IDB country economist recommends achieving fiscal pact in the 2020

SANTO DOMINGO. -The country economist of the Inter-American Development Bank (BID), Joaquin ZentnerHe called the Dominican Republic atenter into a fiscal pact at the beginning of the year 2020 that allows guarantee sustained growth and to toast greater certainty before the possible cycle changes of the international economy.

“It seems central to me to reach a fiscal pact at the beginning of the new government, which guarantees greater sustainability and certainty in the face of an uncertain international context. In turn, we consider that there are improvements for the institutional bases especially with the tax system and in inefficiency in the planning and allocation of spending, ”said Zentner.

As part of the celebration of its 60 anniversary, the IDB held, in partnership with the Instituto Tecnológico de Santo Domingo (INTEC), the discussion: "Challenges of the Development of the Dominican Economy", in which a panel composed of economists Pavel Isa Contreras and Magdalena Lizardo, teachers of INTEC, moderated by Rafael Espinal, coordinator of the Economics career from that university, they analyzed the main economic issues of the year 2019.

At the event, the IDB country economist said that “we need a tax reform that allows increase revenue and improve efficiency. With more than 14% of GDP in collections, tax pressure in the Dominican Republic is the third lowest in the region. ”

He pondered that the General Directorate of Internal Taxes (DGII) has performed great achievementsHowever, this work has been based on the tax administration. "It is time to take a next step and work on all tax policy measures so that we again increase revenues and improve economic efficiency."

In his dissertation, Zentner said that one of the main challenges for the country is to take public policy measures that guarantee economic growth sustained and equal opportunities for its inhabitants, given the global context of high uncertainty that is being experienced by changes in social, economic, technological and climatic matters.

In order to guarantee sustained economic growth and equal opportunities in the Dominican Republic, the IDB economist emphasized that the accumulation of human capital must be promoted, the conditions for the development of productive opportunities must be generated and the institutions strengthened to guarantee the effectiveness of the policy. public

While, Miguel Coronado Hunter, IDB representative in the Dominican Republic, said they currently have a portfolio of 12 projects in force, with greater investment in the areas of energy, health, social capital, and environment and disaster management, followed by urban development and housing, education , water and sanitation.

“The sectors with biggest contribution of the Bank have been those directed in part to the state modernization, and the consolidation of agriculture and education sector, which directly impact the economic and social development of the country ”, pondered Coronado Hunter.

On his side, Rolando M. Guzmán, rector of INTEC made reference to the traditional ties between the university and the IDB. "The IDB has been a fundamental ally with whom we have counted for initiatives, and our joint work through the logistics and transport observatory, as well as collaborative work on the innovation laboratory initiative are just some examples of that direction."

During the panel, Magdalena LizardoHe stressed that the challenge of the Dominican economy is to continue guaranteeing macroeconomic stability y address territorial gapsHe also said he was optimistic about the economic growth that the population has had despite the gaps.

“A great challenge is to be able from public policies to address the issue of territorial gaps because that is closely linked to the reality that people can feel if things are true or not and to what extent they can participate in economic growth as a whole. ”Pondered Lizardo.

Meanwhile, economist Pavel Isa Contreras called attention to the balance of power that exists in the challenges posed by the IDB economist, and stressed that the fiscal institutional issue is fundamental at the moment.

"There is a qualitative insufficiency of growth, in two ways: first, it has been the internal demand that has boosted the economy and this will not support it for a long time, and second there has been an insufficient productive transformation," said Isa Contreras.

The closing words were given by Alexis Cruz, director of the Economic and Social Analysis Advisory Unit of the Ministry of Economy Planning and Development (MEPyD), who stressed that the Dominican economy has challenges in inclusive growth and resilient growth.