Over the past few weeks, I spent time in Corinth, Athens, and the Greek Islands of Santorini and Mykonos. Even though it was too short a visit, I still had some telltale experiences which made clear why Greek culture stifles innovation and economic growth.

1. Minimal Respect for the Rule of Law

My introduction to the Greek approach to law was when I arrived off the cruise ship at the dock. There was a slew of taxis waiting. One ringleader, smelling an easy mark, offered a ride for €45! My minimal prior research revealed the fare should be about €15. Within a few minutes, I was able to get a negotiated fare with another driver for €15. Why is there negotiation? Taxis have meters. Yes, but drivers often don’t put them--especially when driving tourists. They want to “negotiate”—that is translated as welcome to Greece!

Another aspect of the lack of respect for the law is not paying taxes. In Greece, this is as common as yogurt. Thus, most taxi drivers—along with restauranteurs and others—want or require cash. Tax laws apparently exist for those citizens who can't figure out how to circumvent them. It’s hard to run a developed world economy that way.

2. Lack of Thinking About the Big Picture

The day I was flying out of Athens there was a 24-hour taxi strike, specifically against legislation from the government that would tax the drivers. Of course, one group most affected by the strike would be tourists. This is not good for tourism, their #1 industry. That didn't seem to matter to anyone.

How could I get to their airport during a strike? The Marriott Hotel where my wife and I were staying arranged a private driver. The regular fare of about €50 was jacked up to €150. I asked the hotel how many seats were in the vehicle (4) and if I could get other people to share the cost (yes). I asked if I pay the hotel. No, you deal with the driver directly. Great, I thought, there might be an opportunity to reduce the gouging.

The morning of my departure I spotted a forlorn American couple that was heading to the airport, too. I suggested that we could share the cost of the ride, and thus pay €75 per couple, a bit of salve for the whole exercise. The driver realizing an opportunity to exploit the situation further, said I couldn’t do this. It was the hotel policy (i.e., he was merely a pawn in this game of exploitation). It was, indeed, €150 per couple. So he was getting €300 instead of €50. Welcome to the chicanery of Greece!

3. Not Embracing Change

At the core of an innovative culture is the acceptance of change--doing things in unique and different ways, finding new solutions, and disrupting established patterns. The US has an entrepreneurial dynamism built into its fabric. Not so in Greece. It always feels like you have the weight of history to contend with—in the case of Greece it dates back thousands of years. Uber is still doing battle in Greece. Uber is often a bellwether regarding innovation. You can use Uber in Greece, but it is staffed by Yellow Taxis. The rearguard action of entrenched interests is preventing the great adoption of Uber. What’s best for the consumer is not top of mind. Taking an innovative approach is not a priority.

4. Corruption is a Way of Life

On the Island of Santorini, I took a well-fed and well-maintained donkey to the top of the hill so it could get some exercise. There was a 30-minute lineup. They have a large herd of donkeys. I was waiting not-so-patiently. When I made it to the front of the line-up an older fellow, a Greek tourist with his head down, trying to be discrete, circumvented 50 other people, stuffed some extra bills into the Greek donkey handler’s pocket. Miraculously he was on the next donkey up the hill. The donkey handler and donkey line crasher both knew the game--there is always room for the greasing of palms. Try that in the UK and you would likely be punted into The Thames. Small-scale corruption that permeates the entire economy is seemingly part of the culture.

The Greek economy is stifled by its lack of innovation. But, fortunately, it has a counterbalance.  Greece attracted approximately 33 million visitors in 2023 making it the 10th most visited country in the world. Its revenues from tourism are expected to hit €22 billion in 2024, reaching another record high. Greece is “the birthplace of Western civilization” and benefits from having the Acropolis (which includes the Parthenon), one of the most iconic heritage sites in the world.

There are also good museums, such as the Acropolis Museum, which has many artifacts from the Acropolis site. The Acropolis Museum may be unique in the world. It is located next to the base of the Acropolis and is constructed on top of an actual archeological site. They have see-through glass floors so visitors can see the findings below.

Yet tourism alone cannot save the Greek economy as their financial misdeeds of recent decades have demonstrated. To be free of their German nursemaids and others, Greece needs to be more innovative and forward-looking--but cultural patterns are entrenched.

The bottom line is that Greece provides a case study for all business leaders. At the heart of a country, there needs to be an entrepreneurial spirit, the incentive to take risks, and a desire to add value--and to grow the pie. There needs to be clear rules of the game and people need to be fairly rewarded. Greece remains a great place to visit. There is a lineup of tourists, but not investors. Enjoy the yogurt.