Why the Greek Bailout Failed
Structural reform cannot be imposed from the outside, Rogoff says
by Kenneth Rogoff
Market Watch
CAMBRIDGE, Mass. (Project Syndicate) — As the Greek crisis painfully illustrates, a structural-adjustment program to enhance long-term debt sustainability can work only if the country takes ownership of it. The immediate sticking point for Greece is its unwillingness to make its pension system sustainable in a credible way — but this is only the latest example of intransigence.
In fact, lenders have long been giving Greece significantly more money than it has been asked to pay, though one might never know it from global press coverage. With trust on both sides having evaporated, striking a lasting deal has proved impossible.
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Source: http://financialsurvivalnetwork.com/2015/07/why-the-greek-bailout-failed/?utm_source=rss&utm_medium=rss&utm_campaign=why-the-greek-bailout-failed
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