GREECE 10

YEARS AHEAD
BUSINESS STRATEGY

Uzair Ijaz
21-10438
OVERVIEW
The document “Greece 10 years ahead” is the summary of the 10 year plan suggested in order to

increase their economic growth, investments, competitiveness etc. This report has covered all the major

potential areas where Greece is lagging behind. In order to cater these problems, the necessary solutions

are presented. In my report, I would briefly analyze these strategies that are recommended in this

document and present a different strategy where needed.

This study is to address the recession after 2008. Both the private and public sector had fallen and the

GDP. Greece was in the midst of a massive fiscal and financial crisis, with little to no FDI, a high

unemployment rate, and an economy that had expanded based on an unsustainable demand structure that

was almost completely driven by consumption. Furthermore, the country's imports from competing

nations were absurdly high, resulting in a massive trade deficit of €20 billion in 2010. Due to the

administrative issues, Greece was losing €15-20 billion annually which was another major reason of the

recession.

1. The growth model presented in the report focuses on 6 major challenges which are as follows:

2. Increase the amount of money and resources invested in trade sectors.

3. Transitioning the economy from public debt to private equity and investment.

4. Reducing the number of unnecessary public sector institutions and increasing the efficiency of

government management.

5. Limit informality by consistently implementing internationally established strategies to diminish

issues such as tax evasion and corruption.

6. Women and young people should be encouraged to enter the workforce by institutions.

7. Coordination between government agencies should be improved.

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20 possible reforms to remove productivity, competitiveness and growth barriers and unleash the

country’s growth potential were also presented in the report. These are as follows:

1. Economic Development and Reform Unit

2. Talent Placement Office

3. Development of a Central IT Unit

4. IPSAS/IFRS Double-Entry Standards

5. Integration of Discontinuation of State Entities

6. Broaden Scope of HRADF

7. National Liquidity Relief and Growth Fund

8. Infrastructure and Sector Investment Flows

9. Remove Administrative, Regulatory and Infrastructure Barriers

10. Revisit “Fast Track” & “Invest in Greece”

11. Revise Environmental and Zoning Framework

12. University-Business R&D Collaboration

13. Launch Ellada and Ergasia

14. Revamp Graduate, Undergraduate and Technical Education

15. Complete Flexibility and Efficiency-Related Labor Reforms

16. Accelerate Decision Making in Council States

17. Consolidate all Internal Auditing Functions

18. Launch Dedicated Projects and Eliminate Possible Informalities

19. Improve Tax Evasion Detection and Tax Collection

20. Reinforcing a Central Procurement Unit

The report then states the 8 potential rising stars. These rising stars are the areas where if Greece starts

focusing, it can generate great revenues. These includes 6 primary rising stars that are Generic
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Pharmaceuticals, Agriculture, Medical Tourism, Waste Management, Regional Cargo & Logistics Hub,

Long-term & Elderly Care and 2 secondary rising stars that are Graduate Classics Education Hub and

Specialized Greek Foods

ANALYSIS
The National Growth Model that includes six main adjustments are essentially required for Greece:

1. Tourism, agriculture, industry, and commercial services all require significant resources and

investments.

2. Foreign and domestic investment and a business-friendly environment.

3. Eliminating marginal or outmoded public sector units that do not contribute to the public benefit

and enhancing the operating efficiency of the larger public sector

4. Tax evasion should finally be tackled, and loopholes that allow or even encourage it should be

closed.

5. New job possibilities and employment culture are needed in the country.

6. The execution and managerial capacity of its public administration must be drastically improved

under a new sustainable economic paradigm.

The significant improvement through this growth model can be seen in the figure bellow. The

productivity has increases as well as GDP per Capita has increased from 31 to 41. The consumption of

private and public sector has decreased over GDP. Net exports and investments have increased. Other

than the performance of the economy, the health has also increased by following the international

benchmark for tax evasion and reducing the tax gap. Also the employment turnover has increased.

However, these figures are just estimates of the results but not he actual results, hence we cannot rely

completely on these. Nonetheless, in my opinion, the strategy of new “National Growth Model” can be

effective as it covers the major areas where the economy was lagging.
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The 20 possible reforms to remove productivity, competitiveness and growth barriers are also seen to be

impactful as they have covered all the major growth barriers that were stopping the country from

growing. These can be really helpful if they are implemented correctly.

The 8 rising stars mentioned in the report are significant to take a competitive edge over other European

countries. However, this plan has some flaws that I would rather change. The rising star, long term-

elderly care seems to be a less likely rising star, rather it can be more of a hassle for the country to

manage old people in such population. The ideology of making Greece ideal for old age people might

not be very good idea has the old aged people have a lot medical needs and they do not contribute to the

society in financial terms. It should be rather focused on improving medical care facilities, which in fact

is one part of this rising star, but the plan should be focused on the current population and fulfilling the

needs of these people rather than gathering the old people around the Europe.
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Other than this, I would really want to take out the Greek Classical Hub from a secondary rising star to a

primary rising star as it has a lot of potential. Throughout the world, Greece is known for its history and

it is one of the oldest civilizations. It can be effective way to cash this opportunity by making museums

and educational programs for people around the world.