The Pan American Health Organization (PAHO) said last week that tourism in the Dominican Republic was at "no risk" after the earthquake of Jan. 12 in Haiti that left about 217,000 dead.

The representative of PAHO in the country, Merlin Fernandez said there was no risk at all for tourists visiting the Dominican Republic, "because all health measures to be taken in such cases have been implemented  by the Government Dominican in an effective way."

Fernandez said in a statement that the Dominican and Haitian authorities, with support from aid agencies, have secured  epidemiological control at the border and affected areas with robust actions to prevent disease outbreaks.

The Dominican Government has implemented diphtheria and tetanus vaccines for the entire population without distinction of any kind along the entire border, and has also taken steps to prevent outbreaks of waterborne diseases and other transmitted diseases as well as tuberculosis," he said.

The representative of PAHO reported that while the Americas region is considered polio-free territory, a passive surveillance is maintained.

With regard to malaria, Fernandez was satisfied that appropriate measures were in place at the border to protect everyone, including the aid workers, traveling to and from Haiti.

He said that it will take significant efforts to rehabilitate the victims, while he also stressed the need to provide mental health support due to the impact of the tragedy on the earthquake survivors.

New honour for Dominican Republic

President Leonel Fernandez proclaimed Santo Domingo as the Cultural Capital  2010 during a ceremony at the Presidential Palace recently.

Last year the International Bureau of Cultural Capitals in Barcelona chose Santo Domingo to become the first Caribbean and Central American nation to receive this title.

Speaking at the start of the ceremony, Bureau of Cultural Capitals President, Xavier Tudela, said that the Dominican Republic has cultural values for all of the world to see, and that the title will ensure that they will be further projected overseas. 

Along with the well-recognised areas of culture, the Dominican Republic also has some more unusual cultural sights to offer its visitors, such as dancing on rum or beer bottles, as shown in the photo above.  This event regularly takes place at a restaurant in Santo Domingo and was watched recently by West Indies Real Estate's Judith Fox-Hogg and Paul Hogg.  The Dominican Republic has something for everyone!
 

Ikea opens tomorrow

President Leonel Fernandez and First Lady Margarita Cedeno are expected to attend the opening of Ikea in Santo Domingo tomorrow. The new store will be the first Ikea in Latin America. The Swedish furniture and home decoration store is expected to set new standards for shopping in Santo Domingo and strengthen the city's positioning as the new shopping capital of the Caribbean.

West Indies Real Estate welcomes this development....we will shop until we drop!

Reconstruction of Haiti should involve Dominican Republic

The Herrera Industrial Association (AEIH) is suggesting that the international community and the Dominican and Haitian authorities propose the creation of an agreement for a long-term development plan involving both countries. According to El Nuevo Diario, the rebuilding of Haiti has to go beyond short-term assistance in order for the country to achieve long-term economic independence. The AEIH, headed by Miguel Cabrera, warned that no matter how much money is spent or how much international aid is channeled into Haiti, the effects will not be sustainable in the long term unless a plan is developed that involves both countries in a strategy that raises production, strengthens commerce and creates jobs on both sides of the island.
The AEIH has expressed its support for the stance taken by Andres Vanderhorst Alvarez, the head of the National Competitiveness Council, who suggested the creation of a development plan that includes elements of production as a complement to the Dominican Republic’s Competitiveness Plan. He proposed the creation of a Hispaniola Cluster so that the two countries could insert themselves into the international marketplace.

The AEIH emphasized that the plan would in no way affect the sovereignty of either country.

West Indies Real Estate has been very impressed by the efforts of the Dominican population, both Dominicans and ex-pats, to provide help following the Haitian earthquake, which occurred on 12th February.

Tourist services have "improved markedly" in Dominican Republic

A large delegation from the Dominican hotel industry attended the XXX International Tourism Fair (FITUR) that was held in Madrid, Spain. Tourism Minister Francisco Javier Garcia hosted a luncheon for the presidents of Spanish hotel chains that operate in the Dominican Republic and a dinner for the Dominican delegation. During the luncheon, the Spanish guests said that tourist services in the country had improved markedly over the years and they said that they appreciated the fact that the Dominican government had taken an interest in protecting the industry. They also commented that the Dominican Republic had increased in quality as a destination over the past 2 or 3 years.

Javier Garcia announced the conclusion of Territorial Zoning of the tourist areas, including the National Signage Plan that will enable overseas visitors to travel around more easily.

West Indies Real Estate lists many properties suitable for purchase as vacation rental invsetments.  Please contact us for further details.

Better communications on the way

Telecoms company Orange Dominicana has announced an investment of more than US$900 million in telecommunications development in the country, in projects that include the launch of the novel technology known as 3G+, enabling customers to access the internet simply and flexibly.
The access to one of the latest advances in telephone technology will be available to Dominicans beginning next month, as announced by the company yesterday as they hailed the facility that will be offered to the public as one of the decade’s major achievements.

The latest third generation technology Orange Net 3G+, available from February, will provide both data and voice transmission, via phone calls, video downloads, email exchanges and instant messaging, from a laptop, in the home or on a mobile 3G.

Making the announcement, Orange Dominicana president Jean Marc Harion and Orange International president Olaf Swantee stressed that Orange customers would be able to enjoy the Orange 3G+ technology, accompanied by the largest GSM network in the country, and with the greatest value-added options and facilities in the market and resulting in an optimum communication experience. Orange investments in 3G+ are worth more than US$25 million, adding quality to the communications infrastructure in the country. The initial investment made in 2009 with the frequencies in the 900MHz band cover the National District, Santiago and Bavaro. In 2010, the coverage should extend to the main areas of the country and provide service to 50% of the population.

For more on communications in the Dominican Republic, from a West Indies Real Estate perspective, click here.

West Indies Real Estate welcomes Ikea to the Dominican Republic

Ikea will be opening its first store in Latin America this coming Wednesday, 17 February. The catalogue features prices equal to those offered in Europe, in many cases well below prices in other stores in the Dominican Republic. As of Friday, 29 January, Ikea will be distributing 300,000 copies of its 376-page catalogue to homes in Santo Domingo.  Also, the catalogue can be accessed online.

Marketing director Julissa Taveras said that Santo Domingo was chosen because the company sees the DR as a progressing country that is full of opportunities, as reported in Listin Diario. She said that the company is open to the idea of sourcing goods from Dominican suppliers at some future point.

For the Dominican market, the company has hired a Spanish company to provide furniture and goods assembly services.

West Indies Real Estate has its own in-house Interior Design expertise in the form of Broker/Owner, Judith Fox-Hogg, who is a Fellow of the Institute of Design.  We are happy to advise on your requirements when you are purchasing property from West Indies Real Estate.

The Herrera Industrial Association (AEIH) is suggesting that the international community and the Dominican and Haitian authorities propose the creation of an agreement for a long-term development plan involving both countries. According to El Nuevo Diario, the rebuilding of Haiti has to go beyond short-term assistance in order for the country to achieve long-term economic independence. The AEIH, headed by Miguel Cabrera, warned that no matter how much money is spent or how much international aid is channeled into Haiti, the effects will not be sustainable in the long term unless a plan is developed that involves both countries in a strategy that raises production, strengthens commerce and creates jobs on both sides of the island.
The AEIH has expressed its support for the stance taken by Andres Vanderhorst Alvarez, the head of the National Competitiveness Council, who suggested the creation of a development plan that includes elements of production as a complement to the Dominican Republic’s Competitiveness Plan. He proposed the creation of a Hispaniola Cluster so that the two countries could insert themselves into the international marketplace. The AEIH emphasized that the plan would in no way affect the sovereignty of either country.

At the same time, President Rafael Correa of Ecuador visited the Dominican Republic for a meeting with President Leonel Fernandez. He said the purpose of their discussion was to coordinate aid to Haiti. He also overnighted at the United Nations Minustah camp in Haiti and praised Dominican aid to Haiti. “I saw the immense number of Dominican trucks with aid for the people of Haiti. I believe that by working together we can give Haiti the definite push that its heroic people need for the destiny they deserve,” he said at a press conference following the 2-hour meeting.

If you would like to help the Haitian earthquake victims, via one of West Indies Real Estate's chosen charities, Island Impact Ministries,  click here.

Christmas Concert

The Santo Domingo Cathedral Choir presents its Christmas Concert on Christmas Day. The caroling begins at 8.00 p.m. sharp because it is a TV production. In order to get seats, be sure to arrive no later than 7.00 p.m. because it is a very popular event.

West Indies Real Estate is doing its own bit to bring culture to the north coast, via North Coast Players, the new theatre group to take the north coast by storm.

Martha Heredia loved by all in Dominican Republic

Young singer Martha Heredia was met with a heroine's welcome on her return to the Dominican Republic yesterday. Last week Martha was crowned this season's Latin American Idol contest winner. Heredia was greeted by an enthusiastic crowd at the Las Americas International Airport, and then made her way to the Presidential Palace in Santo Domingo where she met President Fernandez and First Lady Margarita Cedeno. Commenting on Heredia's excitement, the President said that the Ambassador's Hall at the Presidential Palace had seen celebrities, sports stars and been the scene of many great events, but never had it been filled with so much energy, until last night. Heredia, who was joined by her parents, gave a positive message to youth, saying that they need to follow their dreams because it's never too late. Speaking on her record, Heredia says she can't give out too many details, but that her first CD will be out soon and will include songs in different genres.

Sosua Kids receive funds

Finishing off our current series on charities receiving support from North Coast Players, Sosua Kids was the third charity to receive a donation of just under 20,000 pesos (approx. US$555) to further their work in helping some of the poorest Dominican children in Sosua to receive an education.  West Indies Real Estate adopted this charity last year, along with AAAS  and Island Impact Ministries and co-owner, Judith Fox-Hogg, founded North Coast Players with the intention of raising funds for local charities, including those supported by West Indies Real Estate. 

Mary Kay Ballack, Office Manager of West Indies Real Estate, is seen in the photo presenting the donation to Karen Conquergood  (President) and Janet Williams (Treasurer) of Sosua Kids.

Island Impact Ministries receives much needed boost from North Coast Players

Island Impact Ministries was the second of three charities  to receive a donation of just under 20,000 pesos (approx. US$555) to further their work in providing medical care to some of the poorest communities on the north coast of the Dominican Republic.  West Indies Real Estate adopted this charity last year, along with AAAS (as reported earlier) and Sosua Kids (more to follow) and co-owner, Judith Fox-Hogg, founded North Coast Players with the intention of raising funds for local charities, including those supported by West Indies. 

In thanking North Coast Players for their great effort, Island Impact Ministries Co-Founder, Robert Nelson, wrote:

Dear Friends,  

It's Christmas time again.

Several companies have begun their Christmas celebrations. Jumbo commercial mall on Santo Domingo's Luperon Avenue has announced Christmas Choir Symphony recitals in its food court area every Saturday, starting 28th November through Saturday, 26th December at 5pm.

Banco Popular has begun its Sunday Christmas Story performances in the parking lot of its John F Kennedy headquarters.

Here, on the north coast of the Dominican Republic, West Indies Real Estate's Team will be enjoying their annual Christmas party this Saturday, 12th December.

West Indies Real Estate selected charity benefits from North Coast Players' first production

AAAS (Association of Friends of the Animals of Sosúa) was one of three local charities to receive a donation of just under 20,000 pesos (approx. US$555) to further their work with the animals of Sosua.  West Indies Real Estate adopted this charity last year and co-owner, Judith Fox-Hogg, founded North Coast Players with the intention of raising funds for local charities, including those supported by West Indies.

Judith Liggio (left), President of AAAS, is seen here receiving the donation from Judith Fox-Hogg.  To read more about the valuable work performed by AAAS, click here.

The Long Night of the Museums

If there is a museum you have always wanted to visit and have been postponing it, on Thursday, 10 December, Dominican government-sponsored museums and some private museums will be open from 9 am to 12 midnight and admission will be free. The event is known as "The Long Night of the Museums" and is in its second year. Special activities are planned for the participating museums. The event is held to mark the Day of National Heritage and is organized by the Department of Museums of the Ministry of Culture.

West Indies Real Estate is doing its own bit to encourage culture on the North Coast of the Dominican Republic through its sponsorship of North Coast Players, the new theatre group formed by West Indies Real Estate co-owner, Judith Fox Hogg.

Dominican Republic sets good example

Increasing competitiveness in Central America: Progress made and next steps.

During the last decade, Central America has experienced significant economic and political consolidation that has turned it into a platform for business and investment. Some of the highlights include: economic growth, trade openness, growth of foreign direct investment (FDI), the rise of productive sectors of high added value, more efficient companies and regional integration. All these factors are found within the framework of a politically stable climate and are the result of considerable efforts at both public and private levels to improve the conditions of the business climate in each of the Central American countries. In this article, we examine competitiveness in the region, including recent indicators of improvement as well as factors that still need to be overcome.

Comparing competitiveness on a global scale

According to the World Economic Forum’s 2007-2008 Global Competitiveness Index, which measures the competitiveness of countries, Panama leads the Central American region, ranking 59 out of 131 countries globally. Costa Rica, which climbed nine spots in 2007, was ranked second at 63 and El Salvador was ranked third at 67. Honduras and Guatemala also made serious strides in 2007. Honduras jumped 13 places to number 83 and Guatemala advanced 10 positions to 87. Rounding out the region, Nicaragua was ranked 111.

Central America ranked higher as a region than Latin America and the Caribbean and South Asia regions, and close to the emerging Central and Eastern European economies. However, it still has a way to go in comparison to the Asia-Pacific region and Organization for Economic Cooperation and Development (OECD) countries.

Important efforts to improve competitiveness can be seen in each Central American country.  In Panama, investment incentives, property rights protection, the quality of the country’s port and airport infrastructure, reduction in the time and requirements needed to open a new business and to import/export goods, the sophistication of the financial market, the availability of state-of-the-art-technologies, and the government’s strategy to differentiate the country from others in Central America all contributed to the country’s ranking.

In Costa Rica, drivers include the independence of the judicial branch, the quality of its educational system, the intensity of local competition, the professionalization of senior managers in local companies, the strength of the banking sector, the sophistication of the productive sector and the innovation level.

In El Salvador, standouts include the government’s fiscal management, transparent policies, and agricultural policies (including the low cost of subsidies); the infrastructure in general and airport in particular; the time required to open a business; the efficiency of the labor market; the openness to capital flows; and the strength of the banking sector.

In Guatemala, reductions in red-tape, especially in customs; a modern revenue system; the country’s openness to foreign capital; the positive relationship between workers and employers; and the government’s low debt level have all led to an increase in competitiveness.

In Honduras, improvements in reducing red tape and bureaucracy, upgrading of the port infrastructure, effectiveness of bankruptcy laws, and low labor costs and personnel obligations that favor the labor market’s efficiency and improve the investment climate have helped.

Finally, in Nicaragua the small number of steps required to set up a company, the relative efficiency of its labor market, and the openness to capital flows have been important drivers of competitiveness.

Ease of business

In the World Bank Doing Business 2008 Report, Panama and El Salvador ranked 65 and 69 respectively among 178 countries, placing them in the second quartile of the sample. However, Nicaragua, which ranked 93; Guatemala, 114; Costa Rica, 115; and Honduras, 121, are all located in the third quartile of the sample.

Panama stands out for both the short time and small number of procedures necessary to start a business, the open access to loans, and the ease of external trade. In El Salvador, property registry, access to bank loans, import and export activities, and efficient contract enforcement contributed to its high ranking. The efficiency of the law in enforcing contracts and the ease of shutting down a business are important advantages in Nicaragua. Guatemala and Costa Rica were both noted for the ease in registering property. In addition, Costa Rica has easy access to loans and small amounts of paperwork for the import/export process. Finally, in Honduras, access to loans is a plus; however, significant challenges persist in the number of procedures and costs needed to set up a company, despite substantial efforts made by the central government.

Economic freedom

In the Heritage Foundation 2007 Economic Freedom Index, El Salvador stands out as the most open country in the region with a score of 70.3 (out of 100) and ranked 29 out of a total of 157 countries. Panama and Costa Rica followed with scores of 65.9 and 65.1 respectively and rankings of 47 and 51. Nicaragua with a score of 62.7 ranked 61; Guatemala with a score of 61.2 ranked 68; and Honduras with a score of 60.3 ranked 76. All five countries are located in the second quartile of the sample.

In El Salvador, the government’s small size and low spending level (14.3 percent of gross domestic product); facilities for accessing capital; efficient regulations; and flexibility in the credit, labor and goods markets contributed to its high ranking. In Costa Rica, the government expenditures, and investment in climate and trade freedom were noted as outstanding features; however, inflation, excessive regulations for businesses, and the labor market were adverse aspects. In Panama, the government’s small size, moderated tax rates, ease to start a business, access to capital, and efficient regulations of the credit market contributed to high rankings in economic freedom; however, corruption and labor market restrictions were major challenges. In Nicaragua, Guatemala and Honduras, the governments’ small size and trade freedom were considered a plus; however, scarce guarantees to property rights, corruption and bureaucracy were major disadvantages.

As a region, Central America, with a score of 64.3, outranks the Economic Freedom scores of Latin America (61.5), the Asia-Pacific region (63.0), the Arab countries (57.4), and Southern Asia (55.0). Central America, after the OECD countries (74.3), is the region with the most economic freedom in the world.

Human development status

The Human Development Index (HDI) of the United Nations Development Programme shows two different categories among the Central American countries. The first one, represented by Costa Rica (with an HDI of 0.846 and ranked 48 out of 177 countries) and Panama (with a score of 0.812 and ranking of 62) are well regarded among the countries included in the Index. Iceland was the highest ranked country with a 0.968 score and Sierra Leona the lowest with 0.336. All countries with an index equal to or greater than 0.80 are considered to have high human development, those with scores from 0.50 to 0.79 are considered medium level and those below 0.50 are low.

The medium-level HDI countries are represented by El Salvador (with a score of 0.735 and ranking of 103), Nicaragua (0.710, ranked 110), Honduras (0.700, ranked 115) and Guatemala (0.689, ranked 118).

As a region, Central America scores an HDI of 0.729, which is higher than that of the Arab states, Southern Asia and Sub-Saharan countries, but still below the average of Latin America and the Caribbean (0.803), Central and Eastern Europe (0.808) and Eastern and Pacific Asian countries (0.771).

The major challenges to improve development levels in the region include: increasing the participation of the population, improving the quality of education, increasing productivity, decreasing poverty levels and inequality, and improving in the quality of life and life expectancy for most of the population.

The region has made considerable progress in terms of human development in the last few decades. In 1975, the combined HDI of the six countries on the isthmus (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama) was approximately 0.582, what nowadays is equivalent to the human development of Myanmar (ranked at 132 in 2007). Currently, the combined HDI of the region locates it at a level similar to Indonesia (approximately 107). While the improvements are noteworthy, many challenges remain.

Public sector and competitiveness

The Central American countries’ improvements to their national business climates should be highlighted. In general, all countries have responsibly managed their public finances and have made significant progress in deregulation, redefining the government’s role in the economy and adopting a free-market institutional framework. Additionally, big steps have been made towards liberalization and trade openness, as exemplified by the Dominican Republic-Central America-United States-Free Trade Agreement (DR-CAFTA), the ongoing conversations with the European Union to reach an Association Agreement, advances in the region’s Customs Union, and the series of bilateral trade agreements signed by the region’s countries. Other important achievements include poverty reduction and the increase of education and health coverage. The political development of the region and the consolidation of democratic systems after severe civil conflicts in the 1980s are also of note.

The Central American institutions have been strengthened as a result of competitiveness improvement programs, such as PRONACOM in Guatemala and Honduras Compite (Honduras Competes), and export and investment promotion agencies such as PROCOMER and CINDE in Costa Rica, PROESA in El Salvador and FIDE in Honduras. Regional efforts, such as the Puebla-Panama Plan, have given continuity to diverse regional projects as SIEPAC (the Central American Electrical Interconnection System) and the Logistic Corridor (between Honduras and El Salvador).

Each country has also made considerable efforts to develop its competitiveness level at a regional and global scale. In Guatemala, after the Competitiveness Agenda was launched in 2005 with the sponsorship of PRONACOM, there have been important improvements such as the creation of an electronic mercantile registry; improvements of customs’ controls and professionalization of customs agents; the promotion of the use of remittances in investment (instead of consumption, as has been the case); the creation of an e-regulations platform to support foreign and local investors and a one-stop shop to create and register new businesses; and the remodeling of La Aurora and Peto airports.

Honduras, after a two-year effort, has reduced the time to open a business from 62 to 21 days; started the Defense and Promotion of Competition Commission; promoted the National System of Quality Law; trained institutions involved in import and export activities; and made significant improvements in the Puerto Corto's infrastructure.

In El Salvador, improvements have been made in port and airport infrastructure, including the construction of Port La Union, which will be become the most modern deep water port in the region able to receive Panamax and Post Panamax ships. The government has also promoted teaching English in public schools and universities; supported local exporters, funding participation in trade fairs and business rounds abroad, training and advising in logistics and market information, and providing funds for export; launched the National Program of Entrepreneurs and Micro Credit Promotion; and encouraged the presence of companies and services such as call centers that rely on the existing infrastructure and human resources through the Telecommunications Law.

In Nicaragua, major improvements have been made in reducing red tape in the acquisition of operation licenses and construction permits. The government (in collaboration with the private sector) has also funded exporting companies to facilitate their access to the international markets.

In Costa Rica, the government, through the Secretariat of Competitiveness, has started a plan to reduce the time required to open a business and to obtain construction permits by 50 percent. The government has also invested in remodeling the Juan Santamaria International Airport infrastructure and improving the Liberia Airport infrastructure and important roads; granted the management of its port Puerto Caldera in the Pacific Ocean in order to increase efficiency; created a quality seal known as “Costa Rica Califica” (Costa Rica Qualifies), a locally developed quality certification that can be used as a basis for international certifications and was made to be more accessible to small and medium enterprises; and joined forces with the public and private universities and private sector to improve graduate-level education and to create local development programs in 12 provinces.

In Panama, there have been important achievements in improving public finances; restructuring foreign debt; reducing red-tape in opening a new business; creating an e-government structure, where the government purchases are made online; boosting tourism; and expanding the Panama Canal to create new jobs and fuel sustainable economic development for the country and the region as a whole.

The private sector’s contribution

Due to the regional governments’ endorsement of market openness and investment promotion over the past decade, the region’s entrepreneurs have been adding more value to their products and services. In 1999, coffee was the main export of the region representing 13.6 percent of the total regional exports, while machinery and electronic equipment exports represented only 3.4 percent. By 2006, machinery and electronic equipment represented 13 percent of the regional exports, while coffee dropped to 9.5 percent.

In addition, nontraditional products of high added value have emerged among regional entrepreneurs and foreign investors. These include business and contact centers, software development, medical devices manufacturing, and agro industry. The financial and banking sector has gained strength through mergers and acquisitions. The logistics sector has grown, as has the tourism sector, which generates approximately $4.5 billion in revenues each year and has seen a 15 percent increase in revenues in the last seven years.

The private sector has also been increasingly complying with responsible environmental and social practices. This also improves its competitiveness level, positively affecting the business climate in a number of ways.

In Costa Rica, Costa Rican Entomological Supplies (CRES) is a company dedicated to breeding, packing and exporting butterflies to exhibitors of live butterflies in the United States and Europe. CRES buys the butterflies from approximately 100 rural families in Costa Rica, integrating them into a supply chain that has allowed these families to substantially increase their income.

In Guatemala, the Central American Bottling Corporation created the technological Institute Santa Luisa de Marillac to provide basic primary and scientific education to employees’ relatives and members of the nearby community. The Institute has approximately 240 students between the ages of 4 and 17 years. The project has helped increase the qualification of labor in the area, which has been a key issue to attract new industries to the region.

Challenges ahead

Central America, with 0.6 percent of the world’s population, currently produces 0.2 percent of the world’s gross domestic product. It has a per capita productivity of $2,675 compared with the per capita of $5,300 in Latin America, $7,400 world average and $37,000 of the OECD countries. The region’s exports per capita are $920, versus $1,372 for Latin America, $2,220 world average, and $9,500 in OECD countries.

In order to make the region more competitive, it is necessary to increase its productivity. Major improvements are required to create a more attractive business climate. This includes foreign direct investment attraction, new entrepreneurial undertakings, a higher level of efficiency from the private sector, as well as the production of more value added goods and services.

Corruption and the inefficiency of the government bureaucracy are the main factors that hinder competitiveness in the region. Uncertainty and lack of transparency of policies and judicial framework for investments, weaknesses of the educational systems, crime and robbery, inadequate infrastructure and scarce access to credit are other main obstacles in some countries. In addition, each country faces individual issues, such as high inflation rates in Costa Rica in 2007 (10.8 percent) and labor regulations in Panama that affect employment flexibility and restrict efficient personnel practices.

Overall, increased productivity in the region’s companies is also needed, although important differences exist among the countries. In Costa Rica, workers have an average productivity of $6,250 in the agricultural sector, $13,700 in industry, and $10,580 in the services sector. Conversely, Honduran workers have an average productivity of $916 in the agricultural sector, $3,500 in industry, and $3,265 in services. Compared with a country such as South Korea, the difference in worker productivity is significant. In South Korea, average productivity for a worker in the agricultural sector is $12,980, $42,750 in industry, and $25,500 in services. Therefore, the region has still a long way to go to catch up with Southeast Asian levels of productivity.

Central American nations must address important challenges in improving their business climates and the sophistication of their business sectors if they are to increase their productivity and gain a more competitive edge in the global marketplace. These challenges include regulations, policies to attract investment, better financing systems and policies, education, and security and infrastructure, among others. However, it is certainly worth highlighting the efforts that the countries have made individually as well as regionally, which have allowed them to improve their competitive positions on the global stage. A push to develop regional infrastructure, reduce bureaucracy and create incentives for private investment should receive special attention from Central American governments to achieve higher levels of economic development.
 

From INCAE Business School

November 2009 will see the launch of 

 of the Dominican Republic

                                                                                                 

 www.northcoastplayers.com

Dominican Republic remains a popular destination

Despite the worldwide economic downturn, travel to the Dominican Republic has remained relatively stable. Central Bank statistics indicate that there has been a decline in travel of only 2.29% from January to August 2009. By August, the monthly decline was only 1.14%. North America (the US and Canada) sends most tourists, with 55.7% of total arrivals. Europe sends 34.07%. 

A significant proportion of West Indies Real Estate's sales are to buyers wishing to invest in rental property, a market which remains bouyant.  Click here for properties available.

United Nations and Dominican Republic banana producers
 

Continuing with the banana theme, the United Nations and banana farmers from Azua, Montecristi and Valverde have signed a cooperation agreement aimed at strengthening banana production in their areas. This is a 3-year, US$4.7 million agreement in coordination with the National Development Strategy. The cooperation agreement seeks to increase producer competitiveness by introducing new technologies, thereby helping the Dominican Republic to move towards fulfilling the Millennium Development Goals.

West Indies Real Estate specialises in land, including agricultural land and land for bio-fuels, as well as land for residential and tourist developments.  Click here for further details.

Tropical Gardening

Following on with the theme of unusual fruits and vegetables, here is something which probably seems familiar but.....  These are red bananas, as grown by West Indies Real Estate's own Sales Agent, Piet Schenkels. 

They can be eaten raw or fried, either ripe or unripe, and taste very similar to their better known cousin. 

Come and try out all these new flavours for yourself on your next visit to the Dominican Republic.

David Ortiz supports Massachusetts General Hospital

David Ortiz might be having his troubles at the plate, but he is still known around the league as one of real good guys of the game. Ortiz has been warmly received everywhere he goes due to his demeanor and genuine affection for fans.

Earlier this week Ortiz announced that the David Ortiz's Children's Fund has formed a partnership with Massachusetts General Hospital. According to MLB.com, Ortiz's charity has funded roughly 60 heart surgeries for children in the Dominican Republic over the past year, and the efforts will now extend to Big Papi's baseball home of Boston.
During a ceremony at Big Papi's Grille, which has recently opened in Framingham, Ma., Ortiz presented Peter Slavin with a US$100,000 check. Slavin is the hospital's president. "Whenever you provide an open-heart surgery for one of these kids, it changes the whole family's life situation," said Ortiz. "It's an unbelievable change. I started doing this a few years back. I was doing it because I love kids, and I love to see the smile on children's faces. I had no idea, seriously, what I was walking into."

Nelva Pelaez, the secretary of Heart Care Dominicana said, "I remember the first time David came into the hospital. I was very touched to see a guy who was so big and so strong fall into the arms of a baby, basically, crying," "He couldn't stand to see their pain. I was truly touched at that moment. I said to myself, 'This is a genuine guy, and he will come back and help more children,' and he did."  

West Indies Real Estate is doing its own small part to improve the health of Dominican children by supporting Island Impact Ministries, one of our three chosen charities, the others being Sosua Kids and A.A.A.S (Association of Friends of the Animals of Sosua).  To learn more about these charities, see bottom right of our Homepage - just click on the logos.

President Leonel Fernandez met in Puerto Plata recently with tourism sector representatives and committed government funding for projects on the province's development agenda. Jose Natalio Redondo, president of the Puerto Plata Tourism & Cultural Cluster expressed optimism that progress would be made following the President's visit.

It was agreed that the government would fund the reconstruction and expansion to four lanes on the Navarrete-Puerto Plata highway, as well as a new tunnel.  They also agreed to fund the construction of a hospital in Sosua, bridges, aqueducts and the rehabilitation of the port.  A bypass road through Cabarete would be built, and the current road would be pedestrianized. 

It was also agreed that a decree would be issued to increase the maximum permitted building height of Cabarete from three to four floors.  Agreements with the city governments were also announced for the paving of streets in Sosua, Cabarete and Puerto Plata.

The government also approved a RD$35 million promotional campaign in the US, starting next week.

West Indies Real Estate welcomes moves to improve infrastructure and commerce in the area.

Customs Department  gets better

A World Bank report indicates that the Dominican Republic's Customs Department (DGA) is second in Latin America in having achieved reductions in costs and paperwork for imports and exports. Customs director Rafael Camilo welcomed the news, describing it as important and transcendental. The Dominican Republic is listed 2nd on the list in 2009 in the "Trading Across Borders" category, up from 36th in 2008. Click here for more details.

To view the commercial properties West Indies Real Estate has to offer, click here.

New Company Law improves Dominican Republic's world rankings

The Doing Business 2010 report, recently published by the World Bank, now ranks the DR in 86th place of 183 countries. The DR climbed 16 places, up from 102 in the 2009 report. (See http://www.doingbusiness.org/)

Maria Victoria Abreu, of the National Council of Competitiveness (CNC), says that the new Corporation Law (No. 479-08), promoted by the CNC, made all the difference. She explained that the new law calls for new modern corporate structures, in addition to significantly easing company formation. (See http://www.doingbusiness.org/economyrankings/)
For more on CNC efforts and an overview on competitiveness in the DR, see http://competitividad.org.do/. 

Guzman Ariza, one of West Indies Real Estate's recommended law firms, has prepared a number of useful bulletins, including one on the new company law - Click here for details.  Fabio Guzman Ariza, one of the company's experts on company law, is pictured above.