AFTER three years of austerity and painful sacrifices, Cyprus is out of the Eurozone life-support system but not out of the woods yet, an issue global experts will examine at an upcoming debate this coming Thursday.
As part of its 25th Anniversary celebrations, The Cyprus International Institute of Management (CIIM), a non-state, non-profit educational institution specializing in the management and leadership of both public and private sectors, is organising a debate between four distinguished academics on the theme ‘How to Kickstart Growth and Avert Another Crisis: Lessons from Recent European and US Experience’.
The panellists will be: Dr. George Constantinides, Professor of Finance, University of Chicago and former President of the American Finance Association;
Dr. Gikas Hardouvelis, Professor of Finance and Economics, University of Piraeus and Former Finance Minister of Greece;
Dr. Nicholas Travlos, Dean of ALBA Graduate Business School at the American College of Greece
Dr. Philip Treleaven, Director of Financial Computing at UCL and Former Advisor to the European Commission.
All four are members CIIM’s Academic Council, which is chaired by Professor Constantinides.
“We are experiencing a recovery with low-growth, high-unemployment and a huge private debt hungover,” CIIM said in a statement.
“The low-level equilibrium in the domestic demand and supply of loanable funds for investment, the reluctant foreign investment and the awakening of bent-up demands for reinstatement of salary increases and benefits, in the midst of a double-digit unemployment, make up a toxic cocktail.”
It said another economic crisis might well be gathering steam. “If that happens we will be talking about a “W-shaped” rather than a V-shaped recession. When you thought the crisis was over, another recession rears its ugly head and you are left wondering what went wrong with your ‘success story’,” it added.
It said kickstarting growth in the process of recovery and averting the gestation of another crisis was not an easy task and would take a lot more than fiscal consolidation and financial stabilisation.
“These are important hygienic factors which are necessary but not sufficient conditions for restarting growth and averting another crisis. Without determined efforts to update and upgrade our economic model, to redefine the role of the state in the economy and to (re)gain sustainable international competitiveness we cannot achieve levels of growth which will create enough jobs to lower unemployment to acceptable levels and generate the incomes to pay-off the private debt,” the statement said.
“Without all these it is a matter of time before another external shock derails the economy into the same or another swamp. The differential European and USA experience in handling recent economic crises is replete with lessons of how to restart growth and avert the genesis of another crisis.”
The debate will take place Thursday, April 21, at 6pm at the Conference Hall of the Bank of Cyprus at Ayia Paraskevi. The event is free and open to the public. Reception will follow the panel debate and open discussion.