Dominican Republic Central banker links low wages to crime

Santo Domingo.- Centralbanker Hector Valdez Albizu on Wednesday linked low wages with the country´s currentlevel of violence, noting that can evenif the entire country was militarized "or having an army such as Hitler´s"there will always be robbers, criminalsand thugs.

He said he noted to presidentDanilo Medina that "the man who has two or three children, is thinkingthat he only has enough only to bring the family meal, a meal without manynutrients, probably not enough to buy milk for the youngest, goes out and seesa good looking girl with a Louis Vuitton handbag, or one of us who is welldressed in suits (…) assaults us, robs us, takes our watch, slaps us two orthree times and if we resist fires a shot at us."

He said the issue isto spread the economic growth among the population, making it a participant inthe “economic bonanza.”

The official said workersneed decent wages, as the Central Bank has insisted because in his view, thecountry’s nominal wages grew less than inflation.

Citing the example ofthe relationship between low wages and crime, Valdez said when people speak of growthsay “the Central Bank might grow, but I don’t see mine."

Speaking in theDominican Exporters Association´s (Adoexpo) monthly luncheon, Valdez said ithas been increasingly confirmed that improved income distribution is importantfor sustained economic growth.

He said InternationalMonetary Fund (IMF) economist Agustin Carstens told him that to reduce poverty,the nominal wage must be revised, and demand, consumption and investment boosted.

Growth of 7.5%

Valdez said theDominican economy grew 7.5% of GDP in July, addingthat that preliminary figures point to a economic growth above 6% at yearend.