The Technological and Business Environment of Greece - Research Paper Example

Greece: A Brief Discussion on Technology and Business Environment The Greek economy is relatively one of the well developed in the whole of Europe. Its gross domestic product or GDP has been growing annually at levels that have fared better than those of its partners in the European Union. It takes pride in the fact that it has very industrious labor force, which numbers to 4.9 million. Its major source of foreign exchange earning is tourism. This account for 15 percent of the country’s total GDP and employs 16.5 percent of the total labor force through direct and indirect manner. (ELKE) However, other than this and its maritime industry, the country has yet to experience the technological breakthroughs that many of its EU neighbors have already gone through. Almost all of its technological requirements are imported. Apparently, one of the main reasons for this is the inadequacy in the government to promote this sector of the economy. A research made in 1993-1994 found that there is not enough PC’s in the country. For every 1000 persons, only 43.6 PC’s were available. For every 1000 businesses, only 74.7 PC’s were existent. This obvious insufficiency of IT infrastructure, however, is gradually being solved with the government’s granting foreign IT investors to do business more freely than in the past. Compared other EU countries, the Greek government’s response to this is relatively slow but it is moving forward. Since the early 90’s, the number of PC’s in use for the people and businesses have risen every year at an average of, at least 9 percent. (Analysis) Nevertheless, there is noticeable forward movement towards development, especially in the area of information technology. The country has not been left behind in terms of broadband internet availability. It is quite widespread with almost 16 percent of the population having access to the internet mainly through ADSL 2. (EETT) Many can also access the internet through internet cafes that dot the country’s major cities. Wireless internet connections using 3G technology is also existent as are wi-fi zones. However, these are not yet very extensive. The main impediment in the country’s technological development is in its commercial culture and government interventions. A huge majority of its population have yet to be educated on the necessity of IT in order to transform them into a market for the latest technological products. On the other hand, the government still has to overcome its tendency to intervene in the supposedly free market economy, discouraging foreign investors in many instances. Greece does not even lack in technologically able people to concentrate on IT development. It is just that there are not enough local business institutions that can provide the financial thrust towards that end. (Analysis) One of the main advantages Greece has in order to sustain or even hasten its technological advance is its human resource development. The country has healthy technological education programs, which are incorporated in the curriculum of is many technological schools. It has more than seventy institutions that focused its attention to IT training and development. In this regard, the country has taken a positive step in improving this particular area of technology, something that may guarantee it successes in this area in the coming years. The education system that gives particular concentration on technology is a condition for opportunities for investments. What the country lacks in infrastructure, it makes up with a human resource that is being shaped to qualify for IT jobs. Therefore, if multinational companies from its EU fellow member countries invest in technology, particularly in IT they can be assured of above satisfactory returns of investments. The government, for its part, has opened the country to the influx of investments coming from abroad. It provides incentives for investors, especially in IT and telecommunications, such as interest rate subsidies, cash grants, and tax allowances. It also allows foreign investors to repatriate its capital and profits in foreign currency. This has made the country more attractive to IT investments. Aside from liberalizing further the economy in order to encourage the arrival of foreign investments, the government has also embarked on projects to enhance the advance of technology. It established the General Secretariat for Research and Technology under its Ministry of Development. The institution is tasked in the planning and implementation of the country’s program for research and technology. In fact, it has increased its budget for research and development. In 2003, it spent 456.37 million euros, which is 12.6 percent more than the previous year’s budget. Since the 90’s spending for research and development has significantly increased in both public and private sectors. From a mere 0.38 percent in 1989, it rose sharply to 0.65 percent in 2001. However, despite the fact that Greece did post sharp budget increases in recent years, it still did not reach the EU average technological research and development expenditures of 1.98 percent. Despite, these efforts by the Greek national government, its economy and the technological foundation necessary to push it forward have not achieved the optimum pace that can hasten the improvement of its competitiveness. According to the study made by the Hellenic Investment Center, the recurring problems of rising unemployment levels, widespread connection, and inefficient government bureaucracy have continued to hound the economy. (ELKE) In 2009, Greece has the second lowest Index of Economic Freedom in the EU’s roster. (Heritage) The serious problems of political and economic corruption have resulted in the low level of global competitiveness when compared to other EU countries. It is true that the government has been implementing steps along the lines of reforms in technology as well as other areas of the economy such as telecommunications. Since the early 90’s, it has also pursued policies in deregulation and privatization. The objectives of these are to lessen the government’s role in the economy and allow the market forces to work, especially with the entry of foreign investments. The most glaring example of which is the breaking up of government monopoly over the telecommunication system. However, despite these positive steps, corruption has prompted incidents of intervention in business affairs of some politicians. This phenomenon has certainly discouraged many potential foreign investors from establishing businesses in the country. This has badly affected the economy. Although such problem did not stunt the economy’s growth, it has slackened the pace that it could have achieved in developing. Thus, its IT and the entire technology sector have yet to equal those of its developed fellow members in the EU. Unless, it can drastically reduce the problem in corruption and bureaucratic efficiency, Greece will not be able to hasten the speed of technology development. The Greeks are a people that are very proud of its cultural traditions. This is a fact that is expected from a nation that used to be one of the world’s seats of civilization. However, much of the classical Greek influences can only be found in the arts and architecture. What actually molds the line of thinking of the majority of the people is religion. The Greeks are predominantly Orthodox Christians and the Greek Orthodox Church has retained its influence on the government. Therefore, the ethics that the people normally follow are those that fall under the teachings of the Greek Orthodox Church. Despite the democratic principle of the separation of the church and state, the Greek Orthodox Church hierarchy remains very influential in government and politics. If not on the national level, the people actually perceive the church to have the same power of government officials in the local government units, especially in the rural areas. The Orthodox Church is considered to be a major factor in the formation of Greek ethical standards. The Greeks give paramount importance to their families and religion. Their ethics, in fact, are deeply entrenched in these two areas. Their idea of what is right or wrong is based on what good it does to their families and their religious beliefs. Therefore, what may be unethical for people of other culture may be appropriate for the Greeks. From birth until death, the individual has always held the idea of family. As a result, especially in the rural areas, families tend to be big. However, as the economy develops, it has been found that the divorce rates have also increased. At the same time, number of people living in the rural areas has lessened while the urban areas have come to accommodate two-thirds of the population. (NSSG) These figures can be interpreted that the Greeks are modernizing. Despite the Orthodox Church’s influence, the people are slowly accepting modern, non-traditional, and even non-Greek cultural influences. Thus, this may also mean that their ethical standards have been evolving through time. The implication of such changes may be positive for the entry of foreign investments and the development of the economy. The modern Greek will certainly be able to adjust to corporate culture without the interference of family or church. Besides this, a modern society also is a better market for new technological products. If the Greeks remained to hold fast to their tradition of family, religion, and living in the rural areas, the successful entry of IT products and services may not be as promising. However, the opposite is happening and the opportunities for the technology business have become ever more viable in the country. Works Cited “Analysis: IT Weaknesses in Greece”, American University, Broadband Statistics 2009 2nd Quarter, EETT, http://www.eett.gr "ELKE Hellenic Center for Investment - Economic Stability". Elke.gr. National Statistical Service of Greece. “Greece in Numbers" (PDF). Read More