Two weeks ago, President Luis Abinader declared that one of the objectives of his second term is to wipe out hunger in the Dominican Republic. Many in the press and on local television scoffed at the idea, but last Friday, 13 December 2024, Rodrigo Castañeda, who represents the United Nations Food and Agriculture Organization (FAO) in the Dominican Republic declared that such a goal was possible.
Castañeda noted that Chile, Uruguay and most recently, Costa Rica, had achieved this goal, and that the way to do this was via increased production, increasing incomes, and strengthening social programs in order to guarantee access to food for the most vulnerable sectors of the population. The FAO representative praised the presidential initiative, and noted that the efforts of the country already produce over 90% of the food consumed in the country. He noted the positive role played by the Ministry of Agriculture as he spoke at the ceremonies closing the first stage of training for 50 agricultural extension agents from the ministry, and the Dominican Coffee Institute.
Meanwhile, Miguel Collado di Franco, executive vice president of the Regional Center for Sustainable Economic Strategies (CREES), criticized the government’s reliance on increased public spending and social programs to reduce poverty levels.
The economist argues that creating conditions for more private investment, which generates quality jobs and fosters a virtuous economic cycle, is a more effective way to tackle poverty and marginalization.
“Even the Ministry of Economy, Planning, and Development—which is set to be dissolved—acknowledges in its poverty rate analysis that a significant portion of poverty reduction is due to these transfers,” Collado di Franco noted.
He emphasized that this approach perpetuates a cycle of increased spending to compensate for a lack of economic growth driven by value-added production. “Our growth is based on low value-added activities and heavily reliant on government spending,” he said.
Collado di Franco also expressed concern about the informal economy, stating that its size and activities make it difficult to accurately measure economic growth. He called for structural reforms similar to those implemented in the 1990s to enhance the country’s competitiveness.
Collado di Franco concluded by highlighting the need for a balance between public spending and investment. He criticized the government’s tendency to prioritize current spending over capital investment. He said poverty is combatted creating quality jobs not welfare programs.
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Diario Libre
El Dia
16 December 2024