Dominican Republic: A Failed State?

NALs

Economist by Profession
Jan 20, 2003
13,370
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Here is an essay that I wrote recently about the notion of the "Failed State" rheteric that keeps poping up once a while on DR1.com. What I would like is for most of you to read it, think about the message before posting, then tell me what you think about it.

DOMINICAN REPUBLIC​
A FAILED STATE?​

The Dominican Republic is described by many as the most wonderful paradise on earth. The palm trees, the pleasant climate, the happy and beautiful people, and the vibrant culture does makes the Dominican Republic the island paradise many dream about. Until a few years ago, this paradise was on the road to riches as if it was the "Dance of Millions" again. People the world over were optimistic about this tiny country gaining the status of "Fastest growing economy in the world" in 1997, 1998, and 1999. Unfortunately, what goes up must come down and the Dominican Republic has come down prematurely. With the current economic outlook of the country, is the Dominican Republic takig the risk of becoming a failed state?

In the year 2000, the world seemed to had partied the new millenium a bit too hard. That year being as significant as it was in itself, marked the global economy with a blow. The so called "dotcom" bubble bursted causing havoc 3,000 miles north of Santo Domingo in another island named Manhattan. Once that bubble bursted, Wall Street went into a tail spin virtually collapsing the hardest since the 1980s recession. How can something that happens on Wall Street affect the economy of Santo Domingo?

It's called Globalization. Today, all economies are merging to become one. According to the theory, that should allow Capitalism to become much more efficient. That is such an awkward theory of Globalization since nature has shown us that survival of life on earth is due to divergance rather than convergence. Nature shows us that divergence is the key to success over the long run. We don't see a CatDog species, we see cats and dogs, we see different kinds of birds, lizards, monkeys. It all came from one microscopic organism that eventually passed through evolutions of various species to ensure the survival of life on earth. Some big modern business have figure this out already with Toyota and Honda developing Lexus and Acura in stead of developing luxury cards under their much more established original names. Companies like Kodak which are now moving from regular photography to digital are having real problems because the name Kodak denotes the image of film and old fashion despite them offering digital cameras. For such reason, its almost wrong to believe that convergence of all economies would bring anything good over the long haul.

When the "dotcom" bubble bursted in New York City, that began one of the problems typical of the ups and downs of Capitalism. The burst lead the U.S. economy into a slow downward spiral with the crashing of the stock market. Then came the corporate corruption scandals with well known American corporations collapsing on their own weight. Enron, Worldcom, and Tyco are only a sampling of the many corrupt multi-nationals mostly that bursted under corruption. Then came 9/11 with the attacks and collapse of World Trade Center, the so called symbols of American capitalism and might. I say so called, because the Twin Towers were a creation of the New York Port Authority and they actually were the builders and owners of those edifices since the 1970s. The reality was that because those towers were built with taxpayers money, the towers were really a symbol of American communism and big government more than Capitalism and power. But those things aside, the collapse of the towers and all the other scandals eventually eroded consumer confidence putting the merging global economy into a precarious position, a worldwide recession followed.

Lets now travel 3,000 miles south of New York City into Santo Domingo, the oldest european built city in the Western Hemisphere. In the year 2000, Santo Domingo's glorious and envious position as the leading economy in terms of economic growth was shaken due to its overwhelming connection to the American economy. It was almost a warning for what was yet to come. September 11, 2001 caused for concern in the Dominican Republic because the attacks on the towers put in question the future of global tourism. The Dominican Republic being home to Puerto Plata and Punta Cana, two of the world's tropical vacation playgrounds meant that a downturn in global tourism meant bad news for the Dominican Republic. The degrading global economy, the uncertainty of security from terrorism and the shake in global tourism brought the good times to a screaching halt. The interesting thing is that Santo Domingo was stabbed from abroad, but blead to death from within.

In the Spring of 2003, the Dominican Republic's largest and most prestigious bank (Baninter) collapsed under the weight of corruption. The collapse of Baninter and the shaking up of Banco Mercantil and Bancredito shook the foundations of the once strong Dominican banking sector. The administration of Hipolito Mejia had two choices. Either let the Dominican Republic follow Argentina's catastrophic strangling of its economy or try to save at least the confidence of the wealthiest and powerful people that had money in Dominican banks. The administration opted for the second option under the notion that when things turn for the better, those rich folks would reinvest into the Dominican economy with confidence. In order for the government to be able to do such thing, they would have to tap into the reserves and that they did, dangerously deepleating the reserves of the Dominican Republic initiating the crisis the country finds itself in today.

Numerous times on DR1.com, threads comes up on this issue and usually more than a few pin point to their belief that the Dominican Republic is on the verge of becoming a failed state. How accurate could they be? Lets look at time and history for the answer. The Dominican Republic has an economy that grows and busts by the decades. In 1970s the economy grew with a vengence creating a sizeable middle class for the first time ever in that island nation. The realities were that the Dominican Republic relied heavily on sugar and when sugar prices collapsed in the market, the Dominican economy went down with it. By the time the 1980s rolled in, the Dominican Republic found itself with a huge crisis. Everything seemed to be falling apart, people rumored that the Dominican Republic was going to become a failed state. In the mid-80s, the Dominican Republic began to take advice from the IMF in order to qualify for a loan. The realities of the IMF demands exacerbated the rising cost of living causing for riots to break in Santo Domingo and other major Dominican towns. Only when Balaguer decided to give up the IMF demands in the late 1980s, only then the Dominican economy stabilized. In the 1990s, the economy grew like never before attracting prosperity and optimism. Then came the 2000s and things turned soured, proving once more that the Dominican economy works according to the decades.

The reality is that the Dominican Republic is not going to become a failed state just because it is in yet another crisis. History has shown us that when least expected, that is when Santo Domingo turns for the better. In addition, the Dominican Republic has been in crisis since the spring of 2003, barely a year! Talking about the Dominican Republic as a failed state is not only extremely pessimistic, but also wishful thinking by those who would like to see the Dominican Republic fail. Whoever believe that the Dominican Republic is becoming a failed stat, are themselves failures. They are failures of society, they are failures of life, they are failures. Only failed people make premature unoptimistic predictions based on a crisis that is barely one year old! Large financial institutions the world over continue to predict little or no growth for the end of 2004 and growth to return by 2005. Ladies and gentlemen, don't jump onto the wagon of premature pessimism. The Dominican Republic is made up of resilient, brave, and hard working people who have manage to survive five hundred years of colonization, destruction, wars, economic meltdowns, crime waves, poverty, earthquakes, floods, droughts, hurricanes, invasions, embargos, ethnic cleansing, dictatorships, environmental degredation, disease, and now an economic crisis again!

During the 1980s crisis, people were saying that that was the worst crisis the country had ever experienced and people kept doubting how the country could ever lift itself up. Those same people learned how to swallow their own words in the 1990s prosperity period. Lets learn from our past and accept that boom and busts is hwo the Dominican Republic works. It doesn't mean that it is a failed state, it doesn't mean that it is ungovernable, it doesn't mean anything, except that that is the way Dominicans do their thing. We will lift ourselves up from this crisis as we have done before! Five hundred years of mostly misery and we have survived, why would the current crisis bring the end to our country? Our country was meant to exist, otherwise it would have perished hundreds of years ago!

The Dominican Republic is a paradise, the Dominican Republic is a great country, the Dominican Republic is a brave country. Give this country the optimism and respect it deserves. Five hundred years of mostly misery and destruction and we are still here alive and well. That is not a story that repeats itself too often in this world of ours. The Dominican Republic will continue to exist until the end of time. This country will not perish from earth ever. Lets work together to help this beauty of a country get ahead, rather than criticize it. This country after all that it has been through truly deserves it!
 

Rockkon

New member
Mar 6, 2004
42
0
0
Hi,

Remember you asked for and invited opinions...

This started out as a well-thought opinion piece and wound up becoming the name-calling, flag-waving rhetoric of a fanatic.


They are failures of society, they are failures of life, they are failures. Only failed people make premature unoptimistic predictions based on a crisis that is barely one year old!

Unless your seasons are different, what started in the spring of 2003 is now over a year old.

You make no mention of the governmental corruption I've read about elsewhere on this board and you are seemingly minimalizing the extend of your current crisis.

Please remove the name-calling and give us the reasons why the Dominician Republic, in its current crisis, deserves respect and the optimism you are asking for.
 

ustelephone

Member
Mar 31, 2004
361
2
18
www.ecoislandadventures.com
This might fly at a university in the Ukraine, where no one has heard of the DR. If it is for review in this hemisphere you need to re-evaluate your material. Also, if you are trying to be objective, don't be a patriot. If this summary is some sort of an attempt to mislead people who don't know their facts about the DR, then it's great.

Oh, by the way, 500 years of misery is but a speck of civilized suffering.

The Dominican Republic is a paradise, the Dominican Republic is a great country, the Dominican Republic is a brave country. Give this country the optimism and respect it deserves. Five hundred years of mostly misery and destruction and we are still here alive and well. That is not a story that repeats itself too often in this world of ours. The Dominican Republic will continue to exist until the end of time. This country will not perish from earth ever. Lets work together to help this beauty of a country get ahead, rather than criticize it. This country after all that it has been through truly deserves it!

This is nonsense. Are you serious? Someone give this guy a tour of the world. Turn on CNN and watch the people with towels on their heads; they've been getting the crap knocked out of them for years. I guess it's fair to say that the towels will never perish from the Earth. By the way, I'm not criticizing this country, just you. I want to debate you on your issues, but there are too many to address, and none of them are to the point. If you are trying to say the DR is great, I agree. If you are trying to say the DR needs the rest of the world to sympathize with it, I disagree. What are you really trying to say????
 

Lambada

Gold
Mar 4, 2004
9,478
410
0
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www.ginniebedggood.com
I support the optimistic outlook, I agree the thinking becomes less clear when the patriotism enters in (but I find such patriotism totally understandable) & yes I believe the DR can & will rise again. You did compare the current crisis to the 1980's, if I recall correctly. I would make 2 points: the IMF were not involved in the 1980's & we don't have a statesman like Balaguer now. This is not to downgrade Pres. Elect Fernandez, far from it. But I do think that the type of statesmanship exhibited by Balaguer meant that fuel "shortages", power crises etc were handled in a very different way. And in case anyone thinks that I am a Balaguerista, I don't approve of everything he did either. The difficulty with the IMF, I believe, is that it mortgages the country in perpetuity & to conditions that may/or may not be in the DR's best interests.
 

Seachange

Member
Jan 13, 2004
222
12
18
www.Banker-Trust.com
Rockkon said:
This started out as a well-thought opinion piece and wound up becoming the name-calling, flag-waving rhetoric of a fanatic.

It's funny to me how when Americans do the same thing it is called PATRIOTIC. However, when a Dominican (or other people of color) echo the same thing about their homeland these individuals are labeled FANATICS.
 

Rockkon

New member
Mar 6, 2004
42
0
0
Defending one's country with facts and opinions relating to the country's good and bad points is patriotic.

When someone starts personally attacking the reader because they are not optimistic about a country -- that borders on fanaticism.

How seriously would you take me if I said if you don't like President Bush you're an idiot?
 

KrackedKris

On Vacation!
Apr 8, 2004
287
0
0
Rockkon said:
Defending one's country with facts and opinions relating to the country's good and bad points is patriotic.

When someone starts personally attacking the reader because they are not optimistic about a country -- that borders on fanaticism.

How seriously would you take me if I said if you don't like President Bush you're an idiot?

Very seriously, I would feel as though could see the truth
 

ricktoronto

Grande Pollo en Boca Chica
Jan 9, 2002
4,837
0
0
Need a Better Map

Nal0whs said:
Lets now travel 3,000 miles south of New York City into Santo Domingo, the oldest european built city in the Western Hemisphere.

You travel 3,000 miles south you are in South America somewhere since SDQ is only 1,555 miles from New York. You'd be south of Quito, Ecuador.
 

NALs

Economist by Profession
Jan 20, 2003
13,370
3,150
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Good replies. Its interesting to see the different points of views different people get from the same reading source. Keep the replies coming!

rictoronto: I realized the DR is not 3K miles south of NYC, but it does makes my point which is that the DR is so far away from NY and yet, what ever happens in NY affects the DR as if they are two neighboring islands.

Rockkon: My intention at the end was not to attack the reader, it was simply to demonstrate that assuming that the DR is done, finished, over with based on a one year crisis is a very premature guess. Its better to look at the country with at least some optimism because the DR has found itself in that same position in the past (sometimes it was economical, other times it was invasion, other times it was wars, etc), position that seem to threaten the survival of the country in the long run and yet, the country still prevailed. I was attacking all those who predict the DR is becoming a failed state, but I was not trying to attack the reader - assuming that all readers read my essay in a neutral standing and after finishing the reading, they take their sides.

Seachange: good observation.

Lambada: good observation and thank you for understanding that the first thing people need to have to over come any trouble, is optimism. Thank you for understanding that!

ustelephone: 500 years of history (post-Columbian timeperiod because if I was to add the Tainos into this, it would go into millenias of years) is more than most countries have experienced in this hemisphere. I would like for those folks that jump on the negative-wagon to say how much of a failure the DR is, those should instead simpathize for the DR especially when making gloomy predictions on a crisis that is barely 1 year old. That is my basis for all of this, its too early to talk about doom, given how the DR has switched in the past from gloomy to bright relatively quickly, leaving negative predictions to be replaced by more promising ones.

Rockkon: The crisis is what, a year and a few months old? Still, too early for any gloomy predictions given that the DR went into a heavy recession in the 1980s for about 7 or 8 years, and then it simply turned into the fastest growing economy in the world for the 1990s decade, leaving those who predicted doom to gag while they explained what happened. Also, I make no mention on the corruption because the government in the DR has always been corrupted and despite that, the economy has seen boom and busts.

Keep the responses coming!
 

Criss Colon

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Jan 2, 2002
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yahoomail.com
To a Dominican,the glass is always halfull!

Without their constant optimism they would have commited collective suicide when Colombus landed!
Having visited here in the 80s,long gas lines,black market in pesos about 4 times the official rate,I can tell you that this is worse!
Paying off the depositers of Bancredito was a disaster for the people of the DR.Most of that was paid to the 80 biggest depositer,and most of that capitol,rather than staying in the DR to help in the recovery,is now in Miami!
Besides "Optimism",the Dominicans posses another "trait",nothing is ever their fault!! Don't look to "Wallstreet",911,or the "Dotcom" bust as the cause of the economic collaps of your economy,look within!!! Government corruption and outright theft is the root of what went wrong here!One only has to be a faithful reader of the DR1 "Daily News" over the last several years to see where the blame lies!It is NOT a failed State,but a failed government!Project after useless project a miserable failure,except iin the lining of the Political leaders pockets! The "Airport" built on the garbage dump,consrtuction project after project started,bled dry,and abandoned!
If the DR fails to meet it's international loan payments,things will be worse instead of better.27 million due this month,and Hipolito would like nothing better than to leave the Ship-of-State in the worst possible condition for Leonel!
Peso at 100 to 1 by December,if the DR starts defaulting on it's debt!
By the way,it is NOT being PESSimistic,it is being REAListic!!!!!!!!!!!!!!!!!!!!!!!
"Pie-In-The-Sky" won't feed too many Dominicans when rice is at 100 pesos a pound!
Cris Colon :(
 

KrackedKris

On Vacation!
Apr 8, 2004
287
0
0
CC, you are wrong!!!!!

Criss Colon said:
Without their constant optimism they would have commited collective suicide when Colombus landed!
Having visited here in the 80s,long gas lines,black market in pesos about 4 times the official rate,I can tell you that this is worse!
Paying off the depositers of Bancredito was a disaster for the people of the DR.Most of that was paid to the 80 biggest depositer,and most of that capitol,rather than staying in the DR to help in the recovery,is now in Miami!
Besides "Optimism",the Dominicans posses another "trait",nothing is ever their fault!! Don't look to "Wallstreet",911,or the "Dotcom" bust as the cause of the economic collaps of your economy,look within!!! Government corruption and outright theft is the root of what went wrong here!One only has to be a faithful reader of the DR1 "Daily News" over the last several years to see where the blame lies!It is NOT a failed State,but a failed government!Project after useless project a miserable failure,except iin the lining of the Political leaders pockets! The "Airport" built on the garbage dump,consrtuction project after project started,bled dry,and abandoned!
If the DR fails to meet it's international loan payments,things will be worse instead of better.27 million due this month,and Hipolito would like nothing better than to leave the Ship-of-State in the worst possible condition for Leonel!
Peso at 100 to 1 by December,if the DR starts defaulting on it's debt!
By the way,it is NOT being PESSimistic,it is being REAListic!!!!!!!!!!!!!!!!!!!!!!!
"Pie-In-The-Sky" won't feed too many Dominicans when rice is at 100 pesos a pound!
Cris Colon :(


It is completely and entirely the fault of the United States, ask Narwahl for the specifics :ermm:
 
Apr 26, 2002
1,806
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The often heard criticism by the Americans on this board that (1) Dominicans blame the US for everything, (2) that Dominicans never take responsibility, and (3) that Dominicans are over-filled with false pride, would resound as much more CREDIBLE if the people who wrote these things would, only every once in a while, write something, anything, in the slightest bit critical, indicting, or harshly illuminating about their own country. I could cut and paste what these people do write about their own country, but it makes that Dominican syrupy nationalistic crap that the Americans complain about sound balanced in comparison.
 

Chris

Gold
Oct 21, 2002
7,951
28
0
www.caribbetech.com
Nal0whs, thanks for writing this piece. Here are some comments for what it is worth.

I enjoyed your first paragraph, but the rest failed to deliver. You started off tying the DR to the larger economic climate and this was interesting. You then dropped the theme and somehow moved down memory lane to tell how the DR has recovered before. The reader somehow does not accept this. Make this either a political piece, or an economic piece, or a walk down memory lane - not all three.

The examples that you use for the economic cycle are topical and relevant. I would have liked to see the economic cycle tied to the larger cycle into the past. What happened in the '80's, the '70's, the 60's in comparison with the larger economic cycle. Use your examples, don't comment on them. The reference to "US communism" does not fit.

So, I think you can tighten this piece up to be a good and topical essay.

For those that kneejerk so badly whenever the US is mentioned, you are bloodying your own noses. Ever heard of critical analysis, instead of critical kneejerk? (Or simply just jerk? My husband tells me I should not use this word in polite American society)

Btw, Nal0whs, I do not buy your premise in your essay at all. The current problems are as a result of p!sspoor government and rampant corruption. And the DR is not going to idealistically bounce back this time. If we were simply tied to the larger economic cycle, we would have experienced a slowdown, not a meltdown.
 

NALs

Economist by Profession
Jan 20, 2003
13,370
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Nal0whs said:
The interesting thing is that Santo Domingo was stabbed from abroad, but blead to death from within.

People keep saying that I state that the DR was killed from abroad, however I just quoted that line above from my essay. Obviously, I recognize that the slowdown of the global economy had an impact on the DR, BEFORE the collapse of the banks and government policies that killed it. Please people, read the essay and analyse it word for word.

It cannot be ignored that the DR economy was starting to hurt after the global downturn and it would have whether we had a good or bad government, the DR economy was going to slip a little because the US economy was slipping after 2000. Hippos policies made it much worse, but the external cases did affected the country - they were not responsible for the collapse, it was an internal thing, I do recognize that and I did mentioned that on the essay, for your convinience I did quoted it.

I like the responses, keep them coming!

However, I think it would be a good idea for people to read my essay twice so that every info sinks in. Many folks are saying stuff that I have covered on my essay at some point. Just a thought for more constructive criticism.
 

NALs

Economist by Profession
Jan 20, 2003
13,370
3,150
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More Proof that KrackedKris and others are wrong!

Nal0whs said:
In order for the government to be able to do such thing, they would have to tap into the reserves and that they did, dangerously deepleating the reserves of the Dominican Republic initiating the crisis the country finds itself in today.

I just quoted another sentece from my essay which clearly shows that I recognize that the culprits of the current crisis was the way the government handle the things, never putting blame on the U.S. The only ones putting blame on the US are those criticizing me for blaming the US for the DR troubles, when in fact I'm not.

BTW, keep the criticism coming those of you that follow constructive criticism. Those of you that just like to blame, well re-read my essay to better understand my position before criticizing me for something that I am NOT saying. Thank You.
 

NALs

Economist by Profession
Jan 20, 2003
13,370
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113
Disecting my essay for everybody!

In case you did not get what I wanted you to get through my essay, here it is as clear as possible. The number refers to the Paragraph in acending order.

1. Introduction to what the DR is and what happened.

2. Reminding of the most recent bust in the stock market which threw the global economy into a recession.

3. Introduction into Globalization which has affected the DR (the many Mc. Donald's, American Airlines, Hilton Hotels among others attest to this reality) and what would be the most likely outcome of this trend based on the laws of nature which are always correct.

4. Reminders of the events that exacerbated the global recession.

5. Connection of DR economy with the global economy and how DR economy is affected by global economy.

6. Introduction to how the DR got into the mess its in.

7. Some proofs of the numerous times the DR appeared to have died, simply to be revitalized later on.

8. My criticisms towards people that quickly point to the DR as a failure or doom to fail, despite the short timeperiod the current crisis has been around for.

9. Reassuring that the DR will lift itself up as it has done in the past during the Haitian Occupation, during the 1970s and 1990s, during the war of restoration, etc.

10. Asking for people to have more faith in the DR becaus historically, every heartache the DR has experienced, makes the DR stronger during the prosperity years. After a crisis, the DR impresses everyone. 1970s the creation of the middle class was impressive. The 1980s crisis. Then 1990s the fast growing economy was even more impressive than the 1970s recovery. Then 2000s crisis. If history says anything, the 2010s would witness a level of advancement in the DR as never before seen!

For your convinience I have quoted my entire essay below so that you can prove to yourself what I was trying to say in each paragraph. I have also added numbers next to the paragraph for your convenience.


Nal0whs said:
DOMINICAN REPUBLIC​
A FAILED STATE?​

1 The Dominican Republic is described by many as the most wonderful paradise on earth. The palm trees, the pleasant climate, the happy and beautiful people, and the vibrant culture does makes the Dominican Republic the island paradise many dream about. Until a few years ago, this paradise was on the road to riches as if it was the "Dance of Millions" again. People the world over were optimistic about this tiny country gaining the status of "Fastest growing economy in the world" in 1997, 1998, and 1999. Unfortunately, what goes up must come down and the Dominican Republic has come down prematurely. With the current economic outlook of the country, is the Dominican Republic takig the risk of becoming a failed state?

2 In the year 2000, the world seemed to had partied the new millenium a bit too hard. That year being as significant as it was in itself, marked the global economy with a blow. The so called "dotcom" bubble bursted causing havoc 3,000 miles north of Santo Domingo in another island named Manhattan. Once that bubble bursted, Wall Street went into a tail spin virtually collapsing the hardest since the 1980s recession. How can something that happens on Wall Street affect the economy of Santo Domingo?

3 It's called Globalization. Today, all economies are merging to become one. According to the theory, that should allow Capitalism to become much more efficient. That is such an awkward theory of Globalization since nature has shown us that survival of life on earth is due to divergance rather than convergence. Nature shows us that divergence is the key to success over the long run. We don't see a CatDog species, we see cats and dogs, we see different kinds of birds, lizards, monkeys. It all came from one microscopic organism that eventually passed through evolutions of various species to ensure the survival of life on earth. Some big modern business have figure this out already with Toyota and Honda developing Lexus and Acura in stead of developing luxury cards under their much more established original names. Companies like Kodak which are now moving from regular photography to digital are having real problems because the name Kodak denotes the image of film and old fashion despite them offering digital cameras. For such reason, its almost wrong to believe that convergence of all economies would bring anything good over the long haul.

4 When the "dotcom" bubble bursted in New York City, that began one of the problems typical of the ups and downs of Capitalism. The burst lead the U.S. economy into a slow downward spiral with the crashing of the stock market. Then came the corporate corruption scandals with well known American corporations collapsing on their own weight. Enron, Worldcom, and Tyco are only a sampling of the many corrupt multi-nationals mostly that bursted under corruption. Then came 9/11 with the attacks and collapse of World Trade Center, the so called symbols of American capitalism and might. I say so called, because the Twin Towers were a creation of the New York Port Authority and they actually were the builders and owners of those edifices since the 1970s. The reality was that because those towers were built with taxpayers money, the towers were really a symbol of American communism and big government more than Capitalism and power. But those things aside, the collapse of the towers and all the other scandals eventually eroded consumer confidence putting the merging global economy into a precarious position, a worldwide recession followed.

5 Lets now travel 3,000 miles south of New York City into Santo Domingo, the oldest european built city in the Western Hemisphere. In the year 2000, Santo Domingo's glorious and envious position as the leading economy in terms of economic growth was shaken due to its overwhelming connection to the American economy. It was almost a warning for what was yet to come. September 11, 2001 caused for concern in the Dominican Republic because the attacks on the towers put in question the future of global tourism. The Dominican Republic being home to Puerto Plata and Punta Cana, two of the world's tropical vacation playgrounds meant that a downturn in global tourism meant bad news for the Dominican Republic. The degrading global economy, the uncertainty of security from terrorism and the shake in global tourism brought the good times to a screaching halt. The interesting thing is that Santo Domingo was stabbed from abroad, but blead to death from within.

6 In the Spring of 2003, the Dominican Republic's largest and most prestigious bank (Baninter) collapsed under the weight of corruption. The collapse of Baninter and the shaking up of Banco Mercantil and Bancredito shook the foundations of the once strong Dominican banking sector. The administration of Hipolito Mejia had two choices. Either let the Dominican Republic follow Argentina's catastrophic strangling of its economy or try to save at least the confidence of the wealthiest and powerful people that had money in Dominican banks. The administration opted for the second option under the notion that when things turn for the better, those rich folks would reinvest into the Dominican economy with confidence. In order for the government to be able to do such thing, they would have to tap into the reserves and that they did, dangerously deepleating the reserves of the Dominican Republic initiating the crisis the country finds itself in today.

7 Numerous times on DR1.com, threads comes up on this issue and usually more than a few pin point to their belief that the Dominican Republic is on the verge of becoming a failed state. How accurate could they be? Lets look at time and history for the answer. The Dominican Republic has an economy that grows and busts by the decades. In 1970s the economy grew with a vengence creating a sizeable middle class for the first time ever in that island nation. The realities were that the Dominican Republic relied heavily on sugar and when sugar prices collapsed in the market, the Dominican economy went down with it. By the time the 1980s rolled in, the Dominican Republic found itself with a huge crisis. Everything seemed to be falling apart, people rumored that the Dominican Republic was going to become a failed state. In the mid-80s, the Dominican Republic began to take advice from the IMF in order to qualify for a loan. The realities of the IMF demands exacerbated the rising cost of living causing for riots to break in Santo Domingo and other major Dominican towns. Only when Balaguer decided to give up the IMF demands in the late 1980s, only then the Dominican economy stabilized. In the 1990s, the economy grew like never before attracting prosperity and optimism. Then came the 2000s and things turned soured, proving once more that the Dominican economy works according to the decades.

8 The reality is that the Dominican Republic is not going to become a failed state just because it is in yet another crisis. History has shown us that when least expected, that is when Santo Domingo turns for the better. In addition, the Dominican Republic has been in crisis since the spring of 2003, barely a year! Talking about the Dominican Republic as a failed state is not only extremely pessimistic, but also wishful thinking by those who would like to see the Dominican Republic fail. Whoever believe that the Dominican Republic is becoming a failed stat, are themselves failures. They are failures of society, they are failures of life, they are failures. Only failed people make premature unoptimistic predictions based on a crisis that is barely one year old! Large financial institutions the world over continue to predict little or no growth for the end of 2004 and growth to return by 2005. Ladies and gentlemen, don't jump onto the wagon of premature pessimism. The Dominican Republic is made up of resilient, brave, and hard working people who have manage to survive five hundred years of colonization, destruction, wars, economic meltdowns, crime waves, poverty, earthquakes, floods, droughts, hurricanes, invasions, embargos, ethnic cleansing, dictatorships, environmental degredation, disease, and now an economic crisis again!

9 During the 1980s crisis, people were saying that that was the worst crisis the country had ever experienced and people kept doubting how the country could ever lift itself up. Those same people learned how to swallow their own words in the 1990s prosperity period. Lets learn from our past and accept that boom and busts is hwo the Dominican Republic works. It doesn't mean that it is a failed state, it doesn't mean that it is ungovernable, it doesn't mean anything, except that that is the way Dominicans do their thing. We will lift ourselves up from this crisis as we have done before! Five hundred years of mostly misery and we have survived, why would the current crisis bring the end to our country? Our country was meant to exist, otherwise it would have perished hundreds of years ago!

10 The Dominican Republic is a paradise, the Dominican Republic is a great country, the Dominican Republic is a brave country. Give this country the optimism and respect it deserves. Five hundred years of mostly misery and destruction and we are still here alive and well. That is not a story that repeats itself too often in this world of ours. The Dominican Republic will continue to exist until the end of time. This country will not perish from earth ever. Lets work together to help this beauty of a country get ahead, rather than criticize it. This country after all that it has been through truly deserves it!
 

Chris

Gold
Oct 21, 2002
7,951
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0
www.caribbetech.com
Here is my problem...

In point number 10 - "Asking for people to have more faith in the DR"

The last fellow who asked me to have 'faith' was a good down home southern preacher boy - and I did not believe him either.
 

NALs

Economist by Profession
Jan 20, 2003
13,370
3,150
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Chris said:
In point number 10 - "Asking for people to have more faith in the DR"

The last fellow who asked me to have 'faith' was a good down home southern preacher boy - and I did not believe him either.

Napoleon Hill once said "To hope is not to dream, but to turn dreams into reality".

If we all dream of a better DR, we must first have hope and faith in the country. At times it might feel weird to have hope under so much gloom, but sometimes having hope helps set the stage for change into the positive direction to materialize. If everybody in the DR would have hope in the country, everybody would subconciously be working and acting in a way that would benefit everyone, thus helping end the current crisis. Its just how success is brought forth in this world.

Without hope and faith, there is nothing but misery. Ask yourself this question: What ever was the thing that you truly wanted, that thing that deprived you of sleep at night and made you uncomfortable because you did not had it, if you did not had any faith in yourself that you would get that stuff that you wanted badly, if that faith was not there you would not have ever attained that stuff that you wanted. However, everytime you have become successful at reaching a goal you have set for yourself, it was in part due to your belief in yourself that made it possible for you to do whatever it was that helped you attain that goal. The samething applies with nations, except that with nations everybody has to be in the same ballpark for it to work.
 

KrackedKris

On Vacation!
Apr 8, 2004
287
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Your words

Nal0whs said:
I just quoted another sentece from my essay which clearly shows that I recognize that the culprits of the current crisis was the way the government handle the things, never putting blame on the U.S. The only ones putting blame on the US are those criticizing me for blaming the US for the DR troubles, when in fact I'm not.

BTW, keep the criticism coming those of you that follow constructive criticism. Those of you that just like to blame, well re-read my essay to better understand my position before criticizing me for something that I am NOT saying. Thank You.


You must be correct, you never blame any outside influences for the DR's problems. In your own words"





When the "dotcom" bubble bursted in New York City, that began one of the problems typical of the ups and downs of Capitalism. The burst lead the U.S. economy into a slow downward spiral with the crashing of the stock market. Then came the corporate corruption scandals with well known American corporations collapsing on their own weight. Enron, Worldcom, and Tyco are only a sampling of the many corrupt multi-nationals mostly that bursted under corruption. Then came 9/11 with the attacks and collapse of World Trade Center, the so called symbols of American capitalism and might. I say so called, because the Twin Towers were a creation of the New York Port Authority and they actually were the builders and owners of those edifices since the 1970s. The reality was that because those towers were built with taxpayers money, the towers were really a symbol of American communism and big government more than Capitalism and power. But those things aside, the collapse of the towers and all the other scandals eventually eroded consumer confidence putting the merging global economy into a precarious position, a worldwide recession followed.

Damm NASDAQ and thier "bursted bubble"

Lets now travel 3,000 miles south of New York City into Santo Domingo, the oldest european built city in the Western Hemisphere. In the year 2000, Santo Domingo's glorious and envious position as the leading economy in terms of economic growth was shaken due to its overwhelming connection to the American economy.


Damm Americans


It was almost a warning for what was yet to come. September 11, 2001 caused for concern in the Dominican Republic because the attacks on the towers put in question the future of global tourism. The Dominican Republic being home to Puerto Plata and Punta Cana, two of the world's tropical vacation playgrounds meant that a downturn in global tourism meant bad news for the Dominican Republic. The degrading global economy, the uncertainty of security from terrorism and the shake in global tourism brought the good times to a screaching halt. The interesting thing is that Santo Domingo was stabbed from abroad, but blead to death from within.

Damm American tourists


. In the mid-80s, the Dominican Republic began to take advice from the IMF in order to qualify for a loan. The realities of the IMF demands exacerbated the rising cost of living causing for riots to break in Santo Domingo and other major Dominican towns.

Damm IMF

:confused:
 

principe

Member
Nov 19, 2002
531
14
18
I have been waiting for this!!

Although I do not neccessarily agree with everything in the essay, I must say I do agree with his larger points. The main one being that many of those whom are frequently on this site often have a doomsday, waiting for the wheels to fall of, sort of attitude, and perhaps this is b/c "they" are not Dominican, or Potomac River experts would also apply.

One of my favorite anecdotes concerning this topic reminds of a time before the general elections when I posted several posts asking what was the potential for electoral fraud. A majority of the responses I received were overwhelmingly negative, as I my naivete or perhaps stupidity prevented me from "seeing" the obvious: fraud was inevitable. Let me happily say, WRONG.

However, we should also remind our selves that the DR is a developing nation, and many of the problems of the country are caused undoubtedly by the political leaders, and other of their ilk who unfortunately continue to mis-manage the financial resources of the country read: CORRUPTION. Once the nation is able to systematically prosecute, and jail these "people," even in times of harsh economic realities the citizenry would feel more comfortable due to the proved moral leadership of the political leaders.

"Oh but do you know dominican history...blah, blah, blah," Yeah, whatever, one has to be able to conceptualize change in order to bring it about, step 1.

Beautiful DR1 Predictions,

The peso at 100:1 WRONG.

Hippo re-elected WRONG.

Total economic collapse WRONG.

Referring to Arabs/Muslims as towel heads PRICE LESS.