Greece - The New Generation Superpower

Mention the word “superpower” and automatically one will think of the USA, China and a small number of other countries, each with large defence forces, large populations and economic clout.

Yet there is a new type of superpower emerging, where its population size or how large its armed forces are, are not the criteria. The new-style superpower [or New Generation Superpower, as I wish to call it] is one where its status is obtained via its economic influence on another country. One where culturally, economically and socially, the relationship is more congenial than its strength. This new style superpower does not rely on the “baseball bat” philosophy which many old style superpowers rely on.

Greece is one of these new generation superpowers.

With a population of approximately 11 million people, it is one of the smaller countries in Europe. From an international perspective, it would be considered a second world nation, relying on its alliances with NATO and membership in the EU, to protect it from hostile countries. From an economic perspective, it is one of the poorer nations within Europe, even though it has made large strides in developing itself and its economy.

The strength of Greece, and its ability to become a new generation superpower, lies in other areas.

Today, as in the 20th century, Greece has enjoyed an excellent working relationship with the Middle East. Whereas other western countries have fluctuated in their attitudes towards these countries, Greece has maintained a pro-Arabic, pro-Islamic stance in its dealings. While at the same time, maintaining a good relationship with Israel. Its impartial stance on the Middle East, has seen itself being portrayed as a “friend” of the region by both the Jews and the Muslims. It's impartiality has given Greece the ability to open discussions with countries like Iran, where the US and others have failed.

In Southeastern Europe, Greece has supported the membership of its neighbours into the European Union, including that of its arch rival Turkey. This support has been both for national interests as well as economic ones. Since the 1990s, Greek businesses have poured billions of Euros into the region, in areas where other nations and businesses have avoided due to the political instability and uncertainty. The push into Southeastern Europe has been led by the Greek banks, where today, a large percentage of their profits are originating through these investments. Greek banks are also looking beyond Southeastern Europe, into Egypt, the Middle East and the Ukraine. Greek banks currently control 16% of the banking market in Southeaster Europe, with a network of over 1,000 branches and 16,000 employees. Total assets in the banking sector in the five Balkan countries where Greek banks were present at the end of 2005 (i.e. Albania, Bulgaria, FYROM, Romania, Serbia- Montenegro), amounted to 66bn euros (53% of their GDP) while bank assets in
Greece amounted to 266bn euros, equaling 156% of the Greek GDP.

The Greek banks' move into Southeastern Europe has also been followed by the Greek telecommunication companies as well as other businesses. At present, over 3,500 businesses are investing heavily into the region, and today, they are the leading investors in Albania and FYROM, and the third largest in Bulgaria, Romania and Serbia. Since the early 90’s Greek corporations have invested 14 billion Euros in the Balkans and it is estimated that by the next decade this amount will have at least doubled.
With the opening of the Greece-Turkey natural gas pipeline, the signing of the Russia-Bulgaria-Greece oil pipeline and the proposed Greece-Italy pipeline, Greece is establishing itself as the energy hub of not only Southeastern Europe, but the energy gateway for the rest of Europe.

The presence of Greek industry and investment within Southeastern Europe has been, to a certain extent, a god-send for the recipient countries. Coming out of Communist rule, faced within internal strife and limited overseas investment, the Greeks have poured billions into the region, helping develop the countries concerned. In exchange, the Greeks are buying into the local economies and linking their dependence into the Greek economy. Further, being the only EU member in the region who is also part of the Eurozone, Greece is promoting itself outside the region as the gateway into Southeastern Europe to other nations and businesses.
And the benefits, besides the financial aspect, for Greece?
Due to the cultural and historic links with the neighbouring countries, Greece is seen by the Southeastern European countries as a friend and ally more so than other European countries. With the inter-linking of the economies and the continual support of these countries in joining the EU, Greece is setting itself up as the “superpower” in the region. Its status as a New Generation Superpower won't happen overnight. However the seeds are being planted and is steadily growing. As each Southeastern European nation joins the EU, Greece's influence within the EU will grow both on a political as well as an economic one.
Further, its investment expansion and good political relations with the Middle East, Greece is positioning itself to becoming the political intermediary between the West and Middle East.
I believe that if the continual advancement of Greek involvement within Southeastern Europe and the Middle East continues, Greece will by about 2030 become a dynamic force in the region. Much larger than its population warrants.