Central Macedonia in Greece
The 1980s confirmed the crisis in Greek development, as the negative trends that had emerged after 1973 took on a definitive form. Developments were unfavourable in the most basic sectors: GDP, investment of fixed assets, the sectorial structure of industry, employment, productivity, inflation, deficit, and public economy.
- After 1974, the average annual rate of change of the GDP fell steadily (1976-80: 4.2%, 1981-90: 1.6%, 1991-94: 0.9%). At the same time, de-industrialisation altered the respective contributions of the three sectors. In the 1990s, manufacturing contributed less to the GDP than it had in the '70s (17.9% against 19.5%).
- The same decline characterised fixed asset investments. The average annual change between 1981 and 1990 was only 0.1%. The average annual rate of change in investments fell from 9.3% in the '60s to 2.8% in the '70s and 0.1% in the '80s.
- The average annual rate of growth in industrial production fell from 10.1% in 1961-70 to 6.9% in 1971-80 and to 2.2% in 1981-90. In the 1980s Greek industry slipped back into more traditional activities and increased the proportion of traditional consumer sectors (food and drinks, tobacco, textiles, clothing and footwear). The annual rate of change in productivity gradually fell from 1980 onwards, as a consequence of reduced investment in modernisation and the lack of technological renewal.
However, the geography of this crisis was not uniform. In 1981-90 there was a vigorous geographical re-organisation of development, associated with a variable mosaic of development and recession. The quantitative data relating to the changes in the GDP and employment show Greece to be completely fragmented into dynamic regions in the north, dynamic regions on the Aegean and Ionian islands, and stagnant regions in central and southern Greece.
- In the traditional industrial centre that has developed around the Greater Urban Area of Athens, the prevailing trends are towards decentralisation, induced by the long-standing lack of investment in basic civic infrastructure and diseconomies of scale that have exacerbated the problems of the day-to-day operation of economic activities. Likewise, many regions of central and southern Greece are marked by urgent trends of de-industrialisation. Firms are becoming less competitive, state protectionism has been withdrawn, privileged access to public procurement is being eroded daily, buying out and mergers are bringing segments of the domestic market under the control of large multinationals.
- The Aegean islands, the Ionian islands, and Crete are showing dynamic activity in the primary sector and in tourism and are commercially exploiting the unique comparative advantages offered by the natural environment and an enduring cultural presence.
- In northern Greece, particularly in Central Macedonia, Eastern Macedonia, and Thrace, a dynamic industrial complex has been developed. This new productive complex showed itself to be capable of internationalisation and adaptation long before the official inception of the single European market.
Neo-industrialisation in northern Greece has led to a considerable rise in employment in many prefectures. All the prefectures in Central Macedonia, Eastern Macedonia, and Thrace are showing a significant increase in GDP and industrial employment. Analytical data indicate that these prefectures were already showing signs of vigour in 1969-87, and this increased in the '80s. It is observed a change in the locational behaviour of industrial branches, which are moving away from certain areas, particularly around the Capital, and settling in less central areas.
Central Macedonia appear to be one of the most dynamic area of northern Greece's new industrial space. The region is composed of seven prefectures (Chalkidiki, Imathia, Kilkis, Pella, Pieris, Serres, Thessaloniki,) with a total population of 1.710.513. Nonetheless, the rank of the region regarding the level of GDP per head is one of the lowest in Europe, while it occupies a high position among the 13 regions of Greece.
Table 5.1. tabulates recent comparative figures for population, employment and GDP. The Region of Central Macedonia is compared to the whole country, while certain basic figures are also given for the Prefecture of Thessaloniki, the second most important centre in Greece after Attiki. Its importance is due to the fact that it is a transport hub, that most of the Region's industrial activity is concentrated here, and that its port and airport handle a substantial percentage of the country's imports and exports. The area immediately surrounding the city contains most of the Region's manufacturing and processing industry, while banking, commerce and services are concentrated in the city centre.
100 |
100 |
100 |
|||
37,9 |
39,5 |
39,4 |
|||
100 |
100 |
100 |
|||
18,7 |
20,9 |
6,4 |
|||
23,9 |
27,6 |
31,9 |
|||
51,6 |
46,5 |
55,3 |
|||
100 |
100 |
100 |
|||
13,7 |
16,9 |
6,1 |
|||
25,8 |
27,5 |
30,0 |
|||
60,5 |
55,5 |
63,8 |
|||
Production
The Region of Central Macedonia accounts for 19,9% of the country's GNP in the primary sector, 17.3% in the secondary sector and 13.9% in the tertiary sector (1993). The Region accounts for a disproportionately high percentage (greater that is than its share of total GNP, or 16%) of total production in fishing and farming (19.7%), manufacturing/processing (20%), health and education (20.7%) and trade and commerce (17.2%).
In all the prefectures in this Region (with the exception of the Greater Thessaloniki Area) the principal occupation is in agriculture, with a wide variety of crops and fairly healthy prospects for growth. Industry has developed around the urban centres, and is chiefly devoted to the manufacture and processing of agricultural products (foodstuffs), textiles, furniture and non-metallic minerals.
With the exception of the Prefecture of Thessaloniki, the level of services in the Region is fairly low compared to the national average. The same is true of the level of technical and social infrastructures. Tourism is developed only in certain areas (Chalkidiki and Pieria), while the Region as a whole lags behind in the enhancement and exploitation of its natural and cultural wealth and in the development of alternative forms of tourism.
The Region accounts for 19.9% of GNP in agricultural production (fishing, farming and forestry), 8.6% in mining, 20% in manufacturing/processing, 17.2% in commerce, 14.9% in construction and 14.5% of housing. The primary sector provides 16.9% of the GNP of the Region, the secondary 27.5% and the tertiary 55,5% (1993).
58,6% of the Region's GNP is produced in the Prefecture of Thessaloniki. This is followed by the Prefectures of Serres, Pella and Imathia with between 8.3% and 8.9% each, and finally Kilkis with 4.1%.
Employment
According to the 1991 census, 16.9% of the country's population live in the Region of Central Macedonia, more than half of which (56%) in the Prefecture of Thessaloniki. The active population of the Region corresponds to 41.3% of its total population. Unemployment is lower than the national average (6.6% and 7.5% respectively in 1990).
Distribution of employment, at 1991, among the three basic economic sectors is as follows: 29.9% in the primary sector, 28% in the secondary sector, and 42.1% in the tertiary sector. If we ignore the Prefecture of Thessaloniki, which accounts for most of the employment in the tertiary sector, we find that two thirds of the active population of this Region are employed in the primary and secondary sectors.
Industry
Central Macedonia accounts for 21.9% of industrial employment in Greece, with 68% of this number being concentrated in the Prefecture of Thessaloniki (Census 1991).
With respect to manufacturing/processing, the bulk of employment in the Region is in the sectors: clothing and footwear (26.3%), foodstuffs (16.3%), furniture (5%) and tobacco (4.5%), all of which are above the national figures (17%, 14%, 4.4% and 1.8% respectively). Production in these sectors is concentrated in small units, especially in the Prefectures of Pella, Imathia, Pieria and Kilkis, where industrial employment in SMEs, as a percentage of the Regional total varies between 60% and 80%. While these sectors are, in most instances, labour intensive, the high rates of investment being effected in them (especially in the food and textile sectors) indicates a trend towards the transformation of these traditional sectors into capital-intensive industries.
The SMEs that dominate the Region's productive system - as indeed of the country as a whole - generally display low levels of organisation and considerable management deficiencies, giving the Region a particularly low average figure for employees per company (6.5 employees per unit), even in comparison with nation-wide figures. Small and medium-sized units account for 98% of all manufacturing companies and absorb 72% of total industrial employment.
Three sectors accounted for 50% of all industrial capital in the Region in 1988: the food industry with 22.5% of industrial capital, textiles with 14% and beverages with 13.9%. These were followed by chemicals and basic metallurgy with around 7% each. The distribution of fixed assets was similar (as a percentage of Regional totals): food (19.2%), textiles (17.8%), beverages (12.3%), basic metallurgy (9.8%) and chemicals (7.8%).
Strengths and weaknesses
Central Macedonia has shown good signs of an above average industrial performance, in terms of GDP, employment growth and exports. However, these figures are rather precarious since the rely on a industrial system based on traditional branches, standardised products and unskilled labour.
In the period 1987-1990, the Region absorbed 17% of annual state expenditure on research, which is an extremely low fraction, especially considering that total state expenditures on research and development accounted for only 1% of total state funding of industry (the EU average was 10%). In this framework, industrial strategies were developed along more traditional solutions, giving emphasis in (1) the restructuring of production with respect to exceed automation and process machinery, (2) export-oriented product design and specifications, (4) separation of specialised and routine activities through the externalisation of tertiary activities, sub-contracting, and international integration of firms, and (4) labour market flexibility, deskilling and low wages.
The drawbacks to these neo-taylorist options are well known. On the one hand, they introduce a social polarisation that accompanies the strict separation of labour skills and wages. One the other hand, they reproduce the conditions of peripherality owing to the dependence of the local production system on the innovations and technological equipment brought in from the core regions. Sunrise solutions and SMEs alliances are considerably hampered by established skills, business culture, and the traditional aspect of the industrial policy.
