Global Competitiveness Index: Why Is Greece Rated So Low....

In the "Global Competitiveness Index 2013-2014", the top country is, not surprisingly, Switzerland. Singapore is 2nd and Finland is 3rd.

Greece is ranked 91, well behind Estonia, Kazakhstan, the Russian Federation and the Ukraine. The low rating is due to any number of "inefficiencies" among other things the report notes "The country’s inefficient labor market (127th) continues to constrain Greece’s ability to emerge from the crisis(...)"

A wise remark and one that will persist in coming years as Greece's current government with its minister of labour (a man named Vroutsis) continues to pay only lip service to labour law reform -- purportedly to appease its unions.

Licensing -- a procedure that is mandatory if you want to set up shop in Greece -- is easily Europe's most cumbersome. Any investment has to be agreed - the problem lies in obtaining said agreement: often this requires patience or, it is rumoured, payment of a "speed-stamp" ("grigorosimo"): i.e. an under the table payment to speed things up.

Or, your investment can be anulled by the local mayor who does not like you - or simply want to throw his weight around. Case in point: Siemens wanted to invest in a new plant on the outskirts of Athens. They have (still have) the land. The local mayor vetoed the investment with a very simple note: "we do not want you".  Too bad for the 60-100 new jobs that would have been created...

Greece seems to tout the we are good for "investment" mantra, yet, when anyone tries, they fall flat on their face. OR, they need special government by-passes which spell uncertainty for the future.

Why? Why should Greece be so resistant - hostile, even - to investment and generally speaking to private enterprise? Why is Greece ranked 142 out of 148 as a destination for investment...

There is a simple explanation: Greece is still very much a Soviet minded, centralised and centrally controlled economy and Greece's political-administrative complex is not ready to accept liberalisation. The Greek state is loth to let go the reigns.
China's (communist) leaders seem to have proven far more liberal in their  long run, practically as well as conceptually, than Greece's lawmakers -- even in the 6th year of recession!


No wonder then that Greece is one of the few countries where people speak of "private enterprise" as something new and wondrous. In other countries he name of the game is, just plain business.