Is Greece a Failing Developed State? Causes and Socio-economic Consequences of the Financial Crisis

Abstract

Is the Greek crisis an isolated case or the first of a series of future failing developed states? The Greek financial crisis is not on the front page of the Financial Times anymore, but it is far from over. The financial crisis did not manifest itself in Greece alone. Ireland has also sought an equally large EU-IMF rescue plan. Portugal and Spain have been under the microscope of the media and credit rating institutions. Such other instances in the Eurozone’s periphery have repercussions for the currency as a whole as well as for the EU (Straubhaar, 2010). Greece, Ireland, Portugal and Spain are members of the Eurozone area, which means that they share the same currency with economic giants such as Germany and France.

I would like to thank Andreas Akaras, Elias Carayannis, Dimitrios Lagias, Manolis Galenianos, Nick Karambelas, Dimitrios Mantoulidis, Angelos Pangratis, Georgios Skoulakis and Marilena Zackheos for their helpful comments. This paper is based on a talk I gave at the Center for European Studies– European Union Center, at the University of Michigan, Ann Arbor, MI, on 16 September 2010.