2005News

US concerned about corruption

During an interview with Listin Diario, US Agency for International Development (USAID) Director Elena Brineman stated that corruption and the lack of transparency represented the greatest threat to the DR’s democracy and social and economic development, and could hinder the benefits the country could derive from DR-CAFTA. She called for greater transparency and specifically mentioned the need to pass the bill that regulates government purchases. Brineman explained that economic development depends on the fight against corruption and that most problems are to be found in the institutional area, the business environment, the people’s confidence in politicians, transparency, contracting security and judicial security. Another area of great concern is the power sector where the DR is in the 110th position out of a total of 117 countries analyzed. The US official also mentioned bribery in the Customs Department and for obtaining of all kinds of licenses, and said these factors affect competitiveness, democracy and the social aspect of the country. When asked why there was no greater US investment in the DR she said that bribery is illegal in her country and thus US companies are not going to risk their capital if bribes must be paid to be able to compete. According to Brineman, bribes are hidden taxes and as an example she cited the cost of medicine used to treat tuberculosis, which is being bought for US$120 and US$140 when it costs as little as US$10 or US$14. Other issues that must be worked on, according to Ms. Brineman, are intellectual property, the environment, rules of origin, customs and judicial security.