The National Council of Business (CONEP) president, Elena Viyella de Paliza entire keynote speech at the Third National Business Convention appeared in the economic section of El Caribe on Saturday. Her discourse, a resume of the conclusions of the National Business Convention, clearly address what those convened felt were the greatest problems facing the Dominican Republic at this time. According to the speech, there exists a need to replace the collective pessimism pervading the country. To rectify this, Viyella called for a solution to macroeconomic instability. The CONEP leader also identified the energy problem as paramount. Having named the two main areas of worry, she then set out to propose the necessary remedies. These included a government that upholds the law, respect for the Constitution and a reorganization of the entire governmental process. The reduction of poverty was connected to the need to stabilize the peso, create wealth and maintain macroeconomic stability. Education, social security, the environment, the cost of money and the role of business investments in society would be the mainstays of the program to restore confidence. CONEP's president also pointed out that the tax policy of the government often leads to less revenues for the government, rather than more, to be used to fight against poverty. The second major point that CONEP wished to emphasize was democracy and free trade, a subject that encompassed corruption and the political parties. At the end of her talk, the persistent head of the business community reminded her audience that "every day, as the sun comes up, 3 million Dominicans leave their homes to go to their jobs, and every day a nearly equal number of Dominicans, the so-called self-employed workers, also go to the streets to earn their livings by the dint of their own efforts. These are the majority of the Dominican people." She concluded: "We will come out ahead of this crisis..." Elena Viyella de Paliza, president of the CONEP business association, told her audience at the National Business Convention that it would be a good idea to hold a public auction and reprivatize the electricity distribution companies recently taken over by the government known as the "Edes". Soila Paniagua from Hoy reports that Viyella proposed the companies be separated and operated independently.
The National Business Convention, organized by CONEP (the National Business Council), proposed to limit the amount of money given to the political parties and to speed up the budget proposals for September rather than December, among other things. In addition, they entrusted the Senate with the need to elect the Central Electoral Board (JCE) members with transparency, so as to diminish the perception that the JCE is not an upright entity. Viyella de Paliza expressed CONEP's support for the Central Electoral Board (JCE), but also worry for the weakness and possible future of political parties in the Dominican Republic. Viyella was sharply critical of the money wasted in the "unending" political campaigns, and demanded to know the platforms of each party. The business community also called on the JCE to limit the primary electoral process to two months.
President Hipolito Mejia promised to maintain the subsidy for home use of propane gas, but at the same time he warned that cars, hotels, restaurants and other major users would face the real price of RD$42.32 per gallon. The Presidential Decree is supposed to be released today.
David Anthony, chief economist for the Latin American Department and the director of the Country-Risk area of The Economist Intelligence Unit, told El Caribe's reporters that the Dominican Republic would have a liquidity crisis if it does not sign with the IMF within two months. According to Anthony, he cannot see an end to the crisis created by the failure of Baninter. The country's image has been damaged by the scandal. Regarding foreign investors, the economist says that emerging nations need to generate confidence, keep their hands clean, and function well, with transparency. Anthony said that transparency is first and foremost to regain the public's confidence.
The Intelligence Unit of The Economist is looking for a lowered exchange rate by the end of 2003, aiming for a target of RD$35 pesos to US$1. For the year 2004, the Economist sees the dollar at RD$37.80. These projections cover the period during which the IMF agreement will be in effect. The Economist expects the dollar to stand at RD$39.60 in the year 2005.
The AIG Global Trade and Political Risk report for December is reporting that the DR "faces a shortage of foreign exchange and may soon have to impose formal exchange controls. Newspaper reports and major indicators suggest that informal controls have already been imposed and sovereign risk has risen to levels that may not be adequately appreciated." After giving a background of the situation, the AIG report continues, "Despite the injection of IMF money, the country's gross foreign reserves fell US$33 million from September to October, and now stands at only US$487 million, while net international reserves are only at US$112 million. This is the lowest level in two years, and means the Central Bank is working with only about two weeks of imports." Looking at the political future, the AIG reports says that "Perhaps Mejia could take strong measures, were he to remain in office. However, presidential elections are scheduled for May 2004. Mejia would like to be a candidate in these elections, but members of his own party appear to have foreclosed that option. Consequently, his government appears to be more or less a caretaker until the next president is chosen."
After a brief respite, the price of gasoline and diesel rose to historic new highs on Saturday. Premium was pegged at RD$73.64 per gallon, regular at RD$66.38 and diesel at RD$52.22. The Industry & Commerce continues to practice its policy of lowering the sale price just before announcing new highs. The propane situation improved as the government made a partial payment on the subsidy it continues to provide to propane importers. The official price for propane gas is being maintained at RD$25 per gallon, while its real price is deemed to be RD$42.43 a gallon.
The government-intervened Listin Diario reported that some of the sectors generating hard currencies, such as tourism and industrial free zone companies, will support the efforts of the Commission to Follow Up and Supervise Currency Operations, as recently created by President Hipolito Mejia. Johnny Bernal, a spokesperson for the National Hotel and Restaurant Association (ASONAHORES), told reporters that his group would back the new request and asked the Internal Revenue Office to send him the required forms. The president of the Industrial Free Zones, Arturo Peguero, told the press that these requirements were standard, as they report their transactions to the Central Bank every month anyway, under the requirements of Law 8-90. Horacio Alvarez of the exporters' association assured reporters that the financial authorities already have that data and suggested that a climate of greater confidence be fostered.
The Diario Libre reported on Saturday that one in five homes in Santo Domingo is not assured its daily sustenance. According to a study conducted by the World Food Program and the IADB, 19.8% of the homes in Santo Domingo run the risk of not eating on a daily basis. The report covers five areas of the country considered to be most vulnerable, with the capital considered to be the third highest food risk, in spite of the fact that families will spend 60% of their income on groceries. This figure, however, is significantly lower in the National District than the average for the five areas studied, which accounts for 72.1%. In the study, the areas known as "bateyes" represent the most critical problems, with 25.3% of the population unsure of obtaining their next meal. Of those living in the West, the area along the frontier in the north of the country, 22.3% cannot guarantee daily food intake. The figure calculated for the border area in the south was 13.4% and in the rural areas of El Seibo and Monte Plata the estimate was 11.6%. The research surveyed 1,600 homes.
El Caribe newspaper interviewed Julio Cordero, the administrative director of the Education Ministry, for its Sunday edition. Cordero explained that the ministry depends on the disbursements released by the National Budget office and that so far this year they have only received 57% of their allotted resources. 2003's National Budget 2003 authorized the ministry disbursements of RD$11 billion, of which they have only received RD$6.03 billion. Cordero says that one of the much-needed programs that has been most hurt by the fund deficiency is that which rents out locations for public schools in areas where there is a shortage of classrooms. Cordero complained that the department does not sell anything and thus depends on the resources it receives from the central government. The Education Ministry's budget has also suffered from the transfer of its pre-allocated funds to the benefit of programs for the Ministry of Armed Forces and the Presidency of the Republic. Diario Libre reports that while the government and Congress have been indifferent to the plight of education, international organizations have saved the day by through donations and loans, including a US$54-million contribution from the European Union. Education Minister and Vice-President Milagros Ortiz Bosch had been the most prominent PRD presidential nomination hopeful up until President Mejia confirmed his decision to seek re-election.
A private construction company has already snatched up a part of the Mirador del Sur Park for the construction of parking area for the tenants of a highrise luxury building. Now, according to Hoy newspaper's Sunday edition, a similar appropriation is planned, this time with the takeover of an even greater area - 6,700 square meters adjacent to the Hotel Embajador - sufficient space on which to build two highrise luxury buildings. The vice-president of the National District municipality, Julian Roa, told Hoy reporters that only Congress could authorize the rental of the lands to the apartment building project. He explained that because the Environment Law 64-00 prohibits this practice, an amendment to the law would have to be made. Supposedly, Bienes Nacionales leased the property to the Parque Embajador, S.A., the company that would build the two towers. The company reportedly made a first annual payment of RD$4.5 million on the lease. Roa says that the land's market value is approximately RD$200 million. Hoy newspaper tried to locate Bienvenido Brito of the Bienes Nacionales department, but he was not available. Brito has been criticized in the past for authorizing the construction of a private restaurant called Adrian Tropical, on the park areas of the Malecon (Parque Litoral Sur), another violation of Law 64-00.
The president of the PRD party, Hatuey de Camps, received 72% of the vote in the first ruling party primary held, yesterday. With the first bulletin issued at 11pm last night, and 6.8% of the votes counted, De Camps was down for 26,749 of the votes. Next was former PRD senator for Santiago Jose Rafael Abinader with 5,196 votes, and in third place was former president of the Senate Ramon Alburquerque with 5,054 votes. A second PRD convention is scheduled for next Sunday, 14 December, this time to include the participation of President Hipolito Mejia and his top contenders, Vice-President Milagros Ortiz Bosch and former Minister of Tourism Rafael (Fello) Subervi. It will be up to the Central Electoral Board (JCE) to decide the validity of the conventions and the candidates chosen. According to electoral law, no party can present two candidates in an election. Party spokesman, Rafael Gamundi Cordero told CDN news service that more than 450,000 party members voted in the convention. De Camps is a vociferous opponent to President Mejia seeking re-election.
Anibal de Castro of the Diario Libre newspaper writes today on the power of promises. "Fortunate is the country that has as its President Hipolito Mejia, a man of his word, who has met the exchange rate problem as would a warrior: with the military. Now, he travels the nation like any other PRD Presidential pre-candidate, with the exception that he and those accompanying him travel in official vehicles, with bodyguards, government officials, the National Department of Investigation's corps and other prerogatives that come with the 'little job.' Simple, he has not changed anything and promises everything. There will be a bundle of highways and potable water for all. And Mejia's government program of public works will start in January to prove that the promises are for real." De Castro says President Mejia has the gift of the quick word and his government has the power of multiplication, with or without any agreement with the IMF. "To those in doubt, check out the exchange rate, inflation, the foreign and domestic debt, military spending, the bankruptcies of businesses and banks, the government spending and the lack of confidence. But, if we judge by the promises of the President, a bonanza is around the corner." Comments to acastro@diariolibre.com
Over the weekend, Tropical Storm Odette left a trail of death and destruction along the Southern Coast of the Dominican Republic. Unlike the torrential rainfall that hit the north of the country just a few days before, Odette affected the south. Reports of several deaths have been attributed to the storm and at least 14 were injured in mudslides. The actual death toll varies from three to five, depending on the newspaper. According to El Caribe, 3,600 people were evacuated to higher ground and safer cover. The CNE (National Emergency Commission) moved 600 families from the area known as Mesopotamia in San Juan de la Maguana. Readers will recall the tragic loss of life in that area during Hurricane Georges. Odette, an atypical storm that grew in the center of the Caribbean after the official end of the hurricane season, knocked down high tension towers, trees and bridges. Odette is the first storm to be registered in the Caribbean in the month of December, according to National Hurricane Center spokesperson and meteorologist David Roberts. Blackouts were caused in many parts along the South Coast, from La Romana to Perdernales, and in some areas, telephone communication was cut off by falling trees. As soon as the storm was forming and its predicted path identified, the CNE boss, Radhames Lora Salcedo, issued a nationwide "red alert". During the flooding at the end of November, Lora Salcedo reminded the public that a "red alert" meant "Save yourself as quickly as possible!" The Emergency Commission leader told the press that he felt this time the people would respond more quickly to the alert, but he maintained a cautious forecast, since Odette was moving very slowly across Dominican territory. Lora Salcedo confirmed that while the emergency teams had to use members of the Armed Forces to get the people moving from Mesopotamia in San Juan de la Maguana, in Santiago the rescue teams were well-received by the residents of areas near the Hermanos Patino Bridge. Just a few days before, these people had been flooded out and had only just returned to their homes. Certain areas of Santo Domingo seemed to ignore the warnings, continuing on with their daily lives. This was noted in El Gualey and Las Canitas. President Hipolito Mejia told reporters that he would visit the provinces of Bahoruco and Barahona in the south to see what could be done to help those he called the "most affected" by Odette. The banana and plantain farms are reported to be in very bad shape and several houses were destroyed by mud slides and winds. In the areas around Santo Domingo, namely Isidro, Yaguate and Guerra, Odette produced flooding. A small tornado destroyed one house and damaged several others in Guerra. Over 1,000 people sought refuge in San Cristobal, where the swollen River Nigua damaged the bridgehead, cutting off hundreds of thousands of people from Santo Domingo.
According to Thomas Churchill, who forecasts on weather in the DR1 Weather & Beyond forum, the overcast skies covering the Dominican Republic are due to large areas of low clouds across the West Atlantic and North Caribbean. The presence of the low clouds and rain is due to a mass of cold air following a strong cold front. The air over the Caribbean is laden with moisture. If cooled, the moisture condenses and clouds and rain are the result. This cold front arrived on the same day as Tropical Storm Odette, but eventually Odette was absorbed by the cold air mass. This cold front is also responsible for causing the weekend blizzards across the eastern United States.
http://dr1.com/forums
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.