DR1 Daily News will be taking several days off for the Christmas and New Year holidays. The news will not be updated on 24, 25 and 26 December on occasion of the Christmas holiday celebrations. The news over the holidays will be compiled for a special update on Monday, 29 December. The daily news service will break again during the first week of January on occasion of the 1 January long weekend and Epiphany Day. The update on Wednesday, 7 January (Tuesday, 6 January is a holiday) will summarize news for the first week of January. Those following news in the DR may check in with the DR1 Forums, where any breaking news occurring over the holidays may be posted by community members. See http://dr1.com/forums/
The Mejia government has 835 inmates on its Christmas pardon list, all of whom were placed there by the Attorney General's office on recommendations from its Pardons Commission. This represents the greatest number of inmates to be simultaneously pardoned by the government since this administration instated the practice of pardoning large groups of convicts. The pardons have been at times controversial. The government has been known to go to the extreme of freeing individuals with impressive drug-dealing records, such as in the case of a major crack dealer who alleged a health problem and was released. The practice this time around has been transparent, with the government publishing the list in the Listin Diario yesterday, prior to the release. Including these latest inmates to be freed, the Executive Branch will have excused 2,611 people from their jail sentences in the past three years. The previous administration saw fit to pardon 774 people during its four-year term. El Caribe newspaper points out that before President Mejia concludes this term of office in August 2004, those jailed will have two more chances yet to secure themselves a spot on the coveted jail exit list.
In the Dominican Republic 10-hour blackouts and monthly increases in power rates are the norm, as are the government's regular complaints that it lacks the funds to make timely payments to the power generators. But for the governmental CDEEE, whose recent buyback of the Union Fenosa power distributors caused the suspension of the stand-by agreement with the IMF, the best interests of its employees are its priority. As reported in the Listin Diario, CDEEE director Cesar Sanchez spoke at the ceremony where the owners were told that the provision of housing and other benefits to CDEEE employees was one of his main concerns when he was appointed to the post of administrator of the Dominican power corporation. The Listin goes on to inform that more than 100 CDEEE workers have obtained newly built government apartments. Most of the apartments are part of a 450-apartment complex in Hato Nuevo, Manoguayabo, in western Santo Domingo. Another 21 apartments are located in Santo Domingo at the Torre CDE I, a seven-storey building with two elevators located at Calle Benigno Filomeno Rojas near the UASD. The 124 square meter apartments are dispensed with very attractive terms for financing.
The medal winners of the past Pan American Games are still waiting for the government to honor the promises made to them by President Hipolito Mejia, of government apartments and cash awards, as reported in Hoy's sports section today. The President offered any athletes who secured medals at the Games last August cash prizes of RD$200,000 for gold, RD$100,000 for silver and RD$50,000 for bronze. Those who won gold would also be granted an apartment, according to the promise. During the Pan Am Games, Dominican athletes won 42 medals in total. The athletes complained to Hoy newspaper, but said they cannot do so overtly because many of them are members of the Dominican military, which supports an athletic program.
Economist Frederic Emam Zade says that the DR will recover from the present crisis. In an interview with Hoy newspaper, Emam Zade explains that economic history shows no recession has lasted more than three years, and he says that in the past 50 years the country has suffered 10 recessions with only one lasting three years. Others were for durations of one or two years. The renowned economist expects the present recession to last two to three years, of which one is already behind us. Emam Zade is optimistic that by next year the country will be on the way out of the economic slump. Emam Zade traces the origins of the present crisis, which he has described as "stagflation", to the government's implementation of the fiscal reform package in January 2001, despite the red flags waved by many economists, Emam Zade included. The significant increase in taxes on the productive sectors caused a negative effect on growth. Parallel to penalizing of the business sector, the government went on a borrowing spree to finance increasing public spending. The debt taken on by the government from local banks displaced the private sector, making loans scarce and causing an increase in interest rates, and leading to the eventual liquidity crisis. The slowdown in the economy, plus the high interest rates and elevated taxes caused a solvency crisis in the private sector, with companies falling into default with the banks, of which the most vulnerable was Baninter, regardless of its internal institutional weaknesses. Emam Zade feels that the government is combating the present crisis by giving it the same medicine that caused the malaise in the first place. "What got us into this situation was the increase in taxes and to confront the problem what the government is doing is raising them more," said Emam Zade. He said if the government wants to correct the problem, it needs to change its economic policies. Emam Zade is in charge of economic development projects at the Global Foundation for Democracy and Development (FUNGLODE), the think tank organization under former President Leonel Fernandez.
See http://www.funglode.org
While the government insists on fixing the purchase price for dollars in the authorized exchange houses and commercial banks, the black market is flourishing. While the Central Bank posts a RD$34-US$1 reference rate, and a US$1=RD$35 sell rate, this is only available for a diminishing number of select bank and exchange house clients. Vimenca was reportedly not selling more than US$50 per transaction to the general public. News reports also indicate that for the general public, the dollar has basically disappeared from the formal market. El Caribe says that a Central Bank officer attributed the scarcity in dollars to the practice of exchange houses and banks of retaining these in order to profit from increases. The unnamed Central Bank officer said there is the practice for exchange houses to buy and sell the hard currency among themselves in order to get around the monetary regulation that obliges them to sell their hard currency stock within 24 hours. The source says that money changers are speculating they will make windfall profits if the currency is allowed to float. On the other hand, remittance company officers say that remittances from abroad have considerably decreased as a result of the lower rate, while others are demanding that the company deliver currency in US$ to the beneficiaries, for which the companies have less dollars to trade in the market. As reported in El Caribe, the Central Bank source says that generally US$25 million dollars a day enter the local market. He said in December, this increases to US$35-US$45 million a day. According to economist Frederic Emam Zade the real rate of the peso should be around RD$32 to US$1. The main reasons for the hyped real market rate is the lack of confidence of the general public in the government's economic policies and the excesses in money in circulation not substantiated by international reserves. Reportedly, the government this year has printed excess money for RD$98 billion. For the current official reference rate, see http://www.bancentral.gov.do
El Caribe explains that, according to the new proposed taxes, consumer items will see increases as soon as January. If the tax bill is approved by Congress as sent by the Executive Branch, the price of beer would contain a 32.5% tax, up from 25% previously and the price of rum and wine would include a 45.5% tax, up from 35%. Smokers would pay 65% on cigarettes, up from 50%. Rugs will now pay a tax of 39%, and microwaves will be taxed 19.5%. The Diario Libre says that taxes on vehicles will also go up, as will taxes on firearms, watches, air conditioners, radios, TVs, perfumes and other articles included on the 70-item luxury tax list. Congress has until Monday, 12 January to pass the bill authorizing the tax increases.
Codetel announced that as of January, residential telephone service will be increased by 10% to 20%. The additional revenue will be spent on investments and projects that in 2004 will require US$220 million. The charges for the R1 service will increase from RD$275 to RD$330 per month. Codetel said that the devaluation of the peso was a significant factor in the increased costs, in addition to inflationary pressures. Codetel noted that during the year 2003, the peso depreciated 65.1%, while the accumulated inflation ranged from 35% to 42% for the same period.
The Chamber of Disputes of the Central Electoral Board (JCE) annulled the PRD primary that took place on 7 December and which was won by the president of that party, Hatuey de Camps. The National Executive Committee (CEN) made the declaration on the basis that it did not meet the required quorum of members. During that primary, PRD president Hatuey de Camps was elected presidential candidate for the PRD, in spite of the fact that his leading contenders for the PRD nomination did not participate. De Camps said the JCE decision was political and a blow to its institutionalism as the body in charge of elections. By contrast, the JCE validated the convention of a primary in which President Mejia would compete against Vice-President Milagros Ortiz Bosch, Rafael Subervi and Enmanuel Esquea. That primary was aborted, however, after Mejia's contenders claimed widespread fraud was in the works, orchestrated by those supporting Mejia's re-election.
El Caribe reports that Vice President Milagros Ortiz Bosch, Rafael Subervi and Enmanuel Esquea, the three top pre-candidates vying for the PRD Presidential nomination against President Hipolito Mejia, agreed to make use of an average two independent national polls to decide which of the them would make the best PRD candidate in the upcoming 16 May election. The pre-candidates say they will back he or she who obtains the most votes. A PRD primary in which Mejia and his three rivals would supposedly participate has been set for 18 January by Peggy Cabral. Rafael Diaz Filpo, spokesman for the group, told Hoy newspaper that the three, now joined by Hatuey de Camps, would not participate in the 18 January primary organized by Cabral. He explained that the plan is for de Camps, as president of the party, and Rafael Subervi, secretary, to register the unified candidacy at the JCE. The foursome maintain that Mejia does not guarantee the party would retain power, and fear that Mejia's insistence on running again would split the party.
The Dominican Republic's version of Time Magazine, Rumbo, announced it will no longer publish. Ana Mitila Lora renders a tribute to the magazine in her column in the Listin Diario, crediting Rumbo with having set a new standard for newswriting, barring only a few exceptions where the truth clashed with the interest of its owners (Grupo Bancredito). She credits the publication for its proven professionalism, diversity of opinion and multi-scoped focus on a single reality. The journalist pays homage to many of Rumbo's editors and contributors: Anibal de Castro, Fausto Rosario, Rodolfo Rincon Martinez, Juan Manuel Garcia, Ruth Herrera, Miguel Angel Ordonez, Victor Tejada, Diana de Miguel, Kleiner Lopez, Laura Gil, Norys Sanchez, Gustavo Olivo Pena, Juan Bolivar Diaz, Margarita Cordero, Lorena Victoria Sandoval, Elina Maria Cruz and Maria Isabel Soldevila, among others.
Michael Camilo, whose "Live at the Blue Note" is nominated for a Grammy Award in the category of Latin Jazz, will appear Monday, 29 December at 5pm in the auditorium of the Centro Leon in Santiago. On his nomination to the 46th Grammy Awards, DR1 had reported on the popularity of Camilo's most recent CD among jazz fans in the United States. The recording, which Camilo has called "a self-portrait", was produced at the club called the Blue Note last March, during the pianist's annual tour of the New York club scene. His trio of musicians includes bass player Charlie Flores and drummer Horacio "El Negro" Hernandez.
Marianne de Tolentino writes in Hoy newspaper that Dominicans were not able to defend the gift of one of the most impressive demonstrations of public art ever in the Caribbean and Latin America, and now must ponder their loss. In 1994, top Venezuelan artist Carlos Cruz-Diez bestowed Dominicans with the geometrically eye-pleasing painting of the 28 silos (11,200 square meters) of the Molinos Dominicanos, a Dominican flour mill. The journalist comments that when the mill was privatized, the contract did not make any stipulation regarding the preservation of the silos' artwork. After the mill's privatization and sale to a Dominican group, and eventual re-sale to a Guatemalan group, the new owners decided it was time for a white-washing of the silos. Hoy newspaper laments that this gift of visual imagery to the colonial city and eastern part of Santo Domingo is now gone. Maestro Cruz Diez had left instructions that called for retouches to the silos to be made every two years to maintain the vitality of his work. This, however, was never carried out, and now, before the 10th anniversary of the work of art, the painting is no more. The newspaper shares with Dominicans the words of then-Venezuelan Ambassdor Maria Clemencia Lopez Jimenez in July 1994: "I believe this is the most important work we have ever carried out…. First, because of the artistic category of Cruz Diez and for the magnitude of the work, and because it will be a new experience for the Dominican people. I am sure the people will know how to appreciate it. And may it lead to a chain of productive public art works."
Singer Angela Carrasco has found another way to earn a living with a project called Solidarity Kiosks, which will provide a secure space for the blind to earn money. Due to reasons related to her health, Carrasco had to postpone her opening for a few weeks, but in January she looks forward to opening her booth on the Avenida Hermanas Mirabal in Santiago, where she will offer her clients chicken, assisted by a person with sight. The kiosk project was initiated by the National Organization for the Blind. Presently, there are 12 kiosks in operation that have been sponsored by the Once Foundation for Latin America (FOAL), an appendage of the Spanish National Association of the Blind. According to Domingo Asencio, president of the Dominican association, the mayor of Santiago, Jose Enrique Sued, and the Free Zone Corporation of Santiago were instrumental in setting up the first 12 stalls.
The Dominican Republic's women's volleyball team has one last chance to make it to the Athens Olympic Games in a pre-Olympic tournament to take place in Venezuela. Jorge Barbey explained that the country will participate in the Pre-Olympic South American tournament, where it will face Peru, Argentina and Venezuela on 9, 10 and 11 January 2004. The team's coach is confident the DR will secure a berth for the Olympics during that event. The DR (ranked 14th in the world) presented serious opposition in the previous Olympic qualifying tournament held in the DR earlier this month, losing only to Cuba (ranked 6th). The DR had defeated Cuba in the Pan American Games held in Santo Domingo last August, but has not been able to defeat the team again. Canada won the bronze medal in the event.
http://www.fivb.org/
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