Corruption: how much is too much?

pedrodelapanza

New member
Jan 18, 2010
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I was talking to my friend over the phone, very smart guy.

We had been employees of a multinational in Santo Domingo a few years ago. I left and went back to Europe, he stayed.

So I have this old dream of starting up some kind of business in DR, make enough money to buy an apartment in Gazcue, and then retire.

So I tell him, how come every time I talk about this, you switch to another subject? Don't you want your apartment in Gazcue? Let's start a business, I asked you so many times...

His answer was, my friend, are you prepared to run a business in DR? Do you realize the amount of corruption in DR? Do you realize what you would have to go through?

I don't agree with him, in my last trips, I have seen so many young people in Santo Domingo make it, with good, innovative ideas, and they don't look like Vito Corleone.

Who's right? Would I regret to the end of my days having wanted to make it in DR?
 
Nov 25, 2008
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Reality is in front of you but you don't want to see it. Your friend sees it and so do I in today's economy; if your not fixing the books theirs not much hope that your business will stay afloat, remember your first partner [DR government + - 32%] its pretty hard to be competitive.
Lets give you an example; about 2 years ago I was looking into buying a 40' from China of TV; nothing big 21" regular TV no LCD's price was $88.00 port of Haina; NOW the fun begins...I was told by an official in aduana that I will be paying $43.00 per TV, BUT he said we can work out a deal [$17.00] once the trailer arrives.
Now figure how can anyone one compete if you don't have aduana in your POCKET.
The Dominican system is set up to Cheat the government, you just have to know how to do it wisely, its very fees-able, just look at Corripio, Lama... now that's another story which involves 250 million and over 60 trailers.
 

Hillbilly

Moderator
Jan 1, 2002
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He is probably right. It is not the Corleones of this place that make corruption so rampant. It is the government and its officials.
If you read Spanish, go look up the A.M. editorial by Adriano Miguel Tejada a couple of weeks ago. He tells of a foreigner, like yourself, who opened a small business in the Colonial Zone, only to be constantly harassed by "officials" of this office or that office. The guy closed the business.

Everything from getting electricity to filing your taxes seems to be a hassle for the small businessman. The big and powerful steamroll over the corrupt because they have the "clout" to do it. This means that they can pay off the biggest government officials, like ministers.

A recent piece of evidence, yet to be countered by anyone here, was the construction of a 25 MW wind farm in Pedernales. According to the numbers released, it cost nearly twice what such a farm would cost in the US (and the source was also highly criticized as a boondoggle). That is $$ four million here versus $$ 2.2 million there. Now just where did that extra $$ go?

Get the picture???

HB
 
Feb 7, 2007
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Your best bet would be to set up some kind of virtual business you could run form the DR. That way your business would be "on the Internet" (without boundaries) and only your physical presence would indicate connection to the DR. For example, DR1.com

But there are also other types businesses that you could run without much government interference. The more public exposure you have the more you put yourself on the front page. If your business is a bar in a prime location you will get more "attention" and "exposure than" if your business is ran from an office in the industrial park.

There are several people on this board who successfully run their businesses in the DR. They successfully integrated into the communities and now are being looked at as any other DR business, not as a gringo business.
 

slas7713

Member
Aug 9, 2004
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Agree

I agree with the other posters here. I've worked closely with two friends (both Gringos) who have businesses in the DR. One flies under the radar and only gets harassed a little. His business is off the beaten path, which is good. He get the regular drop in visits from various gov and/or local officials telling him he needs to pay for this certificate or that paper to be in compliance. Sometimes it's ligit and sometime not. The other has a hotel, a much more prominent business and is constantly struggling and looking for good lawyers to help him jump through all the hoops required. It's a never ending cyclical and expensive endeavor. I agree with the poster on trying to start something remote, online or web oriented where the gov can physically accost you. Think long and hard.
 

pedrodelapanza

New member
Jan 18, 2010
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If you read Spanish, go look up the A.M. editorial by Adriano Miguel Tejada a couple of weeks ago. He tells of a foreigner, like yourself, who opened a small business in the Colonial Zone, only to be constantly harassed by "officials" of this office or that office. The guy closed the business.

HB

I read Spanish - what is A.M.?
 

Hillbilly

Moderator
Jan 1, 2002
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Thanks Chiri....It's really A.M. as in Ante Meridiano (Before Noon), but thanks since I was too sleepy to give the date and I forgot to tell him what newspaper!! Bad HB, Bad HB!!

HB
 

puryear270

Bronze
Aug 26, 2009
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And what the government officials don't get out of you (via corruption), the electric company and the street tigueres will.

Now is not the best time to start a business here, especially in Santo Domingo.

But now might be a good time to start researching, so that you can be able to take advantage of the situation if and when it improves.

With the ever increasing energy prices, I believe that at some point, a burglar-proof solar energy system would be a good business venture, especially one where the collector is painted onto the side or roof of a building.

The Gorgon's idea of a Caribbean restaurant still makes my mouth water, especially Jamaican jerked chicken and pork.

There's a company here in Bani that sells nothing but drinks: soda, alcohol, water, etc. Most is sold in bulk to colmado owners, but they also sell individual bottles to the general public. Because they buy in such quantities, they can offer good prices, and they seem to be doing quite well.

Or you could always open a one-stop shop: colmado, banca, hair salon, barbershop, and nail polishing, all under one roof.
 

CaptnGlenn

Silver
Mar 29, 2010
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You forgot the car wash and "personal entertainment". LOL. (couldn't believe that one when I first saw it in Bavaro.)
 

pedrodelapanza

New member
Jan 18, 2010
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Now is not the best time to start a business here, especially in Santo Domingo.

But now might be a good time to start researching, so that you can be able to take advantage of the situation if and when it improves.

Why not now? What's special about this period?
 

kimbjorkland

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Apr 6, 2011
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Most people here seem to buy their water in 5 gallon jugs. In Florida a few years ago when i was there the big thing was the water machines. Walk up, put your gallon jug under the spout and put in a quarter. Now I don't know the local coinage enuff to say how much a gallon would sell for, and maybe the electricity to run the machine would cost more than one could bring in, but while ideas are being spouted there's one free.
Der Fish

You're thinking too 'first world'. Automation in the first world eliminates expensive labor costs. In this country labor is cheap. Plus labor in the scenario you outlined provides free security. that is to say:

(The cost of paying someone to fill the water bottles) will be less than (the monthly cost of replacing machines unattended machines that have been jimmy'd open by tigueres).