Appendix 1: Governments and Prime Ministers in Greece, 1950–2000 Year Government Prime Minister 19501 Coalition [Liberal Party] Sophocles Venizelos 1950 Coalition [National Progressive Nicolaos Plastiras Center Union – NPCU] 1950 Coalition [Liberal Party] Sophocles Venizelos 1951 Coalition [NPCU] Nicolaos Plastiras 1952 Greek Rally (right-wing) Alexandros Papagos 1955 Greek Rally Constantine Karamanlis 1956 National Radical Union [NRU] Constantine Karamanlis (right-wing) 1958 National Radical Union Constantine Karamanlis 1961 National Radical Union Constantine Karamanlis 1963 Center Union Georgios Papandreou 1964 Center Union Georgios Papandreou 1965 Transitional [min]2 Georgios Athanasiades-Novas 1965 Transitional [min] Elias Tsirimokos 1965 Coalition [NRU/Center Union Stephanos Stephanopoulos apostates] 1966 Coalition [Center Union/NRU] Ioannis Paraskevopoulos 1967 Transitional [min] Panagiotis Canellopoulos 1967 Dictatorship Constantine Kollias 1967 Dictatorship Georgios Papadopoulos 1973 Dictatorship Spyridon Markezinis 1973 Dictatorship Adamantios Androutsopoulos 1974 Government of National Unity Constantine Karamanlis 1974 New Democracy (ND) Constantine Karamanlis 1977 ND Constantine Karamanlis 1980 ND Georgios Rallis 1981 Panhellenic Socialistic Andreas Papandreou Movement (PASOK) (continued) 224 Appendix 1 225 Year Government Prime Minister 1985 PASOK Andreas Papandreou 1989 Coalition [ND/Left Coalition Party] Tzanis Tzannetakis 1989 All-party ‘Ecumenical’ Government Xenophon Zolotas 1990 ND Constantine Mitsotakis 1993 PASOK Andreas Papandreou 1996 PASOK Kostas Simitis 1996 PASOK Kostas Simitis 2000 PASOK Kostas Simitis 1 Election years in bold. 2 Min: Minority governments that did not receive the Parliament’s vote of confidence. Appendix 2: Clientelistic Policies of the Currency Committee The Currency Committee authorized loans to farmer cooperatives (1959); amended its former decision in favor of a local chamber of commerce (1959); exempted particular companies from its previous decision on financial obligation (1965, 1980); extended favorable provisions to additional subsectors and branches of economic activity (1960); granted personal housing loans to army officers and veterans (1959); offered loans or settlement or suspension of the repayment of debts incurred by newspapers and magazines (1959, 1960, 1967, 1969, 1974, 1980); approved personal loans – with a state guarantee – to (government-friendly) individual publishers, often by explicitly exempting them from previous Currency Committee restrictions, for the purposes of restructuring their company or financing a publishing activity (1959, 1960, 1965, 1967); approved individual loans to doctors or actors for investment in their profes- sional activity (1960); offered loans to local authorities for public works (1959); took a large number of decisions authorizing the extension of the deadline or the suspension of the repayment of loans granted to companies (1959, 1960, 1965, 1966, 1974, 1977) or foundations and collective associations (1960, 1964), or the extension of a special, state-guaranteed BoG loan for the repayment of an over- due industrial company debt to the National Bank (1965); authorized bank loans to selected large industrial firms over the limit of 20 percent of the bank’s capital (1959, 1961, 1964, 1965, 1966, 1967, 1968, 1969, 1974). Many of the Currency Committee decisions taken a few months before a national election were revelatory of the electoral motives behind them. To take, for example, 1977 (the least expansionary electoral year compared to the entire 1981–93 period): Currency Committee measures included loans to Athens news- papers (1977), financial facilities to regional farmers who were hit by fire four years before (1977), one-year extension in the repayment of bank loans granted to natural and legal entities in seven particular prefectures of Greece (1977), credit facilities to regional farmers hit by an earthquake five years before, credit facilities to farmers hit by the heat and the drought in Crete and the Peloponnese (1977). 226 Appendix 3: Financial Liberalization in Greece: Selected Measures 1982 Currency Committee abolished. 1983 Various special interest rates adjusted to the general higher rate. Preferential interest rates for exports abolished. 1984 Various operations allowed without BoG prior approval. BoG trading of Treasury bills to the public on the government’s behalf. 1985 Banks allowed, under conditions to, issue letters of guarantee without prior BoG approval. Several credit facilities eased, credit ceilings raised. 1986 Special interest rates equalized upwards. Treasury bills transactions between commercial banks permitted, under restrictions. Agricultural Bank and National Mortgage Bank gradually commercialized. 1987 Some deposit rates liberalized. Ceiling on short-term lending rate abolished. Obligatory ratio (15 percent) for financing private fixed investment abolished. 1988 Minimum lending rate abolished. Reserve/rebate system eliminated. Credit restrictions to various categories (construction, trade, services) mostly abolished. 1989 Interest rates on current account and sight deposits liberalized. Lending rates to public enterprises and entities liberalized. Banks allowed to reschedule debt including forfeited letters of guarantee. Banks allowed to lend public corporations without BoG approval. Various credit restrictions lifted. 1990 Auctioning of Treasury bills to banks introduced; individuals and legal persons authorized to participate. Despecialization of specialized banks continued. Special ratio for financing public corporations reduced. 1991 Investment ratio for purchasing Treasury bills down from 40 to 30 percent. Ratio for public enterprise and entities financing abolished. Banks granted exclusive responsibility for SME loans. 1992 Forward market in foreign exchange created. Special investment ratio for SME financing reduced from 10 to 5 percent. Investment ratio for purchasing Treasury bills down from 30 to 15 percent. Exporters allowed forward operations in exchange markets. (continued) 227 228 Greece’s New Political Economy 1993 Medium and long-term capital movements with EC countries liberalized. Minimum savings deposit rate abolished. Investment ratio for SME finance abolished. Companies free to borrow in foreign exchange. Bank investment ratio into Treasury bills abolished. BoG–commercial bank transactions in government bonds introduced. 1994 Consumer credit relatively liberalized. All short-term capital controls abolished. Currency market fully deregulated. Investment ratio for financing public corporations abolished. BoG independence legally instituted. 1995 Immaterial Securities Settlement System introduced. Government bonds issued in foreign currency included in BoG’s intervention instruments. Factoring, leasing and venture capital legislation. Deposit Guarantee Fund established. 1996 Housing loan interest rates liberalized. Provisions regarding monitoring procedures of banks’ credit risk. Specialized banks expand into new operations. 1997 Greek residents free to open foreign currency accounts with Greek institutions. 1998 Athens Derivatives Exchange established. Various prudential regulation measures. Secondary Electronic Securities Market allows trading in government bonds and nonstock-exchange instruments. 1999 Payments settlement system established. Repos transactions introduced in Secondary Electronic Securities Market. Daily BoG publication of Government Securities Purchase Prices Bulletin introduced. 2000 Transactions in gold liberalized. Loans allowed for purchasing stocks, secured by new or existing stock. Average ratio of BoG reserve requirements down from 12 to 2 per cent. Notes 1 Introduction: the Importance of Finance and the Origins of Developmentalism 1. See works cited in various parts of the book. 2. On functionalism see Elster (1982, 1983: 55ff). 3. A classic critique of the behavioral assumptions of neoclassical economics is Sen (1977); see also Friedman (1996). 4. For standard treatises on these themes see Keohane (1984, 1989) and Martin (1999). 5. We follow the standard definition of institutions as ‘a set of rules, formal or informal, that actors generally follow, whether for normative, cognitive, or material reasons, and organizations as durable entities with formally recog- nized members, whose rules also contribute to the institutions of the political economy’ (Hall and Soskice 2001: 9; also North 1990: 3). 6. Admittedly, round numbers exercise a certain mystique. I take 1950 as the symbolic rather than real historical beginning of the postwar period, being formally the first year of peace following the 1945–49 bloody civil war. Historically more accurate – though numerically less elegant – candidates, could include 1945 (first year after Liberation), 1947 (year of the Truman Doctrine speech), or 1953 (end of the 1944–52 reconstruction period, begin- ning of stabilization and development). 7. South Korea, perhaps the archetype of the authoritarian developmental polit- ical economy, is summarized as comprising ‘a highly bureaucratized, pene- trating, and architectonic state; a state-dominated alliance of state and property owners for production and profits; and repressive social control of the working classes’ (Kohli 1999: 128). 2 Regime Dependencies and the Political Economy of Postwar Economic Policies 1. Not only in Greece was anticommunism made a constituent element of the postwar regime. In France and Italy, for example, the US made Marshall aid conditional