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Presidency’s social programs El Caribe newspaper highlights today statements made by National Budget Director Luis Ernesto Perez Cuevas that most of the RD$950.4 million to be diverted from government ministries would be used for social programs under the direct supervision of the Presidency. These programs include plans to distribute food (Comedores Economicos) and medicine (Promese) and RD$408 million allocated for housing construction materials to low-income Dominicans. During the last weekend in August, the general coordinator of the Proyecto Presidential Hipólito, the PRD faction promoting the re-election of President Mejía in May 2004, had stated that they would manage a US$100 million loan-funded social program for the next 12 months. Eligio Jáquez, PPH proponent and current Agriculture Minister, stated that funding would come from the National Budget and through contributions made by the International Monetary Fund and the Inter American Development Bank. Last week, El Caribe reported that the decision to use the money this way was made during a meeting of the economic and political teams of the government. Jáquez at the time stated that they are not playing games. He said they wish to replicate the success garnered with similar programs that led to their sweeping victory in the 2002 congressional elections. Jáquez also said that priorities would focus on subsidized power and medicine and the availability of low-cost food products to residents in the poorer barrios. The day after the press carried Jáquez’s frank statements, Budget Director Ernesto Cuevas dismissed allegations that the funds would be used to foster the re-election of President Hipólito Mejía. |
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US$250 million from IDB Parallel to the agreement between the government and the IMF, the Inter-American Development Bank (IDB) will make US$250 million available “to support the consolidation of the financial sector and to protect social spending” between now and the end of the year. The president of the IDB, Enrique Iglesias, expressed his “satisfaction” with the “determination of the Dominican authorities in establishing the foundations for a lasting economic recovery, making transparent the main problems faced by the economy and protecting the current priority social reform programs.” Iglesias reiterated the IDB’s commitment to continue supporting the Dominican Republic and “its well-known achievements in economic and social development.” The IDB president expressed his approval for the agreement with the IMF, saying that it promotes reforms that will lead to greater macroeconomic stability, which would in turn strengthen the government and lead to a reduction in poverty. He announced that as part of this program the IDB would be making “significant technical and financial resources” available to help the Dominican government in this process. This new program is in addition to the already approved US$100-million Social Sector Institutional Reform program, and brings current initiatives to a total of US$893 million, of which US$487 million has yet to be disbursed. Iglesias stressed his faith in the Dominican economy’s “capacity for reaction and recovery and the banking sector’s continued commitment to cooperating with these goals, as well as the reduction of poverty in the country.” He said that the Dominican Republic was one of the “stars” of the region in terms of economic growth in the 90s, but that its 8% growth had been reduced to just 4% in the last two years “due to external turbulence”, combined with poor economic supervision of the financial sector by the authorities. |
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64,520 jobs lost in last seven months Today’s press reported on disturbing economic statistics: 64,520 workers have lost their jobs in the last seven months, which is 24% more than the total figure for 2002. In addition to this, 65 businesses have closed down – most of these small businesses - according to the latest Labor Ministry figures. This is a stark reflection of the Central Bank’s calculation of a –2% economic contraction between April and June. Many of the employees who lost their jobs worked in the construction industry, one of the main victims of the current economic crisis, as numerous projects are currently inactive and housing sales have dropped 75%. El Caribe recently identified one Santo Domingo thoroughfare – Avenida Padre Castellanos - in which as many as 70 commercial operations had ceased to do business. |
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Bear Stearns September update The Emerging Markets Sovereign Research Department of Bear, Stearns & Co. reports that the Dominican Republic’s net international reserves (NIR) continued to decline to “dangerously low” levels in August, dropping to US$189 million from US$230 million in July. Gross international reserves totaled US$508 million in August, down from US$583 million the month before. Bear Stearns believes the situation could improve, however, as in early July, the Dominican authorities had stated that the drop in reserves would be reversed once an agreement with the IMF was signed. The brokerage firm projects that under the terms of the IMF agreement, the DR’s NIR should close 2003 at approximately US$348 million. Bear Stearns also reports that the recently approved IMF program should lead this year to US$250 million in multilateral disbursements intended to strengthen the country’s reserve position (the first US$120 million entered the country on 3 September). According to their calculations, sovereign bond payments (principal + interest) for the remainder of the year amount to only US$38 million. The firm also views as positive the sale of Banco Mercantil to the Republic Bank Limited of Trinidad. Furthermore, Bear Stearns says that the rapid appreciation of the peso has led the Central Bank to announce the sale of US$25 million worth of dollars and Euros next week, a precautionary measure designed to reduce volatility and discourage speculation in the foreign exchange market. Bear Stearns is optimistic that “as confidence to the investor and consumer is restored and the peso appreciates, inflation should be contained, setting the stage for a reduction in interest rates, which in turn would help to stimulate economic activity and push the Dominican Republic one step closer to the road to recovery.” |
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Monción Dam makes RD$1 billion Listín Diario reports that the Monción hydro-electric dam in the north-western province of Santiago Rodríguez has produced 200 million kilowatt hours and 200 million cubic meters of water in just one year, turning a profit of RD$1 billion, according to the executive director of INDHRI (national institute of hydraulic resources), Silvio Carrasco. This means that the state will be able to recoup the cost of the massive construction project, estimated to be RD$3.61 billion. The dam is also set to bring other benefits to the region, in the shape of eco-tourism. Since the dam began operations in September 2001, the newspaper says it has improved agricultural production in the neighboring provinces of Valverde (Mao), Dajabón and Montecristi. as well as in Santiago Rodríguez itself. Carrasco announced that President Hipólito Mejía will be awarded the Puente de Alcantara international prize for conservation and development of natural resources on his upcoming visit to Spain later this month. The President is due to inaugurate 22 similar projects, with a total investment by the government of RD$10 billion. |
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Candelier bans blue number-plates Metropolitan Transport Authority (AMET) chief, Major General Pedro de Jesus Candelier, has sent a communiqué to the heads of the national police and the army, banning the use of the official blue car registration plates by members of those organizations. The prohibition will include the bronze colored plates with gold stars displayed on the front of vehicles belonging to army and police personnel. The new regulation comes into force as of 10 September. |
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Uncertainty for 2004 elections El Caribe quotes Miriam Santana, coordinator of civil society organization Participación Ciudadana, as warning of an “uncertain climate” for the staging of next year’s Presidential election. The recent disputes at the JCE (Central Electoral Board) and the internal crises in two of the main political parties have undermined the public’s confidence in the electoral process, claimed Santana. “It is as if [the electoral process] were a three-legged table, with two of the legs out of action. This leaves just one out of the three parties in stable condition, unified and with its Presidential candidate,” said Santana. The 2004 election is due to be monitored by 7,000 to 8,000 observers and Miriam Santana advocated closer coordination between all sectors of civil society. The JCE, for its part, denies that they are behind in preparations for next year’s election, as was reported in El Caribe yesterday and carried in the DR1 news. The PLD’s César Pino Toribio comments that in the light of all the current problems, the electoral authorities should not complicate matters by trying to introduce a computerized voting system, their intention of which has been reported in the press. |
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PRD prepares for plebiscite despite Mejía’s
opposition Hoy newspaper leads with the story that the seven PRD pre-candidates vying with President Hipólito Mejía for the nomination for their party’s Presidential candidacy will go ahead with preparations for a plebiscite of party members. Mejía himself is firmly opposed to this course of action, which is not the actual selection of the Presidential candidate but a survey to determine whether party members are in favor of Presidential re-election. The party’s internal plebiscite would serve as a preliminary step to the actual primary election. Party sources told the newspaper that the date for the plebiscite would be decided by PRD president Hatuey Decamps and its secretary general, Rafael Suberví Bonilla, both pre-candidates themselves. The presidential aspirants said that this plan would go forward whether Mejía liked it or not. The process will include three opinion polls, two of which will be carried out by reputable US firms. They admitted that this procedure is not part of the PRD constitution, but neither is Presidential re-election. Mejía would like the party’s candidate selected at a party convention by a majority of at least 50% of votes. |
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Vice President opposes diversion of funds Vice President Milagros Ortíz Bosch, currently on leave from her post as Education Minister as a result of her Presidential pre-candidacy campaign, criticized yesterday’s announcement by the government that it had requested that Congress endorse a RD$109 million inter-departamental transfer of funds allotted to the Ministry. The transfer is part of a RD$1.75 billion general shuffling of government funding in order to assign RD$950.4 million to social programs managed directly by the Presidency. “We are the ones who are short of funds. I don’t know the reasons for this decision – all I know is that it is unfair to education,” said Ortiz Bosch. The president of the ADP (main public school teachers’ union), Eduardo Cuello also expressed his disagreement with the plan, explaining that as things stand the education budget allocation was a mere 2.5% of the GDP, accounting for only half of various international institutions’ recommendation of 5% of the GDP, or 25% of the national budget. Should the government have its way, the Education Ministry would see a shift of RD$109 million that had been assigned to student welfare services (RD$90 million) and pedagogical technical services (RD$19 million), and to pay for pensions and retirement plans (RD$35.1 million), donations and aid (RD$54.8 million) and RD$19 million for decentralized institutions. Ortíz Bosch is the leading contender to President Hipólito Mejía for the PRD nomination into the May 2004 presidential election. |
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Leonel has 57% support PLD campaign strategy chief Danilo Medina is claiming that the party’s Presidential candidate and former President, Leonel Fernández, has 57% of the popular vote. Medina, himself a former PLD presidential candidate in 2000, said that Fernández’ popularity is even greater now than in 1996 when he won the Presidency. He said that the other parties were a long way behind the PLD, and that Leonel was “walking alone in the electoral scene.” While these opinion polls indicating various possible scenarios will ultimately depend on the outcome of the PRD Presidential candidate selection process, as things currently stand the PRD does not attain more than 23% - a dramatic drop in its popular support, according to Medina. The PRSC under Eduardo Estrella holds about 18%. Medina conceded that this situation could change in the eight months between now and the date of the election (May 2004), but expressed little hope that the President would be able to bring improvements to the country’s economic situation. “At the moment the economic measures to improve the situation are hitting the electorate very hard, and thus are not electorally favorable for the President… What could happen is that the President will adopt measures aimed at increasing his popularity while harming the economy,” opined Medina. The crisis within the PRD also serves to undermine the public’s faith in the government. “The country has never seen anything like it,” he said, going on to describe the country as “technically bankrupt” and in the most difficult moment of its history. Medina referred to an “infernal vicious circle” where new taxes are created and loans are taken out to pay debts. He said the PLD was ready to take on the challenge of repairing the economic damage. He would not, however, comment on speculation that he might become Fernández’ running mate in the next elections. |
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Father Rogelio to be sent to Rome? Radical priest and community leader in the Santo Domingo district of Cristo Rey Padre Rogelio Cruz has denied recent reports indicating he is to be transferred to the Vatican. “Don’t pay any attention to them, they are rumors,” said Cruz, who appeared surprised when apprised of the reports by Listín Diario reporters. He did say, however, that if it were true, he would be bound by duty to obey the Catholic Church and take up the posting. |
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Grammy for Milly Quezada Dominican star Milly Quezada, known as “the queen of merengue,” received international recognition by winning a prestigious Latin Grammy award last night. Milly beat fellow Dominicans Hermanos Rosario and Kinito Mendez, as well as Puerto Ricans Elvis Crespo and Grupo Manía, with her recording “Pienso Así”, nominated in the category of Best Merengue Album. Milly Quezada told Listín Diario: “I am happy, I don’t know what to say, words fail me, but what we hoped for when we were recording is being made reality, that when things are done with love, without sacrificing personal or professional integrity, they cross all barriers. The Dominican Republic will be celebrating tonight.” Her rival Dominican nominees, Rafa Rosario and Kinito Méndez, congratulated Quezada and expressed joy at the Dominican victory. El Caribe’s main editorial also sings her praises, adding her to the growing list of Dominican international achievers in the fields of music, sports, literature, beauty contests, science, education and others, commenting wryly that “someone once said we are a great country, in spite of our politicians.” The writer also congratulates all Dominican nominees, saying “just to be nominated is in itself recognition.” Presented by the Latin Recording Academy, the Grammy is regarded as the recording industry’s most esteemed award. The honors recognize artistic and/or technical achievement, not sales figures or chart positions. The winners are determined by the votes of their peers, the voting members of the Academy. Now in its fourth year, the awards ceremony was held last night at the American Airlines Arena in Miami. http://latingrammy.aol.com/ |
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