Caribbean & Central America - August 2008 (ISSN 1741-4458)

On 16 August Leonel Fernández was sworn in for his second consecutive (and third total) term as president of the Dominican Republic. In his inauguration speech, Fernández urged an end to “all forms of injustice, and inequality", criticising what he termed “casino capitalism" which has turned the markets into “giant betting salons whose actions affect the prices of goods in the real economy". However, while warning of tough times ahead due to global food and fuel prices, he was also careful to reassure the private sector, with an emphasis on the need to attract direct foreign investment, seek new export markets and generally build confidence in the economy.

Despite intense rains as a result of tropical storm Fay, which led some officials to cancel their visits, Fernández's inauguration ceremony was attended by figures such as Presidents Alvaro Uribe of Colombia, Michelle Bachelet of Chile, Manuel Zelaya of Honduras, Ma Ying-jeou of Taiwan, and René Préval of Haiti, as well as Prince Felipe de Borbón of Spain. This is perhaps a sign of how the Dominican Republic's standing in the region has been boosted by its hosting of the pivotal Rí­o Group Summit on 7 March [RC-08-03].

As well as making various promises of social investment in his inauguration speech - which lasted nearly two hours - Fernández was quick to flag up his economic achievements. He promised continuity with policies already underway (as also suggested by the relatively few changes introduced in his new cabinet). He stressed that unemployment fell from 19.7% in 2004 to 14% in April of this year, and that GDP growth (at 7.5% in the first half) has been strong, as has direct foreign investment so far this year. Pledging to try and keep annual GDP growth at 6%, inflation within single figures, and to bring the current account deficit down to 2.3% of GDP by 2012, Fernández also announced a new deal with the IMF - a move likely to be well received by the private sector.

While recognising the “desolate" global economic outlook, Fernández said that this could represent "the great opportunity [the Dominican Republic] has been waiting for_to promote the development of the national agricultural sector" - a statement accompanied by promises of loans and other measures to help farmers.

In addition, President Fernández announced plans to reform certain aspects of the Dominican constitution in order to introduce simultaneous congressional and presidential elections, and to reduce presidential powers.

• New cabinet

New appointments include: General Pedro Peña Antonio (head of the armed forces); César Pina Toribio (minister for the presidency); Francisco Javier Garcí­a (tourism); Jaime David Fernández (environment); Max Puig (labour); Franklin Rodrí­guez (youth). Other changes include Melanio Paredes (transferred from trade to education); Alejandrina German (from education to women) and José Ramón Fadul (from labour to trade).  Those remaining in their posts include: security (Franklin Almeida); foreign relations (Carlos Morales Troncoso); economy (Temí­stocles Montás); treasury (Vicente Bengoa); agriculture (Salvador Jiménez); attorney general (Radhamés Jiménez); health (Bautista Rojas Gómez) and public works (Ví­ctor Dí­az Rúa).