Economist Miguel Collado, executive vice president of the CREES think tank and non-profit consulting organization, urged the Abinader administration to put aside politics and take advantage of the Trump tariffs initiative to push forward needed structural reform in the country. The Dominican Republic has been levied with a 10% tariff on exports to the US, as part of the Liberation Day package presented by the Trump administration on 2 April 2025.
Collado, speaking during an interview for the morning talk show El Despertador on Channel 9, stressed that all has been said and studied and the country could take advantage of the present uncertainties to act. He said this is the time to “motivate change.” It is the time for action, if there is the intent to do something, he says. He suggests returning to the rationale of public policies based on economics. He says structural reform would reduce the cost of production in the country.
“I think there’s been too much discussion, too much talking, and nothing concrete gets done,” he said referring to how the talks date back to 2012 when Crees first insisted on structural reforms as part of the CES economic council discussions. “Now is the time for action if there is genuinely an intent to do something,” he said.
Collado stressed: “The world economy has long been sidelined by politics. These measures, like the ones under the Trump administration, are not based on economics. If they had been based on economics, they obviously would not have been implemented. They are based on politics.
“If we want to continue in the Dominican Republic with political debates, commissions, and consensus-building, it may sound nice to the public, but it’s time for action. This is a golden opportunity that, since it didn’t come from within, is now being imposed from the outside to push for reforms. We don’t need more commissions. Let us look at the economic policies. Which ones have actually worked?”
He mentions the country has had past good experience with tax reform, citing the 1992 tax reform experience that kickstarted the growth of the country.
He recommended the country send a mission to Argentina or invite the Argentinian Minister of Deregulation and State Transformation Federico Sturzenegger to come for a lecture so local economists can learn about the experience that is working for the better in Argentina and the country could do something similar here. Sturzenegger has a PhD in Economics from Massachusetts Institute of Technology and had served as president of the Central Bank in Argentina from 2015 to 2018. Sturzenegger was a professor of economics at University of California, Los Angeles, Torcuato di Tella University (where he also was Dean of the Business School) in Buenos Aires, and Kennedy School of Government of Harvard University. Collado feels Dominican government officials have good relations with Sturzenegger who he feels would be likely to accept the invitation to share his experience.
Collado said that the tax modernization bill the Ministry of Hacienda presented to Congress last year was “an example of what not to do”. Collado has been an advocate of simplifying the tax code, expanding the base, and lowering taxes to 10% across the board. The Abinader administration presented a proposal to increase taxes instead to 18% from the present 16% while expanding the scope. The proposal met with widespread opposition and was pulled from Congress.
Collado says that given the present uncertainty, it is unlikely the country will see in 2025 the 4-5% growth of GDP of 2024. He says this is already apparent in the economic results of the first quarter that show a decline in imports, and drop in bank borrowing.
Collado understands the Dominican Republic “can do better” and calls for the government to focus on creating an improved business climate, which would start with a tax reform based on economics, not politics.
He advocates simplifying permissions, making it less costly to hire formal employees, cracking down on the monopolies in cargo transport and other measures to enhance productivity and improve competitiveness.
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El Despertador Min 34:50
Crees
8 April 2025