Strategies (2002-2007)

Overview

USAID Dominican Republic launched a new 5-year development strategy during the summer of 2002. This new strategic plan will help advance Dominican Republic and USAID priorities in the areas of economic growth, democracy and governance, and health. USAID plans to invest US$100 million in these areas over a 5-year period.

Cross-Cutting Themes: Poverty Reduction, Civil Society, Policy Reform,
Local Governance and Strategic Partnerships

To achieve development objectives in the Dominican Republic, and then sustain those achievements, necessitates approaching the challenge from several different perspectives. The new Strategic Plan is built upon five common themes: poverty reduction, civil society, policy reform, local governance and strategic partnerships. The Mission envisions each of these themes as development threads. The fusion of these five threads strengthens the development canvass and is integral to achieving the four new Strategic Objectives that comprise the Strategic Plan.

Poverty in the Dominican Republic can no longer be addressed through the more traditional economic and social interventions. Poverty will only be reduced through an integrated approach that cuts across all objectives. While maintaining a sound macroeconomic framework, increasing educational quality and access, supporting the development of small businesses, providing productive and social infrastructure and protecting health remain critical to poverty reduction in the country, other issues are proving equally important in sustaining the Dominican Republic's rapid growth and in broadening access to economic opportunities. Sustained overall growth continues to be key to poverty reduction. As small economies - like the Dominican Republic - increasingly open to the global economy, the country and its private sector must continuously increase productivity, learn to compete more effectively in higher value markets and access and use technology effectively. The investment climate and trade policies must continue to improve to support expanded job creation and business development.

As progress is made on these fronts, other factors have increasingly gained importance in the Dominican Republic. Hurricane Georges amply demonstrated that a single natural event can wipe out hard earned assets immediately, that the poor are most vulnerable to these set-backs, and that they are the least likely to have access to the necessary capital assets to rebuild. Furthermore, the Dominican economy is more critically and directly linked to its limited natural resource base for water, power and other natural assets, like beaches and marine resources which attract tourists, than are non-island economies. Dominicans must actively protect their resources to be competitive in the global economy. Poor sanitation and solid waste management, issues directly linked to weak local governments in the Dominican Republic, not only affect health but also have a direct and negative effect on tourism, a major source of employment. Other issues, like weaknesses in the rule of law, the justice system, the lack of public security and corruption are now an equal or greater impediment to investment, economic growth and poverty reduction than are the country's macro-economic policies. Finally, the poor must have equal access to the justice system, public institutions, public services and political participation to fully participate in the country's economic, social and political systems. Thus, poverty reduction will be treated as both a development objective as well as a cross-cutting theme.

Organized civil society focused on broad national interests is maturing in the Dominican Republic, after more than ten years of USAID support. Its engagement will be crucial to the Mission's ability to achieve its Strategic Plan. Organized civil society is led by a handful of dynamic, institutionally solid and independent Dominican NGOs working on democracy and governance, health issues, environmental concerns and community development. Participation cuts across socio-economic as well as gender lines. These lead NGOs set their own agendas, advocate for political and social change at the community and national level, and are increasingly successful in tackling difficult and sensitive issues. Networks of NGOs have coalesced around the lead NGOs in democracy and governance, health, and community development. These groups are increasingly influencing decision-making in their areas of interest. However, in other development areas, there are a plethora of issue-oriented NGOs that are less cohesive or institutionally strong, with consequent lack of impact. Lead organizations need to be supported to coalesce like minded networks of NGOs focused on issues of national interest like environmental protection, disaster prevention, small business development, education, and competitiveness that can bring their combined weight to bear on national decision making. Furthermore, many of the current leaders in democracy, health, environment, and community and social development have not come to grips with the sustainability of their own organizations, a next step that is critical to civil society's future role in advancing political, social and economic development in the Dominican Republic.

Policy reform is another development thread found throughout the Strategic Plan. Ultimately, these reforms should tangibly and positively touch the lives of Dominicans, be it by providing better health care services, a cleaner and safer environment in which to live and work or by creating economic opportunities. In many instances, necessary reforms have been promulgated into law, but implementing regulations, supporting policies and the organizational capacity for implementation, remain to be developed. In other cases, changes in the legal framework are still required. Policy reform will therefore become a means -- rather than an end -- to achieve the development objectives identified in the Mission's Strategic Plan.

Local governance, though less of an oxymoron now than during the days of strongman Trujillo, is still a largely undeveloped concept in the Dominican Republic. The highly centralized governance system places the decision-making regarding how the government collects and spends its resources within the hands of the few. The Mejia Administration has stated its commitment to policy reforms that "decentralize" or "deconcentrate" decision-making and resource allocations. The Administration has also taken initial steps in that direction through its Reform of the State Commission and by increasing central government allocations to municipalities. However, for decentralization to be effective, there must be a willingness to pass real power and real responsibilities to local governments, and the capacity on the part of municipalities to respond.

In the past, there have been few investments in strengthening local governments in the Dominican Republic, although other donors are now shouldering that burden. A new Federation of Mayors was formed in August 2000 that holds real promise as a lobby for strengthening municipal governments. Furthermore, organized civil society groups have begun to take a greater interest in the issue of decentralization. The new Strategic Plan works with local governments in building community and municipal-level capacity in selected communities to respond to environmental, education and health issues, and in helping regions of the country formulate and implement strategies for enhancing competitiveness.

The Dominican Republic's close links to the United States and Puerto Rico, its recent strong economic growth, and its active society and private sector are generating strategic partnerships both locally and internationally. President Mejia and many of those around him come from the private business sector and have been active participants of organized civil society. The president is clear that the private sector is the engine of growth and that many of the skills needed to ensure continued economic, political, and social development are not in government institutions. The judicial branch and the Elections Board have experienced positive partnerships with civil society in reform efforts and are convinced of the value of cultivating these partnerships. Parts of the executive branch have had similar experiences and are looking to public/private partnerships and links with NGOs to achieve results. Furthermore, many leaders in government have international contacts and friendships -- particularly in the United States and Puerto Rico -- that they are calling on to help them accomplish their jobs. Similar collaboration, rather than just "coordination", is beginning to occur between donors. Thus, the potential is great for further developing and focusing public/private partnerships to achieve results.

Although the experience of relying on direct contacts with a strongman president for success in business dies hard, there is movement from that pattern. The idea of strategic alliances between private companies for a common strategic end is taking hold in some sectors and products - in some cases stimulated by USAID's work on competitiveness. Groups are beginning to come together for the purpose of looking for ways to compete in the global economy rather than for persuading the president to establish more protectionist measures. These groups are beginning to make international contacts, again often with USAID assistance. The newly established Quality Coffee Association, the Cacao Producers Association, and the hotel association of Bayahibe (a large resort community) are good examples. Foreign international companies have introduced social investments as part of their company policy in the country. The Falconbridge Mining Company is the most notable, but others like Occidental Hotels, Major League Baseball, and Timberland are also engaged in social investment. Local companies, particularly those dealing with the global economy, are beginning to follow suit. Thus, there are plenty of opportunities for USAID to facilitate the formation of partnerships that will bring fresh ideas, new opportunities and increased resources to our objectives. These trends cross all three Strategic Objectives and the Dominican-Haitian Artibonito GDA proposal and the Mission will maximize strategic partnerships to advance the Strategic Plan.

For information about our previous strategy (1997-2002), click here.

Last updated on May 20, 2005