Re-energizing Greece


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This is the presentation I gave for the event that took place on Tuesday 17 January at the War Museum, and was moderated by Ioannis Stournaras , Professor at the University of Athens and General Director of IOBE.

It was organised by ELIAMEP, IOBE, Kantor and Citizens’ Movement and was entitled:

“Investments, Development, Unemployment”

Speakers were:

Andreas Andreadis, President of the Association of Greek Tourism Enterprises
Efthymios Vidalis, President of the Board for Sustainable Development of the Hellenic Federation of Enterprises
Nikos Zonzilos Scientific Advisor of IOBE
Dimitris Papalexopoulos Managing Director of S.A. Titan
Abraham Tsoukalidis President of Positive Energy

Published in: Business, Travel
  • Ευχαριστώ πολύ Βασίλη για την επισήμανση. Ξέρεις ότι ανήκω σε αυτούς που πιστέυουν ότι είναι χρέος μας να δώσουμε τον καλύτερό μας εαυτό.

    Για μια πιο αναλυτική συζήτηση της παρουσίασης, δες:
    Are you sure you want to  Yes  No
    Your message goes here
  • Πολύ ωραία δουλεία ξάδερφε.

    Αλλά φοβάμαι πως η αντίσταση στην αλλαγή σε όλα αυτά τα οποία συγκεκριμενοποιείς στα slide 28,29 & 30 είναι πιο ισχυρή από την όρεξη, τη θέληση, τη δύναμη και την ευφυΐα όσων προσπαθούν να σώσουν αυτή τη χώρα.

    Μπορεί το 2-3% που καταλαβαίνει τι πραγματικά συμβαίνει και έχει τη διάθεση να δουλέψει για κάτι καλύτερο, να σώσει τη χώρα από τους υπόλοιπους που ούτε συναίσθηση έχουν του γιατί φτάσαμε εδώ, ούτε να σωθούν θέλουν;

    Στην Ελλάδα του 2012, ακόμη μιλάμε για «κρίση» λες και θα επιστρέψουμε ξανά σε εποχές προ 2008.
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    Your message goes here
  • I look forward to your comments.
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Re-energizing Greece

  1. 1. Growth opportunities in new technologiesPublic Debate:“Investments, Development,Unemployment”ELIAMEP, IOBE, Kantorand Citizens’ Movement co organizeon Tuesday 17 January 2012Abraham Tsoukalidis
  2. 2. 01 Presentation Framework »02 Growth Opportunities03 The way forward
  3. 3.  The Global Economy ◦ The Global Outlook is Gloomy ◦ Global Mood Swing ◦ The World is moving East ◦ There are Pockets of Growth ◦ Global Spending on Technology Continues ◦ Sustainable Development is the new Megatrend  The European Outlook ◦ European Outlook: Key players ◦ Towards Disintegration?  The Greek Reality ◦ McKinsey: “a Flawed Economic Model” ◦ Did Greece have an economic model for Growth? ◦ Greece has low and decreasing productivity ◦ Greece did not attract foreign investments ◦ Greece’s economic output is based on non tradable goods produced by SMEs ◦ Greece does not innovate01 Presentation FrameworkThe Current Situation
  4. 4. 01 Presentation FrameworkThe Current Situation
  5. 5. Labor productivity per hour worked 2006 2007 2008 2009 2010 Index (EU-27 = 100) Germany 127,6 127,3 126,6 124,6 123,9 Ireland 121,4 123,5 116,4 120 125,7 Greece 78,7 78 79,7 81 77,8 Spain 102,7 103,9 104,7 108 107,8 France 134,8 134,3 132,4 133,3 133,5 Finland 108,2 111,2 112 109,8 110,9 Sweden 118,1 119,1 117,9 113,8 115,4 United Kingdom 112,6 109,9 108 105,3 10601 Presentation FrameworkThe Current Situation
  6. 6.  Today, Investors expect Capabilities not Resources!01 Presentation FrameworkThe Current Situation
  7. 7. Non-Tradable Tradable Large% % Organizations Large Public Sector Organizations 22,5 2,6 State Owned Manufacturing Companies Shipping Industry Banks Energy Telecommunications Tourism Retail% Small Enterprises Small % 52,2 Retail Construction Lawyers Enterprises Tourism Manufacturing 22,7 hair Saloons01 Presentation FrameworkThe Current Situation
  8. 8. The Greek vs Finnish Knowledge Economy 2009 Annual GDP Growth (%) Internet Users per 10 Human Development 1000 People 9 Index 8 Computers per 1000 7 Tariff & Nontariff People 6 Barriers 5 4 Total Telephones per 3 2 Regulatory Quality 1000 People 1 Greece 0 Finland Gross Tertiary Rule of Law Enrollment rate Gross Secondary Royalty Payments Finland succeeded Enrollment rate and… because it followed a balanced Adult Literacy Rate S&E Journal Articles development (% age 15 and… / Mil. People Patents Granted by USPTO / Mil. People01 Presentation FrameworkThe Current Situation
  9. 9. Finland followed But this was not a version of the enough! “Washington Finland also focused on consensus” growth policies One • Low Government deficits alone • Strong focus on education • Strong governance and • Strong focus on coordination accountability • Stable macroeconomic policy IS NOT of policies among key government agencies and between them enough! • Strong financial sector (after and the productive sector the 1990s crisis) • Strong focus on R&D • Openness to outside ideas and innovation and a free trade regime • New type of industrial policy • Strong focus on encouraging • Strong focus on the future and domestic competition international product markets01 Presentation FrameworkThe Current Situation
  10. 10. 01 Presentation Framework02 Growth Opportunities »03 The way forward
  11. 11. Enabling Investing in Projects in Grow a ICT / Move Sustainable Robust Towards a Urban Investment Knowledge (Re) Ecosystem Economy Development State | Education | Private Sector & Entrepreneurship | Brand Greece | Social Capital02 Growth OpportunitiesGrowth Pillars
  12. 12.  Proven concept  Greek ICT companies have succeed and continue to succeed and attract investment interest in a global marketplace02 Growth OpportunitiesGrowth Pillars01 Investing in ICT / Move Towards a Knowledge Economy
  13. 13.  Low spending in ICT, especially in promoting ICT expenditure 2010 e-government (Percentage of GDP) EU (27 countries) 2,5  Need for a balanced development of: Germany 2,6 ◦ Information and Communication Ireland 2,8 Technologies (ICT) Greece 1,2 infrastructure Spain 1,8 ◦ Education France 2,6 ◦ Innovation Italy 1,6 ◦ Economic Incentives regime Portugal 2,1 Romania 1,2  Promote Best Practices Slovenia 2 Slovakia 1,9  Focus on Long- Term policies Finland 3,3 that measure results and Sweden 2,9 effectiveness of policies United Kingdom 3,802 Growth OpportunitiesGrowth Pillars01 Investing in ICT / Move Towards a Knowledge Economy
  14. 14. Availability of eGovernment services - enterprises Availability of eGovernment services - citizens Online banking (% internet users) Sending filled forms to eGov services, last 3 months (% pop) Use of eGovernment services, last 3 months (% pop) Population who have never used the internet 3G coverage Mobile broadband penetration Rural fixed broadband coverage Share of fixed broadband lines equal to or above 10 Mbps Fixed broadband penetration-1,5 -1 -0,5 0 0,5 1 1,5 Above EU27 average Under EU27 average Source: 02 Growth Opportunities Growth Pillars 01 Investing in ICT / Move Towards a Knowledge Economy
  15. 15.  Availability of e-Government services! Source:02 Growth OpportunitiesGrowth PillarsInvesting in ICT / Move Towards a Knowledge Economy
  16. 16.  Benefits to society by e-government services ◦ Advancing inclusion of all ◦ Contributing to high user satisfaction, transparency and accountability, reduced administrative burden and gains in efficiency ◦ Strengthening participation and democratic decision‐making ◦ Reinforce mobility  Benefits to society by broadband penetration ◦ Using e-government services ◦ Searching and finding a Job ◦ Using Other online services (e.g., Online banking) ◦ Obtaining information02 Growth OpportunitiesGrowth PillarsInvesting in ICT / Move Towards a Knowledge Economy
  17. 17.  Proposals: 1. Use new financing tools for IT project (PPP, outsourcing, BOT) 2. Speed up implementation of existing funding programs, like: ICT4growth, ICT4markets 3. Create a special incentive zone scheme to attract large companies Research and mainly development centers02 Growth OpportunitiesGrowth Pillars01 Investing in ICT / Move Towards a Knowledge Economy
  18. 18.  Enable projects for sustainable re-development of communities  Adopting sustainable urban planning life-cycle and new “Eco-City” Standards  Focus on Technological Solutions in five sectors: 1. Spatial and Urban Design 2. Transport Sector 3. Energy Sector 4. Water Sector 5. Solid Waste Sector02 Growth OpportunitiesGrowth Pillars02 Sustainable Urban (Re)Development
  19. 19.  Construction activity in EU (Construction Index -2005=100) Country 2009Q3 2010Q3 2011Q3 700 Greek Solar (PV) Energy Industry Euro area (17 88,81 81,22 82,54 600 countries) Germany 125,73 130,13 138,81 500 Greece 100,09 62,98 57,76 400 €1bn MWp Spain 63,82 41,56 43,86 300 France 90,55 86,62 88,53 200 Italy 91,49 91,89 87,30 100 Finland 117,08 129,93 141,88 0 Sweden 106,91 113,23 119,84 2006 2007 2008 2009 2010 2011 New installed PV 1,3 1,5 10 36 150 400 (MWp) United Kingdom 92,79 103,70 103,87 Total installed PV 6,7 8,2 18 55 205 605 Turkey 106,12 128,66 142,46 (MWp) Source:02 Growth OpportunitiesGrowth Pillars02 Sustainable Urban (Re)Development
  20. 20.  The Berlin Energy Savings Partnership between the local government, individuals and private sector results in considerable annual savings02 Growth OpportunitiesGrowth Pillars02 Sustainable Urban (Re)Development
  21. 21.  Existing Funds and programs in Greece from the EU and EIB ◦ Energy efficiency program for homes ◦ Energy efficiency program for municipalities ◦ Energy efficiency program for public buildings ◦ ‘Green Schools’ program ◦ Urban Development funds ◦ Energy Savings Companies (ESCOs)02 Growth OpportunitiesGrowth Pillars02 Sustainable Urban (Re)Development
  22. 22.  There is an existing investment and Venture Capital sector in Greece  In order for Greek companies to grow and expand, we need to expand the investment ecosystem  Benefits of Venture Capital clusters: ◦ Firms financed by venture capital grow faster in both sales and employment ◦ Best way to promote the development of high-growth companies ◦ Significant contribution on creating jobs and generate wealth02 Growth OpportunitiesGrowth Pillars03 Grow a Robust Investment Ecosystem
  23. 23.  Coordinated innovation & entrepreneurship policies (rare)!  Recently announced by the Ministry of Regional Development ◦ Seed funds (high-risk/high-return early stage investment) ◦ Co-investment funds (network of potential investors) ◦ ICT Venture Capital Fund ◦ Investment Loans (50%) ◦ Competitive Clusters (Web 2.0, mobile added value apps)02 Growth OpportunitiesGrowth Pillars03 Grow a Robust Investment Ecosystem
  24. 24.  Encourage innovation and startup centers in universities (Poland)  Create a special ‘Visa’ program for entrepreneurs (Chile)  Grow a network of incubator and co-working spaces (UK)  Give special benefits to investment companies (India)  Promote financial and business mentorship regional programs (Italy)  Use existing Greek bank network in the region02 Growth OpportunitiesGrowth Pillars03 Grow a Robust Investment Ecosystem
  25. 25.  We have done it before  Greece has been successful in attracting a major international business cluster  The legal and tax environment has stayed (mostly) the same for 45 years now02 Growth OpportunitiesGrowth Pillars03 Grow a Robust Investment Ecosystem
  26. 26. 01 Presentation Framework02 Growth Opportunities03 The way forward »
  27. 27.  Public Sector ◦ Central State ◦ Local Communities A new brand for Greece  Education ◦ Technology and Innovation Institutions ◦ Educational Institutions  Private Sector & Entrepreneurship ◦ Industry ◦ Potential Entrepreneurs “The Apple of the Mediterranean”  Social Capital03 The way forwardKey Stakeholders
  28. 28. Ministry of Finance • The basics: Minimize Tax Evasion • Beyond the basics: Foster growth and employment Ministry of Interior • The basics: Reengineer all processes • Beyond the basics: Adopt e-government practices Parliament • The basics: Simplifying Greek Law • Beyond the basics: Conduct dynamic assessment of government Judicial system- This might be the most important stakeholder! •The basics: Speed up justice •Beyond the basics: Introduction of e-justice •Beyond the basics: Out-of-court dispute settlement03 The way forwardKey Stakeholders
  29. 29. Municipalities • The basics: Reengineer processes and offer e-services • Beyond the basics: Conduct a sustainable urban/rural development program for the next 20 years Islands • The basics: Sustainable solutions for water, energy and solid waste management • Beyond the basics: Create a sustainable and balanced economic environment Community-based organizations – Social Capital • The basics: Fundraising and resource mobilization • Beyond the basics: Connect on a national level – promote values03 The way forwardKey Stakeholders
  30. 30. General Secretariat for Research and Technology (GSRT) • The basics: Build an expert organization for financing research, development and innovation in Greece • Beyond the basics: Build a strong international R&D network Universities • The basics: Connect scientific research and teaching • Beyond the basics: Build international excellence and ties with the industry, and raise international funds for research National Hellenic Research Foundation •The basics: Fund multidisciplinary Research •Beyond the basics: Promote research on Sustainable Development and Renewable energy03 The way forwardKey Stakeholders
  31. 31. Manufacturing Industry • The basics: Product and process innovations • Beyond the basics: Build international excellence and influence the direction of education and research Service Industry • The basics: Support R&D activities of the manufacturing industry • Beyond the basics: Promote international best practices and benchmarking Entrepreneurship • The basics: Foster an export-driven and innovative entrepreneurial culture and practice • Beyond the basics: Build and capitalize on the new Greek brands03 The way forwardKey Stakeholders
  32. 32. Key terms in 2004 Key terms in 2011 • Soccer Championship • Painful austerity • Olympic Games Ceremony • German chancellor • Greek accomplishments • Angela Merkel • Greek Prime Minister • Greece return • Construction • Structural reforms • Pre-tax profits increase • Economic uncertainty • Budget deficit Most frequent key terms by searching for “Greece” in the Headlines of Reuters and Dow Jones Newswires for 2004 and 2011. Search performed by Dr. A. Syrigos January 2012 Dow Jones Factiva Database03 The way forwardA potential Action Plan(Re) Branding Greece
  33. 33.  “A brand is nothing more than the set of  “Often, if you removed impressions in people’s the name of the country head” and looked at their advertising  “Branding is the process campaign, you wouldnt be able of managing impressions” to tell what country it is. There is a real opportunity for destinations to find out what is truly unique about them, beyond the attractions” Mark Truss Director of brand intelligence at advertising agency JWT and Professor at Columbia University03 The way forwardA potential Action Plan(Re) Branding Greece
  34. 34.  Social Capital: an instantiated set of informal values or norms shared among members of a group that permits them to cooperate with one another.  If members of the group come to expect that others will behave reliably and honestly, they will come to trust one another.  Key word: Trust o Trust acts like a lubricant that makes any group or organization run more efficiently. o Strong link between performance of economic and political institutions and civic community o Democracies (and economies) ‘work better when there exists an independent and long-standing tradition of civic engagement’ 7/10 Greeks with no associational membership Source: Kyriakos Pierrakakis talk TEDxAthens 201003 The way forwardKey Stakeholders – Social Capital
  35. 35. EnablingInvesting in Projects in Grow aICT / Move Sustainable Robust Towards a Urban InvestmentKnowledge (Re) Ecosystem Economy Development State | Education | Private Sector & Entrepreneurship | Brand Greece | Social Capital
  36. 36. Abraham Tsoukalidis