The Global Economic Crisis and Gender Relations: The Greek Case By Lois Woestman 2010 Edition About the Author: Lois Woestman, US born feminist researcher, has lived and worked in Mexico, Ethiopia, France, Germany, the Netherlands – and since 2002, in Greece. She received her MA in development economics from the Institute for Social Stud- ies in the Netherlands, and her PhD in anthropology from the New School for Social Research in New York City. Ms. Woestman has elaborated feminist analyses of development, postsocialist – and intra EU zone – neoliberal “tran- sitions”, focusing on World Bank, IMF and EU development policies. She has also worked on issues of gender and property in postsocialist Africa, gender responsive budgeting, and alternative economics. Editor: Reihana Mohideen Copyeditor: Rosanna Barbero, Alejandra Scampini and Cindy Clark Proofreaders: Michele Hasson, Karen Murray Designer: Diego García Pedrouzo 2011 Association for Women’s Rights in Development (AWID) This publication may be redistributed non-commercially in any media, un- changed and in whole, with credit given to AWID and the author. Published by Association for Women’s Rights in Development (AWID), Toronto, Mexico City, Cape Town. Toronto Office Mexico Office Cape Town Office 215 Spadina Ave, Salina Cruz 34, Colo- A6 Waverley Court Suite 150 nia Roma Sur, 7 Kotzee Road Toronto, Ontario Mexico, D.F. C.P.06760 Mowbray, Cape Town M5T 2C7 Delegación Cuahtemoc South Africa Canada 7925 The Association for Women’s Rights in Development (AWID) is an international, feminist, membership organization committed to achiev- ing gender equality, sustainable development and women’s human rights. AWID’s mission is to strengthen the voice, impact and influence of women’s rights advocates, organizations and movements internationally to effectively advance the rights of women. The Global Economic Crisis and Gender Relations: The Greek Case. Woestman, AWID The Global Economic Crisis and Gender Relations: The Greek Case By Lois Woestman 2010 Edition Mexico was the first developing the first eurozone country on the country to default on its foreign brink of defaulting on its foreign debt in 1982, and the first to im- debts. There is much confusion, plement a structural adjustment anger and fear among the Greek programme to deal with the crisis. population over the succeeding In the wake of the default, it was harsh structural adjustment mea- chaotic in the lower middle-class sures the socialist government 3 neighborhood where my host is implementing. This includes family lived. Men were losing their the European Union-International jobs because they could not afford Monetary Fund (EU-IMF)-bro- to pay the bus fare to get to work, kered “bail-out” that would pur- since subsidies had been cut and portedly preclude Greece from inflation was driving up the price declaring bankruptcy and put the of the bus tickets. My host mother economy back on its feet. and the women in the neighbour- hood were worried about feeding The Greek case demonstrates their families, as even tortillas (the clearly that neoliberalism has staple bread) were becoming ex- come home to roost in the euro- pensive. The women were whis- zone, causing growing class, gen- pering in apprehension among der and north-south rifts within it. themselves, tiptoeing around their houses, in fear of their husbands Background who were starting to beat them more frequently. Until recently, the Greek social- ist and conservative governments Everywhere, everyone was ask- have resisted introducing struc- ing: What is going on? Why is our tural adjustment measures simi- Government doing this? Why are lar to those that other eurozone foreign governments and power- countries have implemented over ful global organizations pressur- the past decade. This has been ing our Government to do what partly on philosophical grounds they want? What about the politi- and partly because they knew cians and the rich people? They such measures would cost them are still driving around in their “li- the next election. mos”, just with more bodyguards. In the lead-up to the October 2009 It is déjà vu for me in Athens, my Greek national elections, it was second home, in 2010. Greece is clear that Greece’s 250 billion The Global Economic Crisis and Gender Relations: The Greek Case. Woestman, AWID euro economy was on the cusp ing financial speculators, EU eu- of recession, and the Government rozone counterparts, and the IMF. had a serious budget problem. Under pressure from the latter Greece was to have incurred the two, the Pasok Government has second largest budget deficit as reversed tack, reneging on its pre- a percentage of GDP in the entire electoral promises. The measures eurozone – or so we were led to it has introduced encapsulate, and believe by the New Democracy even go beyond, the structural ad- Government then in power. (Later justments implemented in other on, the new Government would eurozone countries. Within a few declare that Greece actually had months, Greece changed from a the highest budget deficit.) The “regular” indebted southern Euro- IMF predicted our public debt pean country – one of the “PIGS” would swell to 6 percent of GDP (Portugal, Italy, Greece and Spain) in end of 2009, well above the 3 – to a guinea pig for the first EU- % EU cap for eurozone members. IMF brokered structural adjust- ment programme imposed on a The New Democracy regime re- eurozone country. sponded by bailing out banks with a 28 billion euro liquidity package, The crisis and the EU-IMF bail-out but also called for privatizations, are heightening class inequalities freezing of public sector salaries, and social unrest in Greece. They pension and new hiring, and one- are aggravating many gender in- off taxes on high earners. The equalities and causing a crisis in socialist Pasok party proposed in- the unpaid “care economy”. They jecting money into the economy to also highlight a growing intra-eu- stabilize it and kick-start growth, rozone north-south divide. North- increase social spending to miti- ern eurozone countries that are 4 gate the effects of the crisis on counterbalancing recessionary those with low incomes, crack measures with economic stimu- down on tax evasion, and enhance lus packages, and whose banks government transparency1. Pasok are among those profiting the won by a landslide. most from the Greek debt crisis are also pressuring Portugal, Italy, At the European level, succes- and Spain to undertake further re- sive Greek governments, joining cessionary structural adjustment their European counterparts, had measures. These countries are also been resisting structural doing so to avoid having to resort adjustment, calling for retention to a harsh “rescue” package, like of the European welfare state. the one in Greece. These governments resisted such changes in part, however, by pro- The Greek population is resisting. viding inaccurate economic and There have been trade union-led financial statistics to the national general strikes and protests on and international community. the streets of Athens against the new wave of structural adjust- One of the first things that the Pa- ment measures. These large pro- sok Government did upon taking tests are colorful and loud, and in power last fall was to disclose re- one case, ended in violence. But vised statistics, including that our while there are placards show- budget deficit was already at 12.5 ing, for instance, Greek and im- percent of the GDP, the highest in migrant workers’ solidarity, there the eurozone. This announcement is, as usual, no placard espousing set off a series of events involv- women’s rights or causes. Footnotes 1 - Athens News 14.9.2009. The Global Economic Crisis and Gender Relations: The Greek Case. Woestman, AWID Causes of the Greek crisis As other countries that have un- zone became the alternative source dertaken structural adjustment of enrichment for those feeding off “Much of this mess is our programs, Greece’s economic state coffers. The result is a moun- own fault and we should get and financial woes are a result of tain of debt and a stumbling Greek ourselves out of it…. Those home-grown dynamics embedded economy4. The mounting economic who caused the problem in and fostered by an unsustain- and financial crises were covered should pay for it. All our gov- able neoliberal global economic up by successive creative statistics ernments … use the money and financial system largely be- issued by the Government. for their own private use, or yond the country’s control. to buy votes. It has been get- The Greek Government taxes ting increasingly worse, to Home-grown causes middle- and lower-income people the point where there is little more than the wealthy. Wealthy left for the rest of us. They Pasok Prime Minister George groups, such as ship owners, op- let their supporters — those Papanderou has “sold” the suc- erate tax-free5. Angry at this un- doctors and lawyers and TV ceeding harsh versions of our equal treatment, many people pay stars with big houses and Stability and Growth Programme less taxes than they owe. Partly swimming pools and expen- to the Greek public as measures due to low incomes, and partly tax sive cars — get away with- needed to redress long-standing evasion, 65 percent of the popula- out paying taxes. They cur- structural problems2. Most of the tion declare less than 12,000 eu- ry-favour by doling out pub- population agree with the need to ros as income per year6. The most lic sector jobs in exchange address the problems, but not the culpable tax evaders, however, are for votes and they falsify the measures taken to do so. those hard-to-trace, well-connect- books to cover all this up. Is 5 ed, high-income earners mentioned it any wonder that we do not For decades now, Greece has had a by Georgia, a civil servant (see box) trust them?” said Georgia, a modest productive sector since co- who easily earn in a day what public civil servant (Interview with herent strategies to foster industry, servants earn in a month, but often author, June 2010).