I have been doing extensive reading these days about the situation in Greece, and I can’t help but think of the tough times ahead for the Greek people. In particular, I have been surprised that – while there is extensive talk of which route out of this liquidity (or solvency?) crisis would be less costly for Europe and the Eurozone – I have seen very little commentary regarding the meaning of the EU-IMF rescue mechanism for the people of Greece.
If I were Greek, would I be happy to have my country rescued at the cost of a significant curtailment of its decision-making power in terms of economic and social policy, which will be dictated by my new “rescuers”?
For one, the Greek government will be required to swallow rampant privatisations and public service cuts as a way to bring its balance sheet back in check, exactly the type of things that – in my opinion – can send a country down the drain, in terms of social cohesion.
Public services in particular, such as healthcare and education, are essential to the full development of a country’s citizens. When public services withdraw, the odds are that social mobility will also falter, and the gap between rich and poor widen. I can’t help but giggle to those (like Maggie, here) that say that our brand of capitalism has made the poor wealthier in absolute terms. To me, a person without a decent education and healthcare has no reason to be happier if she can afford a plasma TV: she will just be more distracted from her real problems.
Will a non-defaulting Greece be able to still provide these essential services in a manner that makes its people’s best interest? Or will it turn to just another victim of neoliberal imperialism?
If a default may help put the future of Greece back into the hands of Greeks, I think that should be the way to go.
