| Daily News - Monday, 13 December 2004 |
US Senator Christopher Dodd, who was part of a Peace Corps mission in the Moncion, Monte Cristi in 1966, met yesterday with President Leonel Fernandez at the Presidential Palace. The US legislator pledged his support for the Free Trade Agreement signed with the Dominican Republic when it goes before the US Congress. As reported in Hoy newspaper, Dodd said that it is urgent that the congresses of both countries ratify the bill in the first months of 2005 before congressional elections are to take place.
Dodd was also present at the book launch at the Institute of Dominican Studies at City College in New York last week.
Dodd's visit coincided with the very successful Christmas Arts & Crafts Fair held over the weekend at Columbus Park in the Colonial City. The event was organized by the Ministry of Culture and was co-sponsored by the Peace Corps and the IDDI non-governmental agency.
He said that when he asked Peace Corps volunteers working with Dominican people about how the country was doing, they told him there was a new feeling of optimism in the country. He said that while times are difficult in the DR and the United States, he felt that optimism was very important.
Kindergarten students at 17 schools across the nation will get a quick start on learning in English, as Education Minister Alejandrina German announced that bilingual education will be introduced in certain preschools next September. According to El Caribe, the number of hours of language instruction will be increased in other grades as the program is gradually implemented in elementary and high schools. German says that agreements signed with public school institutions in the US will enable bilingual teachers to train local teachers in bilingual education during the summer months.
Thousands of public school teachers appeared at the Ministry of Education's promotional event over the weekend, where they were offered loans to purchase computers. Education Minister Alejandrina German was surprised by the massive turnout, saying she was overwhelmed when thousands more turned up, many having come form the interior provinces. Over the weekend, the ministry was able to process 5,000 purchase requests.
German said that the turnout shows that, despite the difficulties public school teachers confront in their work, they are open to change and new technologies. The computers are being financed at terms of 36 months at 28% interest. The prices of the computers vary from RD$13,000 to RD$28,000. Teachers are receiving a bonus of RD$5,000 towards the purchase. The package also includes a printer, and Internet dial up service. Some 20 private suppliers offered their brands in the parking area of the Bellas Artes building at Maximo Gomez next door to the Ministry of Education.
The National Center for Tropical Disease Control (Cencet) says the outbreak of malaria in the province of La Altagracia is now under control. From 28 November to 4 December, not one case was reported. The outbreak coincides with Hurricane Jeanne's passage through the DR in September and an extraordinary boom in local construction as new hotels go on the market and others are being renovated in the wake of the storm, resulting in an increase in imported labor from Haiti. The public health authorities indicated that doctors have been stationed at the major construction sites to provide medical treatment for laborers, and periodical evaluations of the workers entering and leaving the sites have been carried out over the past weeks to sustain control of any malaria in the area.
See http://www.dr1.com/news/2004/120304_malaria.shtml
The Central Bank's Consumer Price Index indicates a 1.65% decline in for November, bringing accumulated inflation this year to 30.68%. Diario Libre reports that this is the lowest inflation index decline for any given month in the past 24 years. The drop is attributed to the peso's appreciation and its effect on the price of goods and services.
See http://www.bancentral.gov.do/notas_prensa.asp?a=nota2004-12-13
El Caribe newspaper reports today that, according to the budget bill, the country will receive US$1.1 in foreign resources next year, of which 93.5% or US$1.02 billion will go to pay foreign loans. The budget establishes that RD$11.83 billion (approximately US$316 million) will be used to pay the foreign debt, or almost 29% of the total budget. The financial plan for 2005 designates US$1.1 billion to foreign debt, of which 39% will account for interest owed. According to the letter of intent with the IMF, the foreign debt should be reduced from 33.7% to 26% of the Gross Domestic Product from 2004 to 2005.
Shortly after Yandra Portela, the president of the Association of Industries of the Dominican Republic (AID), requested a list of the biggest contributors of the 1.5% advance tax from the Department of Taxes (DGII), she received notification from the DGII that she had not paid her taxes. Portela, who solicited these names based on the General Law of Access to Public Information that deems this information to be part of its scope, said that she is up to date in the payment of her taxes and that she would pay a personal visit to the DGII to prove this. She explained that Articles 307 and 115 of the tax code establish that individuals who receive revenue from a job or from dividends do not have to file separately.
As reported in Hoy newspaper, DGII director Juan Hernandez had accused her of being behind on her personal tax payments.
Portela expressed her concern about the personalized way the government has dealt with the issue, at a time when the flaws of institutional affairs are being discussed. She questioned the government's handling of the matter, saying it contradicts its claimed intent to strengthen relations with the civil society. She commented that the debate should be focused on ideas, and should not get involved with justly or unjustly disqualifying speakers of the business sector.
Portela had urged that the tax department become more efficient by recruiting those that have been evading paying taxes and not penalize the productive sectors.
Bernardo Vega agrees that to settle the impasse over the FTA, the DR cannot violate what has been agreed to with the IMF, that is, the gradual elimination of tax exemptions over a 13-month period. Vega says the focus needs to be geared towards the FTA and IMF, not FTA at the cost of the IMF. The economist says that if Central America obtains the FTA and the DR is left out, then the situation of investment in Central America would improve and that of the DR would worsen. As a negative aspect of not signing the FTA, Vega predicts that our exports, including free-zone exports, would decline. But the worst consequence, he says, would be that we would continue to build public works without holding tenders.
Vega comments what is fueling the row is the fact that the sugar cane interest groups are not interested in the passing of the FTA, and are betting that if the DR is left out of the accords, then so will be Central America. This would leave the DR at a disadvantage with Colombia, which country is moving ahead with its FTA.
Vega says that the best scenario, although the least likely, would be for the DR, Central America and Colombia to forego their FTAs, with the US and Europe settling their impasse over farm subsidies and the conclusion of the Free Trade Agreement of the Americas that would regulate trade overall in the region. But, he said, that is a risk the country cannot take.
In his opinion, the DR needs to eliminate the surcharge on corn syrup imports that was inserted after the signing of the FTA. He says that to "compensate" the sugar sector with tax breaks is not appropriate because they would only lose income if the US Congress passes the FTA, which is unpredictable, and corn syrup imports would not be applied until many years in the future.
Vega says that tax reform that eliminates taxes to improve competitiveness should benefit all the industrial sectors, not only the sugar sector.
The Department of Customs and Department of Taxes (DGII) estimated that if Congress approves the ample concessions to the sugar industry that would be granted in exchange for the removal of the surcharge on corn syrup imports, these could add up to RD$4.5 billion.
Listin Diario editorial today says that the measures proposed in the tax concessions bill would enable Dominican farming sector to compete with Central American exports and centers the debate instead on whether the government can back with actions its talk about improving local competitiveness.
The General Controller's Office is investigating the whereabouts of a sum of US$25 million that was borrowed by the Dominican government from the Banco de Comercio Exterior de Colombia in the first year of the Mejia government (2000). The loan was made for urban renewal and environmental works in barrios boredering the Ozama and Isabela Rivers. Project Resure called for the construction of prefab houses for 12,000 families living beside the river but was never fully implemented, and the whereabouts of the funds are unknown, reports Diario Libre.
The funding was included in a sum of US$3 billion that was contracted by the Mejia administration and approved by Congress. The incumbent administration has not been able to identify how the money was eventually used.
Dominican players defeated the Puerto Rican team in the All-Star Game held at Quisqueya Ball Park on Sunday. The DR defeated their opponents 6-5 thanks to the key plays made by Pablo Ozuna. The exciting game ended in the 10th inning when Ozuna hit a single to left field that propelled Wilton Veras to break the five-run tie. Ozuna had also been responsible for the triple that brought in two runs in the ninth inning when the Dominican team was behind 5-3.
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.