Greece lost economic potential for its failure to properly manage the country’s finances. Managing the finance efficiently and effectively is the primary responsibility of a government. When a government is being too greedy and wasteful and ignore the ethics of money management, then this is the cause of the economic collapse of the country.
Greece is experiencing economic difficulties since 2009 due to several factors such as weak economic management and wasteful spending. Alleged corruption, cronyism and excessive nepotiisme also among the causes of the economic collapse of Greece. Consequently Greece’s national debt has risen to 113% of its GDP. This has led to the country’s economy broke down.
The World Economic Forum said that Greece’s budget deficit was 13.6% of GDP in 2009. Greece is forecasted that the national debt will reach 200% of its GDP soon. This proves that the country is going through a terrible economic severity and difficulty to be rescued.
The country has closed its banking operations and imposing capital controls. It has failed in negotiations with international creditors. Greece had to pay a debt of 1.6 billion euros.
A country in the Eurozone has fell in front of our eyes. If this can happen to Greece, the other countries also should not take it for granted. Irregular financial dealings and fishy contracts may cause any country to fall. The economic collapse of Greece will also have an impact on European countries to another. Spared will be felt by the entire international community.
Malaysia should receive guidance from the crisis in Greece. Our country does not have good and ethical financial management too. Therefore, we are also exposed to the same dangers if our nation’s economy becomes paralyzed. Cronyism, nepotism, and corruption is a leakage in our economy. There is no proper and effective control mechanism in earnest in addressing this issue. Currently our country has been hit by crises such extreme financial mismanagement including 1MDB, Tabung Haji, MARA and many more.
The national debt is increasing dramatically since 2010. Data and Statistical issued by The Economist from the Economist Intelligence Unit based at North Michigan Avenue, Chicago, in 2015 the national debt will reach RM847.9 billion which is 63.8% of our GDP. Household debt is also very high at 87.4% in 2015, household debt is considered the highest in Asia within RM854.3 Billion.
In addition to the national debt, other economic indicators also not showing any remarkable figures. Prime Minister Datuk Seri Najib Tun Razak said that the GST is a must and should be implemented in the country.If not, the country could go bankrupt. This fact alone proves that the severity of the national economy is getting worse. Therefore, people must save the country from the leaders of the Barisan Nasional government.