President Hipolito Mejia was proclaimed the PRD presidential candidate during the party's XX National Special Convention, in which 2,091 delegates of the 2,511 members accredited by the Central Electoral Board (JCE) participated. The convention was held on Saturday at the Sports Palace arena of the Juan Pablo Duarte Olympic Center. Mejia reportedly won the nomination with 607,895 votes against the 30,000 votes of last-minute contender Dr. Frank Joseph Thomen. Thomen's name was registered as Mejia's opponent when the JCE extended the deadline for the inscription of candidates for the PRD primary, after Mejia's original party opponents, including Vice-President Milagros Ortiz Bosch, refused to run against him citing fear of fraud. In his nomination acceptance speech, Mejia promised to get rid of the poverty that he considered to be the result of the bank failures, the speculation in the dollar market and "a few of the rich and the oligarchy." President Mejia explained his drive by saying, "God knows that it is not ambition, but love of my people that pushes me to fight this new battle."
In addition to naming their electoral candidate during the Saturday XX National Special Convention of the PRD, the party delegates also removed Hatuey Decamps from the party presidency, replacing him with Vicente Sanchez Baret, the director of the Customs Department. During the Saturday event, the convention authorized former President Salvador Jorge Blanco to register Sanchez Baret's appointment before the JCE. The delegates of the party designated Sanchez Baret, President Mejia and former President Jorge Blanco to make a deal with any other PRD member in case Congress passes the Ley de Lemas bill that would reform electoral law to allow multiple candidacies from a single party. El Caribe newspaper points out that previously former President Jorge Blanco had shunned a high-profile role within the party after being sentenced for corruption in office (1982-1986). Mejia pardoned the sentence at the start of his own presidency.
On a Sunday TV program on Channel 9 produced by Miguel Franjul and Ruddy Gonzalez, Decamps denied that he could be replaced, saying he did not recognize the legality of the Saturday convention. Decamps announced he would impugn before the Supreme Court of Justice several recent JCE that led to Mejia's proclamation as the PRD candidate. Decamps said that within the PRD structure, only the party president can legally register candidates in the primary, and not a primary organizational committee as the JCE had ruled in its 22 December resolution that extended the deadline to register candidates for the PRD nomination. Decamps says that Mejia is trying to imitate ploys such as those perpetrated by former President Balaguer. "This is the tale of an announced death, a Phyrric victory," he told El Caribe. "This is not a win, it is a boomerang. He did not have a contender [in the 18 January primary], and had to rent [Frank Joseph] Thomen, bringing to mind the times of Balaguer," he said.
Meanwhile, on the same TV broadcast, PRD secretary general Rafael Subervi Bonilla, who was not ousted during the Saturday convention, called the replacement of Hatuey Decamps as a further step towards the "terrible division" of the PRD. He commented that he had sent President Mejia a letter telling him that the announcement of his candidacy would be the burial of the party.
El Caribe newspaper reports that a commission has been summoned to revise the bylaws of the PRD party.
Cardinal Nicolas de Jesus Lopez Rodriguez warned that President Hipolito Mejia, his family and the country would regret the statesman's nomination as the official PRD candidate for the 16 May election. The cardinal said that in spite of the many times he has plainly said that Mejia should not seek re-election, the President went ahead anyway. "I am sorry that he has accepted to be the party's candidate because he stated many times he would not run. I am convinced that this acceptance will not in any way benefit the Dominican people; the President will regret it, as will his family and the country, too," said the Cardinal during a mass on Saturday at the Santo Domingo Cathedral on occasion of the National Youth Day. He told the young people attending the service: "You need to be in tune with youth of the country of which you are part. And ask the Lord to help us get out of this confusing situation that the Dominican Republic lives today, with big problems of all kinds."
When on his weekly Sunday TV program, President Mejia was asked to comment on the Cardinal's statements, Mejia dismissed the cardinal's comments by saying: "He probably does not like the idea of re-election. That's not my problem."
Hoy newspaper is reporting that President Mejia told his TV audience that he received a call from PLD spokesman Euclides Gutierrez Felix, who told him that an attempt would be made on the life of former President Leonel Fernandez during the massive caravan held last 26 January. Mejia told his audience that Police Chief Jaime Marte Martinez had also informed him of the possibility of a plot in the works to harm the principle PLD leader. While this news garnered headlines in Hoy, no such attack transpired during the political march though the poorest areas of Santo Domingo.
The National Council of Social Security (CNSS) reports that as of 31 December 2003, 982,774 (or 66.13%) of a total 1,486,504 employees have been signed up for the national pension system. Of these, 659,241 (or 67%) are having deductions made from their paychecks to contribute to the nine Administradoras de Fondos de Pensions (AFPs) and a Fondo de Reparto, corresponding to rights accrued from the previous pension system. This means Dominicans have contributed RD$1.84 billion to a system that is mostly handled by commercial banking institutions in the DR as per Law 87-01. The law also contemplates affiliating self-employed and independent workers. The system begins at a time when Dominican pesos are rapidly depreciating. Analysts have not yet explained what action is being taken to preserve the value of the employees' contributions. The pension plan offers a retirement plan and a disability pension. While the system got underway in July 2003, implementation of the universal health services program under Social Security Law 87-01, a second phase of the pension system plan, has continuously been postponed. The AFPs are Popular (28.9%), Siembra (13.9%), BBVA (12.2%), Reservas (11.3%), Porvenir (11.9%), Caribalico (1.9%), Camino (1.9%), Profesional (1.2%), Romana (1.2%).
In an interview with Hoy newspaper, Persia Alvarez de Hernandez, the Superintendent of Pensions, said that the as of Wednesday, 28 January, the system held RD$2.12 billion, with 723,000 accredited members. Of them, 84.3% are members of the AFP and 15.7% are part of the government pension fund. She explained that the funds have an average annual yield of 24% (with a 42% inflation rate last year). Furthermore, she said that 59.4% of those paying into the system are under 35 years of age, 38% are between 35 and 59, and 2.5% are above 60. Of the total number of insurees, 64.6% are men and 35.4% are women.
In an interview with El Caribe, Alvarez said that Dominicans who live abroad can also participate in the Dominican pension plan, contributing in pesos, dollars or euros, which would determine who they receive their pension upon retirement.
Moody's Investors Service relegated the Dominican Republic's foreign currency country ceiling for debt to B3 from B2. In its announcement, Moody's said the downgrading reflected the heightened risk of a rescheduling of the country's rated instruments in the context of a strained external liquidity position. In addition, Moody's reduced the ranking of bonds issued by the government in both pesos and dollars to B3 from B2. The foreign currency bank deposit ceiling was also demoted to Caa1 from B3. The outlook on all the ratings remains negative. Moody's explained that the country is in arrears with official creditors in view of having reportedly missed the deadline on an interest payment for a rated bond. As there is a grace period of 30 days, however, the expectation is that this problem will be resolved in the not too distant future. The agency said that the country is also expected to reschedule its debt service payments due in 2004 to Paris Club bilateral creditors. In Moody's opinion, although the nation's external debt ratios continue to reflect a moderate debt burden, the corresponding external liquidity ratios reveal a degree of vulnerability that is better indicated by the new ratings. At the same time, according to Moody's, since it is not clear how negotiations with official bilateral creditors will affect bondholders in the context of "comparability of treatment", the outlook on the ratings remains negative.
Fitch Ratings also announced downgrading of the DR's rating, citing the government's inability to pay the US$27 million interest payment due last 23 January as the reason for downgrading from B to CCC+ and maintaining the negative outlook.
International agency Fitch Ratings also announced a downgrading of the DR's rating, citing the government's inability to pay the US$27-million interest payment due 23 January as the reason for the demotion from B to CCC+, with a negative outlook being maintained.
According to Fitch, the missed payment could potentially be a reflection of underlying financial stress of the sovereign. The government intends to pay the coupon before the grace period expires in 30 days. Although Fitch estimates that by year-end 2003 gross public sector and external debt (including private sector) increased to 43% of current account receipts (CXR) and 53% of CXR, respectively, it explains that this is still very little in relation to other sovereigns in the 'B' rating category. According to Fitch, Dominican debt service is also low as related to peers, as more than 70% of the debt is due to multilateral and bilateral creditors and benefits from concessionary terms, leading Fitch to believe that, in spite of low liquidity, meeting the sovereign's financial requirements is manageable as long as multilateral support continues.
In addition, given the Dominican Republic's fragile liquidity position, Fitch is also concerned about the implementation of the government's standby program with the IMF due to pre-electoral politics and the possible implications this could have for multilateral disbursements. Divisions within the ruling Partido Revolucionario Dominicano (PRD) party over who should be its presidential candidate have complicated the political environment. With US$504 million in public sector medium- and long-term debt amortizations due this year (versus an estimated US$260 million in reserves), the Dominican Republic can ill afford to lose any multilateral financing.
Leading economist Bernardo Vega warns that the proposed new agreement with the IMF might meet the same fate as the first agreement signed last August. In his opinion, the IMF agreement is the only way to stop the devaluation of the peso. The accord is expected to be approved by the IMF directorate in mid-February, and the first review to be held in mid-April. Vega warns that there are many ways to break the new agreement, but that there are three that are most probable. The first would be in the case of the IMF insisting on a free exchange market, and wanting Mejia to commit to this in public. The President did this once before, but turned around and started to talk again of market controls. For the IMF, controls on currency exchange are anathema and they will not vary their position. A second way to break the accord is well known to all of us, as it is what broke the first agreement: the purchase of the Union Fenosa operations in the country. Recent declarations by the Finance Minister regarding the purchase of the Ede-Este or other generators, based on an increasing international debt, would put the agreement in grave danger. A third way to break the agreement would be to exceed the limits established in the Second Letter of Intent, which places strict boundaries on the current accounts, including payroll and the foreign debt limit. As an example of this, Vega cites the case where several former military officers publicly stated their support for the PLD and were immediately re-instated to the Armed Forces, thereby increasing the payroll. The President sent a loan application for US$50 million to Congress for the second stage of the program of vocational schools for the Armed Forces. This would violate the debt limit for foreign debts, besides being the fifth deal reached with a group of Spanish businesses that are located at the same address in Madrid, belonging to the same owner and that so far total US$250 million. The motives behind this are obvious: to try and politicize the high command of the Armed Forces. Vega, therefore, as a former Dominican ambassador to the US and Central Bank governor, believes that some folks would think that once the second agreement has been signed and funds disbursed, it would be convenient to violate the agreement. "They would begin a huge program of public works using inorganic money, even if they didn't get the IMF disbursements in April," he writes. Bernardo warns that a greater devaluation of the peso will lose more votes for the PRD than will be gained by the public works program. In his opinion, everyone would benefit if the government fulfills its obligations with the IMF.
The proposed Free Trade Agreement (FTA) between the Dominican Republic and the United States will be seen by foreign investors, especially those from Spain, as a positive sign that could attract investments. Mario Garcia Alverez, the president of the Spanish Chamber of Commerce and Industry in the Dominican Republic, told reporters from the Listin Diario that an agreement of such proportions would be well regarded by the European nations, and especially lucrative to the Spanish investor. Garcia Alverez pointed out that the buyout of Union Fenosa's interests in the Dominican power sector did not harm commercial relations between the two countries. Nevertheless, Enrique de Marchena, the president of the private sector Tourism Promotion Council (CPT), told Bredyg A. Disla from the Listin Diario that the current political and economic climate is a matter of concern for Spanish investors in the tourism sector, despite this being a boom year for tourism. Sixty percent of the investment in the tourism sector comes from Spain.
El Caribe reports that the continuing 14-hour long blackouts that are hitting areas in every part of the country are not easily solved. The energy deficit over the weekend reached 800MW - or about 50% of total demand. Yesterday, the generator Macoris I entered the grid with 100MW of energy. According to company-supplied information, Ede-Norte, Ede-Sur, Ede-Este and the CDEEE owe the power generators US$400 million. The government, however, is far behind in its payments to the distributors, with arrears having reached RD$2 billion since the creation of the compensation fund that was designed to avoid large increases in the electricity rates. Ede-Este is owed RD$800 million of that money. Last week, Itabo shut down and Ege-Haina warned that if there were no resources from the distributors, it would shut down during the first days of February.
The board of directors of the Dominican College of Engineers, Architects and Surveyors (CODIA) called the Duarte Bridge "unsafe for any use" due to the poor condition of all the parts of the bridge linking the eastern and western parts of Santo Domingo. The bridge is the oldest of the four that cross the Ozama River. According to El Caribe newspaper, any use of the bridge is hazardous at this time, as dangerous irregularities in the surface could be produced. One of the most worrisome aspects of the bridge situation is the state of the cables, which have suffered a "progressive deterioration over the last eight years." The CODIA report says the cables, towers and footing of the bridge are among the structures most in need of repair. After further revision, the study will be submitted to Miguel Vargas, the Public Works Minister. Amancio Lopez, the president of the engineers' group, said that they were not trying to pressure the ministry, but rather to serve as their consultants. The government is limiting use of the bridge to one central lane. Over the years, the government has made so many payments towards repairing the Duarte crossing that a new bridge could have been built. Due to the increasing traffic between East and West, the government built the Juan Bosch Bridge that runs parallel to the Duarte.
El Caribe reported on Saturday that beginning in the 90s, when the Dominican Republic went through a severe economic crisis, and then again, in the middle of that decade, an electoral crisis, the incidence of illegal migration increased markedly. Today, we are seeing the same phenomenon. During the year 2003, the authorities intercepted 1,469 illegal travelers trying to reach Puerto Rico in the little boats called "yolas." By the end of January of 2004 alone, the authorities had intercepted 1,340 people headed for Puerto Rico. In 1990, according to El Caribe's Itania Mari, the US Coast Guard hauled in 1,246 individuals trying to cross the Mona Passage. In 1991, 1,455 were captured and returned to their point of origin, while the years 1992 and 1993 saw less than half those numbers. In 1994, 1995, and then peaking in the electoral crisis of 1996, however, 810, 4,047 and 5,430 individuals were apprehended, respectively. These figures indicate that the year 2004 could be a record-breaking year for such illegal migrantion. Sociologists Antinoe Fiallo and Celedonio Jimenez say there are two reasons for the new wave of illegal travelers. The first is a serious worsening of the economic situation and the second is a crisis of expectations. The sociologists told reporters that among today's youth, there is a feeling of being trapped in their neighborhoods with no apparent way up or out.
In two separate editions El Caribe presents some original solutions to the money problems we are all going through. In an article on Saturday, El Caribe revealed that shopping at Chinese markets is cheaper than at most of the supermarkets in the country. Meat was cited at RD$20 less a pound at the Chinese markets. According to some of the shoppers interviewed, prices for cooking oil and meats are generally much cheaper that at the bigger stores. Supermarket "Fortuna" in Los Mina and Supermarket "Quin" on Josefa Brea Street were two Chinese establishments mentioned. Alcoholic beverages were also cited as being less expensive at the Chinese locales. Fifteen of the thirty-three markets that belong to the National Union of Economic Supermarkets (UNASE in Spanish) are Chinese, according to Juan de Dios the union spokesman. According to what El Caribe could see, the mass purchasing power of the UNASE permitted lower prices on many popular products such as disinfectants, rice and cooking oil.
Another solution to the problem can be found in the many informal eateries found on the streets of the major cities, especially Santo Domingo. According to the article published Sunday in El Caribe, Yanet Beltre reports that office employees, construction workers, chauffeurs and street salespeople use sidewalk food vendors as a way to save a lot of money. Food is produced from the trunks of cars, tricycle baskets or large plastic pails carried by the mobile merchants. In spite of recent price hikes of up to 50%, the informal eateries are still quite popular. They serve breakfasts for RD$30 and daily lunch specials for between RD$50 and RD$70. Few chairs are available and clients sitting on the curb, leaning against walls or just standing on the sidewalk. One food saleswoman said that she prepares her food at her home and takes it every day but Sundays to Manuel de Jesus Troncoso and the corner of Francisco Prats Ramirez, behind Plaza Central, where her faithful clients are waiting. The woman says that she has been at this for 14 years and has managed to raise her family with the money she earns. While hygiene might be suspect, several of the vendors said that Public Health inspectors stop by frequently to assure that no cooking is done on the street, that no garbage is left lying around and that all the food is properly covered. One lady told reporter Beltre that some of the local restaurants in her area had asked her to move. She said that her business had increased because of the crisis and many of the restaurant's former clients were coming to her for their lunch.
The Dominican Republic won its first game against Mexico, 6-5, making it the favorite to win the series. For details, see http://www.lidom.com/
Licey seeks to win the 15th victory in Caribbean Series for the Dominican Republic in the tournament's 46th year. The DR's Aguilas Cibaenas were crowned last year's champions in Puerto Rico. The DR goes up next against the Venezuela (Tigres de Aragua) with such players as Miguel Cabrera of the Florida Marlins. Puerto Rico is represented by the Leones de Ponce, with Omar Olivares and Carlos Baerga as leading attractions of that squad. Mexico's Tomateros de Culiacan won the 2002 Caribbean Series held in Venezuela.
The teams:
Dominican Republic - Manager: Manny Acta. Players: Brandon Marsters, Sandy Martinez, Jose Offerman, Luis Castillo, Miguel Tejada, Mendy Lopez, ronie Belliard, David Ortiz, Izzy Alcantara, Rafael Furcal, Timoniel Perez, Abraham Nun?ez, Henry Rodriguez. Pitchers: Jose Jimenez, Salomon Torres, Rafael Soriano, Claudio Vargas, Rafael Roque, Guillermo Mota, Felix Rodriguez, Francis Beltran, Jorge Sosa, Damaso Marte, Joe Horgan, Manny Aybar.
Mexico - Manager: Francisco Estrada. Players: Elmer Dessens, Rodrigo Lopez, Edgar Gonzalez, Francisco Campos, Jesus Guzman, Rigo Beltran, Luis Ayala, Heber Gomez, Mike Garcia, Derrik White, Oliver Perez, Darrel Sherman, Jose Macias, Benjamin Gil, Kit Pellow, Luis Carlos Garcia, Derrick White, Mario Valdez, Adan Amezcua, Oscar Robles, Melvin Nieves.
Puerto Rico - Manager: Jose "Cheo" Cruz. Players: Carlos Baerga, Raul Gonzalez, Jose Enrique Cruz, Jose Molina, Carlos Rivera, Luis Lopez, Raul Nieves, Valentino Pascucci, Jose Hiram Bocachica, Raul Casanova, Robinson Cancel. Pitchers: Osvaldo Fernandez, Dickie Gonzalez, Pedro Feliciano, Giancarlo Alvarado, Jose "Cheo" Alberro.
Venezuela - Manager: Buddy Baily. Players: Alex Cabrera, Luis Rodriguez, Luis Landaeta, Robert Perez, Jose Miguel Cabrera, Magglio Ordonez, Carlos Zambrano, Endy Chavez, Edgardo Alfonso, Henry Blanco, Ramon Hernandez. Pitchers: Ricardo Palma, Elio Serrano, Francisco Rodriguez, Carlos Siva, Orber Moreno, Javier Ortiz.
Games Calendar (games at 4pm and 8pm)
Sunday, 1 Feb: Puerto Rico vs. Venezuela; Mexico vs. DR
Monday, 2 Feb: Venezuela vs. Mexico; DR vs. Puerto Rico.
Tuesday, 3 Feb: Puerto Rico vs. Mexico; DR vs. Venezuela.
Wednesday, 4 Feb: Venezuela vs. Puerto Rico; DR vs. Mexico.
Thursday, 5 Feb: Mexico vs. Puerto Rico; Venezuela vs. DR.
Friday, 6 Feb: Mexico vs. Venezuela; Puerto Rico vs. DR.
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