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Determinants of Economic Freedom: A Case Study of Greece

This paper discusses the political processes, which determine the level of Economic Freedom existing in individuals countries. Public choice theory is used to indicate how the vote-buying policies of politicians lead to reduced economic freedom but notes that their efforts are constrained by existing political cultures and public attitudes. The increases in freedom that have been observed in the past are attributed to the actions of strong political leaders, which have in the past emerged in the wake of economic crises. The increases can also result from pressures by international organizations, which make financial assistance to such countries conditional upon the acceptance of reforms required to restore economic freedom. The recent history of Greece is used to illustrate the causes and effects of changes in economic freedom observed in that country.