Thinking about Corruption in Greece1
Thinking about Corruption in Greece1
The chapter addresses the issue of corruption, which appears to be endemic in Greece. It reviews the facts about corruption as a multifaceted phenomenon and its relationship to tax evasion, by comparing Greece to its EU partners as well as internationally. The chapter looks at corruption as an example of anti-social behavior through the prism of modern theories of social interactions and property rights. This offers both bad and good news. Corruption is rampant in Greece, and with a much higher incidence than in other EU countries. One way to deal with it is by means of zero tolerance and relentless vigilance. A second way to deal with corruption is to design institutions that encourage honest behavior and facilitate reporting of abuses. However, an outcome thoroughly permeated by corrupt practices is not the only possible social and economic outcome. Taste for proper social behavior can be taught and learned, and adverse practices discussed in the chapter may be altered by suitable reforms and retraining of public servants.
Keywords: bribery, compliance, corruption, economic growth, fiscal deficits, anti-social behavior, public goods, tax evasion
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