Better policies needed to back manufacturing jobs
The Dominican Republic can create 350,000 new jobs in three years if new policies are put in place to enhance the competitiveness of tourism, footwear, medical devices, pharmaceuticals, electrical and electronic devices and call centers, five sectors with great export potential identified by the Association of Industries of the Dominican Republic (AIRD). AIRD sees potential to increase exports by US$2.7 billion a year.
The potential for the tourism sector is estimated at US$4.6 billion through 2021 with the potential to create 183,000 new jobs. The tourism sector has generous tax incentives.
Medical devices manufacturing, that operates in tax free zones, could generate US$3.2 billion in exports and create 47,000 jobs. The electric and electronic deices sector (also operating in tax free zones) could contribute through 2021 US$2.7 billion and create 32,000 new jobs. Meanwhile, call centers have the potential to generate US$1.2 billion and create 53,000 jobs. Footwear is estimated to generate 37,000 new jobs and US$1 billion in exports.
Circe Almanzar, executive vice president of AIRD, says to achieve these objectives of exports and jobs, beyond the present focus on tax incentives, better supplier policies are needed for savings in logistics and strengthening of the local market. Almanzar said that this means the government needs a change in vision to enact policies that support the industries, and not necessarily through tax incentives. “To grow public policies are needed, and we have a vacuum of public policies directed to these sectors,” she said. AIRD advocates for a public private alliance to achieve competitiveness.
The president of the Association of Industries de Herrera and province of Santo Domingo, Antonio Taveras Guzmán corroborates that changes to the development model are needed. “We need a strong state but a smaller government,” he said. He urged efforts begin to promote the true development of large, medium-sized, small and micro Dominican industries. “The country needs a real commitment, to leave politicking aside, to face the challenges industry confronts,” he said.
Source: DR1, Eldia
April 8, 2018
Category: DR News |