Introduction

This introduction presents an overview of key concepts discussed in the subsequent chapters of this book. The book explores the micro foundations of clientelism as an incentives structure. It shows that clientelism served the two main parties as a solution to a collective action problem regarding how to recruit active supporters in political campaign, predominantly via appointments to the public sector, and created stable political loyalties inside the labor unions. The book focuses on the macroeconomic crisis of 1985, which was the first test for the resilience of Greece's distributional system. It discusses the reform program of the center-right administration of New Democracy under Constantine Mitsotakis. The book also explores fiscal policy and structural reforms under the Panhellenic Socialist Party, PASOK governments of Andreas Papandreou (1993-1995) and his successor, Costas Simitis, between 1996 and 2000. It examines specific developments affecting the supply of clientelism during the Simitis administration under tight fiscal constraints and new funding opportunities.