My "Emergency Economic Summit for Greece" presentation (May 19, 2015)

1. Eradicating Cronyism & Corruption
Aristides N. Hatzis
Associate Professor
Philosophy of Law & Theory of Institutions
Ph.D. (Law & Econ, U of Chicago)
Emergency Economic Summit for GreeceEmergency Economic Summit for Greece
May 18, 2015May 18, 2015

5. Economic Freedom and CorruptionEconomic Freedom and Corruption
High scores indicate low corruptionHigh scores indicate low corruption
0
10
20
30
40
50
60
70
80
90
100
CorruptionRating
(outof100)
Least Free
Quartile
3rd Quartile2nd QuartileMost Free
Quartile
Sources: The Fraser Institute; Transparency International, CorrSources: The Fraser Institute; Transparency International, Corruption Perceptions Index,uption Perceptions Index,
2014 available at http://2014 available at http://www.transparency.orgwww.transparency.org..
Most FreeMost Free …………………………. Least Free. Least Free

6. Greece is not a free-market
economy!

7. Index of Economic Freedom-2015: 130/178
– Last in the EU
Economic Freedom of the World-2014: 84/152
– Last in the EU
Global Competitiveness Report-2014/5: 81/144
– Last in the EU
ICC Open Markets Index: 48/75
– Last in the EU
Mostly Unfree...

8. Greece’s neighborhood

10. 1974-2005
171.600 regulations!
– 3.430 laws
– 20.580 presidential decrees
– 114.905 ministerial decisions
– 32.585 local government decisions
Institute for Regulatory Policy Research

11. Extractive economic
institutions: Designed by the
politically powerful elites to
extract resources from the rest
of society.
Inclusive economic institutions:
Secure property rights, law and order,
markets and state support (public
services and regulation) for markets;
open to relatively free entry of new
businesses; uphold contracts; access
to education and opportunity for the
great majority of citizens, i.e., create
incentives for investment and
innovation and a level playing field.

12. Greek Extractive Institutions
Index of Economic Freedom
Long-term score change (since1995)

15. Like there is no tomorrow!

16. An inefficient welfare state
The indicator of the efficiency of social
benefits in alleviating property is the worst in
the E.U. (13%, where the EU average is 35%
and some Scandinavian countries were as
efficient as 70%!).
In 2002 the indicator was a poor 4% with a
EU average of 31%.

17. A helping hand to the rich

18. Low levels of trust
Government: 14,6% (51,7%)
Courts: 40,2% (52,6%)
Education system: 51,8% (66,1%)
Other people 16,5% (24,2%)
Philanthropy: 9% (28,9%)
Volunteerism 10% (20,9%)
Global average in parentheses

19. A political culture of
Statism
Protectionism
Corruption
Cronyism
Nepotism
Rent-seeking
Irresponsible spending

20. What’s best for the rule of law;
For political, civil and social rights?

21. Economic Freedom and Political RightsEconomic Freedom and Political Rights
Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings,rld Country Ratings,
2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.
Most FreeMost Free …………………………. Least Free. Least Free

22. Economic Freedom and Civil RightsEconomic Freedom and Civil Rights
Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings,rld Country Ratings,
2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.
Most FreeMost Free …………………………. Least Free. Least Free

24. Income of the Poorest 10% andIncome of the Poorest 10% and
Economic FreedomEconomic Freedom
Sources: The Fraser Institute; The World Bank, World DevelopmenSources: The Fraser Institute; The World Bank, World Development Indicators,t Indicators,
2013.2013.
Most FreeMost Free …………………………. Least Free. Least Free

28. Thank you!Thank you!
ahatzis@phs.uoa.gr
http://www.phs.uoa.gr/ahatzis