Aristotles Ideologies of Policies in Present Greeces Financial Situation - Research Paper Example

Introduction Aristotle was a philosopher in Ancient Greece who descended from the lineage of Greek academics which begins with Socrates down to Plato (Griffith 6). Aristotle lived in Ancient Greece between 384 and 322 (Kraut 7). Aristotle was the teacher of Alexander the Great who is the Greek Emperor who expanded the Greek Empire onto the three known continents of his era. This paper examines the ideologies of Aristotle and how it relates to politics in the world today. It would examine the ideologies of Aristotle as he present them in relation to Greece's financial situation. The Greek Financial Crisis Greece has been in the headlines since 2007 for having serious financial crises. This has led to so many demonstrations and arguments about the appropriateness of Greece staying in the European Union. Countries, mainly Germany and France have used various tools and techniques to get Greece to live up to the expectations of the Union. However, Greek citizens continue to remain upset about the changes that this adjustment would bring. Basically, Greece's problem relates to a high and uncontrolled public spending which paved way for high sovereign debts (Pasiouras 44). This is because Greece emerged from a welfare state model that was promoted by the Socialist party which ruled the country in the Cold War. This party espoused the principles of Communism which argued for the expropriation of private properties and keeping them in the care of the state. The communist principles of Greece meant that the public sector remained the main engine of growth of the economy. People were used to having jobs and being able to get access to things for free under the pretext of the government. However, membership of the European Union brought up very different and distinct requirements. The European Union was commenced by nations that were in the Western Capitalist side of the Cold War (Lin 2). This means that Greece had to comply with reforms and changes to fit into the mold. This is because the European Union sought to create a Single Market which was based on Capitalist principles and individual ownership. However, After joining the European Union in 1981, it has been so slow in undertaking reforms to meet EU requirements. The main reason is that it has been ruled by parties that had strong Socialist alignments ((Lin 3). Circa 2005, the issues of the Greek public sector came to light. There were incomplete economic activities and they were not able to honor their obligations to the Eurozone (Pasiouras 41). The tax they were collecting was not enough to meet the public spending because the public sector was so central to the economy. There were cases of corruption and bribery throughout Greece and the country's financial system was under serious challenge and crises (Pasiouras 42). The result of these bottlenecks in the Greek economic system caused so many threats and suspicions that Greece would default in its obligations to the European Union. This inevitably created fears and anxieties about the possible implications. Some suspected that Greece would eventually leave the European Union and the fears that the properties of foreign businesses would be expropriated and nationalized created some degree of panic and fear amongst foreign investors. In 2009, investoers cot concerned and they withdrew their investments. This led to huge public bond yield spreads and credit defiant spreads (Sladek 19). The European Union began to put pressure on Greece. As a result of the crises, the IMF offered Greece a 110 Billion Euro loan to help the country to salvage its image. However, the result was that there was the need for austerity measures, privatization of government assets and structural reforms meant to move Greece to the status of other Capitalist economies around the world (Sladek 20). However, the public reacted significantly by conducting various demonstrations. This is because the early signs of the structural reforms, privatization and austerity measures indicated that numerous Greeks would lose their jobs. All such persons were upset about the changes and they started demonstrating against the Greek government to get other alternatives that might be more favorable than just having to lose their jobs and become homeless. Conflict Situation The conflict of the Greek financial crises is mainly about ethics and having to use ethics to solve a given problem in a given community. Another element of the Greek financial situation is that it is connected with the role of privatization as opposed to public or common ownership of properties for the whole community. Another facade through which this debate can be viewed is in relation to the position of politics in a country. In other words, what is the position and obligation of the government in dealing with social and economic matters. How should the government view the best interest of the community. Should it be the seeking of bureaucratic interests or should they seek the interest of individuals? Ethics Aristotle's ethics are mainly steeped in identifying what is right with the view and opinion of creating a happy and successful life (Sherman 2). This is because the view of ethics means that it provides the best and most appropriate solution to given situations and concepts. Thus, ethics can be employed by a nation or government to provide the best end for its citizens. In dealing with this, we view the case of the Greek government and an analysis of their decision on the debt crises issue. They are faced with two dilemmas, one is about pleasing their citizens and the other is about meeting Greece's obligations to the international community, namely the European Union and the International Monetary Fund. Nicomadean Ethics (NE) states that human good or endaimonia or happiness (May 1) is the foundation of the human society. So what are the Greek authorities accepting as the ultimate good of the nation? Is it the need to meet the obligation of the international community? Or is it best to meet the requirements and demands of the citizens who obviously did not vote for a government that would get them jobless and homeless. So the government needs to draw a balance in the demands of the situation at hand. Role of Government & Constitution Another element or aspect of the situation relating to Greece is that Greece's government is in a deeper dilemma than usual. Aristotle states that “there is one rule which is for the sake of rulers and another rule which is for the sake of the ruled: the former is despotic and the latter is free [constitutional] government” (1333a). This implies that the government exists to provide the best ends and the best results for the state and the people in the state. The government is regulated and constrained. In a nation where there is despotic rule, the rulers exercise their power and authority over the people. This is a nation where there is a dictatorship and the government has the final say of a matter. Thus, if Greece was a despotic state, the government could choose to render the requirements of the international community and suppress the Greek demonstrators as it occurs in Iran and North Korea which are complete dictatorships. On the other hand, constitutional state requires that all stakeholders and all people in the nation get their views, opinions and requirements heard by the government. Hence, being a politically constitutional government, the Greek government would have to operate within the laws of the land or the constitution and regulate their action and conduct. Greece would have to ensure that they listen to all stakeholders and conduct elections where necessary. This is because the people have rights and they can demonstrate and get their voices heard. Thus, the idea of constitutions and democracy makes it imperative for the Greek government to listen and give ear to the different stakeholders and the different people affected by the austerity measures and the reforms that are being demanded from outside the borders of Greece. The government has to draw a balance between the two different views and the two different concepts that are at stake here. Looking critically at the facts of the Greek situation, the problem is about the extent to which the Greek government should operate as a Welfare State. In other words, to what extent should Greece remain as a state that controls public sector structures? Should Greece remain a nation that has serious emphasis and focus on the public sector? Or should the government allow the country to become privatized and leave a lean public sector. This is the main content or basis of the debate and the next section of the research would focus on this and provide a conclusion on the matter. Privatization V Common Ownership In 1268a, Aristotle examines the debate on how property should be held in an ideal state. He begins the discourse by asking “should a perfect state hold possessions in common or not” (Aristotle 1268). In this quest, Aristotle examines the core and fundamental arguments of holding possessions. He asks the question in relation to land rights and in relation to income or wages. However, due to the time and era within which his treatise was written, he focuses on very simple concepts of the soil and the produce of the soil. In this direction, Aristotle asks three questions: 1. Should the produce of the soil be owned in common and consumed in common? 2. Should the soil be held in common and cultivated in common and the produce sold in common? 3. Should the soil's and produce be held in common? Aristotle cites examples of cases and situations where there are some communities, particularly barbarian communities who hold properties in common. However, this debate enquires about whether an ideal state should continue like the barbarians or change it systems. Aristotle goes on to identify that property or the soil should be held in common to some extent (1268a). This is because if the government or people tasked with the control of the public affairs do not have any resources or any control over anything, then the ideal state cannot function. This is because individuals and private persons would want to scramble for resources and control of these resources. This would lead to what Hobbes later refers to as a chaotic state. Thus, he identifies that for a nation to have a proper government, there should be some properties and some rights that would be held in common for the interest of the community. However, Aristotle argues that the default principle or the general position of politics and government should be that, people should hold properties as private owners. This is because in a well ordered society, people should have their own properties and the law must guarantee this. In juxtaposing Aristotle's original position in Politics Glanaris identifies that “private ownership gives better results because of the attention and care of each one to his or her own property: on the other hand, common ownership leads to many conflicts and even distinctive results” (2). This means that Aristotle identified that people commit more of their effort and will to the betterment of property and resources when they know that it is for them. This is because people work hard to protect what is theirs and make them flourish. On the other hand, common ownership is likely going to result in inefficient combination and use of resources. Common ownership causes people to enter conflicts which could have otherwise be avoided if there is private ownership. In spite of this, Aristotle continues to argue and support his original position that individuals must have some rights to welfare. He indicates that people must have the right and the ability, protected by law to own their own properties and appropriate these properties to the use the they consider to be best. This is because no one would run what brings him results in a wrong way and manner. Hence Aristotle encourages private ownership ahead of public ownership of property and assets. However, he argues for the maintenance of structures that preserve individual welfare and enables people to have a meaningful life. Aristotle's Views on Privatization and the Modern State Several scholars have applied Aristotle's ideas and views of privatization to the modern state. This is because they find a good grounding of this concept in describing what is ideal for the world today. Two scholars stated that “the liberal states aims to insure that each individual is able to pursue his private vision of good so long as it does not interfere with others' pursuits of their own good” (Goodman and Talisse 33). This means that Aristotle's view has been developed to a point whereby it is used to defend people who seek to use properties for the best results and the best activities for themselves save for activities that is tantamount to illegality. Hence, the modern government has the duty of ensuring that they create an environment for wealth creation. They should do this by only ensuring that there is a structure for people to set up businesses and through that, provide the needs of people in the nation. Modern nations have this primary obligation and the need to maintain welfare should be minimal and this should be done only to nurture very vulnerable citizens. This is the argument of Friedmanism which seeks to provide a system whereby welfare would be cut sharply and people would be justified by what they produce only. This was the argument of the British Conservative government when it was voted to power in 1979. They were able to make major welfare cuts and housing benefits to promote a very capitalist society in the UK. Sison basis his argument on Aristotle's views and states that productivity is very important and there is the need for governments to ensure that every organization in the nation works to provide the highest levels of productivity (53). Thus, a government that is not promoting productivity in its policies must be changed. This is because it would breed inefficiency which would go on to destroy the nation and the economy. On the other hand, there are some writers who base their case on the constitution and human rights and ask for some degree of attention to those who genuinely need help and welfare. Demonstrations and boycotts are the examples of collective action that such people who desperately need welfare can make their case heard (Chong 31). This means that governments need to ensure that they hear the cases of the people and if they fail, the people can move onto the street and use collective action and make their case heard. Application to the Greek Situation Clearly, the Greek situation is about keeping the old system in operation. The old system is based on a socialist system which seeks to promote a welfare state. This is because the old system allowed people to get jobs and there was so much spending in the public sector. This means there is the need to maintain a strong public sector in the country. On the other hand, the international community, led by the IMF and EU are asking for the country to move towards a more privatized economy as Aristotle's views on politics asserts. This means that the government needs to work hard and ensure that principles of privatization is carried out. It is therefore imperative for the government to take reasonable steps in liberalizing the economy and providing a system for the creation of a property owning democracy in Greece. They should therefore take some measures to introduce austerity measures, privatization and undertake reforms that would make this happen. Viewed from a different angle altogether, it is apparent that the Greek government is required by the principles of ethics put forward by Aristotle to remain humane and keep the interest of the citizens at hand. Reforms does not mean that the needs and requirements of the people of Greece should be ignored completely. The country would have to make arrangements for the people to get a livelihood and the effects of joblessness and hopelessness must be soothed to a reasonable degree and level. This would ensure that they promote the primary purpose for which they are in government. Conclusion Aristotle views the need for constitutions and the desire to pursue the happiness of the people in the society as the core element of government in an ideal nation. Thus, governments need to ensure that they give the best to their people and their citizenry. However, Aristotle also submits that private ownership is key in every ideal state. Governments need to preserve welfare but to a limited degree. Hence, the ideal society in Aristotle's view is one that maintains a laissez faire system that allows people to own properties and generate money based on their convictions. The public sector must exist in a very limited manner to promote the welfare of the state and the people. In the case of Greece, the tradition of maintaining a socialist state where the state holds properties and income generating assets in the interest of the state has existed in the nation for several decades. Due to that, their membership in the EU and international community has come under question because more nations want them to undertake reforms. In conclusion, it is clear that the Greek government needs to move towards a more privatized economy. This is the future and the country has to pursue it. However, in the short run, the government needs to put in place some compensating welfare systems to protect the interest of the people of Greece. Works Cited Aristotle. Politics. 2008. Web. February 20, 2013. Chong Dennis. Collective Action and the Civil Rights Movement. Chicago, IL: University of Chicago Press. 1991. Print. Glanaris Nicholas. Modern Capitalism: Privatization, Employee Ownership and Industrial Democracy Darby, PA: Greenwood Publishing Group. 1996. Print. Goodman Lenn Evans and Talisse Robert. Aristotle's Politics Today New York: SUNY Press. 2008. Print. Griffith Tom. On Socrates. New York: Collectors Library. 2009. Print. Kraut Richard. Aristotle: Political Philosophy Oxford: Oxford University Press. 2002. Print. Lin Carol. National Intellectual Capital and Financial Crisis in Greece. New York: Springer. 2013. Print. May Hope. Aristotle's Ethics: Moral Development and Human Nature New York: Continuum International Publishing. Pasiouras Fotios. Greek Banking: From Pre-Euro Reforms to Financial Crisis and Beyond. New York: Palgrave MacMillan. 2012. Print. Sherman Nancy. Aristotle's Ethics: Critical Essays New York: Rowman and Littlefield. 2012. Print. Sison Alfred. Corporate Governance and Ethics: The Aristotlean Perspective. Surrey: Edward Elgar Publishing. 2011. Print. Sladek Horst Franz. The Greek Financial Crisis and the European Union. New York: VDM Publishing. 2010. Print. Read More