GREECE

Already weak, Greece’s status performance has diminished further, placing the country second-to-last (-2 ranks relative to SGI 2009).

A ballooning deficit (more than 13% of GDP) and skyrocketing public debt (115% by the end of 2009) in the wake of the economic crisis exposed failures in governance. Coupled with the December 2008 riots in the capital, these events contributed to the image of a country in disarray.

A clientelistic political culture and strong sectoral interests mean that reform attempts often fall victim to political pressures. Reforms slated for 2008-2010 were postponed once again.

However, opinion polls suggest a shift in public attitudes is under way with calls for a break with the past growing.

Greece has been a stable democracy since 1974, but the quality of democracy fails to meet average OECD levels.

The electoral process is fair. But there are concerns about the lack of transparency in party financing, since parties are not required to specify sources or values of donations received.

State-owned media offer news coverage in a pluralist fashion; however, governments are still able to influence media coverage.

Discrimination against ethnic and religious minorities, especially in the Western Thrace region, are cause for concern regarding civil rights. The rights of women remain insufficiently protected and no gains have been made in battling widespread corruption.

Greece trails the rest of the OECD in terms of economic policy.

The acute fiscal crisis gripping Greece has exposed failures among decision-makers to ensure a reliable economic environment. The high economic growth prior to the crisis was not accompanied by structural changes that would have strengthened the economy for the long-term.

Labor market policies remain passive. Only 3.5% of eligible workers have undergone some form of non-formal job-related education and training.

Greece’s tax collection system does not have the institutional capacity to meet its mandate. Tax evasion remains a serious and widespread problem.

Greece still ranks near the bottom of the OECD list (rank 30).

The Greek welfare system is rudimentary and provides only partial coverage. Unemployment compensation, like other state benefits, is very limited.

The national health care system covers the population as a whole and is funded on the basis of general taxation. However, certain professions, such as liberal professionals and bank employees, have their own occupational health care and pension schemes.

The perseverance of extended family networks contributes to the comparatively low incidence of child poverty. Support for women seeking to combine parenting and employment is generous in the public sector, but slim in the private sector.

Greece is a long-standing EU and NATO member and provides effective external security. However, the global financial crisis and the fiscal crisis of 2010 will likely reduce military spending, which is one of the highest in the world (4.3% of GDP in 2005). The high level of military spending is attributed in large part to continuing tensions with Turkey.

Internal security was challenged by sporadic attacks orchestrated by the extra-parliamentary left against banks, government buildings and police station. The death of a young student through police action in December 2008 incited a cycle of violence, destruction and looting in downtown Athens.

At rank 31, Greece has tumbled several places to the bottom of the OECD in terms of sustainable resource use.

In 2009, the new PASOC government gave environmental policy new priority. However, the country still produces a relatively large quantity of CO2 emissions, and large forest fires occur repeatedly during the summer months.

Despite the presence of skilled scientists and well-known research centers, R&D policy has been inconsistent and underfunded. Expenditure on research and innovation relative to GDP is near the OECD’s bottom.

Education policy fails to ensure the availability of high-quality, efficient and equitable schooling, though the population today enjoys wider access to secondary and tertiary education than ever before.

Greece ranks at the very bottom of the Management Index.

The government’s strategic planning capacity is relatively low because the Prime Minister’s Office lacks the resources to live up to this task. Envisaged reforms are often not implemented, falling victim to to resistance on the part of ministries or local governments.

Recent governments have tried to introduce reforms that would facilitate the domestic application of international norms, but with little impact.

Governments’ accountability toward citizens, the legislature and intermediary organizations is lacking.

At rank 31, Greece’s steering capability rates very poorly in cross-OECD comparison.

The Prime Minister’s Office does not serve as a strategic planning unit. A lack of expert staff, infrastructure and other resources has left this office without sufficient capacity to guide government policy. Regulatory impact assessments are not systematically performed.

While the government does engage in societal consultation aimed at facilitating policy acceptance, the various consultation forums in practice often serve a cosmetic role rather than serving as true sites of debate and policy refinement.

At rank 31, Greece’s policy implementation capacity is rated extremely poorly in comparison with other OECD countries.

Successive governments have identified reform objectives in a number of areas, including the pension system, privatization of state-run companies and employment regulation. However, implementation of reforms has been inconsistent and inefficient.

Incentives for Greek ministers to implement the government’s program are very limited. Ministers tend not to comply if they risk losing personal popularity.

The central government has long followed a course of delegation, passing substantial responsibility to subnational authorities. In many cases, transfers have not been sufficient to fund these tasks, however.

Holding steady at rank 30, Greece’s institutional learning capacity is rated as very poor in comparison with other OECD nations.

The government has adapted domestic administrative structures to developments on the European and international levels. But in many areas, the state administration lacks high-quality resources, operating procedures and professional norms that would allow it to deal effectively with external institutions. Moreover, the country has a poor record in a number of areas such as environmental protection.

Greek governments have never excelled at monitoring institutional governing arrangements. Recent attempts to improve the government’s strategic capacity have had little visible effect.

At rank 30, a slight decline relative to the SGI 2009, Greece’s executive accountability is rated as very low in cross-OECD comparison.

The public has substantial interest in politics, but considerably less knowledge on specific government policies.

Parliamentary committees have the legal right to request documents from the government, with some specified exceptions.

The country’s main TV and radio stations provide daily infotainment and news programs that focus and thrive on sensationalist coverage.

Parties and interest organizations do not produce reasonable or coherent policy proposals on a regular basis.