It can be argued that at the very core and foundation of a country the most valued structure is the economy. At some point in time, an economy may be in crisis due to many reasons. There are several reasons that can indicate as to why an economy is stable or unstable. The economical state of a country determines whether the people and its’ nation are thriving or struggling. For almost ten years now the country of Greece has been struggling. The ongoing ominous financial crisis has had a massive impact on the country of Greece and its’ citizens as well. The causes and effects are not only interconnected on a national level, but globally as well. How is it that a country can ensue and continuously go into a downward spiral so quickly? It is important, on a national and a global scale, to understand the implications and effects that it this “Greek Depression” has had. When it comes to a country and its’ people, there is a livelihood to protect, and every aspect of life should be taken into consideration. How a society rises to success and bounces back from misfortune, how it learns to adapt and function is determinant of its’ existence. The long-standing situation in Greece will make you wonder, is this a crisis within their economy or with their politics, or is it all connected, and how so?
Greece is a member of the European Union, and shares the same currency (Euro, €) with 23 other countries (Rosenberg, 2017), which sit in a range of financial positions. The euro is being weighed down by countries collectively known as the ‘PIIGS’, Portugal, Ireland/Italy, Greece and Spain (Applebaum, 2010), with Greece sitting in what is, perhaps, the worst position.
The financial crisis in Greece has also been believed to be caused by factors such as lavish spending. Over the years, it’s been a commonality in which the Greek government has been known to be accused by its’ citizens for the lavish spending by and for its’ officials (Catastroika, 2011). This is due to the increase in the number of luxurious activities or products the country is invested in such as the importation of luxurious goods at the expense of basic goods. The citizen’s continuously go on strike since this has led to high taxes being imposed. This has further led to the increase in the cost of living (The Greek Depression – Hostage to Austerity, 2016). Heavy borrowing is yet another cause of the economic crisis in Greece. This arises in a state condition where the national budget is higher than the available cash in the treasury, in which this addresses the downtrend of the economy. A country may therefore incur heavy borrowings to an extent that repayment may be a burden since the economy takes time to realize a recommendable improvement (Greece on the Brink, 2014).
It is suggested that the European Central Bank, in determining monetary policy for all of the Eurozone, set rates that were too low for the economic conditions in Greece (Greece on the Brink, 2014). A continued period of low nominal and negative real interest rates may have exacerbated sovereign debt bubbles, which Greece, as a euro member state, could not simply handle (The Global Financial Crisis of Greece, 2015). In addition to the international element that is often and rightly emphasized, it is the accretion that monetary policy might also have contributed to Greece’s sovereign debt crisis (Seyler, 2013). Another institutional involvement is the IMF, which plays a pivotal role in the international economy system. According to the IMF’s principles and its special role in the global economy system, the role of the IMF has become increasingly imperative in the given global financial crisis. The IMF’s role in the international monetary system is crucial and undeniable, especially in the Greek economy (BBC – The Great Euro Crisis, 2013).
The literature and research done on power and meaning, means of production, governmentality and discipline, even on revolution and resistance can be used to help understand and pick apart the situations in Greece. Michel Foucault argues a number of points in relation to power and offers definitions that are directly opposed to more traditional liberal and Marxist theories of power. Foucault believed that power is never in any one person’s hands, it does not show itself in any obvious manner but rather as something that works its way into our imaginations and serves to constrain how we act (Foucault, 1982). For example in the setting of a workplace, the power does not pass from the top down; instead it circulates through their organizational practices. Such practices act like a grid, provoking and inciting certain courses of action and denying others. Foucault considers this as no straightforward matter and believes that it rests on how far individuals interpret what is being laid down as “obvious” or “self evident”, institutional power works best when all parties accept it willingly. At the core of the global financial crisis, there are a variety of institutions that sit around deciding the fate of countries. The nasty pill with the never-ending half-life that is shoved down the throats of Greek citizens continues to affect the ongoing struggles of their political and socio-economical realms.
It is often thought that Foucault’s notion of power is a difficult notion to grasp principally because it is never entirely clear on who has the power in the first place, once the idea is removed that power must be vested in someone at the top of the ladder, it becomes much more difficult to identify what power is or where and whom it lies with (Foucault, 1991). This concept is entirely applicable to the situation in Greece, everyone wants the power and the monetary means but who is held accountable for the present devastating state? Foucault believes that we are used to thinking about power as an identifiable and overt force and that this view is simply not the case, because it is taken for granted that the above statement is true then it is much more complicated to comprehend power as a guiding force that does not show itself in an obvious manner. Covertly, the hearings and proceedings are decided upon, and it is overtly that the end-results of these are felt in Greece.
Foucault’s investigation on governmentality focused on the problem of personal subjectivity, in that it is to care for the problems of “who are we” and problems that we are facing. Greece is thought to be considered a “first world country” but with the continuous ongoing struggle and what is portrayed globally, as in their protests and poverty, it offers a different picture than what you would think is a “first world country”. Foucault also pointed out that the main purpose was not on “what are we” but to refuse to be “what are we”, his words are:
“The conclusion would be that the political, ethical, social, philosophical problem of our days is not to try to liberate the individual from the state and from the state’s institutions but to liberate us both from the state and from the type of individualization which is linked to the state. We have to promote new forms of subjectivity through the refusal of this kind of individuality which has been imposed on us for several centuries.” (Foucault, 1982)
Ultimately there is a society in desperate need and the country as a whole is fraught. From the bailout packages, demands have been harsh and have taken a toll on Greek society, this is all occurring simultaneously as the state is continuing to still be running a budget deficit and even experiencing a political crisis (The Global Financial Crisis of Greece, 2015). The civil dispute has grown out of the unreasonable spending cuts. Instead of lowering the government workers’ wages, the statesmen started reducing the funding of social insurance, health-care system and even churches (Economides, 2011). The accessibility of jobs and wages has been slashed and decreased. Wages have been cut extensively and taxes have been increased tremendously within this time frame and all the while as unemployment rates continue to fall, poverty rising, and the overall economy shrinking. Due to this the society has become restless, frequently participating in strikes and demonstrations.
The argument for the pursuit of profit in capitalism is said to encourage competition and development, which in turn leads to lower prices for the consumer, who benefit from increased consumer welfare, and increased satisfaction (Capitalist Theory). It is said that capitalism has become the most efficient and productive economic system on a global scale. In my opinion, to state that capitalism is effective for all would be entirely inaccurate, and this is seen in the case of Greece’s financial crisis. As Marxist Political Economists would argue that the primary initiative remains to make profits, regardless of the potential risks and consequences and this has become evident during the global financial crisis (BBC – The Great Euro Crisis, 2013). Capitalism, alongside globalization, has also led to the rise of multinational companies and resulting exploitation, which has become evident in countries worldwide. Young Europeans are confronted with a tremendous load of challenges, with the threat of financial distress, massive unemployment and unmanageable environmental problems without being responsible for any of these issues (Catastroika, 2011). Future generations in Greece need a strong sense of affiliation and collaboration on the European and even global level to cope with this complex situation. As we see, influential media has created a certain ‘discourse of difference’ over the last years between European nations and the people (Bickes, 2014).
In summary, the EU and the IMF have distinctly failed to provide a reasonable solution to end the Greek economic crisis. It is also quite clear that the funds, provided by the international community, were corruptly distributed among the interest groups and state officials. Subsequently, the government has been unsuccessful in repaying public debts and improving the welfare and social situation of Greece and its’ citizens. I don’t believe that there is a clear-cut allocation of blame of institutions or persons of power, but in fact, that many factions and factors in which they are interconnected have a part to be accounted for. Bringing to a close, as a result of this situation analyzing social, cultural and political factors have negatively affected this country’s economic performance, its’ critical state and financial debts of enormous proportions. When it comes to economics, it’s not just about cold hard concrete numbers, it’s also about power, political power primarily, and in which institutions and whomever harness such power to be used in their best interest. It’s easy to notice problems where there is a lack thereof but how can we analyze the problems when there is a surplus or an excess, what measures are taken? There is a resonating distress when studying and researching the downfall and struggle of a nation of people and where they call home. The acknowledgement that there exists a global hierarchy on an economical and political scale and that you’re either at the top, middle, bottom, or even on the outside and that there are powers that can determine your position is hard to digest.