Aspects of the Public Sector in Greece: Postwar Developments and Future Prospects

Abstract

Is the public sector large or small? Is it excessively or inefficiently large or is its size in line with allocative efficiency considerations? Should we go on nationalising more economic activities or start privatising activities and, if so, which ones? Is the public sector producing efficiently, in the sense of avoiding or minimising X inefficiencies? Is it producing the right mixture of goods and services or not? Is the public sector using the correct measure and choice of financial option to finance its activities, (for example, debt finance versus tax finance, or direct taxes versus indirect taxes)? Is the allocation of functions to each layer of government satisfactory or not? These are some of the questions that frequently crop up when talking about the public sector which will be addressed in this paper. Following a brief discussion of postwar developments, the present situation will be appraised, and future prospects outlined, and I will suggest where we must go in view of 1992 and 2000.