International economist M. Fairbanks: DR must use proximity to U.S. markets

http://www.dominicantoday.com 12/08/06

SANTO DOMINGO.- The international consultant Michael Fairbanks expressed that DR-CAFTA and the changes impelled by the Commerce World-wide Organizations, "are going to cause a shock to the economy, and this translates in urgency to make changes in the way business is done in Dominican Republic".

When exposing the results of an investigation in a conference titled: "Strategic map of the industrial sector in Dominican Republic", Fairbanks said this reality leads to the Industrial sector and Government to assume a change of mentality that allows them to turn the proximity to the U.S.A. into a real competitive advantage and impels the creation of strategic alliances between the Government and local industries and the production of Zonas Francas (Duty Free Zones).

The consultant exposed what the priorities are for the next three years considering the private industry as much as the government.

He indicated the importance to understand that all industries can become competitive "if they are able to adapt their strategies to products with greater added value".

Fairbanks explained that the country cannot continue competing as a low cost player, because economies as the Chinese one, would defeat DR in the international markets.

"The answer is not to continue trying, not to focus in the reduction of costs or in artificially reduction in wages, “this only competes with the Dominican population’s poverty", he ended.