Prosperity is not an “indicator”

It would seem that everything is going particularly well for the Greek economy. Reaching investment grade means that rating agencies consider us a reliable and, above all, creditworthy country, which in practice means that Greece will be able to take out loans at a lower price.

Economic growth is slowing somewhat but remains positive at a time when Europe is sinking into stagnation. Unemployment is falling and we appear to have escaped the nightmare situation of previous years, although the quality of employment data is not encouraging. Major projects and investments are announced…

But at the same time, all surveys show that people are worried about their economic situation, and the results are also alarming when it comes to other indicators such as poverty and material deprivation. Rising prices and the state of the economy are always at the top of the list of issues people mention when asked what they consider to be the most important issues facing the country.

Households experience a contradiction when incomes rise and real purchasing power declines. Everyone is anxiously waiting to see what will happen with the new electricity tariffs. Housing costs have skyrocketed in some areas, which, among other things, raises questions about the desirability of tourist rentals that are pushing longtime residents out of their area. But beyond what the residents themselves are experiencing, there are other critical issues.

For example, continuing to view tourism as an engine of growth rather than high value-added sectors. A lot says about the chosen development model and, as a consequence, about the future of employment, competitiveness and the quality of economic and social development.

It is also not encouraging that we are not having a serious debate about the agricultural sector, or that we have forgotten what “industrial policy”. Even such an important initiative as higher education reform is discussed more in terms of the “education market” than as a driving force for knowledge and research that will shape the dynamics of endogenous growth.

I don’t want to disparage the plans to invest in different industries or the innovative ideas that some companies are trying. I want to emphasize that all of this not part a more comprehensive plan that will ultimately mean that people will live better lives, have higher wages, a real welfare state, quality public education, less uncertainty and more optimism about the future.

Because, I’m afraid, we have built a concept of growth according to which it is enough to improve some hard economic indicators and increase the rating in international agencies for prosperity to come. That’s just not how it actually works. The steps that separate “growth” from prosperity are not economic, they are fundamentally political.

They include policy decisions about how we want the economy to work, the direction of investment, fair pay for work, eliminating inequalities, the balance between market dynamism and social protection.

Policy decisions that require appropriate political debate. Which we do not have in our country, just as, in fact, there is no opposition to the ruling party.

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