• President - Leonel FERNANDEZ Reyna
• Vice President - Rafael ALBURQUERQUE de Castro
• Sec. of State for Agriculture - Amilcar ROMERO
• Sec. of State for the Armed Forces - Sigfrido PARED Perez, VAdm.
• Sec. of State for Culture - Jose RAFAEL Lantigua
• Sec. of State for Education - Alejandrina GERMAN
• Sec. of State for the Environment & Natural Resources - Maximiliano PUIG Miller
• Sec. of State for Finance - Vicente BENGOA Albizu
• Sec. of State for Foreign Relations - Carlos MORALES Troncoso
• Sec. of State for Higher Education, Science, & Technology - Ligia AMADA MELO viuda Cardona
• Sec. of State for Industry & Commerce - Franklin GARCIA
• Sec. of State for Interior & Police - Francisco ALMEIDA Rancier
• Sec. of State for Labor - Jose Ramon FADUL
• Sec. of State for the Presidency - Luis BONETTI
• Sec. of State for Public Health & Social Welfare - Sabino BAEZ, Dr.
• Sec. of State for Public Works & Communications - Manuel de JESUS PEREZ
• Sec. of State for Sports - Felipe PAYANO
• Sec. of State for Tourism - Felix JIMENEZ Jimenez
• Sec. of State for Women - Gladis GUTIERREZ
• Sec. of State for Youth - Manuel CRESPO
• Administrative Secretary of the Presidency - Luis Manuel BONETTI Veras
• Technical Secretary of the Presidency - Juan Temistocles MONTAS Dominguez
• Sec. of State Without Portfolio - Miguel MEJIA, Dr.
• Sec. of State Without Portfolio - Eduardo SELMAN
• Special Assistant to the President - Jose Joaquin BIDO Medina, Dr.
• Presidential Adviser on Anti-Narcotics - Vincio CASTILLO
• Attorney General - Francisco DOMINGUEZ Brito
• Governor, Central Bank - Hector VALEZ Albizu
• Ambassador to the US - Flavio Dario ESPINAL Jacobo
• Permanent Representative to the UN, New York - Erasmo LARA-PENA

Public Holidays:

Economic Trends for 2007

The Economic Survey of Latin America and the Caribbean 2007-2008 states, that in 2007 the Dominican Republic recorded a real 8.5% increase in its GDP, continuing the sharp upward trend observed in the previous biennium (10% per year on average). Inflation stood at an annual rate of 8.9%, and a fiscal surplus equivalent to 0.1% of GDP was achieved, while the balance-of-payments current account deficit increased significantly to reach 5.4% of GDP.

Economic Policy for 2007

Economic policy continued to be pursued in accordance with the guidelines set out in the agreement concluded
with the International Monetary Fund, which was in force until January 2008. Rising international prices and
contingency outlays to mitigate the effects of natural disasters created some fiscal pressure, but this was absorbed without undermining the country’s macroeconomic stability objectives. source: ECLAC

Tourism

Tourism became Dominican Republic’s main foreign exchange earner in 2006. The past output strength of the sugar cane and agricultural sector is now overshadowed by the service sector, which now accommodates for more than half of the labour force population (and compositional value top GDP). Inflation has not yet to be contained from since 2000 and political tensions became common after the collapse of the second commercial bank of the country (Baninter), linked to a major incident of fraud valued at 3.5 billion dollars during the administration of President Hipolito Mejia (2000-2004). (Source: Wikipedia: Economy of Dominican Republic)

Inflation Crisis: A Monetary Phenomenon

Main Source: IMF “The Quest for Price Stability in Central America and the Dominican Republic”

IMF investigates the reason for indomitably high inflation in Central America and the Dominican Republic; and why inflation has yet to converge to stable prices. Empirical analysis illustrates how all Central Banks within the Central American (including Dominican Republic) region have vaguely implemented a standard monetary policy to combat inflationary pressures. Despite the institutional strengthening of monetary policy, important flaws remain in most central banks, in particular a lack of a clear policy mandate and little political autonomy, which are adversely affecting the consistency of policy implementation. To effectively combat inflation, a possible solution would be to increase interest rates. Emperical findings suggests that when adopted, only some Central Amercian countries have thoroughly raised interests rates to tackle inflation, whilst simultaneously, other Central Banks (in Central America and Dominican Rep.) tried to protect their exchange rate stability. The potential policy conflict arising from a dual central bank mandate and the unpredictable policy response is probably undermining markets’ confidence in central banks’ commitment to price stability, thereby perpetuating an inflation bias.

Income Inequality Distribution

Main Source: United Nations ECLAC “Income Inequality in Central America, Dominican Republic and Mexico: Assessing the Importance of Individual and Household Characteristics”

Latin America has the highest levels of income inequality of any region in the world. This has been one of the most pervasive characteristics of the region for the past 50 years (de Ferranti et al. 2003). Within Latin America, the subset of countries in Northern and Central Latin America and in the Caribbean suffers from some of the lowest levels of social development with high poverty rates, high, intransigent social inequality and a majority of the populations in each country living in conditions of social exclusion and vulnerability.

Despite the improvements in growth and structural reforms and a decrease in poverty rates, consistent improvements in social development remain elusive. Income inequality has failed to show any consistent decline across countries. In addition, the achievement of the first Millennium Development Goal (MDG), that is the reduction, by half, of the population living in extreme poverty, is unlikely to be met by the 2015 deadline for many countries in the region, if progress in economic and social development continues at its current rate (ECLAC, 2002).

The results from a study (which investigates the relationship between individual and household characteristics and income inequality) are very heterogeneous, reflecting the differences across countries over the period. Individual characteristics can explain more of individual income inequality than household characteristics can explain for household income inequality. Regional differences, education and labour market characteristics have the greatest effects upon the level and changes of income inequality in Central America, the Dominican Republic and Mexico. Declines in the agricultural sectors of the countries and shifts to urban areas reflect the structural changes taking place in the economies, and these factors are important determinants of inequality change. In addition, the rise of the informal sector of employment with its lower benefits and job security has contributed increases in income inequality. However a significant proportion of inequality levels and trends across households and individuals could not be explained by individual or household characteristics. The explanatory power of the results for individual income inequality corresponds with other work conducted for individual income earners within and outside the countries included in this study. In contrast the inability of household characteristics to explain much, if any, household per capita income inequality is not consistent with findings from similar studies. Further work is needed to conduct an in depth investigation into the links between household income inequality and individual income inequality.

Dominican Republic Country Economic Memorandum: The Foundations of Growth and Competitiveness. September 2006

The Dominican Government is pleased to present, jointly with the World Bank, the Dominican Republic Country Economic Memorandum: The Foundations of Growth and Competitiveness. This report, the result of extensive research on Dominican economic performance and its determinants, was carried out with careful methodological rigor by a highly qualified World Bank team. The results of the study were discussed in detail with and enriched by key inputs from the government agencies involved in policymaking related to increasing competitiveness.
source:World Bank

Dominican Republic - Review of Trade and Labor Competitiveness

This report addresses a range of themes related to trade and competitiveness in the Dominican Republic. The analysis examines past trade performance and the many factors The conclusions drawn from this work have important policy implications that could be external trade environment will necessitate a shift in the way the Dominican economy operates in order to remain competitive. The immediate effect of trade liberalization will be reduced protection and therefore greater competition for Dominican producers, which will in turn create pressure for raising productivity and increase demand for a more skilled work force. The resulting reduction in tariff revenue will be offset and job creation and destruction, as producers transition to the new trade environment.
source:World Bank

World Bank. Dominican Republic Country Brief

DEVELOPMENT PROGRESS
Throughout the 1990s, the Dominican Republic ranked among the fastest growing economies in the Latin American and Caribbean region. During 1991-2000, the economy grew on average by 5.9 percent per year and per capita income increased by 4.1 percent per year. The sustained economic growth over the last 30 years contributed to the welfare of most Dominicans and accelerated poverty reduction, as can be seen in various social indicators
source:World Bank

The State of Latin American and Caribbean Children 2008 report: Child Survival

The report outlines broad priorities that are required to accelerate progress on child and maternal health in general,and to reduce inequality in health-care provision and health outcomes in particular. Although the region is well on track to meet Millennium Development Goal 4, which seeks to reduce the under-five mortality rate by two thirds between 1990 and 2006, and other health-related MDGs, it is clear that many communities and groups – differentiated by income, ethnicity, gender and geographic location in particular – are at risk of remaining excluded from essential quality primary healthcare services.

Adolescent pregnancy: a cause for concern in the Dominican Republic says the 2008 report. Rates of adolescent childbearing are high in Latin America and the Caribbean, particularly in Bolivia, Colombia, the Dominican Republic,Haiti, Honduras, Nicaragua and Peru. The dangers of early pregnancy to both mothers and infants are significant, and the continued occurrence of a relatively large number of adolescent pregnancies, despite falling fertility rates in the region, is a significant concern.

Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean.
March 2007
Deaths and injuries from youth violence constitute a major public health, social and economic problem across the Caribbean, including in the Dominican Republic. Youth are overrepresented in the ranks of both victims and perpetrators in the Dominican Republic, and this pattern has become more stark over time, as rates of crime and violence overall have increased. A wide variety of risk factors contribute to the prevalence of youth violence, including poverty, youth unemployment, urban migration, drug trafficking, a weak education system, ineffective policing, the widespread availability of weapons, drug and alcohol use, and the presence of organized gangs. Nonetheless, youth violence is preventable; a broad range of viable strategies for preventing and reducing youth violence exist. Most highly effective programs combine components that address both individual risks and environmental conditions, building individual skills and competencies, training parents for greater effectiveness, improving chances for poor youth to access and complete their secondary education, improving the social climate and safety of school, and providing “second chances” to those who have dropped out of the formal schooling system, including school equivalency programs, job and life skills training, and apprenticeships.
Source: UNODC & The World Bank

Close to Home: The Development Impact of Remittances in Latin America.

October 2006.
The World Bank is devoting significant attention to the topic of remittances and is stepping up efforts to better understand how migration and remittances can contribute to poverty reduction.
Close to Home: The Development Impact of Remittances in Latin America, a report in the Regional Studies Series of the Office of the Chief Economist for Latin America, is a further effort in this direction and should be viewed as an integral part of the Bank’s program on migration and remittances.

The report analyzes the characteristics of households that are remittance recipients and how these characteristics affect the poverty-reducing impact of observed remittances flows. It also devotes significant attention to the macroeconomic impact of these flows, and explores policies and interventions aimed at enhancing the development impact of remittances in the region. On the whole, the main messages that emerge from Close to Home are quite positive. Even though the estimated impact is moderate in most cases and country heterogeneity is very significant, higher remittances inflows tend to be associated with lower poverty levels and with improvements in human capital indicators (education and health) of the recipient countries. Remittances also seem to contribute to higher growth and investment rates and lower output volatility. Against this background, remittances are to be welcomed and actions that lower the cost of remitting and therefore attract additional flows should be encouraged.

World Bank and IADB propose action plan to ensure pro-poor growth

Financial crisis pushes 1.5 million Dominicans into poverty. High years of growth do little to help the poor.
Santo Domingo, June 8, 2006
One and a half million Dominicans fell into poverty as a result of the financial crisis of 2003-2004 and 700,000 were forced to reduce their consumption of basic food below minimum subsistence levels, according to a new report released today in the country.

By the first half of 2004, 42 out of 100 Dominicans were poor and 16 of them were living in extreme poverty, according to the Report on Poverty in the Dominican Republic: Achieving More Pro-poor Growth, prepared by the World Bank and the Inter-American Development Bank, in collaboration with staff from the Technical Secretariat of the Presidency, the National Planning Office, and the Central Bank.
source:World Bank

2005 Country Reports on Human Rights Practices (Western Hemisphere)

All men and women desire and deserve to live in dignity and liberty. As President Bush said: "The advance of freedom is the great story of our time." Promoting human rights and democracy is a worldwide phenomenon and there is a growing global discussion of democracy and the universal values protected by democratic governance.

By defending and advancing human rights and democratic principles, we keep faith with our country’s most cherished values and lay the foundation for lasting peace. Fulfilling the promise of the United Nations Universal Declaration of Human Rights and building vibrant democracies worldwide will take generations, but it is work of the utmost urgency that cannot be delayed.
Source:US Dept. of State

International Narcotics Control Strategy Report for 2006

Illicit Drugs Shipped Through Caribbean Nations to U.S., Europe

The report cites Bahamas, Dominican Republic, Jamaica as major transit points. As a result of their geographic location, many nations of the Caribbean are utilized as transit countries to shift cocaine, marijuana and other illicit drugs from South America to the United States, Europe and elsewhere, according to the U.S. State Department's International Narcotics Control Strategy Report (INCSR) for 2006.
Source:U.S. Department of State

Dominican Republic: World Bank Approves $25 Million Youth Development Program

WASHINGTON, March 23, 2006 – The World Bank’s Board of Directors today approved a $25 million loan to improve the employability of at-risk youth from poor families. The new program intends to offer poor youth an opportunity to break the vicious cycle of poverty that traps so many. During their difficult transition into the labor market, poor youth will benefit from job training, internships, additional education and important life skills that are sought by employers.
source:World Bank

Solid Waste Management

Selected statistics indicators for DOMINICAN REPUBLIC
UN Statistics Division for DOMINICAN REPUBLIC
Caribbean Social Statistics Database
Caribbean Trade Statistical Database

Geoffrey Kirkman Co-produces First Documentary on Dominican Republic's Baseball History
The first-ever documentary film about the history of baseball in the Dominican Republic will premiere March 19 at the San Diego Latino Film Festival. Geoffrey Kirkman, Watson Institute associate director and Watson fellow, is a producer of the documentary in his capacity as president of The Sports for Development Foundation, a non-profit organization that works with professional baseball players from Latin America on socio-economic development issues.
source:The Watson Institute for International Studies