Greece

Greece Reading

Links to more reading related to yesterday's post

On the economic crisis

Collection of coverage from The Economist on the crisis

The effect on US importers of Greek goods (NY Times)
Enjoy Greek wine or olive oil?  You may have a harder time getting those and other Hellenic goods as Greek exporters struggle to import inputs, such as bottles from Italy.

Poorer European countries are not happy about paying to bail out Greece (Guardian)
 

On refugees

How they're getting to Greece and where they're headed (Economist)

Greekonomics

7/29

Zero euro coin graffiti

Two and a half millennia ago Greece was the Western world.  Today it is the center of attention once again, but for reasons that will not be a source of pride for generations to come. While Europe broadly faced a financial storm in recent years, Greece has faced a hurricane.  Turn on the news or open the newspaper and any report from Greece is likely to be bleak.  Years of poor policy have come to a head.  In this post I’ll give a rough overview of the situation and my observations from my brief time in Greece.  You can skip over the wonky stuff as you like, it’s nothing new or groundbreaking.  I just wanted an excuse to write about economics.  

 

Greece’s Situation

GDP per Capita (PPP) of Greece, the eurozone, and the US between 2007 and 2014

When Greece joined the then-European Community (now European Union) it was the poorest member state.  Though it developed in the following decades, it remains poor compared to its EU brethren.  

The creation of the euro was supposed to impart some fiscal discipline to member governments by forcing them to abide by certain limits on deficits and debt.  Certain preconditions had to be met before joining the currency union.  At the time of the euro’s creation Greece appeared to meet these requirements.  Now it is clear that they were not prepared and that much of the economic data gathered by the Greek government was inaccurate.

Currency union brought a huge inflow of foreign capital to Greece.  With foreign money coming into the country, the government could maintain high levels of spending.  Foreign capital flows shut off once the global recession hit, meaning that the government could no longer finance such large deficits.

Greece's unemployment rate skyrocketed, productivity declined, and a vicious economic cycle began.

Assuming Greece would have been hit by a financial crisis no matter what, their monetary policy options differ depending on whether they have their own currency, the drachma, or the euro.  With the euro their options are extremely limited.  The European Central Bank (ECB) sets policy and does so based on the needs and desires of the whole eurozone.  Germany, having the biggest economy in Europe as well as having had the central bank with best reputation for fighting off inflation, holds the most power within the ECB.  With the German economy performing relatively well and Germany being the primary creditor to Greece, the ECB’s policy motivations are not necessarily in line with those of Greece.  Thus, Greece has very little ability to address its problems through monetary policy as a eurozone member.

In an alternate universe where Greece faced this economic crisis under the drachma a set of tools would have been available to address this.  The central bank could unilaterally devalue their currency.  Making the drachma weaker against foreign currencies would have the benefit of making Greek goods cheaper for foreign buyers.  Greek exports would rise and a current account surplus would help to finance the government debt.

Between 2010 and 2014 Greece received two bailout packages from the ECB, European Commission, and International Monetary Fund, together known as the Troika, totalling 240 billion euros.  These bailout packages had several conditions attached to them aimed at addressing the structural problems in Greece’s economy.  Austerity measures were predictably unpopular with the Greek populace.

After several political and economic developments It became clear earlier this year that Greece would still be unable to make their debt obligations and some sort solution had to be reached in order to avoid default.  The Troika proposed a third bailout package and further austerity.

On July 5 a referendum was held in Greece on whether or not to accept the proposed bailout package.  Greeks had to choose two scenarios, neither of which was pleasant.  By voting “Yes” they would accept the proposal of the Troika, avoid default, stay in the eurozone, and accept more cuts to services.  Voting “No” meant rejecting austerity, but accepting uncertainty of the next step.  Supporters of the referendum posed it as a question of whether or not to remain in the EU and eurozone, both of which the majority of Greeks support.  For many, a “No” vote was seen as an effort to retain national pride, or at least a way to say “Fuck you” to the creditors and austerity.  The referendum was defeated handily 61 percent to 39 percent.

A banner urging "No"

As convoluted as this summary may be, it’s still extremely simplified.  Greece has been in a turbulent situation for years now.  If I included every detail I’d never have time to write anything else.

Regardless of the specific path Greece follows from here, the economic situation is rough.  Over one quarter of the labor force is unemployed.  Production is still way down.  National debt is still incredibly high.  There is no clear path forward.  The Greek political situation is messy as the far left Syriza party controls the government and they have demonstrated a failure to effectively grasp either economics or politics.  A week after the referendum the Syriza government accepted a new bailout package with even steeper cuts to pensions and higher taxes than the one rejected by the referendum.  It appears with this third bailout that threat of Grexit has been put off for now.  Greece still needs a lot of help.  Much of this is their own fault.  However, creditors should recognize that a significant restructuring of Greek debt is likely in everyone’s interests.  If properly handled, the consistent uncertainty and chaos that has become the norm with Greece and has infected Europe can be mitigated in large part.

 

The Unseen

I won’t pretend that I truly understand the sentiment of the people in Greece or even all of the economic and policy factors at play.  I caught a glimpse of Greece as it faces several challenges.  I can only describe what I saw and what interpreted.  For all I know, I could way off target on some of my judgments.

On Kalymnos the effects economic crisis aren’t immediately obvious.  I have no reference point to work from, but my immediate sense was that tourism was slow compared to years ago when the economy was functioning.  This was confirmed when I talked locals at stores and restaurants.  

“You should have seen it seven or eight years ago.  There was nowhere to sit around here.  So many people visiting.  It’s bad now.  Really bad compared to before.”

That’s what one restaurant employee told me as I ate breakfast near the ferry port.  Restaurants line the waterfront in the area, but none of them was near being packed.  This was true just about anywhere.  Sure, some restaurants got fairly busy in the evenings, but there were more near empty ones than I could count.  The pain of the economic crisis was not immediately obvious on Kalymnos.  No doubt that business owners feel it, but it’s much harder for the tourist to see the problems.

 

The Seen

The economic issues are visible in Athens.  The guidebook calls the city “edgy”.  I suppose that’s fair, but maybe a tad polite.  There is graffiti everywhere.  The locals say this is nothing new, the amount has just increased.  The streets are dirty.  Protests are a regular occurrence, though I wasn’t witness to any.  The police presence is quite high.  Like many things, I don’t know if this is normal or they’re expecting more activity with the recent bailout talks.

A common spray paint tag across the city is “ΟΧΙ”. “No”. No to the referendum.  No to austerity.  No to creditors.  Three letters to be found just about anywhere.  

"OXI" near the National Gardens

The anarchist circle-A is another symbol peppered everywhere.  Not surprising in a city covered in spray paint.

"I am an anarchist, don't know what I want, but I know how to get it"

Posters from the KKE, the Communist Party, has posters across the city.  Once outlawed under the military junta, the KKE has become the fifth most popular party in Greece.  Posters for an event in May celebrating 70 years since the defeat of Nazi Germany still remain posted.  It’s easy to see them drawing new meaning following the defeat of the referendum.  Another defeat of the Germans by Reds.  I don’t know if the KKE sees it this way, but if were them I’d be running with this concept.  The left has been quick to bring up creditor Germany’s Nazi history.

Celebrating 70 years over fascism

Anti-fascist stencil

In a case of another political philosophy being pulled from the rotting garbage dump of history, Golden Dawn, modern fascists and antagonists to the KKE are the third most popular political party in Greece.  Their presence is less prominent in the streets of Athens.  However, reactions to them are everywhere.  Anti-fascist and anti-Nazi symbolism is easy to find.  Once again communists and fascists are having at it.  

There are lots of people to be seen during the day in Athens not engaged in any productive capacity.  It’s hard for me to say what portion of these people are unemployed and what portion are simply taking a break.  I’m curious, but enough to go around asking random people on the street their employment status so I can post about it on my blog.

There are obvious homeless on the streets.  It’s not a shock.  Any large city in America has this problem.  Like a lot things, locals just say it existed before and has just gotten worse with the crisis.  Homelessness has exploded in Athens lately and created more issues for the system to handle.

 

Another Crisis

Coming to and from Kalymnos I had a few hours in Kos as I waited to change ferries.  Kos is quite a bit larger than Kalymnos and more heavily trafficked.  There are a few signs of the economic situation, but another crisis is what grabs attention on Kos.

While Greece has been weathering their economic crisis an overflow of migrants has simultaneously appeared.  They come from Syria, Iraq, Libya, and beyond.  Greece has become the top destination in Europe for refugees.

Groups of these immigrants gather near the ferry port in Kos.  Having escaped physical dangers in their homelands they still face incredible insecurity in their new locales.  Greece does not know how to handle the influx of people.  Even if it did, there remains the issue of them having the means to handle it.  Their presence is very visible.  Walking to Nerantzia Castle, built by the Knights Hospitaller to protect Kos from outsiders, the refugees line the street and park.  There is the unmistakable smell of human shit in the shadow of the tree beneath which Hippocrates once taught medicine.  There is no ignoring it.  These people do not choose to come to Greece like I do, at leisure and with little concern.  They come from some of the most horrific conditions currently found on earth.

The problem is long term one too.  So much of Aleppo, where the Silk Road ended, has been turned to dust.  Why return home when there is nothing to return to?

Greece is not alone in facing this.  For most, Greece is only a transit.  A pit stop before Germany or elsewhere.  Italy too has been overwhelmed with people coming from the sea.

I do not have solutions to this refugee problems.  Not now.  Not yet.  Maybe not ever.  At least I can say I observed it and in some small measure documented it.

 

On the Way Forward

Greeks seem to have mixed feelings about the future.  The near- and medium- terms are going to be painful.  How painful is anyone’s guess.  Still, the long-term leaves room for optimism.  A shop owner on Kalymnos insisted to me that what Greece was facing wasn’t even really a crisis.  Greece had faced those before.  Greece was dealing with “problems”.  Nevertheless, he was insistent that the Greek spirit would overcome the problems and the economy would be prosperous once again.  It’s tough to have the kind of optimism he had, but it might have worked to convince that Greece will survive and thrive again.  It’s going to be a while, but for their sake, I hope the Greek spirit does triumph.

Athens: Sights in the City That Shaped Western Civilization

7/29

 

Athens is a dirty, grimy city.  I feel obligated to include this knowledge in the way that drug companies list off the side effects of their products in advertisements.  If you come to Athens expecting that the cradle of Western civilization would be blemish free after all of these years, you will be disappointed.  I can’t recall another city I've been to that is more covered in graffiti than Athens.  I doubt even Gary, Indiana, has it beat, but nobody expects the hometown of the Jackson Five to compare to the hometown of Socrates.  There’s very visible squalor.  The mass of the city’s modern building are aesthetic garbage and make it look like the city planners were hired from the Eastern bloc.  What I’m saying is that the city has a lot of rough edges.  Athens is not unique in this regard.  Except for maybe Singapore, with its hospital like cleanliness, virtually every city I’ve been to has suffered in some degree from some or all of the issues of Athens.  These conditions are not enough to write the city off.

View of Athens from Mount Lycabettus.  The Acropolis is visible in the right half of the photo.

Undoubtedly, the most iconic of Athen’s sights is the Acropolis.  Overlooking the city from a rocky outcrop, the Acropolis was a complex of temples and other buildings serving as the center of religious and civic activity.  The influence of the Acropolis and its monuments can be seen in architecture around the Western world and Portland’s premier combination steakhouse and gentlemen’s club.

The most well known of the Acropolis’ monuments is the Parthenon.  Dedicated to Athena, the patron goddess of Athens, it is the largest temple on the Acropolis.  Construction on it was completed in 432 BC.  Incredibly detailed stonework provided both function and adornment is a hallmark of the building.  The temple has served several purposes over time, having been used as a treasury, Christian church, mosque, and now archaeological site.

Details of the Parthenon

As with just about every major monument I’ve visited thus far, the Parthenon is undergoing significant restoration.  This has been an ongoing process for over 30 years.  The process has been very thorough and employed cutting edge practices.  Most interventions are designed to be reversible in case it is decided to undo the process in the future.

Restoration work on the Parthenon

Having been constructed so long ago, several events took their toll on the temple.  The most significant damage occurred in 1687 when Venice and the Ottoman Empire were engaged in the Morean War.  Venice sent an army to take Athens.  The Ottomans held up in the Acropolis, employing the Parthenon as an ammunition dump.  While besieging the Acropolis, the Venetians launched a mortar round that hit the ammunition dump and destroyed significant parts of the temple.  Venice would ultimately take Athens and win the war.

Though none are as large as the Parthenon, several other impressive monuments occupy the Acropolis.

The Erechtheion was a temple dedicated to both Poseidon and Athena.  It housed the sacred olive tree that rose as a result of Athena’s founding of the city.  If there is one thing I remember from my college class on trials in Ancient Greece, it’s that the Greeks took their olive trees seriously.  Cutting down an olive tree was punishable by execution.

The Erechtheion and its olive tree

The Propylaea is the large gateway at the entrance to the Acropolis.  It would have been an appropriately large and dramatic feature to pass through before reaching the other monuments on the hilltop.  It is currently undergoing reconstruction.

The Propylaea and some of the crowd of visitors


The Temple of Athena Nike is located on the edge of the Acropolis near the Propylaea.  It is the most completely restored monument on the hill.  Athena was worshipped here as the goddess that would lead Athens to victory in war.

Temple of Athena Nike

​At the base of one side of the Acropolis is the Theatre of Dionysus.  Having read Aeschylus, Aristophanes, and Sophocles during my education, it was incredible to see where the works of these playwrights were performed for the first time over 2000 years ago.

I should also mention that I was a bit of a thespian in college.  I starred as Child 2 in an adaptation of Euripides’ Medea.  Despite my lack of acting skills I had fun time doing that.  Being able to see where the play was first performed in 431 BC gave me an odd connection to the Acropolis that I would not have expected to have a year ago.  I’d like to think I outperformed whatever actor originally played Child 2 in light of the fact that the play came in last place in the City Dionysia festival when it debuted.  

The Theatre of Dionysus

Near the site of the Acropolis is the Acropolis Museum.  Regrettably, I did not visit it.  It houses many artifacts excavated from the Acropolis and provides more in depth information.

From the high ground of the Acropolis a noticeable feature in Athens is the Temple of Olympian Zeus.  This was a truly massive structure.  Prior to its destruction, it was considered the largest temple in all of Greece.  Work on it took over 600 years and it was not completed until the 2nd century AD when the Roman emperor  Hadrian took it on as a pet project.  Sixteen columns of the original 104 remain at the site, though one of those is collapsed.

Ruins of the Temple of Olympian Zeus

A short walk from the Temple of Olympian Zeus will take you the to the Panathenaic Stadium.  Athletic events were held on this site during the Panathenaic Games in the classical era.  The ancient stadium was excavated in the latter half of the 19th century.  It was the site of early attempts to revive the Olympic Games and in 1896 hosted the first modern Olympics as we conceive of them today.  During the 2004 Olympics it hosted several events and was the finishing point of the marathon.

View of Panathenaic Stadium from the original royal throne

Among the qualities that make the stadium impressive are its all-marble construction.  It is the only stadium in the world constructed of marble.  

That's a whole lot of marble

There are sets of marble thrones in two locations in the stadium.  The King and Queen of Greece would occupy these during events.  The first thrones sit at the end of the narrow part of the stadium.  However, new thrones were constructed on the long edge to give the monarch a better view of events.  It’s as if the king had his own front row seat at the 50-yard line of a football stadium.  The row of seating around the thrones was for VIP guests to occupy.  Of course, I made it a point to sit in each throne.

Marble thrones

The stadium also houses posters and torches from throughout the years.  As an aside, the torch relay only began with 1936 Berlin Olympics.  Yes, those Nazi ones best remembered by Americans for Jesse Owens’ four gold medals.

Olympic torches and posters

The one museum I did visit in Athens was the National Archaeological Museum.  It has artifacts from a wide swath of historical Greek eras.  The exhibits are well put together.  Virtually everything is signed in English, a big plus when it comes to museums.

The National Archaeological Museum

The Mask of Agamamenon

Pan being a creep towards Aphrodite, Eros trying to help shoo him away

Sculptures make up a large portion of the objects on display.  However, you’ll find everything from utensils to Egyptian sarcophagi in the museum.

Egyptian Sarcophagi

Statue of Poseidon

An interesting piece is a recycled sarcophagus.  Originally it held a wealthy man and woman.  This was indicated by the sculpture on the lid.  However, at some point the original occupants were removed and a new body took their place.  The original sculpture of the man was cut off and replaced with the base of a pillar.  The woman’s head was removed and replaced with that of a man.

The recycled sarcophagus

Athens is not perfect.  It’s not even close.  However, it’s still worth the trip.  I’ve been to a lot of cities and there are some that I have totally hated.  Athens is not among those.  It offers some incredible opportunities to connect with a past that still influences us today.  The people were friendly and welcoming.  The backpacker budget food is great.  Pork gyros for 2 euros were a great deal.

Athens: Where even the cacti are covered in graffiti

"Tjeta" from Albania

7/30

Childe Harold saw, like meteors in the sky,
The glittering minarets of Tepalen

-Lord Byron, Childe Harold's Pilgrimage

My busy pace of travel has continued as I took an overnight bus from Athens to Albania.  It was a long bus ride and the comfort level wasn't particularly high.  Border procedures were simple, but took longer than I would have liked considering we passed through around 3 AM.  

I intended to take the bus from Athens to Gjirokastër, however I ended up sleeping through Gjirokastër.  The bus driver and the attendant also neglected to make any announcement.  I realized my problem once I saw signs going the other direction for Gjirokastër.  I got off the bus in the town of Tepelenë.  

Tepelenë is of some note because Lord Byron visited the town in 1809 and was received by Ali Pasha.  Ali was an Albanian who was effectively the governor of much of Greece and Albania within the Ottoman Empire.  He was a strong and wealthy ruler.  He also committed many atrocities.  He ultimately became too powerful and independent for the liking of the Ottomans and an Ottoman army was sent to eliminate him.  After dying in battle his head was sent to the Ottoman sultan.   Ali Pasha influenced some of Byron's characters and Tepelenë got name checked in Childe Harold's Pilgrimage.

 

There's really not much for me to say about my time in Tepelenë.  I didn't encounter any local pashas and the only thing I did do was spend about 10 minutes negotiating with a taxi driver to get me to my original destination.

The drive to Gjirokastër took about 20 minutes and the beautiful scenery made me feel a little better about paying to go where I should have already been.

Once in Gjirokastër I checked in to my hotel and passed out for a few hours.  I spent the next two days in the town and will have more about that later.  It was a great time.

Today I left Gjirokastër for Tirana, the capital city of Albania. It took about four hours by bus, but was not bad at all.  I've only the kilometer or so of Tirana between the bus station and my hostel, but I like it so far.

Goodbye Turkey, Hello Greece

7/23

 

Yesterday I took the ferry from Bodrum in Turkey to Kos in Greece.  It took about an hour to cross the 3 miles between the two.  Kos is pretty popular vacation spot in part because of it’s proximity to Bodrum.  I took another ferry from Kos to Kalymnos, a smaller nearby island.  I’ll be spending a few days relaxing here.

View from my room in Kalymnos

View from my room in Kalymnos

Kalymnos is supposed to be a low key affair.  It’s well known for rock climbing.  I don’t plan on doing any climbing myself.  I’ll probably spend my time at the beach or driving around on a motor scooter.

I enjoyed Turkey quite a bit.  It didn’t take me long to realize just how big of a country it is and how little of it I actually saw.  It’s on my list of places to return to.  The sights, people, and food all contributed to my sentiments about the country.  I’d recommend it without hesitation.

My Australian traveling mates for the last week and a half also deserve a shout-out, like “What up, mates?”  Ryan and Paul were a lot of fun and a lot of help.  Best of luck to them as they continue on their travels through Turkey.

With Ryan and Paul at Ephesus