SANTO DOMINGO. - In the last six years the Agro Imports Commission has issued permits to 8,455 individuals and companies, who benefit from the Dominican Republic-U.S.-Central America Free Trade Agreement’s (DR-CAFTA) lower tariffs.
Just in 2012 the Government commission formed by the ministries of Agriculture, Presidency, Industry and Commerce and Customs disclosed the names of 2,344 importers with rights to receive permits to bring merchandise from the United States and Central America, after meeting the pact’s requirements.
The calendar began in 2007 with 562 permits issued to companies and people; with 1,780 beneficiaries in 2008; 783 in 2009; 1,008 in 2010 and 1,906 in 2011.
In a statement, the Commission said the beneficiaries who figure in the list have the right to decide on this year’s import quota, including milled rice, semi-white rice, beans and beef.
The Commission also included beef trimmings, turkey, pork portions, pig fat and bacon, and chicken trimmings, pieces and boned chicken, powdered milk, liquid milk, butter and cheeses, among others in the list.
It said more information is available in the Agriculture Ministry Website agricultura.gob.do, such as the names of the people and companies and amounts assigned.
Written by: juanb, 26 Jan 2012 2:08 PM
From: Dominican Republic
Remember, we were the hotbed of sewing in the Caribbean. When CAFTA was passed we only had to enact a few laws to take part. Honduras, Guatemala, and others did it in three weeks. Manufacturers from those countries could then ship to the US duty free. It took us THREE YEARS. By the time we passed the necessary legislation all the big companies had pulled out and gone elsewhere. For example Levi's was making millions of pants here per month before.
Today? ZERO
We owe a big thank you to our government for their inability to function in the modern world.
Written by: Atabey, 26 Jan 2012 2:28 PM
From: United States
Los recalcitrantes, los recalcitrantes!! Tocayo. These domestic devils have long denied DR a far better and more prosperous future.
If you think your example is bad, just remember the Paradigm shifting offer these recalcitrant parties passed up in 1966!
An Export Led Industrial Model or ELI that would have re-articulated DR's future like no other in its history. Sadly, our leaders have too often "never miss an opportunity to miss an opportunity."
Better to divide the old dictators coffers and protect domestic monopolists than realize the great leap in future productivity and vast investment flows that the ELI MODEL would have achieved.
But things are a bit better with this DR-CAFTA FREE TRADE DEAL. Now, these forces have to open up and compete based on international legal agreements. Every few years more production is opened to free trade. Sadly, we could have arrived at this point with soooo much more anticipation and advantages over the rests!!
From: Dominican Republic
This article is full of BS. In reality the tax on cars was removed however then the new vehicle licnse plate took effect.
The PLD is a master of lies and spins.
From: United States
An Export Led Industrial Model or ELI that would have re-articulated DR's future like no other in its history. Sadly, our leaders have too often "never miss an opportunity to miss an opportunity."
this guy never misses an opportunity to spout rubbish. an export led model, like the one proposed to Balaguer, would have created NOTHING positive for the DR. Nothing. it was the precursor to the Mexican style maquiladora model, which has spawned nothing but crime, drugs, and prostitution , all over the nothern border. poor Atabey believes that all export led models are the same. he confuses the American proposal with the developments in the Asian states, because he does not understand the difference between a strategy and a model. poor soul
Written by: RoyStone, 26 Jan 2012 8:17 PM
From: Australia
Correct me if I'm wrong, but it seems to me the Dominican Republic imports much more than it exports, so where's the benefit?
From: United States
ask the free trade guru. you know who he is.
Written by: Atabey, 26 Jan 2012 8:25 PM
From: United States
Written by: dreadlocks, 26 Jan 2012 7:52 PM
From: United States
An Export Led Industrial Model or ELI that would have re-articulated DR's future like no other in its history. Sadly, our leaders have too often "never miss an opportunity to miss an opportunity."
this guy never misses an opportunity to spout rubbish. an export led model, like the one proposed to Balaguer, would have created NOTHING positive for the DR. Nothing. it was the precursor to the Mexican style maquiladora model, which has spawned nothing but crime, drugs, and prostitution , all over the nothern border. poor Atabey believes that all export led models are the same. he confuses the American proposal with the developments in the Asian states, because he does not understand the difference between a strategy and a model. poor soul"
Rubbish Dready. You should known better.
Written by: Atabey, 26 Jan 2012 8:33 PM
From: United States
Written by: RoyStone, 26 Jan 2012 8:17 PM
From: Australia
Correct me if I'm wrong, but it seems to me the Dominican Republic imports much more than it exports, so where's the benefit?"
Dready can't deal with answering that question Roy. He hasn't a leg to stand under because he understands that the DR blew it big time back in 1966. One full decade before China began to open up under Deng, the DR would have had and those foreign capitalist who would have invested in DR to take advantage of free trade entry into the largest economic market in the world the UNITED STATES(1966-2000s).
Sadly, our leadership proved itself the recalcitrant lot they have been for many generations and decided against the Export industrialization Model. One of their crazy held beliefs was no devaluation of the peso to the dollar, thus making the DR and its low labor productivity uncompetitive in world markets.
Written by: RonEvane, 27 Jan 2012 5:51 AM
From: United States, Gaithersburg, Maryland
{"Commission: Free Trade pact benefits thousands of importers"}
Why, sure it does. But what about local manufactures, growers and producers?..and ultimately, consumers?
The more we buy from outside, the less local industry benefits.
The government should limit importers to items not manufacture locally. And even then, to an annual quota.
We must protect ourselves from being a dumping ground from the rest of the CAFTA members.
Written by: RoyStone, 27 Jan 2012 10:27 AM
From: Australia
For a time the Australian government imposed a system on the automotive industry of Export Credits. Automotive companies' Import Quotas were based on the value of their exports. Since then Australia has dropped most protectionism.
Still if the Dominican Republic wants protection then such a model may work here, yeah?
Please consider.
From: United States
Sadly, our leadership proved itself the recalcitrant lot they have been for many generations and decided against the Export industrialization Model. One of their crazy held beliefs was no devaluation of the peso to the dollar, thus making the DR and its low labor productivity uncompetitive in world markets.
so says the third grade dropout, who thinks he knows about international economics, but could not find Grand Turk on a map, if you give him a month. Atabey, can you please tell us about the benefits that would have been gained by devaluation? i cannot wait.
From: United States
Written by: Atabey, 26 Jan 2012 8:33 PM
From: United States
Written by: RoyStone, 26 Jan 2012 8:17 PM
From: Australia
Correct me if I'm wrong, but it seems to me the Dominican Republic imports much more than it exports, so where's the benefit?"
Dready can't deal with answering that question Roy.
more rubbish from the single digit IQ guy. Dready cannot deal with answering that question, he muses. i do not have to answer it. i ask it often enough. i am the guy who questions so called "free trade". you are the guy who supports it. maybe you should be the guy to answer it. oops...i forgot...you cannot answer. you do not have the information. before i forget, did you drum up the FIGURE i asked you for, now two weeks? do i have to wait until you graduate from the 5th grade? that could take a while.
Written by: Atabey, 27 Jan 2012 12:43 PM
From: United States
Roy,
When is Dready going to show us his "master thesis" for why it was a very Good deal for the DR to disregard the USA offer to facilitate implementation of an Export Industrialization Model in the late 1960s?
Any clue when that "study" will hatch?
From: United States
Written by: Atabey, 27 Jan 2012 12:43 PM
From: United States
Roy,
When is Dready going to show us his "master thesis" for why it was a very Good deal for the DR to disregard the USA offer to facilitate implementation of an Export Industrialization Model in the late 1960s?
Any clue when that "study" will hatch?
i have it already written. all i need to do is to type it. i have decided against it, because it would just invite more idiocy from you, and i am all idiotted out, having to deal with you, on a repetitive basis. so, i will make you a deal. give me my figures, and i will publish the article.
Written by: Atabey, 27 Jan 2012 12:59 PM
From: United States
Then before all the DT audience I, Atabey, do challenge you, Dreadlocks, to a battle.
I stand for the proposition:
The Export Industrialization Model or ELI was a better alternative fot the Dominican Republic then the Industrialization by Import Substitution Model or ISI in the late 1960s.
Care to take this to the Forum?
From: United States
no, i do not. so, you can pat yourself on the back, declare yourself the winner, and tell all the members of your family that you defeated me. people like you are best ignored. you have the mind of a ten year old retarded child, and i have a responsiblity to myself to protect me from unnecessary irritants. why would i argue with you? what is the point? i have spent several years of my life studying development economics, and international trade. why would i get into a battle with a guy who never went to college, discussing the inner workings of development economics, macroeconomic theory, and such details? to what end? you are not in it to learn. to you it is a game , wherein you get to make silly rejoinders. when some guy , who has a trained mind, wants to argue the point,i will be happy to. you are not worth my time.
Written by: Atabey, 27 Jan 2012 2:49 PM
From: United States
Blah, blah, and more blah.
Roy,
I guess the saying fits O'Dready: "a man knows his limitations"
From: United States
as i said, Atabey, i will not debate with someone who is beneath me, academically. there is no upside to this. if it makes you feel good, then, knock yourself out. at the end of the day, i am still the guy who understands the subject matter, and you are the one who does not. so, flap your wings, and beat your chest. you won. feel better now? want a cookie? yes,i know my limitations. you do not know yours. as long as the World Bank does not ask me to send back the diploma, you can have all the fun you like.
Written by: Atabey, 27 Jan 2012 3:08 PM
From: United States
Excuse me Dready,
I meant: "A good man always knows his limitations"
From: United States
Written by: Atabey, 27 Jan 2012 3:08 PM
From: United States
Excuse me Dready,
I meant: "A good man always knows his limitations"
you can add to that.. ."an idiot does not know his."
it would be a fool's errand to debate economic and trade issues with a guy who understands neither
Written by: RoyStone, 27 Jan 2012 7:56 PM
From: Australia
Sorry to interrupt the lover's tiff, but the subject is:
"Commission: Free Trade pact benefits thousands of importers"
Now I suspect that the American offer of the late 1960s is no-longer in the table so can I suggest it may be a different ball-game now?
Unless I'm mistaken, the question is, is it in the general interests of this country to reduce import restrictions or not, and I put forward a case in the negative.
Can we focus on the ball and not the man, guys?
From: United States
Roy, there is NO industrialized nation on earth that did not rely on protectionism on its way to becoming industrialized. even after they achieved industrialization, they still used protectionist strategies. what do you consider the decade of devaluations of the US dollar to be? pure monetary protectionism, to compete with Japanese and German imports, that is what. so, it did not place a tariff on the imports at the wharf...they collected the tax by devaluation, and currency difference strategies.
Written by: RoyStone, 27 Jan 2012 9:15 PM
From: Australia
Dready, as I said earlier,
"For almost any export industry requires 1) investment capital, 2) expertise 3) infrastructure 4) a conducive business environment, and 5) people prepared to do a fair day's work for a fair day's pay,
This county is lacking in all 5."
Written by: RoyStone, 27 Jan 2012 9:17 PM
From: Australia
"I do not doubt free trade pacts benefit Dominican importers.
Yet whether it benefits the country in general is another thing. It seems to me there is no shortage of "stuff" here and plenty of borrowed money to buy it. That does not mean we can afford it, regardless of the price. If prices were higher, that may provide the incentive for import-replacement initiatives. However in general I am against import protection for an extended period, as producers tend to become complacent and inefficient. Still they need help to get started.
In an ideal world, each country would produce and export what they are best at, and nearly everyone benefits. However we still do not have a level playing field and USA and the EU have massive import restrictions, one way or another.
Countries that don't produce much cheaply, and still have a big, materialistic population will suffer in the long run, but who's fault is that?"
From: Botswana, La reconnaissance est une lachete'
@ Juanb
Remember we were the hotbed of sewing in the caribean
-------------------------------------
Those jobs move to DR after the fall of baby doc in 87. With the passing of the Hope act & consider haiti cheap labor rate in relative to DR ( Haiti $4.50 per day DR about double of that) as Haiti move to resolve its energy crisis you guys are not going to be able to compete in that sector anymore.
From: United States
brilliant observation, PatDiamond
Written by: Atabey, 30 Jan 2012 12:57 PM
From: United States
DOMINICAN REPUBLIC
August, 2010
Santo Domingo, Dominican Republic
NATIONAL ACTION PLAN
TO STRENGTHEN TRADE RELATED CAPACITIES:
CONFRONTING THE CHALLENGES OF GLOBALIZATION (2010)
PROJECT PROFILES
http://www.seic.gov.do/comercioex....glish%20Version%20-%20101019_.pdfWell, according to the above study:
The Dominican Republic is a small developing economy. It has been one of the economies with
greater growth in Latin America and the Caribbean in the last fifty years. It was the economy
that, in average, had a greater growth of the entire region during the period of 1961-2002.
Currently, the country can be considered as an open economy, with diplomatic and commercial
relations with an important amount of countries in the entire world and with important trade
agreements in force,
Written by: Atabey, 30 Jan 2012 12:58 PM
From: United States
at the multilateral, regional and bilateral levels4. Notwithstanding, until the
decade of the nineties the Dominican Republic was one of the most isolated countries in
America, showing an almost complete abandon of foreign relations, concentrating its exports in
a few agricultural products5, and where the governmental intervention was very strong in
production, distribution and assignation of resources."
Sugar: Since the beginning of the 20th Century, the main economic activity of the Dominican
Republic was the sugar industry. During the 60s and 70s decades the greater part of the labor
force of the country was concentrated in the agricultural sector, either in the sugar industry or in
small properties of low productivity, while the industrial sector was relatively reduced in relation
with the number of companies, the value of production and the amount of jobs.
Written by: Atabey, 30 Jan 2012 12:59 PM
From: United States
During these years, the Dominican foreign policy was limited to the achievement of a better
position for sugar in the United States market and to manage the frontier conflicts with Haiti.
Industrialization by Import Substitution (ISI): In the late sixties, the drop of the prices of
almost all the agricultural products produced a deterioration in the current account balance of
the balance of payments that started to become unsustainable and the Dominican State, as
many others in Latin America, recurred to the adoption of the Industrialization by Import
Substitution (ISI)6 scheme in order to promote the diversification, the promotion of nontraditional
productive sectors and industrialization.
In this context, in 1968 was promulgated Law 299 of Industrial Promotion and Incentives7. As
the other economic laws that follow this law, it pretended to accomplish two objectives: on one
side it tried to protect a part of the industrial sector whose production was oriented to the
Written by: Atabey, 30 Jan 2012 1:00 PM
From: United States
Other laws complemented this scheme, creating investment incentives and protecting important
sectors such as tourism, agro-industry and nontraditional exports. Among this, it is worth
mentioning Law 153 of Tourist Development (1971), Law 69 of Export Promotion (1979) and
Law 409 of Development of Agro-industrial Production (1982).
Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force.
In the decade of the eighties the industrial activity and the agricultural production had been
relegated to a second plane. The Dominican economy had transformed in a services economy.
Finances,
Written by: Atabey, 30 Jan 2012 1:02 PM
From: United States
communications and tourism increased steadily their participation in the GDP, while
sectors such as mining and local industry were relegated.
...
It is important to note that despite the good performance of the economy during this decade and
of the profound changes that the country's productive structure had experienced, foreign policy
was still lagging. It wasn’t until 1989 that the isolation began to break. In that year, Dominican
Republic became a signatory to the Lome Convention11. This marked a major shift in the
country’s foreign policy, since from that time onward, it had to coordinate efforts and strengthen
relations with the European Union and more than 70 African, Pacific and Caribbean
countries. One of the most important aspects of this agreement was that it established the
foundations for a closer relation with Haiti and CARICOM, with whom the country had the
responsibility of managing the cooperation12.
Written by: Atabey, 30 Jan 2012 1:03 PM
From: United States
Reforms: At the beginning of the 90s decade, the phenomenon of globalization was already
impacting significantly the majority of the countries of the hemisphere and the Dominican
Republic was not the exception. That decade was marked by a profound process of reforms
aimed to achieve a greater commercial liberalization and to correct the so called “anti-export
bias”13. Among the most important reforms of those years were the tax reform and the reform to
the free zones regime (1990); the fiscal reform and the reform of the Labor Code (1992); the
reform of the foreign investment regime in 1995; changes to the regulatory framework of
telecommunications (1998) and the law of export promotion (1999). Also, the reform of the
monetary and financial system started at the end of this decade.
Written by: RoyStone, 30 Jan 2012 1:07 PM
From: Australia
Percentage growth-rate is a very deceptive measure of how an economy is faring, since the smaller it is, the easier it is to show percentage growth.
Regardless, why increase imports? This country already produces the basic ingredients for life - alcohol, caffeine, sugar, fat, salt and nicotine.
Written by: Atabey, 30 Jan 2012 1:08 PM
From: United States
"Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force."
Again, a small nation-state like the DR does far better engaging an open economic paradigm than subsidize unsustainable and largely uncompetitive domestic entities!
Dready has no legs under him and should just sit down and have his tall glass of tea. Watch las Aquilas take it to the lions! :))
From: United States
Written by: RoyStone, 30 Jan 2012 1:07 PM
From: Australia
Percentage growth-rate is a very deceptive measure of how an economy is faring, since the smaller it is, the easier it is to show percentage growth.
Roy, i have tried to bring this to the attention of people like Atabey, but it has gone over his head. glad you brought it up , again. let me try to simplify, for the guy to get it.
let us say that there are two people in the example. one has 50 dollars, the other 5000 dollars. the guy who has 50 dollars wins 10 dollars at the casino. his wealth has now gone up by 20%. thge guy with 5000 wins 500. his wealth has gone up by 10%, even though he has just won 50 times as much as the guy who had 50 dollars. so, it is what you start with that is most important. Haiti will have a whopping rate of GDP increase, since they are starting with very little, and any increase will reflect a steep trajectory. that does not mean the economy will be flush.
From: United States
Dready has no legs under him and should just sit down and have his tall glass of tea. Watch las Aquilas take it to the lions! :))
i do not need legs to understand the issues. i use my brain. apparently, you use other parts of your anatomy to comprehend issues. we know which ones, in your case.
From: United States
one thing with Atabey, for which you must give him credit, is that he is tenacious. when he gets hold of ideas, he sticks with them, to the end. he does not understand them, cannot analyse them, cannot balance them against evidence to the contrary, and, as far as academics go, is just a bystander. it is, however, very hard to dislodge him from his beliefs, because he is impervious to reason, and logic. that is what comes with a 5th grade education.
Written by: Atabey, 30 Jan 2012 1:23 PM
From: United States
I guess that's why your "theory" is sooooooooooo out of place with the determination of the study in question.
How's that cold tall glass of tea tastin'?
Written by: Atabey, 30 Jan 2012 1:26 PM
From: United States
"he sticks with them, to the end. he does not understand them, cannot analyse them, cannot balance them against evidence to the contrary, and, as far as academics go, is just a bystander. it is, however, very hard to dislodge him from his beliefs, because he is impervious to reason, and logic."
That about sums you up nicely Dready. Who said a man does not get to understand his true nature and limitations?
Written by: Atabey, 30 Jan 2012 1:29 PM
From: United States
Roy,
Don't miss the forest for the trees. Dready does it all the time. This is one of the BIG takes from the study.
"Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force."
Again, a small nation-state like the DR does far better engaging an open economic paradigm than subsidize unsustainable and largely uncompetitive domestic entities!
From: United States
Again, a small nation-state like the DR does far better engaging an open economic paradigm than subsidize unsustainable and largely uncompetitive domestic entities!
so, Atabey, maybe you would like to tell us why it is that South Korea modernized its economy on the completely opposite model...government intervention and control, subsidies, and protectionism. i cannot wait.
From: United States
hey, you lowlife loser, Atabey. i see where you ran over to the forum, to gang up against me, with anthonyc. does this means that you are resuscitaing your campaign of behind the scenes maneouverings, to petition the moderators to ban me?what's the matter? can't take me on like a real man, so you try to set up a posse against me? don't try to deny it, like you do everything else. it is no secret that you were trying to do this. you really are a sad example of humanity.
Written by: Atabey, 30 Jan 2012 3:55 PM
From: United States
As you should know Dready, South Korea piggy-backed on Japans economic development, essentially taking over the leftovers that Japans economic advancement and higher wage rises discarded on the road up the economic scale. "for South Korea and Taiwan have played host to “developmental” public officials and advisers from the United States, and their individual contributions are therefore difficult to discern. Would a less competent or autonomous Korean government have agreed, let alone been able, to implement the US program? Would the Kuomintang (KMT) have pursued ELI, let alone done so effectively, without the assistance of the Agency for International Development (AID)?"
“Development by Invitation” in the Dominican Republic: A Negative Case Analysis
Professor Schrank of Yale University
Written by: Atabey, 30 Jan 2012 3:56 PM
From: United States
And,
"Arthur D. Little’s approach bears a striking resemblance to the “flying geese” strategy introduced by Kaname Akamatsu and popularized by Bruce Cumings in his by now familiar study of “the origins and development of the Northeast Asian political economy”:
Time-series curves for imports, import-substitution for the domestic market, and subsequent exports of given products tend to form a pattern like wild geese flying in ranks. The cycle in given industries—textiles, steel, automobiles, light electronics—of origin, rise, apogee, and decline has not simply been marked, but often mastered, in Japan; in each industrial life cycle there is also an appropriate jumping off place, that is, a point at which it pays to let others make the product or at least provide the labor. Taiwan and Korea have historically been receptacles for declining Japanese industries. . .In the 1960s and 1970s, both smaller countries have received declining textile and consumer electronic industries from Jap
Written by: Atabey, 30 Jan 2012 3:57 PM
From: United States
consumer electronic industries from Japan (as well as from the United States), and in the 1980s some Japanese speak once again of sending steel and autos in the same direction."
So the the astuteness of the East Asians was to marry both poles “flying geese” strategy, thus deriving positive economic growth from both sides.
From: United States
Written by: Atabey, 30 Jan 2012 3:55 PM
From: United States
As you should know Dready, South Korea piggy-backed on Japans economic development, essentially taking over the leftovers that Japans economic advancement and higher wage rises discarded on the road up the economic scale
i will not respond to such idiotic musings. i would rather listen to the ravings of a drunk. such asinine remarks are not worthy of a reply.
Written by: Atabey, 30 Jan 2012 3:59 PM
From: United States
You can't handle it Dready.
From: United States
as i said, Atabey, i did not spend so much time in school to get into a discussion of this kind with a know nothing. you can consider my failure to respond as a victory for you. i consider it as a saving of my time.
Written by: Atabey, 30 Jan 2012 4:00 PM
From: United States
"Arthur Lewis sought that the main incentive to attract foreign capital to the Caribbean was lower labor costs. Lewis sought to supplement this by a policy of fiscal incentives. The protectionist side to this development model came at a later stage. In fact, Lewis, rather than arguing in favor of protection from imports stated the case for export subsidies. As he put it (Ibid, p. 886): “Most of the industries will have to export, and if they are to do this, they must be able to compete on the world market; and if they can compete there, they will not need protection in the domestic market.”
Written by: Atabey, 30 Jan 2012 4:02 PM
From: United States
Roy,
Notice how Dready dreads having to respond to non-polemic statements?
Written by: Atabey, 30 Jan 2012 4:23 PM
From: United States
‘Invitation by industrialization’: Economic effects and implications
This section analyses the effects of the policies followed in the English-speaking
Caribbean and Puerto Rico that were inspired by the strategy of industrialization by invitation.
The focus is on whether the policies that were followed were successful in attracting foreign
capital and on whether foreign capital was bale to spur the development of domestic industry."
"Foreign direct investment (FDI, hereafter) increasingly substituted official assistance
flows. FDI represents the main component of private capital flows in the Caribbean increasing
from US$618 million in 1990 to US$1,919 million in 2001 (8% and 10% of GDP) and averaging
more that 85% of the total in the same period."
In the case of Puerto Rico foreign direct investment did not increase at least during the
first decade of the implementation of ‘Operation Bootstrap’ (1950 to 1960). In this regard Padin
(2003, pp.285-286) states:
Written by: Atabey, 30 Jan 2012 4:25 PM
From: United States
‘US firms attracted to Puerto Rico in the 1950’s were relatively small,
labor intensive operations in declining sectors with a grim future in the United States…The turn
to private foreign direct investment was initially so uncertain that each new plant was celebrated
with the orchestrated fanfare of a development agency fearful of losing public support for its
efforts.’
For the following decade (the 1970s) Morley (1980, p.183) stresses that, “The number of
new factories in operation as a result of ‘Operation Bootstrap’ grew from 548 in 1957-1958 to
1,003 in 1964-1965 and then jumped dramatically to 1,674 in 1967-1968 when heavy capital
investments were beginning to establish a foothold in the Puerto Rican economy.”
Written by: Atabey, 30 Jan 2012 4:26 PM
From: United States
Foreign direct investment, which represented 5% of GNP in the period 1947-1971 rose to
11% in the period 1971-1986.12 The take off in foreign investment at the beginning of the 1970s
responded in part to the change in the tax legislation, as the 1948 act was replaced with a new
and more comprehensive tax exemption act in 1963 and later in 1969 by the increase in the
flexibility in the granting of tax incentives given to the government. The 1963 tax act granted
exemptions of up to 100% on earnings ranging for a period of 10 to 17 years. Also the tax
exemption period could be expanded when a firm opted for 50% exemption on earnings
combined with full exemption on local taxes.
12 The scant empirical data available on foreign direct investment validates this hypothesis. Between 1960 and 1967 total United States investment in Puerto Rico increased from $1.4 to $5 billion and continued to expand to $10, $15 and $20 billion in 1973, 1976 and 1978, respectively (Bonilla and Campo
Written by: Atabey, 30 Jan 2012 4:28 PM
From: United States
Dready,
Can't handle it. A good man knows his limitations, I guess. :))
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Remember, we were the hotbed of sewing in the Caribbean. When CAFTA was passed we only had to enact a few laws to take part. Honduras, Guatemala, and others did it in three weeks. Manufacturers from those countries could then ship to the US duty free. It took us THREE YEARS. By the time we passed the necessary legislation all the big companies had pulled out and gone elsewhere. For example Levi's was making millions of pants here per month before.
Today? ZERO
We owe a big thank you to our government for their inability to function in the modern world.
If you think your example is bad, just remember the Paradigm shifting offer these recalcitrant parties passed up in 1966!
An Export Led Industrial Model or ELI that would have re-articulated DR's future like no other in its history. Sadly, our leaders have too often "never miss an opportunity to miss an opportunity."
Better to divide the old dictators coffers and protect domestic monopolists than realize the great leap in future productivity and vast investment flows that the ELI MODEL would have achieved.
But things are a bit better with this DR-CAFTA FREE TRADE DEAL. Now, these forces have to open up and compete based on international legal agreements. Every few years more production is opened to free trade. Sadly, we could have arrived at this point with soooo much more anticipation and advantages over the rests!!
The PLD is a master of lies and spins.
this guy never misses an opportunity to spout rubbish. an export led model, like the one proposed to Balaguer, would have created NOTHING positive for the DR. Nothing. it was the precursor to the Mexican style maquiladora model, which has spawned nothing but crime, drugs, and prostitution , all over the nothern border. poor Atabey believes that all export led models are the same. he confuses the American proposal with the developments in the Asian states, because he does not understand the difference between a strategy and a model. poor soul
From: United States
An Export Led Industrial Model or ELI that would have re-articulated DR's future like no other in its history. Sadly, our leaders have too often "never miss an opportunity to miss an opportunity."
this guy never misses an opportunity to spout rubbish. an export led model, like the one proposed to Balaguer, would have created NOTHING positive for the DR. Nothing. it was the precursor to the Mexican style maquiladora model, which has spawned nothing but crime, drugs, and prostitution , all over the nothern border. poor Atabey believes that all export led models are the same. he confuses the American proposal with the developments in the Asian states, because he does not understand the difference between a strategy and a model. poor soul"
Rubbish Dready. You should known better.
From: Australia
Correct me if I'm wrong, but it seems to me the Dominican Republic imports much more than it exports, so where's the benefit?"
Dready can't deal with answering that question Roy. He hasn't a leg to stand under because he understands that the DR blew it big time back in 1966. One full decade before China began to open up under Deng, the DR would have had and those foreign capitalist who would have invested in DR to take advantage of free trade entry into the largest economic market in the world the UNITED STATES(1966-2000s).
Sadly, our leadership proved itself the recalcitrant lot they have been for many generations and decided against the Export industrialization Model. One of their crazy held beliefs was no devaluation of the peso to the dollar, thus making the DR and its low labor productivity uncompetitive in world markets.
{"Commission: Free Trade pact benefits thousands of importers"}
Why, sure it does. But what about local manufactures, growers and producers?..and ultimately, consumers?
The more we buy from outside, the less local industry benefits.
The government should limit importers to items not manufacture locally. And even then, to an annual quota.
We must protect ourselves from being a dumping ground from the rest of the CAFTA members.
Still if the Dominican Republic wants protection then such a model may work here, yeah?
Please consider.
so says the third grade dropout, who thinks he knows about international economics, but could not find Grand Turk on a map, if you give him a month. Atabey, can you please tell us about the benefits that would have been gained by devaluation? i cannot wait.
From: United States
Written by: RoyStone, 26 Jan 2012 8:17 PM
From: Australia
Correct me if I'm wrong, but it seems to me the Dominican Republic imports much more than it exports, so where's the benefit?"
Dready can't deal with answering that question Roy.
more rubbish from the single digit IQ guy. Dready cannot deal with answering that question, he muses. i do not have to answer it. i ask it often enough. i am the guy who questions so called "free trade". you are the guy who supports it. maybe you should be the guy to answer it. oops...i forgot...you cannot answer. you do not have the information. before i forget, did you drum up the FIGURE i asked you for, now two weeks? do i have to wait until you graduate from the 5th grade? that could take a while.
When is Dready going to show us his "master thesis" for why it was a very Good deal for the DR to disregard the USA offer to facilitate implementation of an Export Industrialization Model in the late 1960s?
Any clue when that "study" will hatch?
From: United States
Roy,
When is Dready going to show us his "master thesis" for why it was a very Good deal for the DR to disregard the USA offer to facilitate implementation of an Export Industrialization Model in the late 1960s?
Any clue when that "study" will hatch?
i have it already written. all i need to do is to type it. i have decided against it, because it would just invite more idiocy from you, and i am all idiotted out, having to deal with you, on a repetitive basis. so, i will make you a deal. give me my figures, and i will publish the article.
I stand for the proposition:
The Export Industrialization Model or ELI was a better alternative fot the Dominican Republic then the Industrialization by Import Substitution Model or ISI in the late 1960s.
Care to take this to the Forum?
Roy,
I guess the saying fits O'Dready: "a man knows his limitations"
I meant: "A good man always knows his limitations"
From: United States
Excuse me Dready,
I meant: "A good man always knows his limitations"
you can add to that.. ."an idiot does not know his."
it would be a fool's errand to debate economic and trade issues with a guy who understands neither
"Commission: Free Trade pact benefits thousands of importers"
Now I suspect that the American offer of the late 1960s is no-longer in the table so can I suggest it may be a different ball-game now?
Unless I'm mistaken, the question is, is it in the general interests of this country to reduce import restrictions or not, and I put forward a case in the negative.
Can we focus on the ball and not the man, guys?
"For almost any export industry requires 1) investment capital, 2) expertise 3) infrastructure 4) a conducive business environment, and 5) people prepared to do a fair day's work for a fair day's pay,
This county is lacking in all 5."
Yet whether it benefits the country in general is another thing. It seems to me there is no shortage of "stuff" here and plenty of borrowed money to buy it. That does not mean we can afford it, regardless of the price. If prices were higher, that may provide the incentive for import-replacement initiatives. However in general I am against import protection for an extended period, as producers tend to become complacent and inefficient. Still they need help to get started.
In an ideal world, each country would produce and export what they are best at, and nearly everyone benefits. However we still do not have a level playing field and USA and the EU have massive import restrictions, one way or another.
Countries that don't produce much cheaply, and still have a big, materialistic population will suffer in the long run, but who's fault is that?"
Remember we were the hotbed of sewing in the caribean
-------------------------------------
Those jobs move to DR after the fall of baby doc in 87. With the passing of the Hope act & consider haiti cheap labor rate in relative to DR ( Haiti $4.50 per day DR about double of that) as Haiti move to resolve its energy crisis you guys are not going to be able to compete in that sector anymore.
August, 2010
Santo Domingo, Dominican Republic
NATIONAL ACTION PLAN
TO STRENGTHEN TRADE RELATED CAPACITIES:
CONFRONTING THE CHALLENGES OF GLOBALIZATION (2010)
PROJECT PROFILES
http://www.seic.gov.do/comercioex....glish%20Version%20-%20101019_.pdf
Well, according to the above study:
The Dominican Republic is a small developing economy. It has been one of the economies with
greater growth in Latin America and the Caribbean in the last fifty years. It was the economy
that, in average, had a greater growth of the entire region during the period of 1961-2002.
Currently, the country can be considered as an open economy, with diplomatic and commercial
relations with an important amount of countries in the entire world and with important trade
agreements in force,
decade of the nineties the Dominican Republic was one of the most isolated countries in
America, showing an almost complete abandon of foreign relations, concentrating its exports in
a few agricultural products5, and where the governmental intervention was very strong in
production, distribution and assignation of resources."
Sugar: Since the beginning of the 20th Century, the main economic activity of the Dominican
Republic was the sugar industry. During the 60s and 70s decades the greater part of the labor
force of the country was concentrated in the agricultural sector, either in the sugar industry or in
small properties of low productivity, while the industrial sector was relatively reduced in relation
with the number of companies, the value of production and the amount of jobs.
During these years, the Dominican foreign policy was limited to the achievement of a better
position for sugar in the United States market and to manage the frontier conflicts with Haiti.
Industrialization by Import Substitution (ISI): In the late sixties, the drop of the prices of
almost all the agricultural products produced a deterioration in the current account balance of
the balance of payments that started to become unsustainable and the Dominican State, as
many others in Latin America, recurred to the adoption of the Industrialization by Import
Substitution (ISI)6 scheme in order to promote the diversification, the promotion of nontraditional
productive sectors and industrialization.
In this context, in 1968 was promulgated Law 299 of Industrial Promotion and Incentives7. As
the other economic laws that follow this law, it pretended to accomplish two objectives: on one
side it tried to protect a part of the industrial sector whose production was oriented to the
Other laws complemented this scheme, creating investment incentives and protecting important
sectors such as tourism, agro-industry and nontraditional exports. Among this, it is worth
mentioning Law 153 of Tourist Development (1971), Law 69 of Export Promotion (1979) and
Law 409 of Development of Agro-industrial Production (1982).
Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force.
In the decade of the eighties the industrial activity and the agricultural production had been
relegated to a second plane. The Dominican economy had transformed in a services economy.
Finances,
sectors such as mining and local industry were relegated.
...
It is important to note that despite the good performance of the economy during this decade and
of the profound changes that the country's productive structure had experienced, foreign policy
was still lagging. It wasn’t until 1989 that the isolation began to break. In that year, Dominican
Republic became a signatory to the Lome Convention11. This marked a major shift in the
country’s foreign policy, since from that time onward, it had to coordinate efforts and strengthen
relations with the European Union and more than 70 African, Pacific and Caribbean
countries. One of the most important aspects of this agreement was that it established the
foundations for a closer relation with Haiti and CARICOM, with whom the country had the
responsibility of managing the cooperation12.
Reforms: At the beginning of the 90s decade, the phenomenon of globalization was already
impacting significantly the majority of the countries of the hemisphere and the Dominican
Republic was not the exception. That decade was marked by a profound process of reforms
aimed to achieve a greater commercial liberalization and to correct the so called “anti-export
bias”13. Among the most important reforms of those years were the tax reform and the reform to
the free zones regime (1990); the fiscal reform and the reform of the Labor Code (1992); the
reform of the foreign investment regime in 1995; changes to the regulatory framework of
telecommunications (1998) and the law of export promotion (1999). Also, the reform of the
monetary and financial system started at the end of this decade.
Regardless, why increase imports? This country already produces the basic ingredients for life - alcohol, caffeine, sugar, fat, salt and nicotine.
"Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force."
Again, a small nation-state like the DR does far better engaging an open economic paradigm than subsidize unsustainable and largely uncompetitive domestic entities!
Dready has no legs under him and should just sit down and have his tall glass of tea. Watch las Aquilas take it to the lions! :))
From: Australia
Percentage growth-rate is a very deceptive measure of how an economy is faring, since the smaller it is, the easier it is to show percentage growth.
Roy, i have tried to bring this to the attention of people like Atabey, but it has gone over his head. glad you brought it up , again. let me try to simplify, for the guy to get it.
let us say that there are two people in the example. one has 50 dollars, the other 5000 dollars. the guy who has 50 dollars wins 10 dollars at the casino. his wealth has now gone up by 20%. thge guy with 5000 wins 500. his wealth has gone up by 10%, even though he has just won 50 times as much as the guy who had 50 dollars. so, it is what you start with that is most important. Haiti will have a whopping rate of GDP increase, since they are starting with very little, and any increase will reflect a steep trajectory. that does not mean the economy will be flush.
i do not need legs to understand the issues. i use my brain. apparently, you use other parts of your anatomy to comprehend issues. we know which ones, in your case.
How's that cold tall glass of tea tastin'?
That about sums you up nicely Dready. Who said a man does not get to understand his true nature and limitations?
Don't miss the forest for the trees. Dready does it all the time. This is one of the BIG takes from the study.
"Unfortunately, during this period an export foundation was not developed, in the contrary, a
protectionist and regulating trade policy was generated for exports and imports. As a
consequence, notwithstanding the great incentives received by the local industry, the
contribution of the sector to national production did not show significant changes during the
years these legal instruments were in force."
Again, a small nation-state like the DR does far better engaging an open economic paradigm than subsidize unsustainable and largely uncompetitive domestic entities!
so, Atabey, maybe you would like to tell us why it is that South Korea modernized its economy on the completely opposite model...government intervention and control, subsidies, and protectionism. i cannot wait.
“Development by Invitation” in the Dominican Republic: A Negative Case Analysis
Professor Schrank of Yale University
"Arthur D. Little’s approach bears a striking resemblance to the “flying geese” strategy introduced by Kaname Akamatsu and popularized by Bruce Cumings in his by now familiar study of “the origins and development of the Northeast Asian political economy”:
Time-series curves for imports, import-substitution for the domestic market, and subsequent exports of given products tend to form a pattern like wild geese flying in ranks. The cycle in given industries—textiles, steel, automobiles, light electronics—of origin, rise, apogee, and decline has not simply been marked, but often mastered, in Japan; in each industrial life cycle there is also an appropriate jumping off place, that is, a point at which it pays to let others make the product or at least provide the labor. Taiwan and Korea have historically been receptacles for declining Japanese industries. . .In the 1960s and 1970s, both smaller countries have received declining textile and consumer electronic industries from Jap
So the the astuteness of the East Asians was to marry both poles “flying geese” strategy, thus deriving positive economic growth from both sides.
From: United States
As you should know Dready, South Korea piggy-backed on Japans economic development, essentially taking over the leftovers that Japans economic advancement and higher wage rises discarded on the road up the economic scale
i will not respond to such idiotic musings. i would rather listen to the ravings of a drunk. such asinine remarks are not worthy of a reply.
"Arthur Lewis sought that the main incentive to attract foreign capital to the Caribbean was lower labor costs. Lewis sought to supplement this by a policy of fiscal incentives. The protectionist side to this development model came at a later stage. In fact, Lewis, rather than arguing in favor of protection from imports stated the case for export subsidies. As he put it (Ibid, p. 886): “Most of the industries will have to export, and if they are to do this, they must be able to compete on the world market; and if they can compete there, they will not need protection in the domestic market.”
Notice how Dready dreads having to respond to non-polemic statements?
This section analyses the effects of the policies followed in the English-speaking
Caribbean and Puerto Rico that were inspired by the strategy of industrialization by invitation.
The focus is on whether the policies that were followed were successful in attracting foreign
capital and on whether foreign capital was bale to spur the development of domestic industry."
"Foreign direct investment (FDI, hereafter) increasingly substituted official assistance
flows. FDI represents the main component of private capital flows in the Caribbean increasing
from US$618 million in 1990 to US$1,919 million in 2001 (8% and 10% of GDP) and averaging
more that 85% of the total in the same period."
In the case of Puerto Rico foreign direct investment did not increase at least during the
first decade of the implementation of ‘Operation Bootstrap’ (1950 to 1960). In this regard Padin
(2003, pp.285-286) states:
‘US firms attracted to Puerto Rico in the 1950’s were relatively small,
labor intensive operations in declining sectors with a grim future in the United States…The turn
to private foreign direct investment was initially so uncertain that each new plant was celebrated
with the orchestrated fanfare of a development agency fearful of losing public support for its
efforts.’
For the following decade (the 1970s) Morley (1980, p.183) stresses that, “The number of
new factories in operation as a result of ‘Operation Bootstrap’ grew from 548 in 1957-1958 to
1,003 in 1964-1965 and then jumped dramatically to 1,674 in 1967-1968 when heavy capital
investments were beginning to establish a foothold in the Puerto Rican economy.”
Foreign direct investment, which represented 5% of GNP in the period 1947-1971 rose to
11% in the period 1971-1986.12 The take off in foreign investment at the beginning of the 1970s
responded in part to the change in the tax legislation, as the 1948 act was replaced with a new
and more comprehensive tax exemption act in 1963 and later in 1969 by the increase in the
flexibility in the granting of tax incentives given to the government. The 1963 tax act granted
exemptions of up to 100% on earnings ranging for a period of 10 to 17 years. Also the tax
exemption period could be expanded when a firm opted for 50% exemption on earnings
combined with full exemption on local taxes.
12 The scant empirical data available on foreign direct investment validates this hypothesis. Between 1960 and 1967 total United States investment in Puerto Rico increased from $1.4 to $5 billion and continued to expand to $10, $15 and $20 billion in 1973, 1976 and 1978, respectively (Bonilla and Campo
Dready,
Can't handle it. A good man knows his limitations, I guess. :))