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Oxfam study puts numbers to political patronage and wasteful spending

Oxfam has presented a study that seeks to focus people’s attention on wasteful spending in government in the Dominican Republic. The study seeks to identify areas where inefficiency and political patronage prevails, and to give a size to corruption in pesos, as well as create an awareness of how all those resources could be invested in activities that serve to guarantee the right to a better life for the vast majority of people in the Dominican Republic. The study was carried out by Rafael Jovine and Rosa Cañete.

Raul del Rio, Oxfam director for the Dominican Republic, says that despite the high levels of economic growth of 5.1% on average from 2011 to 2015, the country has not been able to significantly reduce poverty. He stresses the importance of fiscal policies in reducing inequality and providing opportunities.

The study seeks to contribute to the analysis of decision makers for increasing quality, efficiency and transparency of public spending, especially since National Development Strategy Law calls for discussions leading to a Fiscal Pact.

Transparency International and Latinobarómetro have identified the high levels of perception of corruption in the Dominican Republic. The studies point to the perception of corruption in the DR being 66% more than the regional media for Latin America. The analysts conservatively estimate that corruption in the DR is more than RD$27 billion in 2017, equal to 0.7% of GDP for 2017.

The Oxfam study estimated that 2.5% of GDP is not efficiently spent every year, for an estimated RD$90.9 billion in 2017. This is a conservative number when compared to other references on the cost of corruption in the Dominican Republic mentioned in the report, including the detail that in 1995, prior to reaching the Presidency, former President Leonel Fernandez of the ruling PLD, had estimated corruption was no less than RD$30 billion in 1995 at a time when the total National Budget for the year was RD$26 billion.

The World Economic Forum Global Competitiveness Report for 2017 established that the DR is ranked 131rd of 137 countries in efficient spending and 135th of 137 countries in detouring of government resources.

The study alerts that if nothing is changed, every year there will be less monetary resources to guarantee the rights of the people.

Source: DR1, Argentarium

Oct 28, 2017

Category: DR News |

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Last updated December 14, 2017 at 10:29 PM
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