Dominican Republic’s economy - Sample Essay
Corruption contributes equally to the downfall of Dominican Republic’s economy. Every sector of its economy is affected due to the wrong policies used by the politicians. These politicians have undoubtedly put forward proposals but have failed to regulate them properly. So on the whole, the uncontrolled policies of the politicians is perhaps the key factor for a slackened economic growth. Till the 1960s, the country had a crumbling and collapsing infrastructure which was further ruined by the Trujillo dictatorship.
Tourism being their major economy boosting sector, and being well aware of this fact, the Dominican government had invested heavily in roads, airports, and docks and other forms of tourism-based infrastructure. However, the country appears to have failed in attracting additional and more lucrative benefits by doing so. Over time, natural calamities had destroyed the roads of the country’s rural areas. Roads no longer being in a good condition, the smaller farmers struggled to bring their produce to the main markets.
Finally the major drawback in the country’s economic development is their power services. Frequent power cuts are galore and this is indirectly responsible for an economic slowdown. Also, traditional main lines in telecommunications are losing ground. In September 1991, an estimated 35,000 Haitians entered the Dominican Republic after the military coup that overthrew Haiti’s president, Jean-Bertrand Aristide. Most of these Haitian refugees live in the outskirts of Santo Domingo, the country’s capital.
The Dominican Republic government has taken up a program to deport illegal migrants back to Haiti. However, this program does not affect recognized refugees or asylum seekers, as the country offers them temporary residence permits. The Republic of Haiti has never exactly been friendly and extending in its relations with the Dominican Republic, and is now also experiencing political change under President Fernandez’s administration.
The Dominican Republic therefore keeps a close watch on its neighboring countries, especially in lieu of the political instability in Haiti which further leads to growing levels of immigration. On the macroeconomic level, the country has achieved its goal but inflation pushes it towards slow economic growth. The fuel prices are high. Corruption exists in all sectors. The Dominican Republic is mainly a middle-income developing country. It basically depends upon agriculture, trade and services, especially tourism which is the largest earner of foreign exchange.