The independence of the Dominican Republic was a historic event that marked the end of 22 years of Haitian rule and the beginning of a new era for the Dominican nation. The fight for independence was led by a group of men and women known as the Trinitarios. Among the heroes of independence are Juan Pablo Duarte, Matías Ramón Mella and Francisco del Rosario Sánchez.
The proclamation of independence took place at Puerta del Conde, in the city of Santo Domingo. At that moment, Mella fired a blunderbuss and raised the Dominican flag for the first time. The celebration of Independence Day is a time to reflect on the past, celebrate the achievements of the present and look to the future with hope. The values of freedom, equality and justice that inspired the Founding Fathers remain as relevant today as they were 180 years ago.
Dominican Republic today
With a population of just over 11 million, the Dominican Republic stands out for its rich culture, natural beauty, and growing economy. Located in Central America, its capital is Santo Domingo, it has an area of 48,670 km2, making it among the smallest countries.
The Dominican Republic is a representative democracy. The current president is Luis Abinader, who was elected in 2020, for a four-year period. He is a businessman and politician of the Modern Revolutionary Party (PRM).
The National Congress is made up of two chambers: the Senate and the Chamber of Deputies. The Senate has 32 members, one from each province, and the Chamber of Deputies has 178 members, elected by electoral district.
The Dominican Republic has a multi-party system. Some of the main political parties are the PRM, the Dominican Liberation Party (PLD), the Dominican Revolutionary Party (PRD) and the People’s Force (FP).
The Supreme Court is the highest court in the country. It is made up of 16 judges, elected by the National Council of the Judiciary.
The Dominican Republic ranks 78 out of 167 in The Economist Intelligence Unit’s 2022 Democracy Index. It ranks 82 out of 180 in Reporters Without Borders’ 2023 World Press Freedom Index and 28 out of 180 in the Press Freedom Index. Transparency International Corruption 2022.
The Dominican diaspora: A bridge between two worlds
More than 2 million Dominicans live in the United States, making up one of the largest and most influential diasporas in Latin America. This vibrant and active community plays a fundamental role in the Dominican economy, sending remittances that represent an important source of income for the country.
In 2023, remittances sent by the Dominican diaspora to the Dominican Republic amounted to more than $10 billion. These remittances represent around 10% of the Dominican GDP and are a vital source of income for many Dominican families.
Dominican communities in the United States are mainly found in cities such as New York, Miami, Boston and Orlando. Some Dominicans experience difficulties integrating into American society, are victims of discrimination based on their race, origin or language, and face difficulties accessing basic services such as education, health and housing.
Relations between the Dominican Republic and the United States are close and cordial. Both countries are important partners in areas such as security, trade and investment.
A future to build
The road to the full development of the Dominican Republic is still long. However, the spirit of struggle and determination that characterized the heroes of independence is still alive in the Dominican people. It is that same spirit that will propel the country toward a more prosperous and equitable future.
The Dominican economy has experienced sustained growth over the past two decades, with GDP per capita increasing significantly. In 2023 the country’s GDP grew by 5.2%, making it one of the fastest growing economies in Latin America and the Caribbean.
Tourism is the main sector of the Dominican economy, contributing around 18% of GDP. The country welcomes millions of visitors each year, attracted by its beautiful beaches, world-class resorts and rich culture.
Agriculture is another important sector of the Dominican economy, with products such as sugar, coffee, cocoa and tobacco being some of the main export items.
The Dominican Republic also has a significant mining industry, with the production of gold, nickel and bauxite being some of the main products.
Socioeconomic challenges
Despite its sustained growth, the Dominican economy still faces some challenges, such as: Income inequality is a major problem in the Dominican Republic, with a high percentage of the population living in poverty. The Gini coefficient, which measures inequality, is 47.2 (2021), indicating a high level.
Corruption is also a significant problem in the country, negatively affecting the business climate and foreign investment.
The Dominican economy is highly dependent on tourism, which makes it vulnerable to fluctuations in the global economy. Transparency International places the Dominican Republic in position 128 out of 180 in its 2022 Corruption Perception Index.
Despite economic growth, a significant percentage of the Dominican population still lives in poverty. According to the World Bank, the national poverty rate was 21.8% in 2020.
The Dominican economy presents itself with opportunities and challenges. The country has great potential to continue growing and developing, but the challenges mentioned above need to be addressed to achieve sustainable and inclusive development.
The currency is the Dominican Peso (DOP) and according to 2023 data, the inflation rate was 8.5 percent, unemployment at 5.6 percent and among trading partners
Structural reforms aimed at closing the productivity gap in the Dominican Republic could boost economic growth by up to 1.4 percentage points above its baseline trajectory by 2050. Relevant reforms include improvements in education and human capital, a boost to investment productive capacity, improvements in market competition and productivity in special economic zones and a transition to renewable energy sources.
World Bank Report
According to a World Bank report, although the Dominican economy grew much faster than most LAC countries over the last two decades, its current growth model could be reaching its limits.
A key finding of this report is that the country’s economic growth has been based on factor accumulation rather than productivity gains. Furthermore, its growth model has been uneven and associated with significant regional disparities, as well as wage stagnation, which does not favor inclusion.
Most obstacles to faster productivity growth at the microeconomic and aggregate levels are associated with domestic policy distortions.
The document highlights that these are made up of inadequate performance of human capital, skills mismatches between labor supply and demand, an insufficiently competitive business environment, limited innovation capacity and restricted fiscal space.
Sustaining high long-term growth will require a new round of economic reforms. In addition to maintaining a sound macroeconomic framework, moving forward with critical reforms would be essential to maintaining solid long-term growth.
These reforms include: unlocking their human capital potential; foster competitive markets; renew the innovation strategy; reduce inefficiencies in public spending; and strengthen resilience against external shocks and climate change.
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Source: World Bank, Macro Data, National Statistics Office of the DR, Dominican Foreign Institute, Central Bank of the Dominican Republic:
