President Hipolito Mejia promised farmers in the Cibao Valley that he would not abandon them. The President toured the area surrounding San Francisco de Macoris and the devastation created by the flooding of the Yuna River in the northern areas of the country. Accompanied by his Minister of Agriculture and other high-ranking officials, the President surveyed the damage by helicopter. Mejia was informed that 42,000 tareas (about 7,000 acres) of rice crops had been flooded, with losses calculated at RD$172 million, according to reports in Hoy newspaper. Heavy downpours prevented the President from visiting areas in the Northwest, but government representatives reported that 60 tanker trucks were carrying potable water to the affected towns of Castanuela, Guayubin, Villa Vasquez and Monte Cristi, where the water pumps were left unserviceable. As of Saturday, the statistics read as follows: 9,454 families affected, 1,116 flooded houses and 47,270 people evacuated - but only 1,818 in refuge centers. Also as of Saturday, there were five reported deaths, although Sunday's papers were saying reported a death toll of nine or ten as a result of the rains and flooding. The National Meteorological Office is calling for continued precipitation for the Cibao Valley and the Southeast of the Dominican Republic. All of the large dams in the area have been stabilized.
La Informacion, the Santiago paper nearest the flood areas, is reporting desperation among the refugees, with at least ten dead and several more injured. According to reporter Miguel Ponce, the flood victims are still waiting for help from government agencies that have promised to provide relief. In some poor neighborhoods, like Los Santos in Santiago, where many of the houses were carried away by the waters, no government help has arrived. Other papers reported that homemakers were complaining that the government had sent them food, but that there was no designated area or equipment to prepare it. Further reports carried in today's edition say there are 195,000 tareas (over 32,000 acres) of crops that have been damaged and 65,000 people evacuated from the danger zones. The National Commission for Emergencies (COE in Spanish) reported that it had lowered the danger alert in the Yuna watershed from Cotui to the Samana Bay, and along the Yaque River from Santiago to Mao. Nevertheless, the COE has maintained the red alert in the area along the Yaque River, from Mao to Monte Cristi. The latest figures from the Emergency Commission show that 2,159 people are now housed in 11 refugee centers.
In what might be today's strangest headline, the Listin Diario reports that the abundant rains will be good for the electric situation and, later on, for agriculture. Ramon Perez Reyes reports that the members of the National Emergency Commission feel that the full hydroelectric dams will pay for the damages caused by the flooding, which, in their view, will actually benefit farmers as the waters go down. A further benefit is that all the water needed for next year's crops is now in storage. Meanwhile, Army Chief of Staff Jorge Zorilla Ozuna told reporters that his men were handing out mosquito netting, food rations, mattresses, blankets and cots to the refugees from the flood waters. The Emergency Commission's reports reveal that from the 1 October until yesterday, rainfall for the period was equal to that which fell during Hurricane David and Tropical Storm Frederick in 1979, when the country only had 6 million inhabitants. This means, according to the report, that there were fewer poor people living along the flood basins of the rivers and in the ravines that feed into the rivers. At the same time, the report says that there was more forest cover, which permitted less water to reach the rivers.
As reported in Hoy newspaper, President Hipolito Mejia said last night on his "Una vez a la semana" TV show, broadcast on the state-run television station, that he is not in agreement with half of the things his government has done regarding the economy. He was commenting on the continuing depreciation of the peso against foreign currencies. While discarding that the government would adopt additional measures to contain the depreciation of the peso, President Mejia reminded his interviewers that international organizations have called for them to heed the rules of a free market. "I, particularly, do not believe in that. But, half of the things that I have done, and that I do, I am not in agreement with." He said that these are things he has had to do because he has "a very clear view with regards to that."
The spokesman for Shell in the DR and vice-president of the Dominican Petroleum Refinery said that fuel supply problems are due to the delay in the government's subsidy payments to Shell in the amount of RD$250 million. "We received a RD$130-million payment, but already the government has pending another RD$220 million." Rafael Maradiaga explained that the propane gas subsidies need to be kept up to date so that Shell can in turn keep an adequate supply of fuel for the Dominican market. He said there are no supply-based problems.
The Industry and Commerce Ministry has announced substantial price increases for diesel, regular gasoline and premium gasoline. The new prices hit historic highs: RD$73.85 for premium, RD$66.77 for regular and RD$51.98 for diesel. The higher prices are reported to be linked to the new lows in the value of the peso, and represent a 40% increase in prices since last May.
US Under Secretary of the Treasury for International Affairs John Taylor paid a short visit to the Dominican Republic, meeting with government economic officials, political leaders and President Mejia. The meeting with President Mejia was supposed to be a breakfast, but because of the flooding in the Cibao, it was rescheduled for later in the day. Most of the newspapers saw Taylor's visit as a positive indication that the IMF standby agreement would proceed smoothly. Finance Minister Rafael Calderon called the official's presence a clear sign that the United States would maintain its position and assist the Dominican authorities in resolving the economic problems it is facing. According to El Caribe, Taylor's visit delivered a clear message to the government that the US was worried about the economic crisis affecting the DR and gave importance to a swift signing with the IMF. According to El Caribe, when Taylor met with reporters, he expressed his assuredness the Dominican government would sign the IMF accord before the end of the year. Taylor said that while the so-called dollarization of the Dominican economy was not one of the topics discussed with the local authorities, the US would support the idea if the Dominican government were to approve the plan.
In his weekly television interview, President Hipolito Mejia revealed the six ingredients in the recipe that Treasury Under Secretary John Taylor left him for repairing the Dominican economy. As reported in El Caribe, Taylor said the first point was to finalize the negotiations to renew the standby agreement with the IMF, which will include the congressional approval of the temporary 5% tax on exports and the necessary adjustments to the finances of the electric sector. The second ingredient is the end-of-year approval for the 2004 Budget, which will include the adjustments required by the IMF Agreement. The third step will be the start of the disbursements by the IMF and other international financial agents such as the IDB and the World Bank. The fourth step will be the strict adherence to the IMF agreement on the part of the Dominican government. In his comments, President Mejia said that this was an important point, especially after what happened when the government took over the Edes from the Union Fenosa. The fifth element will be the talks and agreements relating to tax reforms to take place during the electoral campaign, and which will prompt the reforms after the elections of 2004. On this point, the business sector has expressed a very different opinion that requires the tax package to be prepared in the very short term and without the interference of the Presidential election campaign. The final ingredient in the Taylor Formula is the need to take into consideration the effects that the forthcoming Free Trade Agreement with the United States will have on the Dominican economy.
Robert Zoellick, the United States Trade Representative, called the work done by the Dominican trade team "excellent" and at the same time recognized the commercial importance of the Dominican Republic to the United States. The report carried in the La Informacion newspaper, refers to the talks that took place in Maimi recently. The Dominican trade team is headed by the Minister of Industry and Commerce Sonia Guzman de Hernandez. In his remarks, Zoellick said that he had confidence in a recovery of the Dominican economy and that the next rounds of talks scheduled for January, February and March will strengthen commercial ties and fortify the FTAA (Free Trade Area of the Americas) and other agreements.
Bernardo Vega presents an incredibly sad tale of mismanagement and bureaucratic folly in today's Op-Ed section of El Caribe. Vega looks at the Banco Intercontinental (BanInter) statistics and reveals that a mere 85 accounts held 77% of the total deposits both here and "offshore." He points out that the Monetary Code establishes a guarantee that is limited to RD$500,000 per account. Offshore accounts are never guaranteed. The economist says that it was understood that some members of the Monetary Board suggested in this case more benevolence be given and suggested that the limit used by the US Federal Reserve Board of US$100,000 be observed. Vega, a former ambassador and finance minister, says that the most important economic decision in the history of the DR was made either in the National Palace or in the Central Bank - nobody really knows where - and that this was to honor the full deposits of all clients. In his opinion, if those 85 accounts that held the 77% of the deposits had not been fully paid, the amount of unbacked currency issued would have been reduced by a like amount, pushing inflation to an estimated 15% and driving the peso to an exchange rate of RD$25 to US$1. He says that 8 million poor and middle-class citizens have had to suffer so that 85 rich people can stay rich. Vega points out that the decision to favor so few companies or individuals was not only immoral, but also extremely costly in political terms. Ten months before this decision, the PRD had swept the congressional elections. After this decision, the PRD cannot count on more than 25% of the electorate. Vega dismissed the two reasons given to proceed with the full payments as absurd. He ends his piece by asking the government to send the list of the 85 account-holders' names to the director of Internal Revenue for a review of their income tax statements, and perhaps perform a reassessment of their taxes.
A series of associations representing the banking, hotel, export and free zone sectors are asking the Dominican people to maintain their confidence and optimism in the face of the economic crisis affecting the country. In the press release, the various associations say it is important to recognize that the economy has shown signs of strength, as indicated by the US$464 million surplus in the balance of payments, the 22% growth in tourism and almost 6% growth in trade for free zones, and significant increase in remittances from abroad. The business associations also point out that companies providing hard currencies have voluntarily agreed to make sizeable payments to assist the government succeed in securing the IMF agreement. Emilio Lapayese, the Hoy page two columnist, criticized the associations, calling their press release an insult to the country. He says in Sunday's column "100 words" that the statement made by the hotel, banking, free zone and export industries is unfair. Those who must not think like this are the employees of these companies, who earn "indecent" salaries. Lapayese says the call for optimism insults nearly all Dominicans and most offends those who want for food or the un-acquirable medicines. He calls it "a cruel joke on common sense."
The Listin Diario reports that the United States FAA has issued a report that says the airport at La Isabela is not fit to operate due to the large quantity of birds and the existence of several garbage dumps and lagoons in the vicinity. Edward C. Cleary and Richard A Dolbeer, the FAA technicians responsible for the study, have estimated that as many as 10,000 egrets reside within a three-kilometer radius of the airport. "It is a particular worry that there are at least twelve resting sites for the egrets immediately to the west of the landing strip, since they have to cross the airport to reach the sanitation dump or their resting site." The study was carried out at the request of the Civil Aeronautical Board, and also points out that there are two sources of attraction for wildlife that should be eliminated. These are the lagoons and the dense vegetation along the perimeter of the airport. Listin Diario reporter Yaniris Felipe questioned Civil Aeronautics Board chief Carlos Alvarez about the report and Alvarez said he had met with the various agencies that needed to act on this case, including the Public Works Ministry, Aerodom, and the Airport Authority. La Isabela was undertaken during the Leonel Fernandez administration to replace the Herrera International Airport. Construction of the airport was continued during the Mejia government.
While the city of Cotui, in the province of Sanchez Ramirez, is the leading exporter of frogs to the international market, there is a problem with its produce. It seems that these Dominican frogs are too big for many importers who prefer the smaller version from Asia. According to Hoy, the export of frogs has fallen drastically from 1999, when over 113,000 kilograms of frogs were shipped abroad. So far this year, just 17,000 kilograms have been exported. According to Antonio Reyes, the spokesman for the only frog exporter in the Dominican Republic "Exportadora Gonzalez", there is little danger of extinction of the species, since the Environment allows them to capture as many as 6,000 frogs a week. Reyes says there are 200 people employed in the capture of the bullfrogs (Sapo Toro) in the area around Nagua. There are 60 species of frogs in the Dominican Republic, of which 58 are endemic species and 2 were introduced last century to combat mosquitoes. The Maco Pempen and the Sapo Toro, also called the Sapo Bogaert, after the man that introduced the specie to the DR, are the two classes of frog brought in from overseas. The Sapo Toro is the variety being hunted for export.
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