Greece?s government and its lenders should stop focusing on cuts to labor costs as the main avenue to attract foreign investment and redouble efforts to improve the country?s infrastructure and bureaucracy, according to speakers at a United Nations Conference on Trade and Development press conference in Athens on Thursday.
?Labor cost cuts is not a sustainable policy to attract foreign investment to the country,? Marina Papanastasiou, an UNCTAD representative for Greece, said during a presentation of the Switzerland-based organization?s world investment report for 2011.
Greece needs a ?targeted, integrated policy that will focus on exports, foreign investment, small and medium-size businesses and privatizations,? she said. [Bloomberg]