Can’t Compete, Greece Nears Rock Bottom in EU

ATHENS – Struggling with its worst economic crisis since World War II, and with its biggest revenue engine of tourism slumping fast because of political uncertainty, one of Greece’s best hopes for recovery – a competitive economy capable of attracting business – ranks 25th among the 27 European Union countries in the World Economic Forum Global Competitiveness Report 2011-2012, and 90th in the world among 142 countries, ahead of mostly undeveloped African, Asian and Latin American nations. Another recent survey put Greece next-to-last, ahead of only Venezuela, where President Hugo Chavez runs an autocratic government that has nationalized private industries. In the EU, only Romania and Bulgaria were rated lower.
Greece does, however, get good markets for its intellectual abilities, ranking sixth in supplying scientists and engineers but was ranked poorly in terms of smart growth and socially fair development. Greece was dead last in the EU for its lack of a business environment, and rated especially poor in competitiveness (26th place,) rate of entrepreneurship (25th,) poor record in terms of cooperatives (26th) and the lack of liquidity (23rd) because of its $460 billion debt and reliance on international lenders for public aid to keep paying workers and pensioners.
The WEF report showed that Greece fares poorly in terms of computer literacy too, in 25th place in the EU, and the disappointing Infiltration (26th) of Information Technology and Communication Technologies both on a personal as well as a professional level. Social integration is limited because of market shortcomings and obstacles to the participation of women and youth.
The survey said that although the European model offers better policies for enhancing social cohesion, it is weak in creating the requisite conditions to secure profitable employment for a big segment of the continent’s populations. The spread of the crisis means government efforts are mostly focused on dealing with the immediate repercussions instead of the long-term goal of creating a competitive, sustainable and socially fair Europe.
For the time being, the survey suggests, Europe appears to be divided into four classes of competitiveness:

• Nordic Europe, made up of Sweden, Finland and Denmark
• Western Europe, made up of the Netherlands, Ireland but also Estonia
• Southern and Eastern Europe, made up of Slovenia, Portugal, Spain, the Czech Republic, Cyprus, Malta, Latvia, Lithuania, Slovakia, Poland and Hungary
• At the bottom, Southeastern Europe, made up of Greece, Romania and Bulgaria.

With critical June 17 elections that could lead to Greece being pushed out of the Eurozone of the 17 countries using the euro as a currency if parties opposed to austerity measures demanded by international lenders in return for rescue loans win at the polls and renege on the deals, Greece could lose a critical lifeline to money needed to pay workers and pensioners and see its competitiveness further weakened.
(Source: Kathimerini)