THE GEOGRAPHY (Foreign Office UK)
Area: 48,730 sq km (18,704 sq mi)
PopulatioAn: 8,721,594 (July 2002 est.)
Capital City: Santo Domingo (pop. 2.4
million). Other city: Santiago de los
Caballeros (pop. 500,000)
People: European 16%, African origin
11%, mixed 73%
Language(s): Spanish
Religion(s): Roman Catholic 95%
Major political parties: Social Christian
Reformist Party (PRSC), Dominican
Revolutionary Party (PRD), Dominican
Liberation Party (PLD), and several
other minor parties.
Government: Representative
Democracy
GEOGRAPHY
Terrain: Mountainous
Climate: Maritime Tropical
THE HISTORY (Foreign Office UK)
The island of Hispaniola, of which the
Dominican Republic forms the eastern
two-thirds and Haiti the remainder,
was originally occupied by the Tainos,
an Arawak speaking people. The Tainos
welcomed Colombus in his first voyage
in 1492, but subsequent colonisers
were brutal, reducing the Taino
population from about 1 million to about
500 in 50 years. To ensure adequate
labour for plantations, the Spanish
brought African slaves to the island
beginning in 1503.
In the next century, French settlers
occupied the western end of the island,
which Spain ceded to France in 1697,
and which, in 1804, became the
Republic of Haiti. The Haitians
conquered the whole island in 1822 and
held it until 1844, when forces led by
Juan Pablo Duarte, the hero of
Dominican independence, drove them
out and established the Dominican
Republic as an independent state. In
1861, the Dominicans voluntarily
returned to the Spanish Empire; in
1865, independence was restored.
Economic difficulties, the threat of
European intervention, and ongoing
internal disorders led to a US
occupation in 1916 and the establishment
of a military government in the
Dominican Republic. The occupation
ended in 1924, with a democratically
elected Dominican government. In 1930,
Rafael L. Trujillo, a prominent army
commander, established absolute
political control. Trujillo promoted
economic development - from which
he and his supporters benefited - and
severe repression of domestic human
rights. Mismanagement and corruption
resulted in major economic problems.
In August 1960, The Organisation of
American States (OAS) imposed
diplomatic sanctions against the
Dominican Republic as a result of
Trujillo's complicity in an attempt to
assassinate President Romulo
Betancourt of Venezuela. These
sanctions remained in force after
Trujillo's death by assassination in May
1961. In November 1961, the Trujillo
family was forced into exile.
In January 1962, a council of state that
included moderate opposition elements
with legislative and executive powers
was formed. OAS sanctions were lifted
4 January, and, after the resignation
of President Joaquin Balaguer on 16
January, the council under President
Rafael E. Bonnelly headed the Dominican
government. In 1963, Juan Bosch was
inaugurated President. Bosch was
overthrown in a military coup in
September 1963.
Another military coup, on 24 April 1965,
led to violence between military
elements favouring the return to
government by Bosch and those who
proposed a military junta committed to
early General elections. On 28 April,
US military forces landed to protect
US citizens and to evacuate US and
other foreign nationals. Additional US
forces subsequently established order.
In June 1966, President Balaguer,
leader of the Reformist Party (now
called the Socialist Christian Reformist
Party - PRSC), was elected and then
re-elected to office in May 1970 and
May 1974, both times after the major
opposition parties withdrew late in the
campaign. In the May 1978 election,
Balaguer was defeated in his bid for a
fourth successive term by Antonio
Guzman of the PRD. Guzman's
inauguration on 16 August marked the
country's first peaceful transfer of
power from one freely elected
President to another.
The PRD's presidential candidate,
Salvador Jorge Blanco, won the 1982
elections, and the PRD gained a
majority in both houses of Congress. In
an attempt to cure the ailing economy,
the Jorge administration began to
implement economic adjustment and
recovery policies, including an austerity
programme in co-operation with the
International Monetary Fund (IMF). In
April 1984, rising prices of basic
foodstuffs and uncertainty about
austerity measures led to riots.
Balaguer was returned to the
presidency with electoral victories in
1986 and 1990. Upon taking office in
1986, Balaguer tried to reactivate the
economy through a public works
construction programme. Nonetheless,
by 1988 the country slid into a 2-year
economic depression, characterised by
high inflation and currency devaluation.
Economic difficulties, coupled with
problems in the delivery of basic
services, e.g. electricity, water and
transportation, generated popular
discontent that resulted in frequent
protests, occasionally violent, including
a paralysing nationwide strike in June
1989.
In 1990, Balaguer instituted a second
set of economic reforms. After
concluding an IMF agreement, balancing
the budget, and curtailing inflation, the
Dominican Republic is experiencing a
period of economic growth marked by
moderate inflation, a balance in
external accounts, and a steadily
increasing GDP. The voting process in
1986 and 1990 was generally seen as
fair, but allegations of election board
fraud tainted both victories. The
elections of 1994 were again marred
by charges of fraud. Following a
compromise calling for constitutional
and electoral reform, President
Balaguer assumed office for an
abbreviated term. In June 1996, Leonel
Fernandez Reyna was elected to a
4-year term as President. In May 2000
Hipolito Mejia was elected to a 4-year
term as President.
THE ECONOMY (Foreign Office UK)
GDP: purchasing power parity - $50
billion (2001 est.)
Per Capita GDP: purchasing power
parity - $5800 (2001 est.)
Annual Growth: 8% (2000 est.)
Major Industries: (Industry = 17% of
GDP). Sugar Refining, Pharmaceuticals,
Cement, Light Manufacturing,
Construction, Services (including
Offshore Assembly Operations,
especially textiles), and Transportation
Non Fuel Minerals (3% of GDP): Nickel,
Gold, and Silver
griculture (13% of GDP): Products -
Sugar, Coffee, Cocoa, Bananas,
Tobacco, Rice, Plantains, Beef, and
Flowers
Trade: Exports ($5.8 billion 2000 est.
excluding processing zones):
commodities - ferronickel, sugar, gold
silver, coffee, cocoa, tobacco, meats.
Imports ($9.6 billion, 2000 est.):
foodstuffs, petroleum, cotton and
fabrics, chemicals and pharmaceuticals.
The Dominican Republic is a
middle-income developing country
primarily dependent on agriculture,
trade and services, especially tourism.
Although the service sector has
recently taken over from agriculture
as the leading employer of Dominicans
(due principally to growth in tourism
and the Free Trade Zones), agriculture
remains the most important sector in
terms of domestic consumption and is
second place (behind mining) in terms
of export earnings. Tourism accounts
for more than $1 billion in annual
earnings. Free Trade Zone earnings
and tourism are the fastest growing
export sector sectors. Remittances
from Dominicans living in the United
States are estimated to be about $1.5
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. Since
1991, GDP has grown (GDP growth for
1998, 7.3%) while inflation decreased. It
reached 2.7% in 1993, the lowest in 16
years.
In the period from 1996-2000, the DR
has shown a very impressive economic
growth rate running at an average of
7.8% annual GNP growth - the highest
in all of Latin America and the
Caribbean. The effects of Hurricane
Georges in 1998 (damage to the
infrastructure and to agriculture) had
repercussions for GDP growth over
the following years, but less than
originally anticipated.
Controlled inflation and healthy GDP
growth reflects a robust economy.
Robust but still heavily skewed heavily
to the Free Zone activity. The
Industrial Free Trade Zones offer
attractive incentives for foreign
investment in areas such as textiles
and electronics. The DR has a low cost
and capable labour pool that has proved
receptive to adopting new
manufacturing skills. The economic
performance has been amongst the
strongest in Latin America and the
Caribbean in recent years. However,
the collapse of one of the Dominican
RepublicÆs major banking groups
Banco Intercontinental (Baninter), in
May has thrown the economy into
turmoil. Losses have been estimated by
the Finance Minister Rafael Calderon at
55bn pesos (US$2.2bn) û equivalent to
15% of the country's gross domestic
product or 80% of the government's
2003 budget. Central Bank Governor
JosT Lois Malkun is currently
discussing a loan agreement with the
IMF.
The DR is a major recipient of aid from
international organisations such as the
World Bank, Inter American
Development Bank and the EU through
Cotonou Agreement funds.
INTERNATIONAL RELATIONS
The Dominican Republic's Relations with
Neighbours
The Dominican Republic has a close
relationship with the United States and
with 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 Consular relations and
there is contact in fields such as
commerce, culture, and sports. As
recent as November 2001, President
Mejia has been engaged in bilateral talks
with the Cubans to expand this
relationship.
Although Dominican relations with its
closest neighbour, the republic of Haiti,
have never been extensive, there are
signs that this will change under
President Mejia's administration.
Growing immigration from and political
instability in Haiti have forced the
Dominican Republic to take a closer
look at relations with its neighbour both
country to country and in the
International fora. There is a sizeable
Haitian migrant community in the
Dominican Republic.
There is a long history of friction
between the DR and Haiti over illegal
immigration by Haitian agricultural
workers. Conservative estimates give
300,000 illegal Haitians resident in the
DR. There could be as many as a
million. Anti Slavery International
report that there are in addition to this
40,000 Haitians working (with 60,000
dependants) in the Dominican sugar
plantations. The imposition of UN
sanctions further exacerbated the
relationship, though many Dominican
businesses profited from smuggling
and black marketeering, particularly in
relation to fuel. Removal of the
sanctions in 1994 has so far not
produced the hoped-for increase in
bilateral trade; smuggling of drugs,
cars and arms remains a major
pastime.
Relations between the DR and Haiti
improved following the successful
State Visit to Santo Domingo in March
1996. The then Prime Minister of Haiti,
Rosny Smarth, and the Foreign
Minister, Fritz Longchamp, attended
the inauguration of President
Fernandez in August 1996. President
Fernandez paid a 36-hour visit to Port
au Prince on 18/19 June 1998, the first
by an incumbent President since 1936. A
Mixed Commission has been established
to cover such issues as agriculture,
education, culture, trade and migration;
but while progress has been achieved
at subsequent meetings of the
Commission the delicate issue of
migration remains an impediment to
any substantial improvement in the
relationship.
The Dominican Republic's Relations with
the International Community
Ex-President Leonel Fernandez
brought the DR back to the
international stage, thus ending almost
thirty years of self-imposed isolation
which the country endured under his
predecessor. A series of visits to
European and Latin American capitals,
together with the successful hosting in
November 1997 of the summit of
Central American States and in April
1999 of the Heads of State Summit of
the CAS has brought much needed
economic benefits. Fernandez attended
the inauguration of President Chavez
of Venezuela in January and took part
in the meeting in Guatemala of Central
American States with President Clinton
in 1999. He hosted the Africa,
Caribbean and Pacific Group of States
(ACP) Heads of State Summit in
November 1999. Additionally, his
courtship of CARICOM further
underlines his objective of playing a key
and pivotal role between the English
and Spanish-speaking Caribbean,
although discussions are going slowly.
In August 1998, the Dominican Republic
hosted a regional CARIFORUM summit
during which the Government signed a
free trade agreement with CARICOM
with the aim of setting up a
hemispheric free-trade area by 2005.
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