One of the most prominent liberal modernizers of Greece, Charilaos Trikoupis (1832-1896) launched a vigorous program of reforms with the aim to develop Greece’s economy – a modernization effort to improve infrastructure and communications.
Trikoupis' Modernization: Loans and Taxes
Prime Minister six times between 1882-1895, Trikoupis believed that Greece should be economically and politically consolidated and modernized before embarking on any territorial expansion campaigns. The means that Trikoupis employed to finance his modernization effort were:
- Loans
Trikoupis managed to attract foreign investors and between 1879 and 1890 6 external loans were contracted of a total nominal value of 630 million francs (an unheard of amount for Greece). By 1892, 55% of the annual budget was devoted to debt service. Trikoupis saw loans and budget deficit as a means to revive and restructure the economy but was accused by his opponents as a “megalomaniac”.
- Taxes
During his time in office, Trikoupis raised indirect taxes (on tobacco, alcohol, cigarette paper) and custom duties and took advantage of state monopolies (petrol, matches, playing cards) to increase state revenue and finance his modernization effort. It has been calculated that taxes amounted to 31% of the national product in the 1880s. His tax policies were extremely unpopular but Trikoupis believed it was the only way for Greece to achieve economic growth.
The Greek Railways
Charilaos Trikoupis was a firm believer in the development of infrastructure as a means to improve communications, unify the domestic agricultural market and boost the Greek economy. In 1882 there were only 10 km of railway linking Athens to the port of Piraeus. The railway was also believed to be instrumental in linking the recently annexed (1881) fertile region of Thessaly to the rest of Greece.
The building of the Greek railways was the first substantial state investment of the 19th century. During Trikoupis’ first term in office construction started in Attica, Thessaly and the Peloponnese. The port of Piraeus was connected via railway to Corinth (1882-5) and by 1887 to Patras and Nafplion. The Thessalian railway network was built between 1882 and 1903. There were more lines in the Peloponnese and in Athens and Attica.
Between 1882-1892, some 906 km of railway lines had been constructed while in 1893 the Corinth Canal was completed. The railway network that Trikoupis had established in the 19th century remained almost intact until recently.
Greek Railways and Trikoupis’ Modernization
Sadly, the construction of the Greek railways in the 19th century did not boost economic development. The modernization drive of Trikoupis could not make substantial inroads in the traditional economic and social structures of Greece, the limited domestic market and the low capital accumulation.
On 10 December 1893, Trikoupis stood before parliament to admit that “Regretfully, we are bankrupt”.
Sources:
Lefteris Papayiannakis, The Greek Railways (1882-1910) [Oi Ellenikoi Sidirodromoi], Athens 1982
History of the Greek Nation [Istoria tou Ellenikou Ethnous], vol. 14, Athens 1977, pp. 39-87.
Richard Clogg, A Short History of Modern Greece, Cambridge University Press 1979
Lito Apostolakou - Lito is a historian with an interest in digital archives and online historical resources. She is the author of blog Palimpsest.
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