The Regional Center for Sustainable Economic Studies (CREES) says that conditions must be created for a competitive business environment that encourages the creation of companies and increases jobs and exports to reduce poverty. CREES says that in order to achieve these objectives, structural reforms must be implemented that reduce fuel prices, the cost of cargo transportation, electricity bills, high taxation and hidden labor costs. He said that as well as affecting the private sector they also have an adverse impact on all Dominicans, by increasing both the cost of living and of doing business.
Speaking for Crees at the recent Corripio media group Economic Meeting, economists Ernesto Selman and Miguel Collado Di Franco said that the structural changes would attract more investment, increase productivity, create jobs, generate more revenues and encourage exports.
The economists said that the first structural reforms should include a comprehensive fiscal reform that would lead to reductions in fuel costs, currently among the highest in Central America, which affects Dominican competitiveness. Miguel Collado also pointed out that the cargo transport cost in the DR is 14 cents per kilometer compared to the Central American average of 7 cents. Selman highlighted the slow progress being made towards the signing of an Electricity Pact, for a sector that requires in-depth structural change and de-politicization.
The changes to the cost structure would enable companies to raise wages, instead of the government ordering companies to increase wages.
Collado suggested conducing data analysis on the informal sector. He said the best social policies that the government could implement would be to create the conditions for a business climate that supports private investments, without privileges or exceptions to the rules.
Crees reitera no deben postergar reformas estructurales en RD
