Dominican Republic and Haiti: Country Studies

—
Dominican Republic and Haiti: Country Studies
be impressive, the economy leaves an observer with an uncomfortable
feeling about how uneven it is.
When various sectors
are viewed separately, several appear to be doing very well.
Tourism comes to mind immediately, not only because of its
spectacular growth but also because of its positive impact on
other industries such as construction and commerce. Freetrade
zones and telecommunications are other examples of
Dominican success. The aggregate of the separate components,
however, seems to be unrelated to a central theme and
fails to add to a cohesive whole. Perhaps other economic sectors
are hobbled by a corrupt political structure, an unjust
social system, outmoded institutions, flawed policies, inefficient
state enterprises, or a much more basic societal malady
such as poverty.
The Foundation for Economics and Development (Fondacion
Economia y Desarrollo—FED) , a nonprofit, private economic
research institute, estimates that about 21 percent of
Dominicans live in poverty, surviving on less than US$1 a day.
More than 20 percent of the island's families lack the income
required to meet standard nutritional requirements. Approximately
65 percent of the population in rural areas lacks access
to potable water and about 25 percent lacks electricity. Health,
water supply, sanitation, education, and housing deficiencies
affect a significant proportion of the population, with the
result that the Dominican Republic trails all its neighbors in
the region, with the exception of Haiti and Guyana. Historically,
the level of social spending has been one of the lowest in
the hemisphere, and successive administrations have cut back
appropriations to the poorest elements of the population.
Flawed economic policies such as protectionism and state
monopolies that unfairly raise the price of basic commodities
have also added disproportionately to the burden of the poor.
estimated that the poor spend up to 45 percent of their
It is
income on protected food commodities such as rice, which
costs at least twice as much as the price on world markets.
The Dominican Republic lacks a focal point that would coordinate
development projects among all parties concerned
government, foreign donors, and private organizations
(including businesses). The country's leadership—executive,
congressional, or judiciary—needs to commit to the implementation
of social programs. That the largest aid donor had
to "keep its distance from the government" for years speaks volumes
about the government's withdrawal and lack of serious
156