Research raises the need to refocus productive development policies

Santo Domingo. Redefining its strategy and policies of productive development is an “urgent” challenge for the country. This is stated in the book "Four decades of productive development in the Dominican Republic", published by the Instituto Tecnológico de Santo Domingo (INTEC), together with the Association of Industries of the Dominican Republic (AIRD) and the National Competitiveness Council (CNC).

The research, carried out in 2011 by Rolando M. Guzman, Manuel Agosin, Magdalena Lizardo and Rafael Capellán, analyzes from a critical perspective the development strategies of the last 40 years, especially the lights and shadows of the policies in the sectors Franca, Tourism and Industry. It was financed by the Inter-American Development Bank (IDB) and conducted by the Pareto Consulting Group.

From the analysis of the trends during 40 years in productive development policies, it is clear that the State has shown the ability to vary its promotion schemes, but with a tendency to preserve the paradigms until the appearance of economic crises.

He affirms that in the current development policy scheme "there is a coexistence strategy for the development of productive clusters with enormous costs derived from a permanent energy crisis". This, added to the competitive pressures, affects in a special way the free zones, the tourism and the industry.

"The country faces the challenge of giving a new impetus to its growth trend, which implies defining which are the most appropriate instruments and which sectors and activities would spearhead the process," the study cites. However, any promotion scheme must be compatible with fiscal sustainability.

In this sense, the research proposes options to move to schemes that incentivize productive sectors through more efficient instruments that guide subsidies to specific market failures. This is part of a horizontal assistance model, based on market instruments.

The document proposes an agenda to promote productive development for various sectors, within the framework of the latest economic changes that the country has experienced, such as free trade agreements. The final considerations include the need to place competitiveness policies in the general framework of a National Development Strategy (NDT).

The areas that should be addressed in an updated productive development strategy for the Dominican economy are: ordering of the energy sector, technical assistance to productive activity, facilitation of access to credit, guarantee of macroeconomic stability and strengthening of the business climate.

Ligia Bonetti de Valiente, president of the AIRD, Andrés Van der Horst, CNC director, economist Pavel Isa, entrepreneur Yandra Portela Vila, and Diómedes Christopher, dean of the Business Area participated in the publication of the publication. of INTEC and part of the authors of the book.

AUTHORS

Rolando M. Guzmán is the current Rector of the Instituto Tecnológico de Santo Domingo (INTEC), teacher and researcher. Manuel Agosin is Dean of the Faculty of Economics and Business of the University of Chile. Magdalena Lizardo is Director of the Economic and Social Analysis Advisory Unit of the Ministry of Economy, Planning and Development and professor of INTEC. Rafael Capellán is Deputy Director of Foreign Exchange Affairs of the International Department of the Central Bank.