NewsWhore
07-01-2010, 03:00 PM
The president of the Association of Industries of the Dominican Republic (AIRD), Manuel Diez Cabral has called for initiatives to help turn the DR into an exporter nation. Speaking at an American Chamber of Commerce luncheon meeting, Diez Cabral called on the government to exercise its role as a regulator, comply with the Electricity Law and apply the technical tariff and gradual elimination of the subsidy; and come up with the support needed for a strong industrial development alongside the booming tourism industry. He also called for a taxation model that encourages investment and exports, while discouraging unfair competition. He said that distorting taxes, such as those on assets, banking transactions and exports should be eliminated, and for the implementation of initiatives aimed at encouraging innovation, modernization and reinvestment. He said that DR industries are at a disadvantage compared to Central American competitors, mentioning El Salvador where there is a 6% subsidy that benefits exporters.
Diez Cabral was speaking on "Industry, Backbone of Development and Jobs". He said that exports were down 5% compared to 10 years ago and that if action is not taken, our competitors will "eat our lunch and leave us to just wash the dishes." He said we should emulate Taiwan and South Korea, which have seen 71% and 112% increases in exports.
Diez Cabral criticized possible tax increases, and the fact that the country does not have an independent Superintendence of Electricity. He criticized the fact that the current superintendent has stayed on in the job two years longer than the period established by the law.
He also criticized the fact that a commission for unfair trade practices is not operating, the monopoly on cargo transportation, lack of quality in education, disadvantages in labor legislation, and the highest electricity costs in Latin America.
Diez Cabral said Dominican industry needs to become an example of efficiency and competitiveness and for this to happen, politics must be removed from the electricity sector and the Superintendence of Electricity needs to become an efficient regulator.
He called for the creation of a financial development entity, which would finance 100% of the cost of machinery that small industry needs with 10-year terms and a grace period of two years, and 80% of cost of machinery for heavy industry.
He said that while other nations are executing these programs, bank funds in the DR are being used to finance the purchase of vehicles for consumers.
He said that manufacturing in the country has declined 9% from 2000 to 2009. He also mentioned that while in 2000 the sector received 11% of banking loans, 10 years before it only received 3% of the loans.
And despite the free trade agreements, exports are down 5% in the past five years, while imports are up 55%.
He complained that while it is easier to get a loan for purchasing a vehicle than for an industry, it is also easier for the government to get a loan than industry.
He also stressed that if the country has decided it wants a high-value-added manufacturing model and not one based on cheap labor, it needs to have skilled labor. But if the objective is to create jobs, then we cannot ignore the basics while we focus on advanced production. He called for labor reforms to reverse the trend that favors low quality informal employment versus formal jobs that are sustainable with the growth of companies.
Diez said that the industrial sector's contribution to GDP declined from 34% when the first free trade agreement with Central America was signed in 2000 to 25.8% in 2009.
More... (http://www.dr1.com/index.html#9)
Diez Cabral was speaking on "Industry, Backbone of Development and Jobs". He said that exports were down 5% compared to 10 years ago and that if action is not taken, our competitors will "eat our lunch and leave us to just wash the dishes." He said we should emulate Taiwan and South Korea, which have seen 71% and 112% increases in exports.
Diez Cabral criticized possible tax increases, and the fact that the country does not have an independent Superintendence of Electricity. He criticized the fact that the current superintendent has stayed on in the job two years longer than the period established by the law.
He also criticized the fact that a commission for unfair trade practices is not operating, the monopoly on cargo transportation, lack of quality in education, disadvantages in labor legislation, and the highest electricity costs in Latin America.
Diez Cabral said Dominican industry needs to become an example of efficiency and competitiveness and for this to happen, politics must be removed from the electricity sector and the Superintendence of Electricity needs to become an efficient regulator.
He called for the creation of a financial development entity, which would finance 100% of the cost of machinery that small industry needs with 10-year terms and a grace period of two years, and 80% of cost of machinery for heavy industry.
He said that while other nations are executing these programs, bank funds in the DR are being used to finance the purchase of vehicles for consumers.
He said that manufacturing in the country has declined 9% from 2000 to 2009. He also mentioned that while in 2000 the sector received 11% of banking loans, 10 years before it only received 3% of the loans.
And despite the free trade agreements, exports are down 5% in the past five years, while imports are up 55%.
He complained that while it is easier to get a loan for purchasing a vehicle than for an industry, it is also easier for the government to get a loan than industry.
He also stressed that if the country has decided it wants a high-value-added manufacturing model and not one based on cheap labor, it needs to have skilled labor. But if the objective is to create jobs, then we cannot ignore the basics while we focus on advanced production. He called for labor reforms to reverse the trend that favors low quality informal employment versus formal jobs that are sustainable with the growth of companies.
Diez said that the industrial sector's contribution to GDP declined from 34% when the first free trade agreement with Central America was signed in 2000 to 25.8% in 2009.
More... (http://www.dr1.com/index.html#9)