The Dominican Republic can’t continue along “the spiral of financing consumption with debt (external) that pays interest and with capital (foreign investment) that generates remittances of dividends, putting at risk the flow of future hard currency.” Economist Jose Luis De Ramon makes the point in his new book “Volver a Crecer” (Return to growth). De Ramon says the country will have to deal with external shock forces in the future. The challenge for the country, according to De Ramon, is to achieve a balance of payments that is sustainable in the long run by means of increased exports. Figures show that in 2004 exports from the Dominican Republic, excluding the free zones, grew by US$279 million, a 27% increase. Much of this growth is attributed to the depreciation of the Dominican peso. However, in years previous to the depreciation of the peso, exports stalled below the US$900 million a year level.
Economist Luis Nunez says that the DR should look to Taiwan as a model.