Key for Greece's Economic Recovery

Just found this report and thought it would be good to share it:

Export-led growth key for Greece's economic recovery, says American economist Jeffrey Sachs  Economist Jeffrey Sachs, seen here in a file photograph, was recently in Athens on an invitation by the Harvard Business School Club of Greece. By Eleni Varvitsiotis “They put the train through the Agora? That’s a little crazy.” Although he doesn’t always seem to grasp how things works around here, Jeffrey Sachs is a big fan of Greece. In an interview with Kathimerini, the American economist and director of Columbia University’s Earth Institute who was recently in Athens on an invitation by the Harvard Business School Club of Greece describes the country as a top global brand. He praises its healthy cuisine and lifestyle, and believes it has huge reserves of talent. The 59-year-old, who is also special adviser to United Nations Secretary-General Ban Ki-moon, is realistic about people’s suffering as a result of the stubborn recession, but remains optimistic about the not too distant future, provided that policymakers do the right things. The key, he says, is export-led growth. “Growth not from gimmicks of short-term spending, but growth based on real international competitiveness of Greek goods and services.” The recession is continuing, unemployment is soaring and incomes are going down. What would you say to the average man on the street in Greece today? I think the perception is correct. This has been a very painful period. Greece has seen its living standards decline and had to cut back sharply, unemployment is very high and it has been a very difficult period overall. It has been a sharp and harsh adjustment. But what I would say is that now, realistically, this is the bottom – meaning that now there is the prospect for recovery and for a future, not only for economic growth but for a better life. So this has been a very difficult period and now Greece is in a position, if it does the right things and if its partners give the right help, to start new jobs, to create employment for young people, new business, the basis for new prosperity. If you could pinpoint three things that Greece should do, what would they be? The basis for Greece’s future growth and job creation would be exports, because the domestic economy will remain compressed. Greek standards have gone down, Greece doesn’t have access to lots of capital, so it’s going to have to earn its way by selling goods to the markets. But I’m quite optimistic Greece has a tremendous amount of talent. It is arguably one of the most beautiful places in the world, it is one of the great tourist destinations, it has one of the healthiest populations and lifestyles in the whole world. It has a world-famous cuisine and diet, so people want to visit and get healthier. Health tourism is high-potential. Also, Greece has enormous untapped energy resources: the sunshine and the wind. In order to tap these resources, one needs investment in a grid that links Greece to the Northern European electricity distribution. So the basic challenge is export-led growth. In order to make that happen you have to identify markets, you need good diplomacy. I recommend that the prime minister sends leading businessmen on trips to the Middle East, Africa and Asia so that businesses abroad and political leaders abroad will know about Greece’s markets, services and so forth – real export promotion. Tax policy should help to promote these new industries, along with special financing for youth employment and startup enterprises. Such a package of measures has been introduced before in other places; it’s time for Greece to do this during the emergency. It has been hard to think of these things because for the last four years Greece [has been trying] to stay alive and the creditors were also thinking short-term and were not giving Greece a long-term perspective. In my view, it is necessary to push for a longer perspective based on growth and not austerity. Growth not from gimmicks of short-term spending, but based on the real international competitiveness of Greek goods and services. I’m optimistic because you can see where this can happen, you can see the interest internationally in these sectors. You have said in the past that Greece is a good brand. I think it’s the best brand because, first of all, Greece gave birth to Western civilization; everybody knows it and everybody wants to come and see it and to feel a part of that. During a recent visit to the Vatican, I ran to see Raphael’s famous painting “The School of Athens” because for me it’s the epitome of Western civilization and I just wanted to have another look at Plato and Aristotle and Socrates. People also come here for the natural beauty, the islands, they know Greece and they know about the Mediterranean diet, which is the healthiest diet in the whole world. Apart from this marvelous climate and beautiful location, Greece is also a crossroad – in fact, a very complicated one. It has seen lots of fighting, lots of wars, which go back 3,000 years and more. But the fact of the matter is that in a global world, Greece sometimes feels at the end of Europe; it is at the same time at the crossroads for Africa, Asia and Europe. That is a great location, which is why China is so interested in Greece as a place both for manufacturing and for port services. You said that we keep looking inside, while the EU is not a closed system. Sometimes people say “Germany must do this so Greece can accomplish that,” and some economists say that Germany must spend more domestically so Greece can sell goods to Germany, or if Germany doesn’t reduce its trade surplus then Greece will not be able to reduce its trade deficit. This is a kind of zero-sum mentality that treats the eurozone as a closed system – i.e. what happens inside is the only thing that counts. The fact of the matter is that Europe is part of the world economy and Greece is, of course, part of this world economy so Greece doesn’t need to sell its goods only to Germany or Italy, France and so on. Greece should be looking at the Middle East, Greece should be looking at China. The world economy market is 90 trillion dollars and Greece is a very small part of it. There is a large world market out there that can be the source of prosperity and growth. It is interesting that the largest growing countries in the world in the last quarter century have been the East Asian countries who held the view that export-led growth was the key. Even China with 1.3 billion people – 100 times Greece’s population – went for export-led growth and was able to find a world market, so Greece, with its very small footprint in population, has a large market. If China looks outside with such a market within, it is unbelievable that Greece doesn’t. All the debate about stimulus and austerity based on the Keynesian model is based on a closed economy system vision which has never been true for any country, especially for a small economy like Greece. You don’t have to wait for domestic government stimulus to have demand, the demand is everywhere in the world, you just have to earn the way – that’s the difference. Take a look at Korea. Korea faced a huge crisis in 1997 when the financial crisis hit East Asia, and at that point Korean businessmen told me: “Don’t worry. We will grow out of it.” I don’t know how they were so confident about it. “Don’t worry. Within a few years we are going to have a huge surplus and pay off the debt.” I was rather surprised as it seemed unrealistic at the time. But they achieved everything they said because they had the drive to go out and do it. They have taken the view that they have to be excellent in technology, new markets. Look at Samsung to see how it has taken the world of mobile phones. Who would have expected it? Competing with Apple, defeating Nokia, competing at the very top of the world in the most competitive sector, it’s a good role model and relevant for Greece. Don’t you think Greece should get a debt writedown? I think the first thing that should be clear to everyone is that if the face value of the debt is reduced or the interest rate is reduced, it means the same thing in real economic terms. The question is what is the amount that Greece will have to pay its creditors over time, and you can measure that in the year-by-year cash flow or in the net present value and that has to come down to reasonable levels, either by the haircut approach or by low interest rates and a long period of retainment. I think it is more reasonable to expect the latter approach for many reasons, political perhaps, even constitutional. Greece’s creditors are less interested in the haircut approach than they are in the low-interest approach. The low-interest approach is close but of course the details matter because an extra point in the interest rates is a big deal. So it is something to negotiate very carefully, and my view in this crisis is that the creditors have the same interest as the debtors in finding a reasonable solution that builds the prospect for economic recovery. Already in 1987 I wrote a paper about the economics of debt overhang and it was about the economies of Latin America. It was the argument that if the creditors are too tough, they lose also. So I showed that a mathematically reasonable compromise benefits both creditors and debtors. It played an important role in resolving the debt crisis in America at the end of the 1980s. Of course, the situation here is different in many ways, but the basic point is that Greece’s creditors have an interest in the country’s recovery and growth, and I think it’s clear. Two years ago there was a lot of misguided talk of a Greek exit. Fortunately that went away, at least for the time being. Do you think that the troika has made mistakes? Do they really get what is going on here? The troika will never define a comprehensive approach. They see themselves more as policemen rather than policymakers, but they often make mistakes, thinking that what they say is the whole story. The only way to take on the troika is through very positive direct and persistent negotiations put forward by Greece itself. In other words, you don’t wait for the outside to get it right; you have to put forward your framework, saying: “This is what we want to do. It fits your criteria but you can’t dictate the micromanagement because we have to do the micromanagement ourselves. It has to be our program, our design, our strategy. You have to give us the space. We are going to be good partners but you cannot define our program.” This is an important point that is repeated over and over. At the same time, however, the Greek government is not following the guidelines so I cannot blame them 100 percent. But the guidelines are not always right. The government should not agree to silly things that it is not going to follow. This leads to more confusion, misunderstanding, lack of trust, ill will. I have spent a lot of time negotiating, not with the troika but with the IMF over 25 years. They often get key concepts wrong although they get many things right. The way to go is not to wait for them to solve it. A good government has to put forward a tough, realistic program and push hard for that, and it’s not guaranteed but it is the only way to find a way. That’s why it is so important for Greece to very affirmatively define the terms. Not to scream, but to be very clear of what is needed for recovery. Do you feel that the government is headed in the right direction? I think the adjustment so far has been painful but has put Greece in a position that will resume growth. Without more growth, this kind of pain cannot be tolerated and will not work. Growth has to resume and this is the real test coming up – the ability to start creating the new scenario. This has been a very long, deep contraction, extraordinary by historical standards, not normal. In general I resist the word depression. Paul Krugman uses the term depression in the US, which I don’t think is accurate, but for Greece this is depression by standards of economic history: The output is down by a quarter, unemployment is more than 25 percent, youth unemployment is 60 percent. By any standard this is a depression, every bit of unhappiness is understandable, and that’s why it’s so important to find a path out of the crisis.

ekathimerini.com , Tuesday November 12, 2013 (19:34)

Please Help if you Can...

The search for the parents of this beautiful little girl continues.

Roma couple to face magistrate as search for 'Maria's' parents intensifies The Roma couple who falsely claimed to be the parents of a 4-year-old child found at a gypsy camp in central Greece are due to face a magistrate on Monday as the international search for the child’s real mother and father continues. Charges of kidnapping and obtaining a false birth certificate will be issued against the Roma couple, who claim that they adopted the baby when it was abandoned by its foreign parents. Police are to publish the photos of the man and woman in the hope that it helps with their inquiries to locate the parents of the girl, who has been nicknamed Maria. Greek authorities have contacted Interpol to help with the search and the children’s organization The Smile of the Child, which is looking after the girl, has received thousands of calls from Greece and abroad regarding Maria. "[Her] reaction was immediate terror: She was terrified because she doesn't know where she goes. She was crying and opposing to go wherever,» said Costas Yiannopoulos, the charity’s director. "As soon as she went to the hospital and had a nice bath, and then the next morning our people looked after her. She immediately changed." Police are also extending their searches to hospitals and registry offices to seek information that may point to systematic child trafficking. The girl was found during a raid on a Roma camp in Farsala last week. Authorities noticed that Maria did not look like her supposed parents and a subsequent DNA test proved that there was no match. Authorities suspect the pair were involved in human trafficking as records show them having a total of 14 children, registered in three different parts of Greece. However, speaking to Skai TV late on Friday, the couple’s lawyer, Marietta Palavra, said that the pair decided to take on the child after feeling sorry for her. She alleged that the girl’s biological mother, a foreign national, wanted to “get rid” of her child. In response to questions about why the couple had registered so many children, the lawyer claimed it was a way of maximizing the state benefits they could receive. The case has received international attention and a spokesman for the parents of Madeleine McCann, a British girl who went missing in Portugal in 2007, said the child’s discovery had given them “great hope” their daughter would be found alive. The family of Ben Needham, a 21-month-old British toddler who was abducted from his grandparents’ home on the island of Kos in 1991, have call for further DNA tests as they continue to search for their missing loved one. “Obviously, it's been a strong belief of myself and all my family that Ben was taken by gypsies for child trafficking or illegal adoptions and this case just shows that they can be found,” said Ben’s sister, Leighanna. “I think that would be a brilliant thing to get our DNA out there, even if it's not actually Ben but any siblings or any children maybe of Ben (that are found) then that could hopefully lead us to him.” Kerry Needham, Ben’s mother, called for the investigation into her son’s disappearance to be reopened. “We have always believed that Ben's abduction was gypsy-related and have had a long ongoing inquiry in Larissa,” she told ITV. “We hope that the investigation into Ben's disappearance will now be looked at again.” Meanwhile, the Roma community in Greece fears that they will be stigmatized by the case of Maria. «We know these cases exist, but they involve Bulgarians, not Greeks like us. There are no transactions involving children here,» the president of the Roma community in Farsala, Babis Dimitriou, told the Associated Press, adding that the 40-year-old woman, who had registered Maria as her own child, «cared for her even better than for her own children." ekathimerini.com , Monday October 21, 2013 (10:16)  Please help if you can. My prayers for all those families who have had their children taken from them. And talking about help, these people could do with your help too, poor souls, sometimes I think life deals out a very bad hand. Immigrants’ interest in repatriations growing fast Almost 2,000 migrants in Greece have applied for voluntary repatriation since the beginning of July, largely due to joblessness. The Greek branch of the International Organization for Migration (IOM) said 15,481 people have taken advantage of the European Union-funded program since it started in 2010. Whereas applications mostly came from Africans and Asians, Eastern Europeans are also showing interest now. Since the summer, 832 Pakistanis, 361 Bangladeshis and 142 Georgians have been among those who have chosen to return home. “The people who ask to leave Greece face huge problems,” said Daniel Esdras, the head of IOM in Greece. “Nine in 10 are homeless and have to look for food every day. They have realized they are in a tragic situation, a dead end.” Esdras said interest in the program from migrants at reception centers has also risen. Last year, they only made up 5 percent of those seeking to leave. That figure has grown to 18 percent. ekathimerini.com , Monday October 21, 2013 (10:16) Love and prayers for the homeless, and for all those who are in a position to help, give food, clothing, and to show these people that someone cares. And on a brighter note...  Photograph: Nick Hannes The Guardian Newspaper It's not your typical wedding reception venue, but the warm glow of the petrol pumps, the sturdy dance floor and the soft breeze from the Gulf of Corinth beat a soggy marquee in Surrey hands down. And the view is tremendous: you can just see the spectacular Rio-Antirrio bridge, which links the Peloponnese to the Greek mainland, illuminated in the background.  The groom, Christos, had to hold the reception at his own petrol station to save money. Well done for Christos and his family. Just because we have less, we can still be happy! And I'm talking from experience here. Happiness is in the mind, not in the pocket. Of course, that doesn't stop us wanting as much out of life as we can get. But we do have to live the moment with as much happiness as we can muster. I'm smiling, are you? Great, have a wonderfully happy day, Love and hugs, Jane x And don't forget, that book of mine will bring a smile to your face, even though the title might make you think otherwise. Tears from the Sun - A Cretan Journey Click here for the story line. It is only $2.87 as a Kindle e-book. Download your copy now, or buy a paperback, it will make a great Christmas present! Thanks in advance. Jane x

A Walk Through the Streets of Vrahassi

Hello Blog Readers,

As promised here is a video shot yesterday as I walked through the streets of Vrahassi. There wasn't much going on, maybe because it was 1 p.m. and I missed the morning rush hour, but I think you can get a flavour of the place. The temperature is about 28 at the moment, and it's a bit cool to sit out in the evening, but very pleasant if you have a jacket.




Vrahassi has a wonderful charm to it even though there are lots of old buildings that have been left to
crumble. It is a bit like living in the middle of an archaeological site, but all the more interesting for that. The narrow streets are wonderful to explore, and it is not difficult to imagine how life once was when the village was a thriving center of industry: weavers, carpenters, butchers, lots of coffee shops, a post office, and a host of other trades. Now, time has moved on, and we are left with one village shop and a museum. Even so, this is such a special place to visit. You should definitely put it on your list if you are coming to Crete.

As you can see in my video, there is a wonderful internet connection in Vrahassi, and most of the young kids have a computer. It is a strange mix of ancient and modern.

Last night, David and I went down into the square for a glass of wine and food at one of the tavernas. It was a pleasant experience; we talked to a few locals and enjoyed the company. Then it was back home and back to work. In fact, because of the time difference in America, David and I were up at 3 a.m. to listen to the co-owner of Empower Network, on the internet. He was outlining details of the launch of our new product, the ENV2 blogging platform. This is cutting edge technology that will revolutionize blogging, and give every business an edge in the market place, whatever that business is. We are very excited about being able to promote it. And if you don't know about the ENV2, then this is where you can find it. We shall get right back to you.

So, hope you enjoyed a walk with me through the streets of Vrahassi. I'll be back with more Vrahassi news, tomorrow.

Love Jane x

Children of Vrahassi

My how they have grown!

Children of Vrahassi, five or six years ago, I think. Can you name them?

I came across this lovely photo last week. I wonder what they are all doing now. Maybe you would like to leave a comment on my blog, and let me know.

And here are some more children of Vrahassi. I missed the party this year, but plan to be there in 2014.



On a more serious note:
I was very sad to hear that on September 11th, a 79 year old man in a hill village, was murdered by three local men, a 19 year old soldier, from Agios Nikoloas, a 22 year old farmer, from Neapolis, and an 18 year old, from Sisi. They went to the house to rob the old man, but after beating him to death, they only found a few coins. They then set the house on fire to hopefully cover their tracks. I'm not sure how they were caught, but they are in police custody now. Rest in peace old man.

So, only 4 sleeps to go. This time next week, all being well, I shall be dining by the side of the Mediterranean, listening to all those lovely sounds of Crete.

Bye for now,
Love Jane x

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Vrahassi as it used to be!

I love old photographs, don't you?

David is already back in Vrahassi, and I shall be joining him in a few days. I'm so looking forward to the peace and quiet, the fresh air, the griffon vultures circling overhead. Not to mention a 'nothing like it anywhere,' Greek salad.

But tonight I'm listening to the Last Night at the Proms, glass of wine in hand, and the odd police siren in the distance.
So, video camera all charged up and ready to go, and my case almost packed, I'll say, ta ta for now, and look forward to reporting from Vrahassi, very soon.

Happy weekend to all,
Love Jane x

Incredible Cretan Hospitality - The Video says it All.

This video says it all! I can't wait to be back, you can't shake 19 year's of living in Crete like crumbs off a tablecloth. I'm missing the music that is Crete, and my dancing shoes are ready for action.

And I need to feel the mountain beneath my feet.
Love and hugs to everyone - I hope you are all having a good August wherever you may be.
Jane x

The Island - Spinalonga

Andonis the Barman made sure we didn't go thirsty and he had a lovely smile!

The Island - Spinalonga

The little church of St George, a great place for a breather.

 I was up early this morning to collect my relatives from Stalis, and take them to Agios Nikolaos where we took a day trip to Spinalonga. The boat left at 10 a.m. and returned at 4 p.m. The price, 25 euro included plate of salad and a barbecued pork chop, an apple, and a glass of wine or juice. We also had to pay 2 euro each once on the island to look around. The boat that we were directed to was The Lato, a pleasant enough boat, but all the other passengers were either Russian, Polish or Dutch and there was no English commentary. When I made enquiries about having the information in English, a very nice Greek lady did come and explain the timings of the trip, and what we had to do should we want a vegetarian lunch. Once on the island we were on our own but that was OK as I did know quite a bit about the history of Spinalonga.

The Walls of the Old Venetian Fortress

This was our boat, but we were not alone!

Greeted by a huge glass cross as we got off the boat.

The Gun Turret

First we walked around the island, it is not far, half an hour's walk at the most.

The Grave Yard on Spinalonga

There were lots of black flags flapping in the strong breeze.

After the trip around the island of Spinalonga, we took the boat again to a small, sandy bay, where we could enjoy a swim while the crew prepared lunch. It was my first swim of the year. I worked on my tan and enjoyed being a tourist for a day.

I think I shall have to work on my tan!

God Save The Queen - Jane's Beacon Party in Crete, Greece

This is our Diamond Jubilee Beacon for the Queen. We had a great 'Beacon' party last night in Kritsa, where loyal British subjects got together to celebrate  60 years rule of Queen Elizabeth. It might not have been the biggest beacon in the world, but it shone brightly under the full moon.

Balloons, bunting and beaming smiles!

Gillian leads the cheering crowd!

Hip Hip Hooray!

And just for a touch of atmosphere, God Save The Queen, on cello. Sorry about the blackness, but the video does work, if you click the middle of it.

Yesterday we watched the pageant on big screen, all those boats on the Thames, the Queen and her family on the biggest barge ever. And the London philharmonic bringing up the rear with Rule Britannia, their unfortunate choir getting soaked in the rain as they sang to the Queen from the top deck of their floating orchestral boat. The Queen looked resplendent in a white coat which was threaded with tiny crystals, and a wonderful creation of a hat, that I thought had slight tones of Tudor, it was also white.

So, it was a wonderful Bank Holiday weekend for David and I here in Crete. We escaped the doom and gloom of the economic crisis for a few hours in the company of friends and relatives. My cousin's son and his girlfriend are over for a short holiday so we are all having fun in the sun.

And next week it will be back to preparing for our event in Agios Nikolaos on the 24th June, The Odd Poets' first airing in public.

I hope you have all had a good Pentecost/Whitsuntide/Jubilee weekend.

Lots of love,
Jane x

Olympic Flame in Agios Nikolaos

My friend Jan reading the prayer for the athletes at the Olympic games in London, when the flame came to Agios Nikolaos on its way around Greece before heading for Britain. I think she did very well. The dancers too were excellent!

Music Soiree May 2012 - Year 4

My progress after three and a half years of study. I am looking forward to improving - onwards and upwards, as they say.

I'm just back from our Poetry Club meeting, we are still trying to establish a group, but today we did get a couple of visitors.

And now I'm going to relaxe for an hour before having a sort out in the back garden.

Byeeeeeee! Jane x

Olympic Flame in Agios Nikolaos

Την Παρασκευή 11/5/12 στις 3.00 μ.μ. στη Λίμνη η υποδοχή της Ολυμπιακής Φλόγας στον Άγιο Νικόλαο 

Friday 11/5/12 at 3 p.m. at the lake, Agios Nikolaos