By Vassilis Kostoulas
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Well-known Greek-American money manager and investor John Calamos Sr. was succinct in his assessment of the battered Greek economy’s potential to attract much-needed foreign capital, stressing that he sees “compelling opportunities” in the country’s tourism, energy and agriculture sectors.
Calamos, the founder of Chicago-area-based Calamos Investments and its former long-time CEO, spoke to “N” on the sidelines of the annual Economist conference, held in southeast Athens.
He added that incentives are imperative in order to exploit the country’s educated and multi-lingual younger generations, while at the same time curbing the phenomenon of “brain drain”, which has plagued the country over the past few years.
In terms of a government’s role, Calamos was equally concise, saying the state should ensure simple and clear rules to ensure “fair play” in Greece’s business world and markets.
Below is Calamos’ full interview to “N”.
You have said that capital goes where it is treated best. How would you say that the capital is being treated in Greece?
Capital flows to places where tax policies and regulations support entrepreneurship and responsible risk taking, including in the small business sector. By embracing privatization more fully, I believe that Greece will become a better destination for capital—both foreign investment capital and human capital. People go to where they are treated best, which is a driving force in migration today. We see people migrating in pursuit of greater freedoms and opportunities to be rewarded for their work.
If the private sector can grow sensibly, new jobs would be created and more people would prosper. While this would benefit Greeks of all ages, I believe that a stronger private sector is especially important in creating an environment where more young people stayed in Greece. Greece’s younger generation is a tremendously valuable resource—highly educated and multi-lingual. By providing them with meaningful work, including the opportunity to be entrepreneurs, Greece could sow the seeds of growth for decades to come.
Do you think that the privatization program in Greece is capable of making a difference in the investment field? Many characterize its goals as being too ambitious. In fact, even government ministers express this view.
Privatization is essential for attracting foreign investment and helping the Greek economy achieve sustainable growth. I believe the government and the private sector work best when they assume complementary roles. While private businesses and corporate leaders focus their skills and expertise on building businesses and competing in the global economy, government should be the referee that ensures that simple and clear rules are in place that allow for fair play. This oversight should also focus on making sure that the game moves along at a good pace.
In which sectors can you identify investment potential in Greece?
At this juncture, I see compelling opportunities for the Greek economy tied to tourism—where there’s already well-established expertise—as well in energy and agriculture.
The way things are going, following seven years of crisis, are you optimistic or pessimistic in your forecast regarding the country’s future?
It’s difficult to forecast the future. Not too long ago, global markets were roiled over the possibility of a Grexit. Who would have thought that we would instead have a Brexit? So of course, the uncertainty in the euro zone is a cause of concern. But on the other hand, the Greek people have shown incredible perseverance over these past years.
How do you assess Europe’s progress on a wider scale, and which key differences do you identify between the European and the American systems, in terms of investment?
When it comes to achieving better and sustainable growth, I actually think Europe and America are facing many of the same hurdles. Over recent years, both sides have relied heavily on monetary policy to stimulate economic growth when they really need to focus on fiscal policy. With negative interest rates in Europe and low rates in America, there’s not much room for central banks to maneuver anymore. Europe and America both need fiscal policies that encourage growth of businesses. In both cases, I don’t think we can solve economic problems by raising taxes. You have to incentivize businesses and encourage the growth of the private sector, which should lead to increased hiring. This job growth should lead to increased total revenues, and in turn to a better, stronger economy.
