The Troika and public administration reform in Greece: the role of the crisis and the power of bureaucracy

Abstract

The 2008 global financial crisis has significantly impacted on European societies and economies, including the Greek. Greece, which has been affected by the profound global transformations of the crisis, compared to other Eurozone countries with similar external financial pressures and difficulties, such as Cyprus, Ireland, Italy, Portugal and Spain, is the most problematic case and has been characterized as a unique international paradox . This uniqueness had brought many failings, problems and weaknesses to Greece, ranging from poor labor, product market institutions, massive public debt, low competitiveness, to an underperforming educational system, poor environmental protection and high levels of corruption. Numerous experts’ reports, pieces of academic analysis, and public opinion have identified over the years the malfunctioning of the administrative system in the country. The overall extent of public intervention in the economy as well as society, which has been excessive by any standards and means of comparison, and the long tradition of legalism, formalism, and rigidity of administrative behavior at any level and state’s action aspect are the main factors responsible for this quality deficit. Additionally, the infiltration of the political, or better the party- political concerns into the operation of state agencies as well organizations at the center and the periphery of the country’s administrative machinery does only aggravate the condition of limited professionalism as well as low performance in public administration. Excessive size, political dependence, lack of professionalism and legalistic culture constitute the factors that explain much of the predicament of Greece’s public administration.