Leonel Fernandez took office as the Dominican Republic's president today, returning to power after four years out of office to lead the Caribbean nation through its worst economic crisis in decades. The new president took the oath of office in the capital of Santo Domingo, appearing before hundreds of officials in Congress. Fernandez, who as president from 1996 to 2000 presided over relative stability, easily defeated outgoing President Hipolito Mejia in May elections by promising a return to progress. His new government inherits $6 billion in foreign debt, worsening power outages, and a desperation among the poor that is driving thousands to risk illegal voyages by boat to the wealthier U.S. territory of Puerto Rico. Fernandez will likely face unpopular decisions in trying to address 16 percent unemployment, 32 percent inflation, and a Dominican currency that has lost half its value against the U.S. dollar in two years, doubling prices in the nation of 8.8 million. Economists say a turnaround requires steep tax increases as well as cuts in government spending, meaning fewer social services, government jobs, and subsidies for electricity and natural gas.
