NewsWhore
08-17-2007, 03:30 PM
Hoy newspaper summarized the challenges ahead for the Fernandez administration as it enters its fourth year. Economist Jose Luis de Ramon says that the government can point to achievements in macroeconomic stability, low inflation and interest rate reductions. This has attracted considerable investment, which in turn has generated "a sturdy growth in imports". He said that the government's Achilles heel continues to be the almost RD$180 billion (more than US$5 billion) in quasi-fiscal debt held in Central Bank certificates. He said that this large debt could weaken the country's macroeconomic stability. "The challenge is going to be how we can move to a more competitive exchange rate, without affecting the economy and interest rates," he said. He said that indirectly, macroeconomic stability enables companies to develop and become more competitive. He said that the present administration has raised taxes several times, which has increased their income. He said that government collections this year should reach a record RD$270 billion.
According to de Ramon, two of the most pressing problems that the government still needs to tackle are corruption and electricity. He said that even government officials themselves have spoken out against the high levels of corruption in government. He said that corruption has an economic effect, as it leads to inefficiency and affects wealth generation capacity. He said that an effective solution to the electricity problem has still not been found, and a flexible system has not yet been created. After three years in government, "there is not yet light at the end of the tunnel," he stated.
More... (http://www.dr1.com/index.html#4)
According to de Ramon, two of the most pressing problems that the government still needs to tackle are corruption and electricity. He said that even government officials themselves have spoken out against the high levels of corruption in government. He said that corruption has an economic effect, as it leads to inefficiency and affects wealth generation capacity. He said that an effective solution to the electricity problem has still not been found, and a flexible system has not yet been created. After three years in government, "there is not yet light at the end of the tunnel," he stated.
More... (http://www.dr1.com/index.html#4)