The mindless austerity imposed on Greece by the European Commission, the European Central Bank and the International Monetary Fund - the so-called "troika" - as part of the bailout agreements has had a catastrophic effect on Greek economy and society while the policies of privatization and structural reforms including radical labor market restructuring have set the stage for the emergence of a type of economy in which economic inefficiency, brutal economic exploitation, severe inequality, foreign dependence and environmental degradation will be the primary characteristics. The claim made here is that the wild neoliberal experiment under way in Greece will produce an economy that will resemble features not of the Celtic Tiger of the mid-1990s to early 2000s - as the current government envisions - but that of an underdeveloped Latin American country of the 1960s.
Whether the conversion of Greece from a fairly developed economy into a colonial periphery is by design or not on the part of the nation's international creditors is of secondary importance: This is the price Greece is paying for being a bankrupt nation as a member state of a currency union that has a deeply flawed institutional architecture and is being led by a hegemon that practices an extreme type of economic nationalism and "beggar thy neighbor" policies.
...Austerity was crushing the Greek economy and causing a slowdown in every peripheral euro zone economy that was implementing deep austerity measures in the midst of a major recession. But dogma is dogma and, as such, it has to be reinforced regardless of any empirical reality. Thus, the second bailout package included even more budget cuts across the board, the reduction of public employment by 150,000 by the end of 2015, and a massive privatization project - essentially an all-out neoliberal attack on public goods and all publicly owned enterprises in Greece. "A Nation for Sale" is how many Greek citizens have come to regard the terms and conditions included in the second bailout agreement. On sale, among other highly valuable state assets, are the ports of Piraeus and Thessaloniki; the Greek telecom OTE; the national lottery; prime real estate; and the postal bank. All at fire sale prices. [5]
Greece's financial backers expected the privatization projects to raise 50 billion euros by 2015, revealing how wildly out of touch they were with Greek economic reality - although a more likely scenario is that the urgent push for privatization was simply a Machiavellian plan to transfer public wealth into private hands. After all, it is beyond contention that the Greek debt crisis has been utilized as an opportunity to dismantle the social state, to sell off profitable public enterprises and state assets at bargain prices, to deprive labor of its most basic rights, and to substantially reduce wages and pensions - all with the support of a significant segment of the Greek industrial/financial class and with the assistance of the domestic political elite, which, since the onset of the crisis, has relied heavily on dictatorial action to meet the demands of the country's foreign creditors and to institutionalize a much-sought-after neoliberal economic order.