On the mis-diagnosis of the Eurozone’s crisis

Klaus Kastner continues to offer sound advice (and yes, Special Economic Zones are a vital part of the solution)

(…) The necessary medicine has been outlined here many times before, and I repeat the most important steps:

1. Reduce dependence on foreign funds by reducing the current account deficit. 2. Substitue imports of consumption goods with new domestic production.
3. Promote exports by allowing Special Economic Zones where exports can be produced competitively.
4. And, finally: attract foreign investment, attract foreign investment and, again, attract foreign investment so that the need for loans from abroad can be reduced.

Greece, if she acts cleverly, could transform herself into the role of a trendsetter who explains to the surplus countries that the best way to help the Greek economy is to help it to develop on its own (instead of killing it with exports to Greece). The price which the surplus countries would have to pay for that is less exports to the Periphery. That would appear to be a very reasonable price to pay when comparing it to the alternative of losing 3-digit BN EUR loan amounts.

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