These interactions exist, among others, between mandate holders, lawmakers, bureaucracy, mandate-issuing voters and interest groups, such as the media.
These groups represent some of the key players in the reality of Greek politics and the Greek economy. Each of these groups plays a given role in this power game, which results in the defense of the status quo against any reforms. In this context, it is of foremost importance to show, prove and understand that the anomalies and rigidities of the various markets in Greece’s economy, such as the labor and the product markets or the serious and unfair distortions of the tax system, all have roots in what we call “a closed society.” Greece is a sum of semi-closed markets, the political market itself included, where corruption and nepotism prevail. In this context government intervention and regulation that limit competition in product markets and levy fees that benefit unrelated third parties are widespread.
These activities create legal – in the sense that the law prescribes them – but often immoral and unethical rents – in the sense that they harm the broad interest of society to benefit specific interest groups. In addition they are looked upon favorably by the political establishment, powerful rent-seeking groups and a society that has been trained to be suspicious of free markets and to intuitively trust any leftist rhetoric that favors government interventions, even if it is not substantiated by solid arguments.
So one has to look at the roots of the “paradoxes” that fuel departures from inefficiencies and that describe a country that is internationally known for its collapsing institutions and, at the same time, a country with one of the highest growth rates in the euro zone. We thus proceed below to an analysis regarding:
1. The groups of special interests that defend the status quo and that seek and defend legal or illegal grabs, theft and rents.
2. The role of misinformation of the rational but uninformed voter in a system that shuns transparency.
3. The role of the media as information brokers that can play a crucial role in directing the dissatisfaction of the voters and that have the capacity to make voters understand the contribution of reforms. The media are themselves victims of blackmail from the constellation of interest groups.
4. The administrative insufficiency of the state as far as the establishment of the “rule of law” is concerned.
5. The failure of the mandate-holding politician as a lawmaker.
