GREECE and S.E. ASIA. You were supposed to research on the financial crises, causes, effects, contagion,...

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GREECE and S.E. ASIA. You were supposed to research on thefinancial crises, causes, effects, contagion, winners and losers,and how it was fixed.

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Abstract Nowadays the global economic crisis GEC highly influences organizations through its macroeconomic causes and effects which account for a significant impact on firms human resources HR practices and labor relations IR as well Of greatest concern is the extent to which the actual impacts of the crisis may be hoarding future problems for organizations operations Owing to the dynamic nature of contemporary business its complexity along with the increasing need for expertise strategic HR interventions are highly required in an attempt of creating mature and resilient in HR terms organizations which will be able to assure their competitiveness survival change and growth However most organizations banks failed to adequately finance their daily operations accompanied by their failure to finance national economies as well In that event the straightaway effects of GEC have resulted into a collapse of most financial systems and in major shortages at financial institutions around the globe The purpose of this paper is to highlight the impact of GEC through demonstrating key facts related to the current economic crisis in Greece and more precisely for Greek banking organizations 1 Introduction The GEC the deepest the world has experienced since the stock market crash in 1930s originated in the US mortgage market leading to a liquidity shortfall in its banking system the full effect of which started to be felt in August 2007 Soriano 2011 although Appelbaum 2011 597 believes that the crisis did not originate in financial markets but its direct cause initiated by the bursting of the housing bubble Eventually the financial crisis initiated in US impacted upon the world economy and led to global trades collapse Appelbaum 2011 The second phase of GEC began in September 2008 with the fall of Lehman Brothers it was more intense and resulted to a general loss of confidence and solvency problems in many financial institutions across the globe Whilst the crisis has been more concentrated in the financial systems of US and Europe it has ultimately affected the real economies of all developed and emerging countries including Greece Even though this economic hardship did not impact all European Union EU countries at the same intensity its effects were almost similar for all of its member states European Commission 2010 The particularity of the current crisis is that it combines a financial crisis originating in the largest world economy US along with a global downturn that weight heavily on everyones mind Soriano 2011 Apparently GECs severity targeted almost the majority of nations and businesses no matter of each countrys or organizations level of competitiveness Methodological Approach As afore stated the purpose of this paper is to highlight the impact of the EC through demonstrating key facts related to the current economic crisis in Greece and more precisely for Greek banking organizations To that end to serve its purpose it was decided to conduct an extensive and thoughtful review and retrieve of relevant literature along with assessing germane journal articles reports dissertations and other documents discussing the impact of GEC in banking institutions In that event a careful keyword search was conducted through assessing several databases eg Web of knowledge British library Ethos EBSCO library Social Science Research Network SSRN library Science Direct Strathclyde online database etc Additionally Google Scholar was utilized as the major search engine by limiting the research to those articles straight referring to GEC banks and human resources in crisis either published in Greek or English The resulting material included a vast majority of journal articles reports and practicerelated documents Both a conceptcentric and structured approach was used in order to audit segregate and decide which sources to review and include in this review paper All documents were further listed into specific key themes eg economic crisis banking institutions human resources etc to assist the author for further analysis and consideration To that end all of the referenced resources provided the necessary information from which evidence and conclusions were drawn The Impact of Economic Crisis in Greece Key Facts The impact of EC in Greece was and still remains quite severe During the first phase of the GEC the Greek economy managed to avoid serious shocks GECs impact delayed to affect Greece due to the fact that its economy is a relatively closed economy along with some favorable factors from past years such as the great effort of the Greek government of improving its economy and more precisely the diminution of its inflation and budget deficits in the period before 2001 owing to its efforts to become European Unions EU member Moschos Chortareas 2013 From 2000 to 2007 Greece had one of the fastest growing economies in the Eurozone Gross Domestic Product GDP annual rate of 42 as foreign investments and capitals entered the country Nelson et al 2011 Besides the stability brought about by the adoption of the common currency and the participation in Eurozone Greek economy was further strengthened the previous years by high inflows of EU Structural Funds for infrastructure projects in view of the Olympic Games in Athens in 2004 the making of several structural reforms and banking systems contribution after its liberalization However as reported by many global financial institutions Greece is considered as being a very uncompetitive country and its economy characterized as very ineffective in terms of efficacy and competitiveness According to Lynn 2011 Greek industry remains stuck in the past and largely unable to compete in the modern world Despite a remarkable progress recorded in the financial sector this was not initiated by national resources but from external assistance and incentives which were not used to autonomously expand further growth but rather developed a dependence relationship with the external environment especially the EU All in all it was inevitable for the economic crisis to badly affect Greece due to a relatively small manufacturing sector and due to a large share of the shadow economy which is estimated to be 2530 of GDP Kouretas Vlamis 2010 Conditions began to deteriorate after the collapse of Lehman Brothers and by the time the significant pressure on valuations of Greek government bonds has started both typified as the warnings of the approaching storm Mylonas 2013 The crisis in the Greek economy first started as a crisis of the European financial system and as a result of the recession due to GEC and subsequently resulted to a general social and political crisis Kotios et al 2011 The crisis has further evolved into a liquidity crisis in the regional countries and then became a debt and solvency crisis while these days it is expressed as a continuous crisis of the existence and cohesion of the Eurozone within international dimensions Shambaugh 2012 In Eurozone by the end of 2009 financial markets discovered that the monetary union lacked of fiscal See Answer

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