NewsWhore
08-03-2009, 05:30 PM
Groundbreaking on large public works financed with high-cost foreign debt seems to have brought a look of progress to the DR. But at what price? National Association of Young Entrepreneurs (ANJE) director Ricardo Bonetti, in an interview with Hoy, explained that stimulating the economy through foreign debt or public spending is a mistake.
"We understand it is a very risky policy and that in the long run will have destructive effects on the economy," he said. He added that though this policy has worked in other countries, in the DR this has not been the case. He said that so far borrowing for public works has resulted in making more money available for superfluous government spending.
Bonetti says that the nation's economic model should be based on incentives granted to business to generate jobs.
Recently, the Fernandez administration announced the start of the overpasses for the John F Kennedy and 27 de Febrero avenues that would be financed with a loan from the Brazilian export finance agency.
More... (http://www.dr1.com/index.html#5)
"We understand it is a very risky policy and that in the long run will have destructive effects on the economy," he said. He added that though this policy has worked in other countries, in the DR this has not been the case. He said that so far borrowing for public works has resulted in making more money available for superfluous government spending.
Bonetti says that the nation's economic model should be based on incentives granted to business to generate jobs.
Recently, the Fernandez administration announced the start of the overpasses for the John F Kennedy and 27 de Febrero avenues that would be financed with a loan from the Brazilian export finance agency.
More... (http://www.dr1.com/index.html#5)