The National Business Council (CONEP) is repeating its call for the government to reduce public spending in order to tackle the current monetary crisis. In a working document prepared for CONEP by the economic consultancy firm Ecocaribe, and as presented at the Third Business Convention held at Santo Domingo’s Hotel Jaragua which concludes today, they argue that the government must recognize that the country is in an exceptional situation and that spending cannot continue as it has in the past. The document also recommends the government shed any necessary assets and obtain external financing in order to pay the Central Bank’s debts. It accepts that new taxes may be inevitable, mentioning that some are already in effect, although “not always in adherence to the legal regulations,” it says, going on to call for fiscal reform. CONEP president Elena Viyella de Paliza said: “The problems will not be resolved through new taxes.” The document also urges moderation on the part of the government in its borrowing strategies. According to economist Eduardo Garcia Michel, the country’s external debt could top US$6 billion this year. Ecocaribe and CONEP maintain that the events of the last year in the banking sector must never be repeated. “The Dominican Republic has learned a painful lesson in that it was not rigorous enough in its application of financial sector regulations and controls, it allowed the banking sector to relax its rules, and lastly, it applied an accommodative monetary policy.” The solutions it recommends are strict fiscal policy and an independent banking authority with coherent policies and well-defined objectives. Ecocaribe suggests that any income tax, value-added tax or other levies should be linked to international standards and not be exported. The document also points out that the opening up of the Dominican economy has not been sufficiently planned and that governments have not given enough priority to the process of the DR’s reinsertion into the global economy, citing the lack of policies to support competition and macro-economic management, which has served as a disincentive to the export sector. All those present agreed, however, that an agreement with the International Monetary Fund is necessary. El Caribe’s main editorial hails the CONEP/Ecocaribe document as the first long-term plan for the nation’s development, with its in-depth analysis of all the factors that have led to the current situation, as well as proposals for policies and solutions aimed at extricating the nation from the crisis. This is something that, according to the writer, has never been done before in this country, where plans do not tend to last beyond any one government’s lifespan. CONEP is the country’s largest business association.