Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGreece needs reforms, not loans:
http://blogs.lse.ac.uk/greeceatlse/2011/07/20/of-taxis-and-men/Taxidriver is a "closed profession" in Greece. Taxidrivers have a special protected status to prevent competition.
"Forbidding the issue of new licenses for over 30 years has left major cities with serious traffic problems. First, there are double or triple hires, that is, picking up two or three individuals who go to separate addresses and charging them full service while the cab records the transactions as a single hire. This is of course illegal because it implies revenues that are not subject to taxation."
--------------------------------
http://www.cnbc.com/id/102359709#.
Bureaucracy is getting in the way of business.
"Greece is the only country in Europe that has legislation to determine the permitted shelf life for milkfive days. In other countries, the milk producer determines the "sell-by" date, and it's their responsibility to ensure the safety of the product.
The result: Foreign producers can't enter the Greek market because their product would be almost out of date by the time it gets to the shelf. Fresh milk is still consumable for as long as 15 days, according to the OECD, which recommended that the legislation be abolished.
The reform didn't happen. Instead, the permitted shelf life was extended to seven days, according to the Ministry of Development."
-------------------------------
http://blogs.ft.com/the-world/2015/01/the-greek-economy-the-case-against-structural-reform/
"That the microeconomic structure of the Greek economy (as opposed to its position in the macroeconomic cycle) is a shambles is not in doubt: closed professions, low labour force participation, a corrupt bureaucracy and a political class that hands out state contracts to a favoured few and fails to collect tax from almost everybody. And unlike, say, Spain or Italy, Greeces inefficiencies are such that some kind of structural change is probably necessary for it to exit crisis mode, let alone show healthier growth in the medium term.
But fixing a chunk of this has nothing to do with deregulation. As part of their plan to target the oligarchy, Syriza whose victory on Sunday sparked celebrations (right) have promised to clamp down on tax avoidance by the rich and clean up the notoriously corrupt public procurement system. Improving tax collection is already a big part of Greeces current agreement with the EU-IMF-ECB troika. If this happens an if roughly the size of Crete, admittedly it would stand as an excellent example of redistributive left-wing structural reform. To the extent that an economy is rigged to benefit a national elite, as Greeces partly is, a left-wing party may be one of the best hopes of positive change.
Of course, that is not Greeces only problem. Tax evasion is endemic throughout the economy, not just at the top, and breaking open Greeces closed professions means threatening the security of workers, such as taxi-drivers, who may be rent-seekers but could hardly be called oligarchs."
------------------------------------
http://www.nytimes.com/roomfordebate/2015/01/27/can-greeces-anti-austerity-government-succeed/greece-needs-broader-structural-reforms-than-syriza-has-proposed
"Greeces economy is not free and competitive. Powerful cartels are shielded with barriers to entry by newcomers and foreign investors. There are still numerous closed shops and professions. Public sector unions are overprotected in comparison with private sector employees."
...
"The administrative and the bureaucratic costs for investing, starting a business or transfer real estate are still unreasonably high. Overregulation is stifling economic activity. The tax system is inefficient and grossly complex. The justice system is extremely slow in enforcing contracts or resolving bankruptcies. Corruption is widespread and socially tolerated."
...
"The welfare system is the European Union's most inefficient in eradicating poverty and now it is also insolvent."
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
0 replies, 528 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (1)
ReplyReply to this post