Borrowing for the future.

Kipling333

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Jan 12, 2010
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After the recent rather heated exchanges relating to the current Dominican economy, I was reflecting how we had arrived at our current situation . People who have been here for some years will recall ,that prior to 2008, the appalling state of the roads ,say, from Sosua all the way to the Samana and from San Pedro to Punta Cana and then to Bavaro and from San Cristobal to the west. Many of the Zonas Franca were in bad shape . There was huge unemployment. When the world moved into a nasty recession in 2008, probably caused by the secondary housing finance markets in the USA, it was a great temptation for many to say we must tighten our belts and ride out the economic storm . Early in 2009, the G20 meeting was held in London and at this meeting many of the wealthy countries transferred their drawing or borrowing rights with the IMF to developing countries to save them from disaster. The Dominican Republic jumped at this opportunity to borrow at historically low rates and to embark on a massive infrastructure programme. Massive for the DR, at any rate. Of course there was opposition from people who firmly believed that you only bought and did things when you had the money in the bank but the DR went ahead with a programme to build for the future and then to let the future generations of Dominicans pay.
What we saw now is obvious to everyone as they travel around the country. We were very fortunate that a world class company, Odebrecht from Brazil came to the DR with all their expertise and machinery . They used local subcontractors who used to local workers and the DR avoided the worst effects of the depression. There were some errors made along the way by government officials who had never experienced such a huge and diverse programme and by the politicians who saw an opportunity to make a quick peso , but overall we had very quickly advanced to a more modern country. But the Government had to borrow an unprecedented amount of money in a series of tranches to finance all this work. The current generation and future generations of Dominicans now must finance and gradually repay these borrowings which have been used to improve the Dominican economy.
All that is good news. What is not so good is for Dominican Governments to spend more money than they earn on actually running the country and then to borrow more money to make up the difference. Somehow the cost of Government must be reduced and if this occurs I think the DR can really benefit from the great decisions made more than a decade ago .
 

aarhus

www.johnboyter.com
Jun 10, 2008
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What did the current government build from the borrowing?
 

aarhus

www.johnboyter.com
Jun 10, 2008
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I ran into a Dominican I know at the gym who is very much Pld. He was saying at least the Pld builds infrastructure. I don’t know if he is right but what did this government build ?
 
Jan 9, 2004
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I ran into a Dominican I know at the gym who is very much Pld. He was saying at least the Pld builds infrastructure. I don’t know if he is right but what did this government build ?
What they are building sometimes cannot be seen so much as felt. Tackling the corrupt sectors and restoring the confidence of the people is a herculean task.

That having been said, reforms in Education (4% was a joke) and the pivot to the Southwest...........Pedernales area............will be/should be some of his greater accomplishments.

From experience, Aduana paperwork at the ports has gotten much better. Years ago, under the PLD, you would show up for the paperwork needed to move goods (cars) and it was invariably and unfortunately locked in someones desk drawer who was always it seems at lunch, meeting etc..............but for a "fee" they could/would re-issue it. Or the cars would have all kinds of things missing. That still occurs, but certainly not as rampant as the old days.

It is not perfect, but it is better now than before.


Respectfully,
Playacaribe2
 

aarhus

www.johnboyter.com
Jun 10, 2008
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What they are building sometimes cannot be seen so much as felt. Tackling the corrupt sectors and restoring the confidence of the people is a herculean task.

That having been said, reforms in Education (4% was a joke) and the pivot to the Southwest...........Pedernales area............will be/should be some of his greater accomplishments.

From experience, Aduana paperwork at the ports has gotten much better. Years ago, under the PLD, you would show up for the paperwork needed to move goods (cars) and it was invariably and unfortunately locked in someones desk drawer who was always it seems at lunch, meeting etc..............but for a "fee" they could/would re-issue it. Or the cars would have all kinds of things missing. That still occurs, but certainly not as rampant as the old days.

It is not perfect, but it is better now than before.


Respectfully,
Playacaribe2
Well it’s nice to hear of some improvements.
 

CristoRey

Welcome To Wonderland
Apr 1, 2014
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Odebrecht stole hundreds of millions of dollars from this country, paid out millions in bribes/ kickbacks and sent millions of dollars abroad to grease more politicians. The financial arm of this mafia was purposely moved to the DR in order to help prevent anyone from going to jail for said crimes in the event they ever got caught. Lula in Brazil spent two years in jail as a result of his participation in this sceme, along with a few other politicians who assisted Odebrecht with fleecing these hardworking Dominican taxpayers out of millions of dollars.
Hardly worthy of any praise in my opinion.
 

aarhus

www.johnboyter.com
Jun 10, 2008
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So is it any better now. Or is there a new scheme we just don’t know about yet ?
 

Kipling333

Bronze
Jan 12, 2010
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Odebrecht stole hundreds of millions of dollars from this country, paid out millions in bribes/ kickbacks and sent millions of dollars abroad to grease more politicians. The financial arm of this mafia was purposely moved to the DR in order to help prevent anyone from going to jail for said crimes in the event they ever got caught. Lula in Brazil spent two years in jail as a result of his participation in this sceme, along with a few other politicians who assisted Odebrecht with fleecing these hardworking Dominican taxpayers out of millions of dollars.
Hardly worthy of any praise in my opinion.
Yes .the bribery figure in the DR was less than 0.5% of the total costs of work performed here. The strange thing is that they had no need to bribe because their work elsewhere was so outstanding that any country would have been glad to have them. If you travel in Brazil and especially to Rio de Janeiro and see the great engineering and construction work that this company did, it is surprising that they found it necessary to bribe. Of course bribery is rife in the international construction business because of the multi million or multi billion contract figures.
 

flyinroom

Silver
Aug 26, 2012
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Odebrecht stole hundreds of millions of dollars from this country, paid out millions in bribes/ kickbacks and sent millions of dollars abroad to grease more politicians. The financial arm of this mafia was purposely moved to the DR in order to help prevent anyone from going to jail for said crimes in the event they ever got caught. Lula in Brazil spent two years in jail as a result of his participation in this sceme, along with a few other politicians who assisted Odebrecht with fleecing these hardworking Dominican taxpayers out of millions of dollars.
Hardly worthy of any praise in my opinion.


So...
Lula goes from prison to the Palacio da Alvorada.
And Bolsonaro might well be going from the Palacio da Alvorada to prison.
If they can get him out of Florida.
Who really knows the real crooks any more?
Everybody accuses everybody.
And nobody knows what to believe.
Lula seems likeable...Bolsonaro not so much.
Long live the Amazon.
And Rome was not built in a day.
Or so they tell me.
 
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aarhus

www.johnboyter.com
Jun 10, 2008
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Well, if you think all that money for school computers and digital textbooks was used for that purpose, you will believe anything.
During the pandemic? Well I certainly don’t believe much said by the government. That seems like a fairly petty scam though for them. There could be something bigger brewing.
 
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bob saunders

Platinum
Jan 1, 2002
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dr1.com
So...
Lula goes from prison to the Palacio da Alvorada.
And Bolsonaro might well be going from the Palacio da Alvorada to prison.
If they can get him out of Florida.
Who really knows the real crooks any more?
Everybody accuses everybody.
And nobody knows what to believe.
Lula seems likeable...Bolsonaro not so much.
Long live the Amazon.
And Rome was not built in a day.
Or so they tell me.
Conmen usually are likeable.
 

aarhus

www.johnboyter.com
Jun 10, 2008
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Good point but...
If I had to put money on who is the nastiest crook, of the two I'd put my money on Bolsonaro.
He reminds me of somebody.
I can't put my finger on whom. :unsure:
Luckily there hasn’t emerged a Dominican “Bolsanero”.
 

aarhus

www.johnboyter.com
Jun 10, 2008
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Some would say they already had one……Mejia.

Respectfully,
Playacaribe2
He was President before I came to the DR. I experienced first Leonel and I liked him to begin with. I heard a lot of stories about Mejia. He was a bit of a showman I heard. More benevolent.