Strategies (1997-2002)

Economic Growth

Strategic Objective: Policies Adopted That Promote Good Governance for Sustainable Economic Growth

Policies for a more Competitive Dominican Economy

The Dominican Republic has one of the fastest growing economies in the world. Despite high levels of economic growth, many Dominicans have not experienced improved economic conditions, causing many to question whether democracy can produce truly sustainable economic progress and tangible improvements in the lives of ordinary citizens.

The Mission is assisting the Dominican Republic to adopt policies for a more competitive economy through technical assistance, observational travel, analytical studies and training -- leading to new laws, regulations and other supporting policies. The blueprint for this activity National Competitiveness Strategy, an action-oriented framework that identified a reform agenda for key economic and social policies and launched a national development effort geared to changing the public and private sector mindset that would lead to greater competitiveness by Dominican business in the global economy.

Reform of key economic and social policies. The investment climate and trade policies will be improved to support expanded job creation and increased opportunities, especially in tourism, agribusiness and light industry. Fiscal and financial sector policies that constrain business development and investment, decrease competition, and increase the risk to savers and investors will be addressed. For example, the growth of small business and micro enterprise is constrained by lack of credit and high interest rate. Policies leading to these conditions will be tackled. The capacity of the GODR will be strengthened to implement policy reforms related to intellectual property rights (IPR), international arbitration, resolution of expropriation and other public debt cases and to carry out its international trade agreement obligations.

Change in private and public sector mindset on economic and social policies. Competitiveness strategy development and productivity enhancement assistance will be provided to regional and product or industry competitiveness initiatives that are based on strategic business planning and involve the following elements: development of strategic linkages; partnerships between communities and public and private sectors; environmental sustainability; and enhanced access to information technology. Potential activities include eco-tourism, specialty coffee, organic vegetables and cacao, and community/school information technology sharing.

Improved Policies for a Sustainable Environment

Hurricane Georges underlined with dramatic intensity the consequences of inappropriate agriculture on hillsides, deforestation and mismanagement of watersheds. Government officials and civil society are beginning the process of long-term planning for environmental protection and disaster preparation.

The new Secretariat of Environment and Natural Resources substitutes for 15 government sector organizations, which were operating independently as of August 2000. USAID is providing technical assistance in policy formulation and institutional strengthening to the new Secretariat to help implement the new Environmental and Natural Resources Law passed in August 2000. USAID is also providing technical assistance to environmentally sensitive areas through the Parks-in-Peril Program.

Improved Policies and Practices for Efficient Rural Energy

State control of the energy sector led to costly and unreliable electric service. An incomplete privatization program left the country with a weak regulatory framework, continuing energy shortages, and poor service. USAID provides technical assistance for policy analysis and energy planning, observational travel and training. USAID advisors contributed to the enactment of the Electricity Law in 2001, which now provides a legal framework for further reforms and regulations of the energy sector. Under this law, USAID is assisting the Dominican government to improve energy planning, expand and improve electric service in rural areas and increase safety through the development of a National Rural Electrification Plan. The plan will be designed to expand economic growth in rural communities and promote the use of more environmentally sound, efficient and sustainable energy sources. USAID will assist the expansion of rural renewable energy systems in partnership with commercial lenders and non-governmental organizations (NGOs).

Improved Basic Education Through Increased Community and Private Sector Participation

The lack of education is a fundamental determinant of poverty. The illiteracy rate is relatively high and primary school completion rates are low in the Dominican Republic. This limits economic opportunities and competitiveness. USAID assistance in education is designed to increase public and private expenditures in education, strengthen the participation of families and communities in the entire educational process, and restore civil society's involvement in educational improvement. USAID's strategy is aimed at improving quality in basic education, thus, contributing to good governance and sustainable economic growth. USAID is fostering partnerships with private business for educational improvement in public schools, enhancing the role of non-governmental organizations as facilitators for consensus building for reform, and increasing community involvement in the continued application of improved policies and educational methodologies. USAID is providing technical assistance to inform policy makers of opportunities for improving the quality of education including evaluation of the prior Ten-Year Plan, information technology, standards of quality and evaluation for quality. USAID is providing training to reporters and other media representatives on education policy to focus the national debate on basic education quality and increase public knowledge and participation in educational policy reform. Technical assistance is also being provided to the Ministry of Education on strategic planning. In partnership with the United States Department of Agriculture and the Dominican government, USAID is providing grants to non-governmental organizations under the Global Food for Education Initiative to improve children's diets and increase community participation in the primary school. Finally, USAID is developing an adopt-a-school program, modeled after the highly successful Falconbridge Foundation Program, which will provide a means for the private business and non-governmental organizations to increase investment in basic education improvement.

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Last updated on May 20, 2005