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DOMINICAN REPUBLIC
>> Regional Overview >> Dominican Republic Overview 
Introduction
The United States has a strong interest in a democratic, stable and economically healthy Dominican Republic. U.S. interests in the country include strengthening democratic institutions, fighting drug trafficking and money laundering, enhancing market access for U.S. exporters, combating the smuggling of aliens, controlling the spread of AIDS, reducing environmental degradation, and promoting stability in the region. The country is the United States' seventh largest export market in Latin America. The geographic proximity of the Dominican Republic means that its problems often have a direct spillover effect on the United States. The high incidence of poverty has resulted in sizeable emigration. Roughly one out of nine Dominicans is now thought to live--legally or illegally--in the United States.
The Development Challenge
The trail of destruction left by Hurricane Georges, which hit the Dominican Republic on September 22, 1998, affected virtually all regions of the country. Flooding and wind damage from the hurricane killed at least 280 people and left a further 300,000 homeless. Total direct losses were estimated at $1.96 billion, equal to 14% of the country's 1997 gross national product. Since January 1999, USAID reprogrammed funds to support NGOs to repair approximately thirty water systems in rural communities and to repair shelters. OFDA provided $2.8 million to support NGOs in preparing land for replanting plantains and assisted hurricane victims to rebuild their homes. USAID has supplied Title II food to 330,000 disaster victims. Proceeds from the sale of Section 416(b) wheat worth $16 million are being used to rehabilitate small and medium scale farming and livestock operations. Emergency Child Survival Funds of $6 million are being used to provide vaccinations, primary health care, disease surveillance, the rebuilding of water supplies, reconstruction of sanitation facilities, and other health-related activities. USAID is using $29 million of Central American and Caribbean Emergency Disaster Relief funds to support hurricane reconstruction activities in health, agriculture, housing, economic reactivation, environment and disaster mitigation.
In spite of the extensive damage caused by Hurricane Georges, the Dominican Republic continues to maintain economic growth rates of over 7% (making it the fastest growing economy in the Americas) with inflation remaining in the single digits over the last five years. This growth, however, has not been equal throughout society, focusing on only a few sectors such as the duty-free export assembly zones and communications sector. The Dominican Republic still remains one of the poorest countries in the Caribbean, with high growth rates masking a pronounced inequity in income distribution. USAID is working closely with the Dominican private and public sectors to develop national, regional and sector specific (clusters) competitiveness strategies so that the high economic growth rates that the country is currently enjoying results in sustainable and more broad based growth.
A key success over the last year is the capitalization of the state-owned electricity generation and distribution companies. Despite the success in attracting foreign investment to the electricity sector, however, the transfer to the private sector has taken place without adequate regulatory and supervisory control. Until the passage of the energy bill submitted to Congress takes place, there are no mechanisms to protect consumer interests or to prevent the emergence of private monopolies in the field. USAID is working to ensure that the Superintendence of Electricity is prepared to take on this regulatory role once the bill becomes law.
Other key areas of policy reform include the environment and natural resource sector. Hurricane Georges underlined the fatal consequences of slash and burn agriculture, deforestation and mismanagement of watersheds. Due to the lack of environmentally sustainable methods in agriculture, forestry and land use planning, more people died, more land was washed away and more houses were lost. USAID is promoting policies that will ensure more sustainable management of natural resources and the environment.
In the area of education, only 33% of children finish grade school, and only 10% finish high school, thereby dampening sustainable economic and human growth potential. USAID will work to reform the basic education sector through initiatives that increase public demand for improvements in the quality and efficiency of services.
USAID support for family planning, HIV prevention, and the provision of water and sanitation services has contributed to notable improvements in the overall health of Dominicans in targeted areas. Nonetheless, critical health care issues remain. These include increased risk of HIV/AIDS infection among the general population, limited access to reproductive health care by youth, and inadequate water and sanitation systems, all exacerbated by limited coverage for basic preventive health care. USAID assists Dominicans to increase the use of sustainable basic health services and practices, focusing on: 1) HIV/AIDS programs to prevent infection and provide care for affected persons; 2) sustainable, targeted reproductive health services; 3) demonstration pilots to improve access to child survival interventions such as vaccinations, integrated management of childhood illnesses, control of diarrhea diseases, and treatment of acute respiratory infections; and 4) policy reforms to increase the efficiency and equity of basic health services, especially at decentralized levels.
The Dominican Government's (GODR) ability to act on economic and social issues continues to be hampered by weak state institutions plagued with patronage, large inefficient bureaucracies and inadequate financial controls. USAID-funded grassroots organizations identify, advocate and enact change on a broad range of local and national development priorities, such as improving the provision of basic services (e.g., health care, water and sanitation) and promoting decentralization. Justice sector reforms continue to reinforce an independent judiciary, now supported by key Dominican Government officials as well as civil society leaders. USAID continues to support civil society in its efforts to ensure a transparent presidential election in the year 2000 with the assistance of a network of 6,000 trained volunteers. Dominican NGOs will also receive USAID assistance in the area of advocacy and policy dialogue to enhance civil society participation in the decision-making process.
Graduation from U.S. assistance is not expected in the near term. The GODR is up-to-date on most foreign debt obligations.
Other Donors
The U.S. is the fifth largest donor to the Dominican Republic, after the Inter-American Development Bank (education, health, community development, tourism, transport infrastructure, financial sector, land titling, irrigation, hurricane reconstruction), the World Bank (education, health, roads, energy, justice reform, irrigation, hurricane reconstruction), the European Union (integrated rural and community development, private sector and NGO support, energy, water/sanitation, health, natural resources), and Japan (agriculture, health, natural resources). The United Nations Development Program, Italy, Spain and Germany are other important donors.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: December 21, 2000 |
