Regional inequalities and regional policy in Greece

Abstract

This article examines the level and the evolution of regional inequalities in Greece with the use of an alternative method: a composite index of welfare and development (CIWD). This composite index takes into consideration, besides GDP per capita, other income and consumption variables, the productive structure, the demographic balances, the quality of human resources, the geographical coordinates and the social infrastructure of the regions. The analysis shows that regional inequalities in Greece have remained high during the last two decades, casting doubt to official estimates based on GDP per capita. This persistently high level of inequalities is an indirect test of the (in)ability of regional policies to induce regional convergence. The evaluation of the most important aspects of regional policy in Greece has revealed important weaknesses, suggesting that a re-examination of regional
planning practices as well as the allocation of resources is necessary.