| Daily News - Monday, 05 December 2005 |
During his talk at the seminar "International experience and lessons learned" held at the Hilton Hotel, President Leonel Fernandez harshly criticized the neo-liberal economic model because it does not address people's basic needs. Fernandez pointed out that the Dominican Republic should be cautious in applying formulas from international organizations and that he privatized many state enterprises because of necessity, not because he approved of the economic model. The President suggested that in order to "correct the failures" of the neo-liberal economic model, many nations should get together and learn how to "reform the reforms" that were launched during the 1990s. According to the chief executive, the problem was that many countries, including the Dominican Republic, went from a system where the government had a predominant role in commerce and industry, to one where the growth of development was dependent on the free market economy. He cited the poor showing that the democratic system has earned during surveys throughout Latin America, mainly because of poor economic and social results. He said that "the lack of satisfaction shown by the people has to do with the fact that the development models that we have applied in Latin America, excepting the case of Chile, have not reduced poverty." Speaking to an audience that included representatives from various international financial and aid organizations, Fernandez said that the Dominican Republic had to be "cautious of economic recipes that come from overseas."
Also speaking at the seminar were Niki Fabiancic of the United Nations Development Program, CEPAL secretary general Luis Machinea and Ernesto Ottone from Chile.
The Chamber of Deputies has approved the much debated tax reform package on Saturday, after the second reading or revision of the bill. The approved bill gives the government RD$24.358 billion of the RD$32.477 billion that it asked for. The legislation taxes fuels - gasoline and diesel - by modifying article 1 of the Hydrocarbon Law 112-00 in such a way that the tax on a gallon of gasoline is increased from RD$40.49 to RD$50.48, and established a tax of RD$13.95 for most diesel fuels. The vote was 110 in favor and nine against.
Now the legislation has to go to the Senate. The original legislation was introduced in a special session of the Chamber of Deputies on 23 November, and had been subjected to several changes. Among the changes is the requirement to charge an ad-valorum tax of 17% on the value of all new vehicles (CIF) when being registered for the first time.
The reaction from the industrial, farming and business communities was quick, and it was not a happy one. The National Council of Private Enterprise (CONEP) declared that the Chamber of Deputies had introduced "distortions and mistakes" in the tax system, and the Dominican Chamber of Merchant Businesses rejected the legislation out of hand. The main opposition parties, the PRSC and the PRD, had differing opinions about the bill. The PRSC felt that the bill should pass through the Senate just as it is. The PRD recognized that the reform package was a "bitter but necessary pill to swallow".
Today's Listin Diario says that both the government and the business community are unhappy with what the deputies have approved. According to journalists Candida Acosta and Abrahan Montero, government spokespersons called the legislation "absolutely unacceptable" because of the RD$7.0 billion reduction in money generated. They said that the deputies had "damaged" the project, and were putting the IMF agreement as well as the DR-CAFTA agreement in jeopardy. CONEP president and chief spokesperson, Elena Viyella de Paliza, told reporters that she hoped that the Senate would remove the "distortions and the mistakes" from the legislation that was passed by the deputies. Viyella de Paliza accepted that the Chamber of Deputies had done the best that they could but insisted that they had also introduced some distortions into the legislation that make in unacceptable to the business community. She insisted that the tax reform package be passed at the same time as the 2006 budget bill so as to reduce the Executive Branch's discretional use of funds.
A report on the border situation between the DR and Haiti prepared for Dominican President Leonel Fernandez by the United States Southern Command, is recommending the creation of a specialized military body whose only mission will be to guard the frontier. In order to guarantee the success of such a task, the report recommends that more soldiers should be assigned to frontier duties, that new military bases are constructed along the frontier, that a new aviation unit is created and attached to the border patrol, and, finally, that the salaries of those on border patrol should be doubled. While the report is supposed to be confidential, the Diario Libre reports that it has seen parts of it, and the proposal seems to include the creation of a specialized, air cavalry unit, equipped with helicopters and fixed wing aircraft. There is also mention of improved ground transport vehicles and improved military installations. The report was hand delivered to President Leonel Fernandez by General John Craddock, the head of the United States Army Southern Command. It was drawn up by a group of United States experts on frontier issues who spent several weeks studying the border between Haiti and the Dominican Republic. A government source told Diario Libre that the report is confidential since some of the suggestions are long term concerns of the armed forces, and some of these have already been included in the 2005 budget. One of the suggestions is to create a joint initiative by several of the state's security organizations, such as the DNI, the Armed Forces and the DNCD.
The Haitian and Dominican police chiefs have met in the border town of Jimani for the third time in recent weeks, and reiterated their agreement to fight illegal arms and drug trafficking as well as to pursue law breakers from either side of the border. As part of the ceremony, the two police officials exchanged six stolen cars. Six cars stolen in Haiti and recovered in the Dominican Republic were exchanged for six Dominican vehicles that had been stolen and taken to Haiti. Dominican police chief Bernardo Santana Paez and his Haitian counterpart, Mario Andresol, reaffirmed their commitment to fight crime in both countries. Santana Paez reminded Diario Libre reporters that this was the third meeting between the two officers and that during the second meeting he had given his Haitian counterpart a list of the stolen vehicles, and that these were returned during the third meeting.
The agricultural sector of the Dominican Republic is getting ready to face the challenges of the DR-CAFTA agreement. Minister Amilcar Romero and deputy minister Luis Ramon Rodriguez are preparing the changes needed to protect farmers as well as get their products to overseas markets. The internal restructuring of the Ministry of Agriculture has resulted in the setting up of a new office to oversee the treaties that affect the trade in agricultural products. Among the briefs charged to the new office (OTCA) are to create contingency plans and safeguards for Dominican agricultural products. According to Hoy, they must also resolve controversies and protect intellectual property, and create the necessary mechanisms to protect the hygiene of exportable agriculture products. The contingency and safeguard officials are those that will be negotiating with the United States. They will follow up on the package of protected items under the DR-CAFTA agreement, working with the World Trade Organization (WTO) to protect basic products such as garlic, rice, onions, beans, milk, sugar, chicken and corn. A second brief is to watch out for the 22 items that have been selected under the preferential list to be safeguarded under DR-CAFTA. One of the important points is that this unit will be responsible for informing the public about public tenders for importing products on the list when local supplies dwindle.
The credit bureaus that operate in the Dominican Republic have a major effect on the economic movement of people and businesses in the country. They handle, unilaterally, a confidential credit information database whose contents they provide to third parties with little or no controls as to what information is released. Sometimes incorrect information is sent out and this puts a halt to business or personal economic activity. Nobody is exempt from being blacklisted for incurring large debts, or for being a "bad payer", because of an error from some financial or business institution or any late payment or overdue minimum balance. The credit reports are the main tool that banks and other credit institutions use for almost any operation. Next January 2006 is when Law 288-05 enters into effect, and the credit institutions will be regulated and clients will have the right to access their credit histories as well as make complaints about "leaks" of their credit histories. Since there is currently no legal framework for the credit agencies, some abuses have occurred, according to Claudia Vargas, an official of CICLA, one of the larger credit bureaus. However, Vargas attributes the errors to poor reporting from lending institutions.
This is the week that political alliances are supposed to be all tied up and reported to the public. The PRSC party, the "Reformist" party, is currently trying to obtain the best terms it can for the up-coming elections. During the last presidential election the reformists came in a poor third place, but, according to observers, they hold the balance of power and their support can virtually guarantee a victory for either of the other two parties, the governing PLD or the opposition PRD.
The reformists, according to Diario Libre, are well aware of their market value, and they are using it to get the best deal possible. The paper says that the PRD and the PLD are like wolves trying to "eat Little Red Riding Hood". The PRD are analyzing a proposal made by the reformists last week and have promised them an answer by tomorrow. Meanwhile, the reformists are using the offer received from the PLD as the basis of their further negotiations, but none of the parties are talking about the key points of any alliance.
Both Hoy and Diario Libre discuss how magistrate Roberto Rosario Marquez has criticized the way in which such political alliances are made. In fact, he said that the whole process could plunge the democratic system into crisis. In his judgment, the quantity of proposals and counter-proposals for different posts is the best example of the degeneration of the democratic system as expressed by the three main parties, since the demise of their historical leaders. The JCE magistrate went so far as to say that the parties are even discussing the composition of the Supreme Court, the General Accounting Office and the Central Electoral Board.
Public opinion is split across the middle on the question of the Metro system that will cover several kilometers of metropolitan Santo Domingo, going from north to south, from Villa Mella to the Caribbean Sea. According to the Gallup-Hoy Survey (GHS), 45.1% are in favor of the project and 44% are against it. 10% said that they didn't know. Within the metropolitan area, 46.4% are in favor of the government building the Metro and 47% are against the system. Only 5% said that they had no opinion. The GHS was taken during the middle of November and interviewed 1,200 people. One of the most evident differences of opinion was found among the opinions of people with different incomes. Higher income groups were markedly negative about the Metro (57%), while middle-income groups were more in favor (53%) of the project. Among lower income sectors 44.7% OK-ed the project and 43.7% rejected it.
Lawyers and relatives of Quirino Paulino Castillo and Lidio Arturo Nin Terrero, detained in New York City on suspicion of drug trafficking, have requested immediate medical attention for the two, saying that their health has deteriorated over the past few days. According to the request, Paulino Castillo, who is reported to have cardiac problems, has suffered dizzy spells and has reportedly fainted in his jail cell. At the lawyers' request, judge Kimba Wood adjourned the session until further notice. Quirino's legal team is waiting for official translations of six tapes that were made ,which involve the accused. They had requested 90 days to further study the case files.
The weekend did not substantially alter the standings, and the Aguilas Cibaenas and the Tigres del Licey are still tied in first place, with the Leones de Escogido in third. During the renewal of the "Eternal Rivals", Licey beat Escogido 5 - 2 on Friday night. Once again Napoleon Calzado was the hero for Licey with four runs batted in. In other action, the Gigantes del Cibao defeated the reigning champions Aguilas del Cibao, 4 - 3 in the Julian Javier Stadium in San Francisco de Macoris. The Aguilas lost leads of 2 - 0, 2 - 1, and 3 - 2 due to errors in the field. Ryan Mulhern connected his league-leading eighth homerun to seal the victory for the Gigantes. In San Pedro de Macoris, the Azucareros from La Romana defeated the Estrellas Orientales 9 - 6. Ben Johnson, Casey Rogowski and Nick Gorneault were the big guns for the "Toros" who came back from three runs down to snatch victory.
On Saturday night, the Aguilas beat the Leones, Licey beat the Azucareros and the Estrellas beat the Gigantes.
Sunday's games saw the Gigantes once again defeating the Aguilas, this time in the famous "Valley of Death", the Cibao Stadium in Santiago. The 4 - 2 victory came off of pitcher Jared Fernandez (3 - 3), as they scored three runs in the third inning and one in the fourth. The Aguilas could only score two runs in the sixth, in spite of out-hitting the Gigantes 9 - 5.
In other action the Azucareros returned to winning form defeating the Estrellas Orientales 9 - 7 in San Pedro, and the Leones de Escogido got their revenge as they defeated their "eternal rivals" the Tigres del Licey 6 - 5 in the Juan Marichal Quisqueya Stadium in Santo Domingo. Escogido came back from a 4 - 6 deficit to score two runs in the last of the ninth to leave Licey in the field.
STANDINGS
| TEAM | GAMES | Won - Lost | Percentage | Games behind |
| Aguilas | 37 | 21 - 16 | .568 | -0- |
| Licey | 37 | 21 - 16 | .568 | -0- |
| Escogido | 37 | 20 - 17 | .541 | 1.0 |
| Azucareros | 36 | 19 - 17 | .528 | 1.5 |
| Estrellas | 37 | 16 - 21 | .432 | 5.0 |
| Gigantes | 36 | 13 - 23 | .361 | 7.5 |
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