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CEPAL confirms current model does not lower poverty

SD. The economists Miguel Ceara and Ernesto Selman said that the recent report by the Economic Commission for Latin America and the Caribbean (CEPAL) on the region, alerts the Dominican authorities that the current economic model that they have been developing in the country has not worked to diminish poverty, in spite of the fact that the Gross Domestic Product (GDP) has shown growth for several consecutive years.

“The report places us in a very disadvantageous position in relation to the rest of Latin America. First, this is an economy which was one of those that grew the most in the region, and the poverty is the 2nd highest in America,” explained Ceara Hatton, after warning that they can’t be saying that poverty was reduced in the country.

He explained that poverty remained in the Dominican Republic above 40%, which reflects a unique case in Latin America, because, according to what he said, in the remaining countries of the region the reduction of poverty has been in direct relation with the growth of the GDP.

“This is the only economy where they have the weak relationship between growth and poverty reduction. It is the country that maintains the 2nd highest poverty rate in Latin America and was the only country where the poverty situation was not reduced in spite of all the efforts of social policy of which they have talked,” said the economist after assuring reporters that the poverty should have gone down more than a point because the Dominican economy has been registering economic growth.

In the meantime Selman, who is the executive Vice President of the Regional Center of Social Economic Strategies (CREES), said that the current report by the CEPAL says that the country has been bogged down with regard to the reduction of poverty, and that the development model that has been implemented over the last 15 years has not worked.

For this reason, from this entity they are arguing for the current model, which Selman calls populist and patronage, to change for one with greater opportunities for investors and jobs. “We see how the report shows that the poverty level in the country is around 40% while the average is 28% in Latin America. Something has to be fixed. Something is not going well, and because of this we are proposing a group of structural reforms that can change the development model in order for these persons to have the opportunity to get out of the level in which they live,” he concluded.

The CEPAL report

Last Monday, the Economic Commission for Latin America and the Caribbean (CEPAL) published a report regarding the reduction of poverty in the region in 2013.

For the case of the Dominican Republic it shows how from a 47.5% poverty level in 2005, in 2012 it had lowered to 41.2%, and in 2013 it was placed at 40.7% which some economist call is something insignificant, due to the growth of the Gross Domestic Product that the economy registered during the period that was analyzed.

Source: DiarioLibre

January 28, 2015

Category: DR News |

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