchists in the street.... is that what you are inferring is their "spirit"
they have devolved into a lazy, self-centered, "what's in it for me" "I don't care what happens to the country - I want mine" culture... gimmie, gimmie, gimmie!
Greece is the most socialist country in Europe and has been for decades... it took a few years extra but it proves once again the moral depravity that is the end result of unchecke socialism.
so who is bailing them out... their more conservative and more industrious neighbors - mainly Germany.. who continues to move its economy back towards capitalism.....
BTW..Germany has the lowest unemployment in Europe
Lame
You had an important platform by which to inform an international audience of readers about the facts behind the crisis and instead you wasted it on sill platitudes and calls to emotion. If you truly enjoyed Mazower's article about the modern history of Greece, couldn't you have learned form him that speaking the truth is the most powerful defense for our country?
I applaud your idea of a Hellenic Cultural Heritage Trust Fund and would financially support it (in a non-billionaire fashion).
As for bonds and venture capital groups, frankly, it would be a difficult proposition. Capitalists act best when not bound by ideology. A sponsored forum facilitating contacts between Greek heritage or Greece-based entrepreneurs and venture capital would be effective, but only because of its openness and limited scope.
Bonds are not attractive. People can participate in sovereign debt through a variety of means today and do not require a marketing tool like a Israeli bond mechanism. Besides, I think that the Israeli bond fund was born in a time when access to such participation in sovereign debt was more limited.