H.E. Alexandros P. Mallias

"Greece: An Emerging Southern European-Mediterranean Business Hub"
(program information)

A presentation by

H.E. Alexandros P. Mallias
Ambassador of Greece
to the United States

January 25, 2008
World Trade Center of New Orleans

Lack of symmetry, harmony and geometry in the 21st century world.

Ancient Greeks recognized that man is part of a greater whole, and it is obvious today that the safety of the world rests upon the realization that our fates are intertwined and interwoven; we are all part of a greater whole, which needs balance and equilibrium. This balance requires the blend of harmony, symmetry, geometry and a sense of measure (metron), qualities that the ancient Greeks understood better than anyone.

These qualities are explicit and mirrored in classical Greek sculpture. Ancient Greek statues and temples are all on a human scale, something which shows a profound understanding of man’s proportionate relationship to nature and the cosmos. You only have look to the Parthenon, a structure which embodies these characteristics, regrettably disrupted by the fact that the Parthenon marbles are in the British Museum.

I find that many of the problems and challenges we face today are precisely due to the fact that these qualities are missing.

And so, I often find solace and counsel, if you will, in the ancient Greek classics, as they negotiate ways to maintain this balance and harmony in relationship to the whole:

On Geometry - ΓΕΩΜΕΤΡΙΑ

Clearly, the concept of Geometry includes the sub-concepts of γαία and μέτρον. It is not very difficult to argue that today in international relations at the global level the essence of metron is lacking.

On Harmony – (ΑΡΜΟΝΙΑ)

Harmony presupposes a fine-tuned equilibrium and a proportionate relationship of all components of all our regulatory systems, including our ecosystem.

Climate change and global warming are but blatant examples of this lack of harmony.

In the 21st century, we have introduced the concept of asymmetrical threats. It is clear to me that the environment and global climate are victims of asymmetrical threats of our own making.

On Symmetry (ΣΥΜΜΕΤΡΙΑ)

The lack of symmetry, such an important concept in the Greek classics, manifests itself in at least two main ways today:

First, the lack of symmetry manifests itself in the gap between rich and poor.

Aggregate wealth estimates provided by the World Bank demonstrate that the European countries, along with the United States, and Japan, dominate the top 10 wealthiest countries/nations. The 10 poorest countries at the global level are in Sub-Saharan Africa.

It is with the rise of the Greek city-States that we see a civilization concerned with the delicate balance between food supply and population. Ancient Athens was especially troubled by demographic pressures. Thus the ancient Greek philosophers, particularly Plato and Aristotle, were sensitive to the relationship between population and resources when contemplating the ideal size for a city-state of their day.

A second phenomenon resulting from this gap, and allow me to be a bit of a heretic here, is that of human trafficking. In ancient and not so ancient times, we know there were slaves; there were the dominant and the dominated. Today, albeit within a different context and perhaps different form, we have generated the phenomenon of a modern form of slavery, that of human trafficking.

LIVING TOGETHER IN DIVERSITY

A basic characteristic of Athenian democracy was the concept of co-existing, of living together in diversity.

Today, both in the United States and in a number of European countries, a critical phenomenon that has entered the domestic political agenda is that of immigration.
And given these values and concepts of ancient Athens, it did not surprise me to discover that Martin Luther King himself was interested in the classics and so freely referred to them in his many great speeches, including the most famous “To the Mountaintop”

THUCYDIDES

In understanding the miscalculations and blunders in political decision-making in the 21st century, and also making sense of some of the conflicts of the 20th century, there is no better handbook than Thucydides’ “History of the Peloponnesian Wars”, written some 2,500 years ago.

CONCLUSION

The return/revival of the classics in the 21st century as a basic tool of analysis, of understanding the sound criteria for decision-making in politics, geostrategy, is to myself imposed in our permanent search for applying the themelion (fundamental principles) of symmetry, harmony and geometry, which is the Aristotelian metron.

GREECE’S RECENT ECONOMIC ACHIEVEMENTS

In the 21st century, Greece offers a strategic location, a dynamic private sector that plays a significant role in the development of our neighboring countries, and an economy which benefits from the dynamic growth of Southeastern Mediterranean.

As a gateway to Southeast Europe, Greece is a:

• Business and Banking Hub – more than 3,600 Greek firms and more than 2,300 branches of Greek banks operate in Southeast European countries and have invested over 22 billion dollars;
• Energy Hub;
• Maritime and Shipping Hub – Greece owns the largest fleet in Europe and the third largest in the world.

Developments so far suggest that our strategy is working. We have managed to give Greek business the opportunity to expand both in Greece and abroad. Reform policies led to strong positive results.

Fiscal consolidation has progressed successfully.

We have managed to reduce the budget deficit from 8% in 2004 to less than 3% in 2006 and 2007.

• Growth is dynamic as a result of:

 lower corporate tax rates that have been reduced from 35% in 2004 to 25% as of this year;
 generous investment incentives that can reach up to 60% of an investment project;
 a well targeted policy for the promotion of exports;
 the reduction of bureaucratic procedures, substantial acceleration of the projects funded by the European Union – these projects are essential to achieve convergence with the European Union, essential to modernize our infrastructure and improve the competitiveness of our economy;
 Also, growth is dynamic due to a wave of privatizations that has helped transform the Greek banking sector. With our privatizations agenda we aimed to stimulate competition in the banking sector, attract foreign investment and reduce the participation of the public sector in GDP formation. And we have succeeded in this. In 2006, foreign direct investment in Greece has reached 6 billion dollars – it was equivalent to 2% of GDP.

Not only the Greek economy, but Greek businesses as well have entered into a new era:

• Today, by operating more than 2300 branches in Southeastern Europe, Greek banks play an essential role in the transformation of our neighbors’ economies. With their Investments and with the know-how they transfer, Greek banks contribute to the modernization of the banking systems of Southeastern Europe and benefit from the region’s dynamic growth;
• Today, almost 4,000 Greek companies operate in Southeastern Europe and the region of the Eastern Mediterranean Sea. They constitute a vast network that drives business developments in the region – a region of 140 million inhabitants that is being gradually transformed into an integrated economic area.
• Today, Greek exporters post solid performance and their products reach more markets.

Greece is the uncontestable center for doing business in the greater region. It is the springboard to the markets of Southeastern Europe, the Middle East and North Africa.

And the prospects of Greece’s economy remain strong. Growth will be strong well into the future. It is secure for the next few years, as a result of:

• The reforms that have so far taken place;
• The efficient use of the 35 billion dollars that the European Union shall contribute to Greece until 2013,
• The ambitious program for public investments, which will exceed the amount of 13 billion dollars in 2008,
• The private investment projects that have exceeded 12.5 billion dollars, and have already started to materialize, supported by the Investment Incentives Law initiated in 2005.
• The Public Private Partnerships, which will begin materializing in 2008. Already, the value of the approved projects has reached 4.3 billion dollars. The introduction of this instrument has created new opportunities for the private sector, as well as for foreign investors, while at the same time it has ensured that the State can efficiently obtain new infrastructure necessary for economic growth and social cohesion.

Moreover, the dynamic growth of the greater region –its gradual convergence with Europe, and the entry of Bulgaria and Romania in the European Union- shall contribute to Greece’s growth as well as to the expansion of Greek enterprises in several sectors (tourism, trade, services and industry).

Greece offers many opportunities for profitable investment – in several sectors. In tourism, energy, real estate, services, and banking. Moreover, Greece boasts significant advantages that are of particular importance to the prospective investor. In brief:

1. A dynamic economy poised to perform even better in the future
2. A strong presence of Greek businesses in neighboring markets,
3. Direct access to a market of 140 million people – a market with excellent future Prospects
4. Modern infrastructure,
5. A well trained and highly skilled work force.

GREECE AND NEW ORLEANS:

I am aware that our decision to close down the Greek Consulate in New Orleans caused some disappointment and sadness. Now we must look to the future. I propose to you a pragmatic agenda towards a mutually beneficial collaboration, along the following lines:

• the establishment of a “business-shipping-and trade” chamber in New Orleans. New Orleans and Louisiana are the U.S. energy hub. Greece is the emerging business energy and shipping hub in Southeastern Europe in Eastern Mediterranean at large.

• Participation of New Orleans with a separate booth at the annual Posidonia International Shipping Exhibition (http://www.posidonia-events.com/) – June 2-6, 2008 (Athens, Greece)

• Participation of the New Orleans business community the annual Greek American New York business conference “CAPITAL ILNK” organized every year in November (http://www.capitallink.com)

• Organize cultural events and exhibitions in cooperation with the appropriate New Orleans institutions.

I thank you and want to express my gratitude to Mr. Eugene Screiber, Executive Director of the World Trade Center of New Orleans, for organizing this event, Kathyn Lorio, Professor of Law at Loyola College of Law, and Philip Lorio, Counselor at Law, for facilitating this visit, along with Mr. Leon Stavrou, Director of the Next Generation Initiative and Dean of the Faculty of Law, Dr. Brian Bromberger, for their valuable assistance, and for making my trip to New Orleans a memorable and productive one.

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