Economy and Business Info

Posts Tagged ‘economic activity’

The recent announcement by the head of the Ministry of Finance and Public Credit, in relation to the intention to limit the transactions in dollars in the bank counters as a mechanism to prevent money laundering, have a regressive effect wing border region’s economy and thus this effect will affect the rest of the economy.

This is considered the vice president of the National College of Economists, José Luis Contreras Valenzuela, saying While it is important to implement control mechanisms to prevent money laundering as part of a strategy against organized crime, it is also true that policies are implemented should not affect the smooth running of the economy.

Nor should become inhibitors of economic activity, because the crisis deepened generate better conditions for the rise in crime, he said.

“We must not fail to see that crime and the illegal actions take place more rapidly when the conditions of economic activity suffer a crisis so deep that even we could not get out. In addition, have enough memory to remember that these conditions have worsened in recent years, “he said.

He said it is important that public policy have as its fundamental objective to create conditions for healthy growth of the economy, creating jobs, facilitating the operations of enterprises and productive assets in order to create jobs and revive the market.

However, if we persist in implementing measures to absurdities such as limited-counter foreign exchange transactions, an economy where many commercial transactions occur in dollars, we think that a measure such as the Ministry of Finance audience, he said.

Contreras Valenzuela said that this business practice every day in the border cities, demand for a facility and foreign exchange controls and implemented as the one introduced by it, pushed to the users of dollars of housing market change, promoting speculation and black market dollars.

He said that in the six northern border states of Mexico accounts for forty percent of the national population in border cities like Ciudad Juarez, Tijuana, Medical, Matamoras, Reins, Nuevo Laredo, Nogales and Ague Pieta, focuses almost twenty million Mexicans.

46% of economic activity in San Felix is informal and 88% of this is directly related to the sale of food, which leads to the conclusion that “the food moves the economy” of that part of Ciudad Guyana says economist Marco Tulia Mendez.

The data shows these figures come from a study of poverty and unemployment by the Center for Research on Education, Productivity and Life (Kiev) of the Universidad Catholic Andres Belo de Guyana.

According to the report of the research center, the informal economy is divided into two major sectors: food stalls and street vendors. Together account for nearly half of business in San Felix.

In the formal economy, food retailers occupy 39% of the total, exceeding fifteen percentage points to the industrial sector, which ranks as the second economic strength of San Felix.

This informality in San Felix trade directly affects the levels of poverty and unemployment in that area, since this type of trade encourages school age youth beginning in the labor market right after the high school and even before and “while lowest educational level the higher the percentage of poverty.”

In Puerto Orders, in contrast to its sister city, the pyramid is inverted because the educational level is higher and this “can get a job with better income level and improving the quality of life,” said Mendez.