The view that the Greek economy is based on unproductive and environmentally vulnerable sectors, despite the “superficial image” of economic growth, was expressed from the podium of the Economist’s annual conference by Michael Iakovidis, Professor of Strategy & Holder of the Sir Donald Gordon Chair in Innovation and Entrepreneurship at the London Business School. As he noted characteristically, growth comes mainly from tourism and construction, while productivity per worker remains low in all key sectors.
Speaking specifically about tourism, Mr. Iakovidis emphasized that it is seasonal, with many workers burdening the state through unemployment benefits during the remaining months. At the same time, he added that the massive subsidy of the sector leads to overexploitation of resources without strategic planning. In fact, he specifically referred to the privatization of beaches and the continuous expansion of tourism projects, highlighting the role that the Council of State is constantly taking on as the ultimate institutional controller. “It is ironic that in a country that depends so much on the integrity of the environment, we rely on the Council of State to rule laws unconstitutional.”
At the same time, the professor criticized the lack of a long-term strategy, calling for a halt to the support of unsustainable investments and the redirection of available funds to sectors with high added value and transformative potential. “Greece needs new policies,” concluded Mr. Iakovides.
