Greece
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XXXXXXXX College Professional Studies

Abstract Greece is a country of great beauty. It has long been one of the world’s top tourist destinations. Tourism is one of the major industries of the Greek economy; tourism is a strong earner of foreign exchange. The warm climates, the long, scenic Mediterranean coastline, the many significant archaeological and historical sites, the traditional hospitality of Greeks, and improvements in the local infrastructure have continued to attracted visitors (Photius).
I have elected to focus on two aspects of the country of Greece for the purpose of this paper. First, I will outline the educational system in Greece. It has an interesting government run structure in which primary and secondary education is mandatory, a total of 9 years. Also, an additional 3 years of education is optional for students who desire to prepare for technical school or higher education in the university system. All education is free in Greece, placing the burden on the taxpayer. I will also discuss Article 16 of the Greek Constitution regarding the government’s stance on higher education and the negative issues surrounding their policy. The second issue I will discuss in this paper is the current economic problems facing Greece. After the 2004 Olympic Games in Greece, there was great hope that would have lasting positive, long-term effects for the country’s economy; however this has not been the case. Greece is in serious debt, it suffers from a bloated and corrupt public sector, and a budget deficit and public debt of almost 13% and 125% of GDP, respectfully (Athena dances). There is concern that the economy of Greece could go into default. The Greek Prime Minister, George Papandreou promises to greatly reduce the deficit by 2013, but is vague on details of how this will be accomplished (Athens dances). These are hard time for Greece and they call for harsh measures. Their European Union partners are nervous and concerned; will they cover Greece’s debt and prevent default, or will Greece go under?
The sea is the most consistent influence on the physical environment of Greece, it is one of the longest in the world, includes about 9,300 miles of shore. No point on the mainland is far from the water. Greece includes more than 2,000 islands--of which about 170 are inhabited. (www.Photius.com)
The second major physical feature, mountains, cover more than three-quarters of Greece's surface area. Although their general pattern is from northeast to southwest, the mountains and the basins between them form irregular barriers to movement across the peninsula. In Greece's early history, the isolating effect of the mountains encouraged populations to develop lasting traditions of independence because of their lack of communication with the outside world (Photius). Greece ranks in the top 15 destinations worldwide: miles of glimmering coastlines, dramatic mountains for excursions or paragliding, ancient sites, museums and theatre performances are all part of the Greek cultural heritage. The tourism industry is a vital part of the Greek economy as it is an undisputed fact that Greece is a highly attractive destination. Nevertheless, tourism is a very competitive sector and Greece has to keep up with the pace. In recent years there has been a shift toward upmarket and more diversified products and services, offering travelers the opportunity to enrich their activities (www.lingo 24.com).
Family and family values are strong in the Greek culture. The family is the basic social unit of all strata of Greek society, whether rural or urban. For an individual not to marry or to remain separate from his or her family is viewed as unusual behavior. Sons and daughters still live with their families until they marry, bypassing the Western tradition of living independently between those two stages of life. Families play a large role in selection of a mate, although the traditional arranged marriage is now less frequent than in previous generations. The basic household, or nuclear family, includes a husband, wife, and their unmarried children. This unit may also include a parent or another family relative, and in some regions a young married couple may live with the parents of one spouse until they can gain financial independence. The primary purpose of marriage is thought to be to produce children, without whom the couple would not be happy. The second goal is preservation and augmentation of the family property from the previous generation. In rural areas, the nuclear family is a source of agricultural labor. Other forms of family enterprise, such as fishing and small businesses, receive similar benefits from offspring.
The people of Greece also value education. The education system in Greece is highly centralized. The Ministry of Education and Religious Affairs approves all decisions on curricula, hiring practices, examinations, and standards. The Center for Educational Studies and Inservice Training advises the ministry on curriculum development. The country is divided into fifteen administrative regions for education, each of which is subdivided into 240 districts headed by inspectors who monitor curriculum application. Universities, all of which are financed by the state, are governed internally by a faculty senate, but all policy decisions must be ratified by the Ministry of Education and Religious Affairs (photius).
Article Sixteen of the 1975 Greek constitution states that "the goal of education is the moral, intellectual, professional, and physical development of their [the students'] national and religious consciousness so that they become free and responsible citizens." To accomplish this goal, nine years of education, normally accomplished from ages six through fifteen, are free and compulsory. Of the compulsory years, the first six are in primary school, the next three in a middle school; an additional three secondary years (in a college-preparatory) are optional but also free of charge. Students on the college-preparatory track may choose a classical or a scientific option, the latter of which is also offered by technical schools. All state schools are coeducational. Religious schools do not exist because religious instruction is compulsory for Greek Orthodox students in public schools.
Greece’s higher education system follows Article Sixteen of the Greek constitution which prohibits the operation of private institutions of higher learning. The cultural rationale behind that position is that education should not be commercialized at any level, nor should its availability be determined by the workings of the marketplace. In the early 1990s, the legalization of private institutions of higher education, urged by many education experts, was blocked by a PASOK government that was averse to opening a traditional bastion of state control to privatization (Saiti) . In practice, this situation has meant that the full burden of supporting Greece's system of universities and higher technical schools falls on the state budget, hence ultimately on the Greek taxpayers. It also means that the supply of higher education does not respond to increased demand except insofar as a government makes a conscious policy adjustment ( Photius ).
The high social status conferred by a university education causes enormous demand for the relatively small number of places in the university system. Although the number of university acceptances had increased after the reforms of the late 1970s and the early 1980s, the number of applicants increased at a much faster rate during that period ( photius). The economic stimulus of European Union membership was a major factor in continuing that trend.
Because of their limited funding, the ratio of faculty to students is also quite high in most universities. The highly politicized administration of Greek universities was based on a "chair" system that put groups of associated departments under the control of senior faculty and discourages innovative teaching methods. A 1983 law was passed to democratize university administration by replacing the system with American-style departments and giving junior faculty and student representatives a voice in policy making. The restructuring was achieved despite stiff resistance from entrenched senior faculty, however. Another measure established a National University Council to advise the government on higher education policy and an Academy of Letters and Sciences to set university standards. (Photius)
The intense demand for higher education has had several results. Students with sufficient means attend as much as two years of supplementary private schooling during their last two secondary years or after graduation, to prepare them for entrance examinations. Also, many of those students who are not accepted by a Greek university go abroad to study--the largest number to Italy and significant numbers to Britain, France, Germany, and the United States. In the mid-1980s, Greece had the highest ratio of foreign to domestic university enrollment in the world. The increasing numbers of Greek students at foreign universities drained funds from the domestic economy, and a significant number of students established careers abroad, depriving their homeland of their expertise. In the 1990s foreign universities began to open branches in Greece, where Greek students could begin study programs that must be completed at the parent institution abroad, increasing the "brain drain."
Private postsecondary institutions called "Laboratories of Liberal Studies" now offer three- and four-year programs. Graduates of these programs have been absorbed readily by private industry, despite the fact that their credentials are not the equivalent of university degrees.
There have been attempts to modernize higher education in Greece, however, fierce resistance occurs from many who feel educational policy reforms will ultimately privatize the system of higher education. The argument of those who resist change is that it will diminish the educational system which, if privatize, will be focused on profits rather than on educating students about social problems. Proponents of the privatization plan argue that the financial conditions of Greece’s colleges and universities necessitate a new system of management. Even though the government pledges to raise the educational bar, it is under pressure from the European Union to reduce Greece’s budget deficit (Labi 2006).
Now, I’d like to discuss Greece’s economy. Greece has a capitalist economy with the public sector accounting for about 40% of GDP. Tourism provides 15% of GDP. Immigrants make up nearly one fifth of the work force, mainly in agriculture and unskilled jobs. Greece is a major beneficiary of EU aids. Greece has sustained record levels of consumer spending. The Greek economy grew by nearly 4% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But growth dropped to 2.9% in 2008, as a result of the world financial crisis and tightening credit conditions. Greece violated the EU’s Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2006, but finally met those criteria in 2007-08. Public debt, inflation, and unemployment are major issues. The Greek Government continues to grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems, in the face of often vocal opposition from the country’s powerful labor unions and the general public. The economy remains an important domestic political issue in Greece and, while the ruling New Democracy government has had some success in improving economic growth and reducing the budget deficit, Athens faces long-term challenges in its effort to continue its economic reforms, especially social security reform and privatization (www.CIA.Gov)
Greece now has a budget deficit of nearly 13% and public debt of 125%. The spreads on Greek government bonds over German Bunds have widened to more than 2.5% points. The Greek Prime Minister and his Finance Minister are walking a difficult path, they need to balance fairness and social peace with fiscal austerity (Athenian dances). While the prime minister wants to avoid direct confrontation with his trade union supporters, the need to re-establish fiscal credibility ought to be a priority. Greece’s’ problems go far beyond the public finances. Stuck in the euro, its economy has lost competitiveness. Too many Greeks are underemployed, education needs reform, and the admission from the previous government’s that it had massaged its figures to qualify for the euro in 2001 are all negative indicators. The new administration confessed that this year’s budget deficit had suddenly shot up from 6.7% to 12.7%. Greece’s European Union partners fear that unless the new government gets tougher and pushes through deep reforms, it could be on a spiraling path towards default.
As the global financial crisis rocks Greece, Europe faces a question as candid as they come: What do you do when a one-size-fits-all currency no longer fits all ( )? Greece and other European countries that use the euro lack the options the U.S. has in fighting a recession. To combat sinking demand, Washington can run huge budget deficits while cutting interest rates to near zero and allowing the dollar to depreciate. Under EU rules, Greece’s deficit isn’t suppose to top 3% of GDP, although today it is 12/7% of GDP, and it can’t devalue its currency to ramp up exports because it gave up the drachma for the euro in 2001 ( ).
Europe is in a quandary over how to cope with Greece’s crisis. Sticking to the budgetary rules could deepen the pain for ordinary Greeks. But not enforcing the regulations will make the EU look like a pushover and invite weaklings such as Spain, Italy, and Ireland to demand similar treatment- which would increase the risk of inflation across Europe and undermine the integrity of the euro(Coy). The problems of Greece have no easy solutions, and time is running out.

References
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