ECONOMISTS HAVE TO COME DOWN AND THEN SIGN COSTS WITH THE IMF.

ECONOMISTS HAVE TO COME DOWN AND THEN SIGN COSTS WITH THE IMF.
Santo Domingo, Dominican Republic
August 9, 2012

The issue of fiscal reform and an agreement with the International Monetary Fund (IMF) keeps economists with opposing views, except that the new government must reduce public spending to the high fiscal deficit that exists in the country.

Economists Frederick Eman Zade, Carlos Despradel and Jose Luis de Ramon, to participate in a meeting organized by the American Chamber of Commerce, believe that President Danilo Medina has to build trust before starting a process of fiscal reform.

In turn, Mr. Despradel and De Ramon agree that the new government to sign a pact with the IMF to help curb the fiscal deficit, but economists estimated Zade Fund are academics without experience, so he thinks recipes can give economists the Dominicans, and other agreements required believe.

For Zade, the first measures to be taken by President Danilo Medina is to curb borrowing, cut spending and the fiscal deficit and on August 17 to adopt the gold standard as a reference currency before the decline of the dollar and the euro in the current juncture.  Raised the need for incentives to create wealth in a personal and aggressive, with 0% tax on personal wealth, national savings, capital gains on personal income from Property Market, as well as investment and real estate transfers.

Emam Zade understood that the President should ask for extraordinary powers to carry out a series of reforms without seeking support from the full force of the nation, because if it seeks consensus that there is the power of veto.

Mr. Ramon believes that the country must agree on a tax reform RD $ 55.000 million to be applied now. The aim is to adjust spending, because, he said, there is a lot of expense.

While Mr. Despradel believes that the next government can not do a tax reform acceptable to the population, but changes his image and make government dispendia embarrassment with the expense.

said that, however difficult, for what is happening in Congress, to which is attached to the official party members became accustomed to a standard of living.

Newspaper: Diario Libre
Page. 20
Section: Economic
August 9, 2012