EUROPEAN INVESTMENT BANK RISC Consortium and the UNU-CRIS Summer School/ Students Research Symposium, 3 rd July 2012, Luxembourg Greek Structural Programme Loan operation – Lessons learnt on the Greek social capital Sebastian Hyzyk PJ/ERD/REGU 1 European Investment Bank
Lessons learnt on the Greek social capital Outline Greek Structural Programme Loan Definitions and concepts Cases on social capital in Greece Concluding remarks PJ/ERD/REGU 2 European Investment Bank
Greek Structural Programme Loan EU Funds Co-financing 2007-2013 – Greece Project cost: EUR 21.5bn Loan amount: EUR 2.0bn (9%) Duration of loan: 25 years Borrower/Promoter: Hellenic Republic Implementation period: 2007-2015 PJ/ERD/REGU 3 European Investment Bank
Greek Structural Programme Loan EIB framework loan supports the implementation of the Greek National Strategic Reference Framework 2007-2013: OP Environment and Sustainable Development OP Competitiveness and Entrepreneurship OP Digital Convergence OP Development of Human Resources OP Education and Lifelong Learning 5 regional OPs PATHEP Railway Corridor PJ/ERD/REGU 4 European Investment Bank
Greek Structural Programme Loan Expected benefits: SPL will cater to the recovery and sustainable development of the Greek economy acceleration of implementation EU Funds absorption crucial for the Greek economy EIB Technical Assistance, in particular in challenging sectors such as water and waste management PJ/ERD/REGU 5 European Investment Bank
Greek Structural Programme Loan At the appraisal stage numerous risks identified Risk Assessment and Mitigation Action Plan was requested EIB also provided Technical Assistance for the Project Implementation Unit PJ/ERD/REGU 6 European Investment Bank
Definitions and concepts Social capital J.S. Coleman – variety of entities, which consist of social structures and facilitate certain actions of actors (persons or corporate) within the structure e.g. rules, norms, relationships, associations, networks, behavioural codes R. Putnam – features of social organisations, such as networks, norms and trust, that facilitate action and cooperation for mutual benefit Individual and/or collective (civicness) PJ/ERD/REGU 7 European Investment Bank
Definitions and concepts Macro Transactions Collective action Institutions Conventions Rules Behavioural codes Norms Informal Formal Social networks Trust Associations Reputation Individual relations Information Cooperation Micro Source: R. Camagni, in R. Capello, P. Nijkamp (eds) Handbook of Regional Growth and Development Theories PJ/ERD/REGU 8 European Investment Bank
Definitions and concepts Embeddedness: informal institutions, customs, Institutions traditions (D. North) formal (rules, (100 years and more) laws) and informal Institutional environment constraints (norms, (10 to 100 years) codes) including mechanisms of their Governance, contracts enforcement (1 to 10 years) Resource allocation and employment (continuous) Source: O. Williamson, The New Institutional Economics… , PJ/ERD/REGU 9 European Investment Bank
Trust and cooperation Well-functioning public administration in Greece is a requirement Type of entity Personnel Central Government 1,809 Ministries and associated entities (hospitals, schools etc.) 634,154 Regions 15,785 Municipalities 95,547 Local entities/municipal companies 14,775 In general high technical capacity of individuals, but … … lack of effective human resources management (demotivation) PJ/ERD/REGU 10 European Investment Bank
Trust and cooperation Lessons learnt on the Greek public administration Lack of empowerment of middle management Lack of delegation of authority Clusterisation of information Political appointments Lack of trust between civil servants and political authority PJ/ERD/REGU 11 European Investment Bank
Trust and cooperation Day-to-day running of the administration is done on a political level and regular political changes hinder continuity of actions Ownership of the reform is lost at the middle management level Administration is too formalised Weak follow-up of the implementation of policies PJ/ERD/REGU 12 European Investment Bank
Trust and cooperation Little coordination between and within the ministries Fragmentation and overlaps among structures Cooperation based on personal networks PJ/ERD/REGU 13 European Investment Bank
Trust Need for better regulation and governance complex legal framework legal formalism established to secure integrity, but… time consuming licensing (environmental impact assessment) litigation procedures (expropriation, public procurement) inappropriate individual behaviours PJ/ERD/REGU 14 European Investment Bank
Associations Associations in water sector Water sector suffers from fragmentation Small beneficiaries lack capacity Positive experience - EDEYA (Hellenic Union of Municipal Enterprises for Water Supply and Sewerage) EIB suggested to strengthen the environment by promoting networking among Water Boards to exchange experience in operation and maintenance (twining partnerships) professional training and certification for blue collar workers strengthening consulting industry by conferences and guidelines publishing annual benchmark report PJ/ERD/REGU 15 European Investment Bank
Networking Networking EC Task Force for Greece Member States and IMF support in the areas of administrative reform, taxation and budget, justice, anti-money laundering, e-governance, anti-corruption, human resources management benchmarking opportunity transfer of know-how EIB is also providing Technical Assistance PJ/ERD/REGU 16 European Investment Bank
Concluding remarks Social context constraints the economic activity (Lack of) social capital has an impact on the project preparation and implementation in Greece and subsequently on the regional development PJ/ERD/REGU 17 European Investment Bank
THANK YOU Sebastian Hyzyk Project Directorate Environment and Regional Development Department Regional and Urban Development Division hyzyk@eib.org PJ/ERD/REGU 18 European Investment Bank
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