As many of you know, I am spending much of the summer in Greece with my wife who is working here for Harvard’s Center for Hellenic Studies. I’m trying to enjoy the water, the relaxed atmosphere and the Mediterranean climate in general. But I cant help but see things here with the eyes of an urban economist… it’s just what I do.

With the 2004 Olympics, Athens saw a huge investment in infrastructure. The airport was renovated and the highway improved to modern standards. And investment followed. The first thing one sees, touching down in Athens, are the large, friendly letters IKEA. Sharing the parking lot is an electronics and appliance store, akin to “Best Buy.” There are other “big boxes” in Greece, but they are conspicuously placed- many at the intersection of Kafisias Avenue (a major, highway into the city from the wealthy suburbs) and the new beltway (“ring road.”) The interesting thing about their location is that they are found exactly where the new highway infrastructure will support larger trade radiuses and a suburban model of retail. While there are “national chains” in other locations they are more or less inconspicuous and fit in alongside local retailers. Quite frankly, the lack of transportation infrastructure in the rest of Greece seems to curtail the development of big box retail by frustrating access. But the people are still fashionably dressed, well fed and seem to get along just fine. Still, a surprising amount of the furniture in Nafplio (two and a half to three hours south west of the Athens airport) bears the large friendly letters of the ambassadors of Swedish culture.

-gk