L. Anastasakis: There can be a strong industry in Greece
Interview in the Business Daily of the author of the new book: “Innovation and industrial transformation in Greece 1950-1973, myths and truths about the industrial transformation of Greece”.
Was there an industrial innovation implemented in Greece? THE greek industry contributed to the improvement of the living conditions of the Greeks and to what extent? Did successful post-war industries have common characteristics? What are the characteristics of success? What was the history and what were the special features of industries such as Halyvourgiki, TITAN, AGET Iraklis, Piraiki Patraiki, IZOLA, Petzetakis and Skaramaga Shipyards that all together once constituted 25% of the total Greek industry?
These are some of the questions that his book tries to answer Lefteri Anastasaki with Title: “Innovation and industrial transformation in Greece 1950-1973, myths and truths about the industrial transformation of Greece”.
This is one of the few books, perhaps the only one, in which two leading economic figures of the country, the Governor of the Bank of Greece, Giannis Stournaras and former governor of Emporiki Bank and OTE, Panagis Vourloumis. The first has written the preface and the second the epilogue, in an interesting book of economic, technological and industrial history of post-war Greece. His book Lefteri Anastasaki is the culmination of 30 years of experience in responsible positions in industry and five years of historical research in Athens university.
In an interview with BD Mr. Anastasakis, who is businessman, CEO of the technology company Priority which employs 70 highly specialized scientists while doing work of more than three million euros, we are talking about the book, the Greek industry, the reasons for deindustrialization of the country.
He submits his decision why the business decade was fought in Greece, about whether our country can regain a strong and competitive industry and which are the sectors in which the country has comparative advantages.
It should be noted that Lefteris Anastasakis allocates all the income from the copyrights to CHAMOGELO tou Paidou.
- Mr. Anastasakis, how did the idea of writing a book about industry come about, when you are not an author?
The truth is that I was encouraged by my three supervising professors, two from the University of Athens and one from the Technical University of Athens. They pointed out to me that the doctorate on which the book was based is completely original, since until today the history of the post-war industry, especially based on its technological component. Also in general the bibliography of the post-war Greek industry is much smaller than the corresponding one for the pre-war one. So, there was a need to cover the information deficit, at least for those who are interested in the specific time period and industrial activity.
- In your book, you deal exhaustively with seven large and emblematic Greek industries, which for decades have flourished in the country. Why especially with them?
Your question is very apt. It is a fact that any selection from a very large sample leaves open the possibility that it does not include some critical units. But the specific choice of seven companies belonging to six industrial sectors obey the following logic: Six sectors are included which in the examination period 1950 to 1973 constituted literally 50% of the Greek industry. The seven companies examined in depth accounted for 25% of the total Greek processing.
In addition to the obvious quantitative correlation, industries are covered that are absolutely critical throughout Europe, but also in Greece for the development of industry, ie the textile industry with which the industrial revolution began, the steel industry which was the lever of the second industrial revolution, as well as the chemical industry that created the third industrial revolution in central Europe. Also covered are industries that serve consumer demand (eg white appliances-IZOLA), but also sectors that produced products for other industries, eg shipyards and cement industry.
- As you prove through the extensive study of your book, the Greek industry supported Greece in a very difficult period. How, in your opinion, did we get to the historical decades of deindustrialization in the following decades?
Also an extremely apt question, to which the gentleman refers Vourloumis in his wise five-page epilogue. If he allows me to contribute something more than Mr. Vourloumis, I would say the following: Deindustrialisation after 1973 did not result in only a Greek phenomenon, but pan-European. Some numbers are typical. In four developed European countries, the proportion of workers employed in industry shrank significantly from the early 1970s to 2012.
In Britain it fell from 48% to 20%, in the Netherlands from 42% to 16%, in Italy from 40% to 21% and in Sweden from 45% to 18%. Unfortunately, Europe has chosen to become a continent based on tertiary sector ie services, effectively boosting industrial production in third countries. The Lisbon Treaty for the future of Europe clearly states that we, as Europe, want to be a continent of knowledge and service. In Greece, deindustrialisation was exacerbated by additional wrong political and business choices, for which almost all of us today regret.
- Why was the company fought in Greece for decades? Why did the desire for public appointment become almost cult-like?
Related question to the immediately preceding one on deindustrialisation. It is a fact that towards the end of the twentieth century the word business profit was literally demonized. On the contrary, the profit resulting from tricks and vague European “grants” was considered national magic and advantage of the Greek race.
The psychological condemnation of entrepreneurship has led to the graduation of many graduates in their careers. So we came to the paradox that many young people with remarkable qualifications did not accept even the slightest degree of risk that a career in the private sector brings, but sought zero risk in the public sector. By about 2010 this distortion was becoming more pronounced due to the fact that public wages, especially for people up to 35-40 years old, were higher than wages in the private sector.
- Was there an industrial innovation implemented in Greece?
If we take to the streets and make a brief publicity, asking 100 people, 80 will answer that there was no industrial innovation in the country. Having worked for three decades in Greek and Greek-owned industries, not subsidiary multinationals, I found the exact opposite. Innovation and in particular small step changes, the companies we call innovations without patents is the central theme of the book. It turns out that innovation has been developed in Greece since 1950, which innovation has made some industries in our country internationally competitive.
- Did Greek industry contribute to the improvement of the living conditions of the Greeks? And to what extent?
In the hypothetical gallop mentioned above, I am very afraid that 90% of the answers were “no it did not contribute”. In the book using specific quantitative and numerical examples it proves to be exactly the opposite. Without tiring you with many numbers, I will give just one example. In the early 50’s before the first refrigerator made in Greece was produced by IZOLA, it took nine whole wages of an industrial worker to buy a refrigerator.
In 1973, when the period I am studying in the book ends, the ever lower industrial cost of refrigerators produced in Greece significantly reduced their price. At the same time, wages in industry had almost doubled since 1950. As a result, it took three to nine months’ income for the average industrial worker to buy a refrigerator. Therefore, The purchasing power of the average Greek worker, thanks to the Greek white goods industry, has literally tripled in 23 years.
- Did successful post-war industries have common characteristics? If so, which one?
Yes, they had in common, although they were active in different industries. Most were identified in management, mentality, training and executive development. This was not a coincidence, but part of a recipe for success. The emphasis on the human factor, the continuous training of employees and the positive working climate, and even the creation of sports teams by employees, were common elements in the seven companies that I studied and still know.
It is characteristic that during the years of the German Occupation four of the five companies that already exist (Titan, AGET, IZOLA and Piraiki Patraiki) we know that they took care of feeding of their employees, even those years as companies had almost zero income. The seven companies under study (and others I know) relied on a stable family management and a loyal team of executives, from the level of craftsman to general manager. Most of the executives worked in the same company for most of their working life, being connected to the vision, principles and values of the company.
- Globally, there is a shift of heavy industry to third world countries, due to prices of raw materials, labor, etc. Do you think that Greece can “build” again a large heavy and mainly competitive industry?
This question is very difficult to answer. Let me start with the easiest. If we mean the industry as we have known it in the past decades, that is, steelmaking, or mass-produced textiles, then certainly not. I am afraid that this applies to Greece, as well as to the whole of Europe. However, there is a possibility that it will be created in Greece high value-added industry, which will be based mainly on knowledge and in the markets that the market constantly creates, and perhaps less so in large fixed equipment investments. A very recent example is the industries that produce items related to the spread of COVID 19, such as masks and self tests.
- Are there any Greek industries that you admire today?
There are. If we talk about heavy industry, then they are good examples the cement industry TITAN, the Mytilineos group, the Viohalco – ElvalHalcor group of the Stasinopoulos family and the Plastics of Thrace. With many different historical backgrounds, but with common features what we mentioned earlier about successful industries, each one differs worldwide in its field.