eradicating cronyism and corruption in greece
TRANSCRIPT
Eradicating Cronyism & Corruption
Aristides N. HatzisAssociate Professor
Philosophy of Law & Theory of InstitutionsPh.D. (Law & Econ, U of Chicago)
Emergency Economic Summit for GreeceEmergency Economic Summit for GreeceMay 18, 2015May 18, 2015
Economic Freedom and CorruptionEconomic Freedom and CorruptionHigh scores indicate low corruptionHigh scores indicate low corruption
0102030405060708090
100
Cor
rupt
ion
Rat
ing
(o
ut o
f 100
)
Least FreeQuartile
3rd Quartile2nd QuartileMost FreeQuartile
Sources: The Fraser Institute; Transparency International, CorrSources: The Fraser Institute; Transparency International, Corruption Perceptions Index, uption Perceptions Index, 2014 available at http://2014 available at http://www.transparency.orgwww.transparency.org..
Most Free Most Free …………………………. Least Free . Least Free
Index of Economic Freedom-2015: 130/178– Last in the EUEconomic Freedom of the World-2014: 84/152– Last in the EUGlobal Competitiveness Report-2014/5: 81/144– Last in the EUICC Open Markets Index: 48/75– Last in the EU
Mostly Unfree...
1974-2005
171.600 regulations!– 3.430 laws– 20.580 presidential decrees– 114.905 ministerial decisions– 32.585 local government decisions
Institute for Regulatory Policy Research
Extractive economicinstitutions: Designed by the politically powerful elites toextract resources from the restof society.
Inclusive economic institutions: Secure property rights, law and order, markets and state support (publicservices and regulation) for markets; open to relatively free entry of newbusinesses; uphold contracts; accessto education and opportunity for the great majority of citizens, i.e., createincentives for investment and innovation and a level playing field.
An inefficient welfare state
The indicator of the efficiency of social benefits in alleviating property is the worst in the E.U. (13%, where the EU average is 35% and some Scandinavian countries were as efficient as 70%!).
In 2002 the indicator was a poor 4% with a EU average of 31%.
Low levels of trust
Government: 14,6% (51,7%)Courts: 40,2% (52,6%)Education system: 51,8% (66,1%)Other people 16,5% (24,2%)
Philanthropy: 9% (28,9%)Volunteerism 10% (20,9%)
Global average in parentheses
A political culture of
StatismProtectionismCorruptionCronyismNepotismRent-seekingIrresponsible spending
Economic Freedom and Political RightsEconomic Freedom and Political Rights
Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, rld Country Ratings, 2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.
Most Free Most Free …………………………. Least Free . Least Free
Economic Freedom and Civil RightsEconomic Freedom and Civil Rights
Sources: The Fraser Institute; Freedom House, Freedom in the WoSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, rld Country Ratings, 2012, available at http://2012, available at http://www.freedomhouse.orgwww.freedomhouse.org/./.
Most Free Most Free …………………………. Least Free . Least Free
Income of the Poorest 10% and Income of the Poorest 10% and Economic FreedomEconomic Freedom
Sources: The Fraser Institute; The World Bank, World DevelopmenSources: The Fraser Institute; The World Bank, World Development Indicators, t Indicators, 2013.2013.
Most Free Most Free …………………………. Least Free . Least Free