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	Country Note on Dominican Republic

	Geography

	The Dominican Republic occupies the eastern two thirds of the Caribbean island of Hispaniola, which it shares with Haiti. With an area of 48,730 sq.m., the Dominican Republic is the second largest country in the Caribbean (after Cuba) and has a 1288 km. coastline. Four almost parallel mountain ranges, covered with thick vegetation, cross the country from east to west. The largest is the Cordillera Central, which divides the republic into almost equal parts. The highest peak in the West Indies, Pico Duarte (10,206 feet), is in this range. In the north is the Cordillera Septentrional and in the south is the Sierra Bahoruco. The Valley of Cibao, between the Cordillera Central and the Cordillera Septentrional, is the largest and most prospective valley. The Vega Real (Royal Plain), often called the “Garden of the Antilles”, is the island’s granary, producing fruits, vegetables, and sugarcane. Its grassy savannas afford excellent pasturage. The capital and principal ports are located on the southern coast. The humid eastern section of this region contains large forests and savannas. Many small islands dot the Dominican coast.




	The tropical climate of Hispaniola and the variations in elevation, rainfall and soil have produced a variety of plant habitats, ranging from dry areas to coniferous forests in the mountains. About 36 percent of the 5,600 plant species on the island of Hispaniola are endemic. The country abounds in gold and silver, ferronickel, bauxite, coal, tin, marble, salt, gypsum and limestone. It is also the second-largest gold producer in the Western Hemisphere. Dominican amber mines are a national treasure. They are famous for producing some of the best fossils and gem quality nuggets in the world.

		Last updated July 2008

	HISTORY. Explored and claimed by Columbus on his first voyage in 1492, the island of Hispaniola became a springboard for Spanish conquest of the Caribbean and the American mainland. In 1697, Spain recognized French dominion over the western third of the island, which in 1804 became Haiti. The remainder of the island, then know as Santo Domingo, sought to gain its own independence in 1821, but was conquered and ruled by the Haitians for 22 years; it finally attained independence as the Dominican Republic in 1844. A legacy of unsettled mostly non-representative rule for much of its subsequent history was brought to an end in 1966 when Joaquin Balaguer became President. He maintained a tight grip on power for most of the next 30 years when international reaction to flawed elections forced him to curtail his term in 1996. Since then, regular competitive elections have been held. The Dominican economy has had one of the fastest growth rates in the hemisphere.

	PEOPLE. The Dominican Republic has a population of 9.18 million (2006) with a growth rate of 1.29% It is a multi-racial and multi-cultural society with Spanish predominance (Caucasians 16%, Blacks 11% and mixed 73%). Life expectancy is about 67 years and the literacy rate stands at 84.6%. Official language is Spanish but English is widely spoken. About 50% of the people live in rural areas; many are small landholders. In Dominican Republic, Haitians form the largest foreign minority group, with Spaniards, West Indians and Cubans, the other important country groups. All religions are tolerated; but the state religion is Roman Catholicism (95% population), recognized formally in 1954, when a “concordat” with the Vatican was signed.

	GOVERMENT AND POLITICS CONDITIONS The Dominican Republic is a representative democracy whose national powers are divided among independent executive, legislative, and judicial branches. The President appoints the Cabinet, executes laws passed by the legislative branch, and is Commander-in-Chief of the armed forces. The President and Vice President run for office on the same ticket and are elected by direct vote for a 4-year term. Legislative power is exercised by a bicameral congress – the Senate (30 members), and the Chamber of Deputies (120 members, elections to which are held every four years. The President is the Head of State and Head of the Government. In the elections held in May 2008, incumbent President and head of the Dominican Liberation Party (PLD) Leonel Fernandez emerged victorious.

	ECONOMY The Dominican Republic is a middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones), agriculture remains the most important sector in terms of domestic consumption and is in second place (behind mining) in terms of export earnings. Tourism accounts for more than $3 billion in annual earnings. Free Trade Zone earnings and tourism are the fastest-growing export sectors. Remittances from Dominicans living abroad are estimated to be about $3 billion per year. Following the economic turmoil in the late 1980s and 1990, during which the GDP fell by up to 5% and consumer price inflation reached an unprecedented 100%, the Dominican Republic entered a period of moderate growth and declining inflation until 2002 after which the economy entered a recession, after the second commercial bank of the country (Baninter) collapsed, caused by a major fraud of 3.5 billion of dollars during the administration of President Hipolito Mejia (2000-2004). The Baninter fraud had a devastating effect on the Dominican economy, with growth turning negative in 2003 while inflation ballooned by over 27%. The Dominican currency, Peso (RD$) plummeted to a record low of US$1=RD$ 54 in 2003.With the election of former president Leonel Fernández in 2004 and implementation of economic reforms, the economy has re-stabilised and strong GDP growth has resumed. The Economy grew 9.3 %, 10% and 8.5 % in 2005, 2006 and 2007 respectively. The growth of the Dominican economy remains significantly hampered by an ongoing energy shortage, which causes frequent blackouts and high prices and excessive government spending. Despite a widening trade deficit, tourism earnings and remittances have helped build foreign exchange reserves.

	FOREING RELATIONS The Dominican Republic has close relationship with the United States and with the other states of the inter-American system. It has accredited diplomatic missions in most Western Hemisphere countries and in principal European capitals. The Dominican Republic and Cuba recently established diplomatic relations, and there is contact in fields such as commerce, culture, and sports. Dominican relations with its closest neighbour, the Republic of Haiti, have been unstable. Political instability in Haiti and strong Haitian migratory pressure on DR have been obstructing the development of closer relations between the two neighbours. The Dominican Republic is member of UN and many of its specialized and related agencies, including the World Bank, International Labor Organization, Internal Atomic Energy Agency, and International Civil Aviation Organization. It also is a member of the OAS, the Inter-American Development Bank, INTELSAT and NAM . The present PLD government has tried to widen the horizons of its international relations. DR was one of the candidates for the temporary seats of the UN security Council from Latin America for the year 2008-09 in which it lost to Costa Rica. In 2006 in opened embassies in India and Russia and established diplomatic relations with Vietnam and Malaysia in Asia and Mali in Africa. DR recognizes the government of Taiwan and therefore has no diplomatic relations with People´s Republic of China. There is, however, a Chinese trade office in Santo Domingo. DR is an associate member of the Central American Integration System (SICA). In June 2008, India hosted the India-SICA Foreign Ministers’ Meet in New Delhi. Deputy Minister of Foreign Affairs Ms. Clara Quinones de Longo attended the Meet.

	U.S DOMINICAN REPUBLIC RELATIONS The U.S. has a strong interest in a democratic, stable, and economically healthy Dominican Republic. Its standing as the largest Caribbean economy, the second-largest in terms of population and land mass, and its proximity to the United States and other smaller Caribbean nations make the Dominican Republic an important partner in hemispheric affairs. U.S. relations with the Dominican Republic are excellent, and the U.S. has been an outspoken supporter of that country’s democratic economic setup . In addition, the Dominican Govt. has been supportive of many U.S. initiatives in the United Nations and related agencies. The two governments cooperate in the fight against traffic in illegal substances. The Dominican Republic has worked closely with U.S. law enforcement officials on issues such as return of stolen cars to the U.S. and reducing illegal migration. The D.R. Govt. supported the recent U.S. – led military action in Iraq and had sent a small military contingent there. The U.S. also supports the current administration’s efforts to open the economy to more trade, increasing foreign private investment, privatize state-owned firms and modernize the tax system. The DR-CAFTA (Central America Free Trade Agreement) has been signed but its implementation in the DR is being due to technical reasons. DR is yet to comply with certain macro economic standards.

	Caribbean Community (CARICOM) & Dominican Republic In August 1998, a 3-day CARIFORUM Summit was held in Santo Domingo to coincide with the celebrations marking the 500th anniversary of the founding of the city of Santo Domingo and in commemoration of the 25th anniversary of the signing of the Treaty of Chaguaramas which established CARICOM. A Free Trade Agreement between the CARICOM and the Dominican Republic was signed during the meeting. CARICOM nations sell to the Dominican Republic about US$40 million worth of goods and services annually and import US$10 million worth of products from D.R

	DOMINICAN REPUBLIC : FACT SHEET Land Area: 48,730sq.kms. (Located at 120 kms. South East of Miami, Florida, USA). Population: 9.76 Million (2008) Capital: Santo Domingo (other cities : Santiago de los Caballeros, San Francisco de Macoris, La Romana, Puerto Plata, Higue and Samana). Language: Spanish Currency: Dominican Peso (RD $) 34.175 RD$ = 1 US$ ( July 2008) System of Govt.: Representative Democracy. Head of State and: President Dr.Leonel Antonio Fernandez Reyna. Head of Govt. (Third term) Ruling Political Party: Dominican Liberation Party (PLD). Agricultural Products: Sugarcane, Coffee, Cocoa, tobacco, Rice, Beans, Potato, Corn, Banana, dairy products. Industries : Sugar , Ferro-nickel & gold mining, Textiles, Cement, Tobacco, Tourism, GDP (PPP basis): US$ 62 billion (2007) est. Export: US$7.23 billion (FOB 2007) Import: US$13.82 billion (FOB 2007) GDP Growth Rate : 8.5 % (2007) GDP Per Capita: USD 7000 (2007) PPP Basis Major items of Export: Ferro-nickel, Sugar, Gold, Silver, Coffee, Cocoa, Tobacco, Consumer goods. Major items of Import: Petroleum products, Cotton & fabrics, chemicals & Pharmaceuticals. Major trading partners: US, Mexico, Netherlands, Spain, Colombia

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