The latest sovereign update from international investment banking, securities trading and brokerage firm Bear Stearns concentrates on the political uncertainty evident in the Dominican Republic and its implications for the economy. The report outlines the situation where two of the main parties, including the ruling PRD, have been plagued by internal disputes. It describes President Hipolito Mejia’s insistence on standing for re-election as “stubborn” and says he shows no signs of “graciously withdrawing his nomination”, appearing to be “determined to fight until the bitter end” despite the results of the plebiscite of PRD members and recent opinion polls. The report contends that any change of government in the Dominican Republic would not guarantee any major changes in economic policy. It cites Leonel Fernandez’ good economic track record while in office (1996 – 2000), mentioning the average economic growth rate of 7.7% during the PLD administration. “At stake here is the election of a credible government capable of restoring the confidence lost in the Dominican economy and its agents, as well as the economic team’s ability to navigate the economy out of the current crisis.” Bear Stearns concludes that the PLD with Leonel Fernandez as Presidential candidate is best-placed to win next year’s election. For the full version of the report see Dominican Republic_Sov Update.pdf