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Daily News - Wednesday, 13 December 2006

Fernandez fares well in poll
The 2006 Latinobarometro Report, an annual public opinion survey featuring findings on what citizens think of their governments, and what their priorities should be, as well as the quality of democracy, was released on 8 December. Carried out by a Chilean-based NGO, the report is the compilation of approximately 19,000 interviews in 18 Latin American countries, representing more than 400 million inhabitants. In the report, President Leonel Fernandez's government is ranked seventh in the region in terms of approval of the government, behind Argentina, Colombia, Chile, Venezuela, Uruguay and Brazil. Furthermore, the Dominicans surveyed expressed their confidence in the government, ranking only behind Uruguay and Venezuela. And in regards to confidence in the President, President Fernandez ranked fifth in the region, only behind Venezuela, Argentina, Chile and Uruguay.
http://www.latinobarometro.org
http://www.economist.com/displaystory.cfm?story_id=5093522

Coastline use to be regulated
Figures presented by the Ministry of Environment show that 60% of Dominicans live along the coast, and another 20% lives within 10 kilometers of the coastline.
Approximately 4.3 million people in 17 of the country's 32 provinces inhabit coastal zones, making use of coastal resources, but at the same time contributing to the deterioration of their sustainable development potential. The Ministry of Environment realizes that there is a need to regulate the use of the coastlines. Furthermore, the Ministry points out that 85-90% of tourism activities take place along the Dominican coastline. "The convergence of all these activities on the coastline make these areas all the more vulnerable," concludes the Ministry.
The Ministry is preparing a sectorial bill aimed at regulating productive and tourism activities and protecting the ecosystems and the 60-meter span of land along the coast. Francisco Ortiz, legal advisor to the Environment Ministry, said that it is time to control and monitor these activities. This has not been done to date because of a lack of funding. The bill has been drafted with cooperation of the United States Agency for International Development (USAID) and technicians from the International Resources Group. Yesterday, a next to last meeting was held at the Universidad Nacional Pedro Henriquez Urena to discuss the proposal with the Navy, Ministry of Tourism, hotel sector representatives and tour operators.

UNDP to draw concessionaire rulings
The Office of Government Works Supervisory Engineers and the United Nations Development Program signed an agreement yesterday in preparation for a bill aimed at regulating government contracting of major infrastructure works, such as roads, bridges and hospitals. Felix Bautista signed for the government and Nicky Fabiancic represented the UNDP. Batista, speaking on behalf of the government, said that the bill would promote transparency and efficiency in tenders and public works concessions. Bautista has long been an advocate for the government granting concessions for privatization of public works.

New airfields and Isabela's success
The government has invested RD$125 million since it began the rehabilitation of landing fields in remote areas. The Airport Department has invested RD$45 million in the Constanza airfield in the central highlands valley area, RD$28 million in the Cabo Rojo airfield (Pedernales) on the southwest coast, and RD$35 million in Monte Cristi on the northwest coast. A fourth will be opened at the Cueva de las Maravillas attraction (RD$15 million budget), between the Juan Dolio and La Romana/Bayahibe tourist resort areas on the southeastern coastline.
Andres Vanderhorst, director of the Airport Department, explained that the rehabilitation of these airfields now serves health emergency operations, farm to market domestic and export operations (as in the case of Constanza valley), and tourism development in these areas.
Vanderhorst also announced that contrary to all dismal predictions, the La Isabela (AILI) airport in northern Santo Domingo has proved a commercial success. He said that companies that set up operations there have had to expand their facilities and their fleets to meet the new demand. He said that passenger volume is much greater compared to the old Herrera airport, reaching up to double the previous operation at times. He said traffic comes primarily from the Caribbean region. "The opposite of what was expected has happened. Now they are all happy to be operating at the Joaquin Balaguer (AILI) airport, he told Listin Diario reporters. He also announced that the Civil Aviation Board recently authorized American Eagle to fly into La Isabela from Puerto Rico.

Bad grades for power companies
The power distribution companies, EdeSur, EdeNorte and EdeEste have fallen short of the level of collections for power served so far up to October this year. Diario Libre reports that their cash recovery indexes, agreed upon with the International Monetary Fund, have averaged 84.5% of the revenues collected for the service, reduction of losses and fraud. According to a report presented by the CDEEE, the company with the worst performance was EdeNorte, which recovered 44.8% of power served, when the objective set was 55.7%. EdeSur produced 57.6% with a goal of 67%, and EdeEste produced revenues of 57.3% of a budgeted 65.5%. Diario Libre points out that this is evidence that they have not improved their performance as expected, and explains why the government has had to spend an extra US$200 million in subsidies on top of what it had budgeted for this year.

Fixed wages for Civil Registrar Officers
The Central Electoral Board has approved a ruling whereby they will establish a range of fixed wages from RD$25,000 to a maximum of RD$60,000 for civil registrar officers. Previously, civil registrar officers were allowed to keep a large percentage of all their official revenues.

Business insists on no more taxes
Dominican business representatives are standing by their position that new taxes would not be necessary if the government eliminated superfluous spending. As reported in Hoy newspaper, Elena Viyella, president of the National Council for Private Business (CONEP) told senators that the fiscal reform proposed by President Fernandez is unnecessary. She said that the government should implement an austerity plan and concentrate its efforts on education and health.

New free zone companies
The National Council of Free Zones (CNFE) has approved the installation of 76 new companies in free trade zone industrial parks across the country. The companies propose to invest US$136.5 million and create 11,000 jobs at their factories. Of these, 56 will operate in existing parks and another 19 were authorized for operation outside these.

More firings in free zones
Fesurno workers union in Santiago says that another 20,000 workers will be fired this Christmas in local manufacturing parks. As reported in Hoy newspaper, he attributes the dismissals to high operating costs, primarily when it comes to labor and electricity, and the effect of the phasing out of the Multi-fiber Agreement and the elimination of quotas in January 2005.
Local apparel production has been hurting because increasing Dominican labor costs cannot compete with Asian labor costs. In reality, free zone apparel jobs have only increased in Honduras and Nicaragua, both of which offer low cost labor. El Salvador, already a beneficiary of DR-CAFTA, has also seen a significant decline in apparel jobs, as contract work has migrated to Asia. Haiti could garner these jobs, if the Haitian business sector could guarantee stable working conditions, given that labor costs in Haiti could be competitive with Asia.

A plea for Rio San Juan
PLD deputy Isabel Bonilla is expressing her frustrations with government efforts in the Rio San Juan area, as reported in Hoy. She feels she has failed her constituents because President Fernandez has not been able to meet campaign promises of improving the sewage system, paving the streets and improving the low-voltage public electricity service in the area. She said that the aqueduct is the only project that has been completed, but it has not delivered as expected. She mentioned that the Playa Grande area has been affected by the extracting of sand for Cabarete beach to the west. Bonilla also complained that she has not been able to meet with the Environment Minister to look into the possibility of getting support from the Inter-American Development Bank for the Rio San Juan lagoon recovery works. She said that the Minister of Tourism argues that this is only a small municipality that contributes little foreign exchange, to explain government indifference.

JCE to monitor primaries
The Central Electoral Board has announced that it will control the political parties' conventions, primaries and assemblies, as reported in Diario Libre. The newspaper editorial was prompt to criticize the decision as a major error by the organization in charge of organizing presidential, congressional and municipal elections in the DR. Diario Libre comments that it would turn the JCE into everyone's referee, even in internal party squabbles, which would divert attention from its essential role. In addition, the newspaper points out that any losing pre-candidate will blame the JCE for their defeat, and could make their work difficult by trying to give voters the impression that the JCE is biased. Furthermore, it points out that holding elections with candidates who have the blessing of the JCE's decisions would lead to it lose a great party of its legitimacy, given that this is a distrustful electorate which has seen it all. Diario Libre calls on the JCE to re-think this decision.

High ranking for Jose Tomas Perez
Listin Diario publishes the findings of a recent Hamilton Beattie & Staff survey on the leading political parties' presidential pre-candidates. Pollsters interviewed 1,200 citizens nationwide from 2-6 December. The surprise finding was that former Santo Domingo senator Jose Tomas Perez is the PLD pre-candidate with the highest rating. Voters were asked who should be candidate for the presidency for each party. The survey showed that 37% of Dominicans able to vote would vote for Perez if the election were held today, compared to 27% for Danilo Medina, a surprising 26% for President Leonel Fernandez and 5% for former Vice President Jaime David Fernandez.
Regarding the PRD, the poll showed that former Public Works Minister Miguel Vargas Maldonado is the preferred presidential candidate, compared to 30% for former Vice President Milagros Ortiz Bosch. For the PRSC, Dominican Municipal League president Amable Aristy Castro garnered 46% of the preferences for running for that party, compared to 39% for Eduardo Estrella (who ran on the party ticket in 2004) and the 11% received by former Central Bank governor Luis Toral.
The poll showed voter preference is 45% for the PLD, 29% for the PRD and 20% for the PRSC. Another finding was that 66% of potential voters said they would vote in the 2008 presidential election.

The PLD pre-candidates
Businessman Luis Arthur comments on the ruling PLD party's four leading presidential pre-candidates in his column in today's El Caribe. He explains that they are Leonel Fernandez, who he describes as the "President who talks pretty", and who until recently was the most accepted within the party and beyond, but who after the fiscal reform bill proposal ("that will not affect anyone") and former Presidency Minister Danilo Medina's untimely exit from government, "appears that his re-election chances are very diminished."
Next he focuses on Danilo Medina, who he describes as a capable young strategist who has difficulties in publicly communicating the message he wants to get across. And who as a candidate in 2000, "due to the wasting of the government in which he served for four years as super-minister and his limited eloquence, unfortunately lost against the PRD candidate who brought disaster for the country, worse than a tsunami."
Arthur explains that Medina is in the position where after repeating his previous post for two years in the 2004-2008 Fernandez administration, cannot wash his hands clean of what he describes as the "endless list of mistakes, inefficiency and ineffectivity that has come to public light."
Then there is Jaime David Fernandez, who he comments seems to be popular, but is not active. "He is a strong contender, but the general perception is that "his heart isn't in it."
Fourth on the list is Jose Tomas Perez, who he comments did a good job as senator, but inexplicably, the party chose not to back him again for a repeat in the post. He mentions that Perez is keeping a low profile, so as not to burn out early, and seems to be working quietly inside the party before seeking the candidacy.
Arthur points out that the PLD is governing badly, "not that it is worse than the previous PRD government - there is no comparison - but before such a disaster they promised so much and filled the country with expectations, that the achievements of economic stability are tarnished in the face of so much inefficiency and absence of solutions for the basic and important problems such as electricity, education and health."
He concludes: "Once again, the country is filled with uncertainty. Prices are increasing, people are distressed, and we fear having to tread a road we already walked, under a PLD that looks more like the PRD, and Leonel like Hipolito every day. He who speaks pretty is failing us."
He worries that with the wasting of the parties, anything could happen here, "the PRD might come back, or Candelier could slip in."
 
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