Perceptions and GMH in "Do What They Love"

Originally Posted by Mirador at 8:49 a.m. of june 4th, 2005.

Sounds like the old neoliberal proposition with a cute twist (..."do what they love."): privatize, privatize and privatize; let the market take care of it; the less government the better...

Thanks Mirador for a perceptive look at GMH. What you have seen relates mostly to the electric power privatization, because that is what I have mostly worked on. My conclusions on the need to liberalize the retail markets of electricity does not have to do with a dogmatic view of the world. Other sectors of the economy can perfectly work with more goverment: let the experts of those fields suggest the approach. However, I believe that the development of multinationals of Dominican Republic and Haiti in this century is the key to the sucessful development of Hispaniola. That is why I call myself the organic seed of the GMH, because I probably will not see it through.

My conviction of the need to liberalize retail markets of electricity comes from my research. I learned that electricity can be differentiated with respect to the shortage sensibility of the customer. This means that by charging every customer on a given class an average rate, those with low shortage sensistivity subsidize those with high sensitivity in the system. What I have found out is that there is a market in which the little guy can sell supply security to sensitive customers. In addition, shortage sensitiviy is perceived by the customer, leading to the development retail marketing by companies. I also claim that the Dominican Republic electricity crisis is inextrically linked to great opportunities for research, development, and demostration projects leading to a strategic turn-around opportunity.

I also found out that there is a sistemic risk in the electricity sector of the Dominican Republic. I think it is a text book example of electricity risk. If you are interested you can look at the presentation I delivered in Atlanta, Georgia, at the Spring 2005 PLMA Conference. You can see that the market enabling tool is called Demand Response technology.