| Daily News - 31 October 2003 |
President Hipolito Mejia gave a scathing reaction to the warnings of the president of the Dominican American Chamber of Commerce, Jorge Ivan Ramirez, who said that the current economic troubles could lead to social unrest. "Look at me - I am shaking!" said Mejia when questioned on the matter by a TV reporter. Ramirez, who is also the president of Codetel, had described the crisis as the most serious the country had ever experienced and said that if the government does not manage the situation "in a more disciplined and equitable manner", the country's social order and political legitimacy could break down. President Hipolito Mejia preferred to concentrate on the more optimistic words of exporters' association (ADOEXPO) representative Samir Rizek, who had pinned the business sector's hopes on the success of the agreement with the International Monetary Fund. Mejia told reporters that negotiations with the IMF were going well and had never ceased. The IMF suspended its disbursements one month ago when the government made a surprise announcement that it would take over the power distribution companies known as the "Edes". The President said that his team was busy looking into ways to find the funds needed to comply with the IMF's terms and stated that "many people understand" that the government has to implement additional measures to raise the resources.
Lawyer and political scientist Flavio Dario Espinal writes in El Caribe about the government's tendency to blame external factors for the ills afflicting the country. Without minimizing the effect of outside events like the 9/11 terrorist attacks, which had a definite effect on the economy, tourism and the free trade zones in particular, Dario Espinal reminds readers that a recovery was already underway in the travel sector when the Dominican economy's deterioration intensified. Neither can the Baninter collapse be blamed on the government, although according to Dario Espinal there is something to be said about the way the government has mishandled that particular crisis. Another target is the business community, which is frequently accused of being self-serving - as opposed to the government, which is looking after the nation's true interests, comments the writer, with more than a hint of irony. Many businesspeople have paid the highest price of the economic crisis, with their companies going bust, and can hardly be blamed for resisting unconstitutional taxes. The government is also in the habit of criticizing what it calls pessimism or negativity in reaction to any suggestion that the situation is serious and that changes are needed, as in the case of the recent call by religious organization Condor. "Meanwhile, the crisis continues to affect all sectors of society, especially the poor, whose incomes lose value as every day goes by and whose jobs are in jeopardy as more and more businesses close their doors all over the country."
The papers are reporting that President Hipolito Mejia and his Venezuelan counterpart Hugo Chavez spoke on the phone yesterday and reached a conclusion to the ongoing diplomatic dispute between the two countries. Once certain "administrative formalities" are put into place, oil exports to the Dominican Republic should then resume under the favorable terms of the San Jose agreement, by which Venezuela sells oil to neighboring countries with preferential conditions. Exports were suspended in August in retaliation for alleged Dominican government complicity in Venezuelan opposition activities on Dominican soil and which included accusations of an assassination plot against Hugo Chavez. The Dominican authorities have always denied these charges. Earlier in the day, Venezuelan ambassador to Santo Domingo Francisco Belisario Landis and Interior & Justice Minister Lucas Rincon Romero met with President Mejia and presented him with what they claimed was evidence of dissident activities, including documents, recordings and other surveillance materials. Venezuela supplies the Dominican Republic with an estimated 25,000 barrels of crude oil per day. Other oil-exporting countries in the region, such as Mexico and Trinidad, had been making up this large deficit during the interim. Diplomatic relations are also set to return to normal. Ambassador Belisario Landis released a communique highlighting the strong, co-oparative and neighborly relations that have always existed between the two countries.
The latest sovereign update from international investment banking, securities trading and brokerage firm Bear Stearns concentrates on the political uncertainty evident in the Dominican Republic and its implications for the economy. The report outlines the situation where two of the main parties, including the ruling PRD, have been plagued by internal disputes. It describes President Hipolito Mejia's insistence on standing for re-election as "stubborn" and says he shows no signs of "graciously withdrawing his nomination", appearing to be "determined to fight until the bitter end" despite the results of the plebiscite of PRD members and recent opinion polls. The report contends that any change of government in the Dominican Republic would not guarantee any major changes in economic policy. It cites Leonel Fernandez' good economic track record while in office (1996 - 2000), mentioning the average economic growth rate of 7.7% during the PLD administration. "At stake here is the election of a credible government capable of restoring the confidence lost in the Dominican economy and its agents, as well as the economic team's ability to navigate the economy out of the current crisis." Bear Stearns concludes that the PLD with Leonel Fernandez as Presidential candidate is best-placed to win next year's election. For the full version of the report see Dominican Republic_Sov Update.pdf
Environment Minister Frank Moya Pons has said he would revoke commercial fishing permits held by a South Korean company caught fishing illegally in Dominican waters. El Caribe newspaper has been following the story for some days now, but today crosses to other publications with the news that the ministry is taking action. Vessels belonging to Korea Dominican Fisheries have using what is described as unauthorized equipment in Dominican territorial waters. Although they have permits granted by IDECOOP (co-operative credit and development institute), they are reportedly invalid. According to deputies Osval Saldivar (PRD) and Licelot Marte de Barrios (PRSC), who are studying legislation on redefining the demarcation of territorial water limits, IDECOOP has no jurisdiction over fishing rights and should not be awarding permits for this purpose. The Dominican Navy has escorted all the fishing boats concerned into ports on the southern and northern coasts of the country, said Cecilio Diaz Carela, the Under Secretary for Coastal and Marine Resources. The boats are to be impounded by the authorities and the crews, mainly South Korean and Vietnamese nationals, are in custody. Diaz Carela explained that fishing with nets was in contravention of the environmental and natural resources law 64-00.
The latest attempt to find a way of making up the government's RD$650-million fiscal deficit is a proposal from Senator Ramiro Espina (PRD, Samana) currently being studied by the Senate Finance Commitee. It suggests an increase of RD$3.50 on premium gasoline and RD$1.75 on regular. The proposal also includes the imposition of a one-time 1% charge on all savings accounts and a 10% tax on interest payments on deposits. Tobacco is also included on the list - an additional tax of RD$0.50 would be charged per cigarette. Hoy newspaper's main editorial focuses on fiscal reform, saying that although all agree it has been a long time in coming, neither the government nor the business sector is clear about its objectives. There are many reasons for the budgetary deficit in addition to the external debt and the Baninter void, continues the writer, including the inflated government payroll. Another aspect is the way in which taxes are often imposed, without anticipating the economic, social, political and legal consequences, as happened recently in the case of the withdrawn 10% tax on exports and the doubling of the exchange rate commission charge. "What needs to be reformed along with the fiscal system is the attitude and style of resource management."
Editorial writers seize on today's date to make some chilling analogies about Dominican politics. Ana Mitila Lora, writing in her "Mochila al hombro" column in Listin Diario newspaper, speaks of spider webs obscuring the truth, especially when it comes to the Dominican justice system. Terms like bankruptcy, collapse and debt are used as euphemisms for fraud and extortion. The questions from several quarters about the Baninter void have remained unanswered: What has the government done to recover the funds? Has businessman and Baninter associate Luis Alvarez Renta paid back the millions, as he said he would do? It appears, Mitila Lora says, that the state does not need these trifles, even as prisoners are starving and hospitals lack medicines. She quotes a fellow journalist, Juan Taveras Hernandez, who once said, "Dominican justice is not blind, it is one-eyed." The writer can be contacted at anamitila@hotmail.com Diario Libre's back-page column also uses the imagery of Halloween to describe the situation at the Central Electoral Board (JCE), where the PLD opposition party is questioning the practices of some officials. The board is divided along party lines, and the writer, Adriano Miguel Tejada, says that a "Solomonic solution is being sought", remarking that at the JCE, every day is like All Hallows Eve. Tejada's address is atejada@tricom.net
Tonight sees the start of the 2003-2004 Dominican professional baseball championships, known as the "winter league". The teams competing for the title are the Aguilas Cibaenas, Leones del Escogido, Tigres del Licey, Gigantes del Cibao, Estrellas Orientales and Azucareros del Este. El Caribe salutes the game, which it describes as "more a passion than a pastime for Dominicans", especially at times like these, when it "helps ease tension and distress". Readers are reminded that baseball is also an important source of employment and foreign revenue for the country.
The Dominican Republic Women's Volleyball Team, ranked 14th in the world, will go up against Cuba, ranked 6th in the world, on 1 November, the opening day of the World Volleyball Cup 2003 in Tokyo, Japan. The top three teams earn the right to compete in the Athens Olympic 2004 Games. This is the first time the Dominican team is to participate in the World Cup. The Dominican squad defeated Cuba for the gold medal in the August 2003 Pan Am Games, but narrowly lost to the Cubans in the NORCECA's Women's Continental Championship tournament, also held in Santo Domingo. The Tokyo event is a single round-robin to be played by the rally-point scoring system. The Dominican team games will be aired live on RNN, Channel 27 and Ame, Channel 47. At 8:00pm game highlights will be reported on Ame. The opponents and dates for the Dominican team's match-up schedule Japan is as follows: Cuba (1 Nov), Poland (2 Nov), Brazil (5 Nov), Turkey (6 Nov), Italy (8 Nov), Japan (9 Nov), USA (10 Nov), Korea (13 Nov), Egypt (14 Nov), Argentina (15 Nov). To train for the event, the Dominican team arrived early in Japan, where it will play against local university teams to adjust to the atmosphere and fully recover from jet lag. The Dominican team hopes to defeat 5 of the 12 of its contenders, said coach Jorge Garbey. Garbey also explained that the World Cup is seen as preparation for the continental Olympic qualifier to be played in Santo Domingo from December 16-22. He explained that if USA or Cuba make the top three in Japan, the Dominican team would battle the other remaining teams for another chance to qualify for the Olympics. The Dominican Republic is entering the World Cup as a wildcard after winning the gold medal in the Pan American Games and grabbing the bronze in the Norceca Continental Championship, both events played in Santo Domingo. They were also runner-ups in the Pan American Cup in Saltillo, Mexico and are the Central American and Caribbean champions. Tomorrow night, however, they will be making their World Cup debut against Cuba in what promises to be an excellent match-up. These two teams have played each other four times this year with two victories apiece. Three of the matches stretched to five sets. http://www.fivb.org/EN/Volleyball/. To follow the Japan championship online, see http://www.fivb.org and http://www.v-spirit.com/
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