The plebiscite called by the PRD party was held yesterday, showing a 90% rejection rate on the issue of the proposed Presidential re-election, according to today's press. Depending on the newspaper, the plebiscite increased the internal division of the party, scored a victory for the anti-re-election sector or just gave mixed results. The government-intervened Listin Diario says that because of the poor turnout in many areas of Santo Domingo and the larger provinces, the "No" vote may or may not be conclusive. According to the first bulletin from the election center of the PRD, 90% of voters answered "No" to the question of presidential re-election, although only about 9% of the polling stations had been tallied at that time. The papers are in agreement that the voting went off with little or no serious incidents. In just only one instance, individuals armed with military-style weapons made off with six of the ballot boxes. El Caribe reports that the plebiscite has deepened the rift between the six presidential hopefuls and the PPH group pushing for re-election. President Hipolito Mejia spent the weekend working on his re-election campaign, mostly in the Cibao Valley, the heartland of the Dominican Republic. The President and members of his cabinet appeared on national television to minimize the importance of the plebiscite. Ministers of Finance, Agriculture and the Press spoke out in favor of Mejia's re-election and ridiculed the attempts of the six hopefuls to stop the President's re-election campaign.
El Caribe reports that the current crisis within the PRD party is still far from being settled. The paper says that the results of Sunday's plebiscite would either endorse the Presidential bid for immediate re-election or discard it. Page 3 of Hoy's Sunday edition carried a full-page ad taken out by the PRD in which it cited the step-by-step development of the anti-re-election movement since the party's founding. El Caribe emphasized that the split was caused by the PPH's insistence on the subject of re-election. Reporter Nicanor Leyba said that Presidential aide Siquio Ng de la Rosa used several of the local media to falsely announce the cancellation of the plebiscite. Pedro Catrain, a political analyst, told El Caribe that the crisis will become yet more profound because "solutions in a conflict based on principles are practically impossible." On the other hand, Rafael Subervi is looking for some sort of patronage from the PPH, especially since his abandonment of the Group of Seven, now a group of six. President Mejia called the plebiscite "a joke."
The third largest political party, the Social Christian Reformist Party (PRSC) is also suffering from internal conflicts. Former Vice-President Jacinto Peynado returned from a convalescence in Miami to head a meeting of party leaders that called for a special convening of the National Assembly on 16 November to modify the party bylaws and elect a new board, which would replace party president Rafael Bello Andino. While the PRSC chose former Santiago Senator Eduardo Estrella as its 2004 presidential candidate, the group that supports Peynado insists Estrella does not represent the party as he was elected by a primary mired with fraud. Peynado insists that members of the PPH supporting President Hip—lito Mej’a voted in the PRSC primaries and said the Supreme Court of Justice will have the last word, as he has requested that the court annul the PRSC party confirmation of Estrella as the official PRSC Presidential candidate.
President Mejia told a national television audience that he would not put an end to the thousands of small and medium-sized public works projects that benefit the poor and the needy. According to Hoy, the President ignored the suggestion from Central Bank Governor Jose Lois Malkum, who wanted the President to halt or at least slow down the project because of the current economic situation. Mejia emphasized that those with a capacity to pay must pay, and he reaffirmed his promise to put the squeeze on, if need be, in order for people to pay their taxes. President Mejia said that schools, medicines and rural roads were very important, and that the Dominican State would not bear the whole weight of paying for these programs. He implied a need to choose between rum and medicines, saying that medicines were the correct choice. The President renewed his claim that exporters and other people producing hard currencies had benefited to the tune of nearly RD$15 billion over the past few months and it was their turn to pay up.
The IMF has not disbursed its scheduled checks - and will not do so until the government finds an alternative to the 5% tax on exports and proves that the purchase of Union Fenosa will not increase the debt load of the Dominican economy. El Caribe got this tidbit from a very highly-placed source, directly connected to the situation. The same source also told El Caribe that things are better now than they were a few days ago. The presence of the technical commission that will review the UF purchase is also having a positive effect on the situation.
Deputy Radhames Castro of the Popular Christian Party (PPC) has proposed a bill to augment the salaries of the National Congress deputies to the 1997 equivalent salary in dollars. While hard to believe, El Caribe confirmed that this deputy is looking for a 114% salary increase, based on comparisons with other countries, including Haiti. Deputy Castro feels that he and his colleagues should receive salaries of US$3,500, or RD$122,000, per month. Castro told reporters that many other government officials receive higher salaries and "do not carry the responsibilities" of the deputies. El Caribe points out that the deputies enjoy a series of privileges, such as the right to import two vehicles without paying taxes, a per diem of RD$1,500 for each daily session of the Chamber of Deputies, RD$700 for each committee meeting, RD$10,000 per month for "social obligations" and RD$10,000 per month for personal expenses. They also have drivers for their cars and are allowed to carry weapons, including machineguns. Finally, each deputy is allotted funding from the National Budget for at least one NGO.
Fausto Adames, of the Listin Diario, reports that when the year 2003 comes to a close Dominicans will have lost 45% of their income, foreign investment will have fallen by 35% and the international monetary reserves of the Central Bank will be in the red. This bleak outlook was presented by Agustin Carstens, the chief director of the Executive Commission of the IMF, in a report on the Dominican economy prepared for local leaders working with the IMF. The study shows that after a decade of vigorous growth and macroeconomic stability, the economy is now facing serious issues with the collapse of Baninter playing a central role in the shattered confidence of the banking system, in addition to certain external problems. The GDP is estimated to undergo a -3% decline and a per capita GDP is estimated at 4.7%. Inflation is nearly 3.5 times as much as in previous years, and seven times the 1999 levels. The elections are cited as a major issue facing government planners, since public expenditures during an election period are seldom seen in Dominican history. Carstens cited four important points. The first is to find a solution for the weaker banks that have been identified. The second is to refocus on the banking system as a whole, using international auditors to spot future steps, as may be needed. The third step is to create a legal framework that will deal with systemic banking issues. The fourth step is heightened supervision of the banking sector.
The World Labor Organization forecasts that unemployment in the Dominican Republic will reach a record 19.5% by 2005. The report, published in the Listin Diario, says that while joblessness in the first quarter of the year stood at 16.4%, by the end of this year it is expected to reach 17.3%.
Freddy Ortiz, the president of the Dominican Association of Remittance Companies (ADEREDI), told the Listin Diario that the US dollar should settle at a price of about RD$31, as long as the government does not constrict the exchange of information that makes the market nervous. Ortiz said the government should designate a capable spokesperson to deal with the various issues that have to do with the exchange rate. According to the ADEREDI president, apprehension is the main cause of problems in the exchange industry. Likewise, poor information and rumors that boomerang to produce price increases for the dollar also cause havoc. Ortiz said that the government authorities have to give some indication that fiscal and monetary discipline is being instrumented to restore confidence in the marketplace.
The 6.5 earthquake that shook the cities of Puerto Plata and Santiago last 22 September was the result of pressure from the Hispaniola North Fault, which caused movement within the Camu Fault. Nonetheless, the experts felt that the greatest danger is still within the Septentrional Fault, which has 800 years of accumulated energy stored within. They were very clear in stating that this reality, far from causing panic, should be a motive for the public to prepare itself for such an eventuality. Professors Paul Mann and Eric Calais from Texas and Perdue, along with Victor Huerfano from the Seismic Network in Puerto Rico, offered a series of recommendations to the Dominican authorities during a press conference attended by Radhames Lora Salcedo, the National Emergency Committee chairman, Silvio Carrasco, the head of INDRHI, Ramon Gomez, the governor of Santiago and Jose Enrique Sued, the mayor of Santiago. Ervin Vargas, the regional head of the CODIA (the engineering association) chaired the meeting. The technical staff told the conference that GPS instruments had been placed at different spots along the fault lines in an effort to measure tectonic movements. The instruments are capable of measuring movements of as little as two millimeters.
Helados Bon has opened a shop in the Najayo Jail in San Cristobal. The proceeds of the sales will be used to buy food for the estimated 250 children living with their incarcerated mothers in Najayo, the second largest pen in the DR. The ice cream shop is adjacent to the prison's medical area. In addition to ice cream, the shop will also sell juices and jams produced by the company. Inmates will work in the shop, receiving a commission on sales as remuneration.
The Florida Marlins opened the World Series in New York on Saturday with a 3-2 victory over the New York Yankees. It's the third consecutive series-opening loss by the Yankees. Dontrelle Willis recorded seven key outs late in the game and Juan Encarnacion had two hits to lead a balanced attack. Andy Pettite responded in customary fashion in Game Two on Sunday by nearly throwing a shutout and striking out seven to even the series at one game apiece. Pettite kept the Marlins off base and off balance. Only Luis Castillo was able to get on base more than once, but was caught stealing, erased on a double play, and then scored the unearned run on a ninth-inning Derrek Lee single. The series resumes on Wednesday in Miami with the Yankees sending Mike Mussina up against Josh Beckett.
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