Infrastructure, Government spending and monopolies holding DR back


Jul 10, 2004
All from DR1 news:

DR "10 years behind the times" in competitiveness

The Dominican Republic Federation of Industrial Associations says that the country is 10 years behind when it comes to industrial competitiveness. Despite the obstacles to competitiveness being identified at the time of the signing of the DR-CAFTA free trade agreement, little has been done to resolve them. The association mentions that they include the electricity service deficiencies, access to credit for manufacturing, lack of flexibility of the labor code regarding labor costs, corruption, government red tape, and discretion by government authorities in applying the laws. The situation creates a state of juridical insecurity for investors. Other domestic policies listed by FAIR as obstacles to competitiveness include the so-called archaic tax structure that is costly and complex and penalizes manufacturers, and the cargo and passenger monopolies that increase the cost of importing and exporting.

Association president Porfirio Baez says the country still has the opportunity to correct these problems in the short term through political will on the part of government and with the cooperation and consensus of sectors represented in the Economic and Social Council (CES). He said that comprehensive polices must be designed within the framework of the National Development Strategy for strengthening and increasing manufacturing sector competitiveness.

He called for more flexibility with the labor code saying that as a consequence of the hidden labor costs most Dominican workers do not have social security benefits.

He stressed that small business are the entities that create most jobs and are most effective in reducing poverty.

FAI: pa?s ha perdido una d?cada en competitividad por negligencia ante problemas estatales - Acento

ANJE calls for less government spending

Laura Pena Izquierdo, representing the National Association of Young Entrepreneurs (ANJE) is calling for a fiscal pact to be drafted, as well as a reduction in government spending. She expressed concern at the rising level of foreign indebtedness taken on by the government. Pena Izquierdo urged the government to reduce its spending and reach electricity and tax agreements with the private sector to ensure an increase in competitiveness and thus production and export levels. She said that a fiscal pact is essential to start taking steps to reduce public debt in future years.

ANJE pide que en pacto fiscal se aborde deuda del pa?s
Shippers call for end to transport monopoly

The National Association of Shippers says that if the country is to benefit from the DR-CAFTA with the United States it needs to improve and democratize ground transport by eliminating the present monopoly. Speaking at a Senate hearing yesterday, Tuesday 6 May, association president Teddy Heinsen said that clear and precise regulations for the implementation of logistics centers in the country must be approved. "A business owner needs to be able to send and receive merchandise easily and that is not the case at present," he said. He was critical of the existing cargo monopoly in which 25-year old trucks are being used.

Navieros piden eliminar monopolio de transporte -


Oct 29, 2010
It all comes down to corruption really. It's not in the "powers that be's" interests to change things.

Tim Smith

New member
Apr 28, 2014
Monopolies flourish everywhere. In countries like the DR even more so. Nothing is fixed as there is to much money in poorer countries to be made. The other side of this island is a prime example of this kind of corruption. Money for assistance, programs, health and education has the majority passed around behind closed doors then the intended beneficiary recipient will ever see. After the earthquake in 2010 in Haiti the World Bank had it's operations back up to speed in less then a week... On the font lawn of the Prime Ministers office. The DR has many similar issues as the other third of this island. One would think bringing in outside industry should help. Sometimes it does for a brief time. You all know how EDE dose most everyone wrong. I bet you did not know the system of new meters they are using draws power off your inverters. Check it out. If you have an inverter and the ability to disconnect from the meter when you are on battery power, check the output of your inverter. Mine uses .70 KW more if I stay connected to the grid on times the power is out. My entire home consumes around .19 to .29 without A/C running and .79 to .89 with the switch connected into the grid using my inverter. I have photos and meter readings showing the draw. Now this would be fine if they paid me for it but you know they don't.

Just an FYI and a heads up to disconnect when on inverter and you are using the new meters. (Itron Watthour Meter)