Deputy Foreign Minister Dimitris Mardas attended the Ministerial meeting marking the 50th anniversary of the United Nations Development Programme, which took place in New York City on Wednesday, 24 February 2016. In the context of the thematic session on “Eradicating poverty – Leaving no one behind,” he set out his views, emphasizing the mechanism of subcontracting and its potential role in reducing poverty.
In accordance with this mechanism, the main contractor, usually industries of developed states, can subcontract work to businesses in developing countries. More specifically, the principal contractor can outsource a portion of the production of a product, such as, for example, the manufacturing of certain parts of vehicle. In this way, the subcontracting mechanism helps to develop industry, capitalizing on the human resources in poor countries, while also limiting recession trends in developing economies. To this end, Mr. Mardas proposed a series of tax incentives for industries in developed countries that opt to make use of the subcontracting mechanism. These incentives must be agreed within the framework of the World Trade Organization, of course.
Taking advantage of his presence in New York City, Mr. Mardas also met with investors, including executives from Monarch, Alden, Perry Capital, York Capital, and the Oppenheimer Fund.
February 25, 2016