Poverty, its not going away...
Discussion about inequalities and poverty have been circulating among the different social circles of the different societies of our world for centuries. In the past, it was the difference between the nobles and the sefs, then it was the difference between the colonialist and the slaves, today its the differences between the rich and the poor.
In all those cases, but in different timeperiod the bottom line was this: society will always consist of haves and have nots. A country with haves and have more (like Saudi Arabia) will have trouble in properly developing its economy. Saudi Arabia (and some other sorrounding nations) actually import people to do the menial jobs, not because its cheaper to import, but because no Saudi will clean his/her own mess.
In the complete opposite stands the Dominican Republic. DR has an over abundance of unskilled people. So, how can the DR bring economic benefits to these people? Well, one of the following:
1) Develop Free Trade Financial Centers (like Zona Francas, but these will be either a collection of office towers in central areas of SDQ and STG and office parks in other smaller towns). The same rules as in Zona Francas apply here, with no taxes levied on the companies within the Zone, etc. The gov should then invite major multinational corporations to move their most expensive headquarters operations from the first world to the DR to cut down on cost. Then, the DR should make it extremely easy (almost hassle free) the flow of highly skilled workers from countries like Mexico, India, Thailand, etc. These workers would have to be employed by the multinational before they migrate to the DR, and then, the DR would grant them a special no hassle visa to come and live in the DR while they are working for the company that brought them here. Also, the companies will be required to set up recruitment centers in the most important universities in the DR so that Dominican University graduates could also benefit from this source of new jobs.
This will help the unskilled workers because the companies are going to need to maintain the buildings, the grounds, the infrastructure. Every single genator, electrician, etc. must be a Dominican national. Depending on the size of the Free Trade Financial Zone, there is potential to increase the level of employment a good percentage.
The DR could also offer other incentives for companies that encourage the Dominican employees who are parents to emphasize the importance of education and doing good in school. This should penetrate into the parents psychological scheme of things and in return, will influence their childrens attitude towards studying and might make them stick it all the way through.
2) The DR government could send interest groups to major economies of the world and economies who are desperate for low skilled workers (Saudi Arabia, United Arab Emirates, Kuwait, etc) to import more and more Dominicans. That should aleviate some of the pressure of the poor in the DR, free up more resources to be distributed in better quantity among the poor since their numbers will decline a bit, and also allow for more remittances to be sent from abroad, further helping the DR in the short term.
Which ever plan the DR chooses, or if both are implemented, simultaneously the DR would have to increase its spending on educational institutions, law enforcement institutions, tax evaders, and other institutions that are in disrepair. The DR should restructure the taxes by imposing personal income tax and eliminating the ITBIS, since ITBIS taxes everyone at the same percentage, but that percentage could mean a lot to a poor person. 25% of 100,000 dollars is has a totally different impact from 25% of 1,000 dollars when the cost of living is relatively higher for the person with 1,000 dollars than for the person with 100,000 dollars in terms of percentage of income devoted to their standard of living.
Also, a reform in the military to turn it into a border patrol unit is essential. The migration flows of the island would remain as they are now, mostly going east, but their needs to be implemented the laws of migration. If a person crosses illegally, then that person is a criminal in the eyes of the law and shall be punished according to the migration laws specification. Companies and citizens that higher illegal labor (even illegal immigrants who prostitute themselves, survive off the informal sector, or do house work) shall be punished according to the specification of the law.
This is only a sampling of the things the DR could do in trying to fix its problems.