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National Trade Data Bank
ITEM ID     : ST BNOTES DOMREP
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - DOMINICAN REPUBLIC

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | DOMINICAN REPUBLIC

DOMINICAN REPUBLIC BACKGROUND NOTES, 12/91
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE


December 1991
Dominican Republic

PROFILE
Geography

Area:  48,442 sq. km. (18,704 sq. mi.), about the size of Vermont and
New Hampshire. Cities:  Capital--Santo Domingo (pop. 2.4 million).
Other city--Santiago de los Caballeros (490,000).
Terrain:  Mountainous.  Climate:  Maritime tropical.

People

Nationality:  Noun and adjective--Dominican(s).  Population (1990 est.):
7.1 million.  Annual growth rate (1990 est.):  2.4%.  Ethnic groups:
Caucasian 16%, African origin 11%, mixed 73%.  Religion:  Roman Catholic
95%.  Language:  Spanish.  Education: Years compulsory--6.
Attendance--70%.  Literacy--80%.  Health:  Infant mortality
rate--63/1,000.  Life expectancy--67 yrs. Workforce:  Agriculture--35%.
Industry--13%. Services and government--23% (includes parastatal
corporations). Unemployment--29%.

Government

Type:  Representative democracy.  Independence:  February 27, 1844.
Constitution:  November 28, 1966.
Branches:  Executive--president (chief of state and head of government),
vice president, cabinet.  Legislative--bicameral Congress (Senate and
Chamber of Deputies).  Judicial--Supreme Court of Justice.
Subdivisions:  29 provinces and the National District of Santo Domingo.
Political parties:  Dominican Revolutionary Party (PRD), Social
Christian Reformist Party (PRSC), Dominican Liberation Party (PLD),
Independent Revolutionary Party (PRI), others.
Suffrage:  Universal and compulsory, over 18 or married; military may
not vote.
Central government budget (1990): $938 million.
Defense (1990 est.):  5% of GDP.
National holiday: February 27, Independence Day.
Flag:  Two red and two blue sections divided by a white cross with the
Dominican coat of arms centered.

Economy

GDP (1990):  $7.1 billion.  Real annual growth rate (1990):  -5%.  Per
capita GDP (1990):  $998. Inflation (1990 CPI):  100%; (1991 est.: 9%).
Natural resources (4% of GDP): Nickel, gold, silver.
Agriculture (11% of GDP):  Products--sugar, coffee, cocoa, tobacco,
rice, plantains, beef, flowers.
Industry (including manufacturing and construction, 22% of GDP):
Types--sugar refining, pharmaceuticals, cement, light manufacturing,
off-shore assembly operations (esp. textiles). Services, transportation,
and others (1990):  63% of GDP.
Government budget (1990):  13% of GDP.
Trade (1990):  Exports (excluding processing zones)--$704 million:
sugar, coffee, gold, silver, ferronickel, cacao, tobacco, meats.
Partners--US, Netherlands.  Imports--$1.8 billion: foodstuffs,
petroleum, industrial raw materials, capital goods.  Partners--US,
Japan, Germany, Venezuela, Mexico.
Exchange rate (1990 avg.): US$1=RD$9.
Fiscal year:  Calendar year.
Economic aid received:  Non-US (1989)--$44 million.  US assistance
(1990): economic--$37.6 million; military--$1.9 million;
counter-narcotics $448,000.

International Affiliations

UN and some of its specialized and related agencies, including World
Bank, International Monetary Fund (IMF), International Labor
Organization (ILO),  International Atomic Energy Agency (IAEA),
International Civil Aviation Organization (ICAO); Organization of
American States (OAS), Inter-American Development Bank, INTELSAT.

PEOPLE
About 50% of the people live in rural and agricultural areas; many are
small landholders.  Haitians form the largest foreign minority group,
with Spanish and West Indians the other important ethnic groups.  About
60,000 US citizens reside in the Dominican Republic, mostly around the
capital.

All religions are tolerated; the state religion is Roman Catholicism,
recognized formally in 1954, when a concordat with the Vatican was
signed.

HISTORY
The island of Hispaniola, of which the Dominican Republic forms the
eastern two-thirds and Haiti the remainder, was originally occupied by
members of the Taino tribe, a branch of Arawak-speaking peoples who
anthropologists speculate originated in South America.  When Columbus
and his companions landed there at the end of their first voyage in
1492, the people welcomed them.  The hospitality was not reciprocated by
subsequent colonizers.  Brutal colonial conditions reduced the Taino
population from an estimated 1 million to about 500 in only 50 years.
To assure adequate labor for plantations, the Spanish began bringing
African slaves to the island in 1503.

In the next century, French settlers occupied the western end of the
island, which Spain ceded to France in 1697.  In 1804, this 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 the Haitians 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.

In 1905, after years of financial trouble largely brought about by civil
wars, the US Government established a receivership over the Dominican
customs service on behalf of US bondholders.  More difficulties with
foreign creditors, the threat of European intervention, and continuing
internal disorders led to US occupation in 1916 and establishment of a
military government there.  This ended in 1924, when a freely elected
Dominican government took office.

In 1930, Rafael L. Trujillo, who had come to prominence as commander of
the army, took power and maintained absolute political control until his
assassination on May 30, 1961.  Trujillo promoted economic development
(chiefly to the benefit of Trujillo and his supporters) as well as
intervention in the affairs of neighboring states and severe repression
of domestic human rights.

Before Trujillo's death, however, mismanagement and corruption resulted
in severe economic problems.  In August 1960, the Organization 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.  In November 1961, the
Trujillo family was forced to leave the country.

In January 1962, a Council of State (which included moderate opposition
elements with legislative and executive powers) was formed.  OAS
sanctions were lifted January 4, and, after the resignation of President
Joaquin Balaguer on January 16, the council, under President Rafael E.
Bonnelly, became the effective Dominican Government.

Following free elections in December 1962, Juan Bosch, of the Dominican
Revolutionary Party (PRD), was inaugurated as President.  Despite his
reform program and respect for human rights, conflicts arose between him
and various opposition groups, and political controversy grew
progressively more bitter nationwide.  On September 25, 1963, President
Bosch was overthrown in a military coup.

Another military coup, on April 24, 1965, led to an outbreak of violence
between military elements favoring the return to government of Bosch
(the "Constitutionalists") and those who proposed a military junta
committed to early general elections (the "Loyalists").  On April 28, US
military forces landed to protect US citizens and to evacuate US and
other foreign nationals.  The situation in Santo Domingo deteriorated
into near anarchy.  It was feared that communist leaders, many of whom
were trained in Cuba, were increasingly taking control of the
revolutionary movement.  More US forces landed on April 30 to prevent
what appeared to be a complete communist takeover.

On May 6, the OAS formed an Inter-American Peace Force to cooperate in
establishing peace and conciliation.  The peace force included the US
troops in the Dominican Republic and military elements from Brazil,
Costa Rica, Honduras, Paraguay, and El Salvador.  Negotiations with both
sides by an OAS ad hoc committee resulted in the installation of an
interim government headed by provisional President Hector Garcia-Godoy.
In June 1966, this government held elections witnessed by OAS observers,
in which Balaguer defeated Bosch for the presidency, receiving 57% of
the vote.   Balaguer assumed office on July 1, 1966, and the
Inter-American Peace Force was  withdrawn by September 21, 1966.
President Balaguer, leader of the Reformist Party (now called the Social
Christian Reformist Party--PRSC), was re-elected to office in May 1970
and May 1974, both times after 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
August 16 marked the country's first peaceful transfer of power from one
freely elected President to another.

The PRD presidential candidate, Salvador Jorge Blanco, won the 1982
elections, and the PRD gained a majority in both houses of Congress.
Before Jorge assumed office, however, the nation was shocked by the
suicide of Guzman. Vice President Jacobo Majluta became President and
completed Guzman's term.

As President, Jorge sought solutions for the country's economic
problems.  Growing trade deficits, caused in part by low world prices
for sugar and other commodity exports and a mounting debt service,
combined to create balance of payments difficulties.  In response, the
Jorge Administration carried out economic adjustment and recovery
policies, including an austerity program in cooperation with the
International Monetary Fund (IMF).  The rising costs of basic foodstuffs
and public uncertainty about austerity measures led in April 1984 to
several days of the worst riots since the 1960s.

Balaguer, once again the presidential candidate of the Reformist--now
PRSC--Party, won the May 1986 national elections, defeating PRD
candidate Jacobo Majluta and the third-place finisher, former President
Bosch of the Dominican Liberation Party (PLD).  Although the voting
process itself was generally seen as fair, the situation deteriorated as
the votes were counted, and the functioning and composition of the
Central Electoral Board were called into question.  A commission of
electoral advisers, designated by President Jorge and led by the
archbishop of Santo Domingo, played an important role in keeping the
electoral process on track.

Upon taking office, Balaguer tried to reactivate the economy through a
public works construction program.  The economy rallied initially, but
by 1988 growth had slowed, inflation approached 60%, and the currency
was devalued.  Economic difficulties, coupled with serious problems in
the delivery of basic services (electricity, water, transportation,
etc.), generated popular discontent that resulted in frequent
protests--occasionally violent--including a paralyzing nationwide strike
June 19-20, 1989.

Balaguer was re-elected in 1990, garnering a little more than one-third
of the vote in what was essentially a four-way race.  His victory was
clouded, however, by unproven allegations that fraud had occurred.
Political tensions following the election coincided with further
deterioration in the economy.  Economic reforms announced by Balaguer in
early August of that year triggered a 2-day national strike on the eve
of his inauguration.  Another national strike took place November 19-21
amid calls by some organizations, including the PLD, for Balaguer's
resignation.  Balaguer subsequently indicated he would take further
measures to resolve the economic crisis, including negotiating a
stand-by agreement with the IMF.

POLITICAL CONDITIONS
The Dominican Republic is geographically the largest and the most
populous democracy in the Caribbean.  It has a stable multiparty
political system featuring national elections every 4 years.  On May 16,
1990, the Dominican people exercised their right to vote for the seventh
time in the democratic process begun in 1966, with about two-thirds of
the 3 million registered going to the polls. At stake were the
presidency, the vice presidency, congressional seats, and the municipal
positions (mayors and council members).

Candidates representing 16 political parties and two dozen independent
provincial and municipal movements registered with the Central Electoral
Board (JCE), the independent body charged with administering the
elections, and appeared on the ballot. The four parties that led in the
polls were: the PRSC, tied to the International Christian Democratic
political movement, whose candidate was President Joaquin Balaguer; the
PLD, whose candidate was former President Juan Bosch; the PRD,
affiliated with the Socialist International, whose candidate was Jose
Francisco Pena Gomez; and the PRI, whose candidate was former President
Jacobo Majluta.  Many of the smaller groups formed alliances with these
parties.

Election day was largely peaceful and incident-free.  Early tallies on
May 17 gave Bosch a slight lead, but later bulletins showed that
Balaguer had gained a narrow advantage. The opposition PLD immediately
charged the Electoral Board and the PRSC with fraud.  The opposition PRD
also alleged fraud, although it complained principally about
congressional races and acknowledged that Balaguer had won the
presidency.  The Electoral Board and the PRSC denied all allegations.
Following a highly controversial vote counting process, the Electoral
Board officially announced on July 13 that Balaguer had been re-elected
with 35% of the vote.  According to the official figures, Bosch came in
second with 34%, while Pena Gomez was third with 23% and Majluta
received 7%.  The PRSC succeeded in capturing a majority in the Senate,
winning 16 seats, while the PLD won 12 and the PRD 2.  The PLD obtained
a slim plurality in the Chamber of Deputies, however, winning 44 seats
to the PRSC's 42 seats, while the PRD won 32 seats and the PRI won 2
seats.

GOVERNMENT
Under the present constitution of 1966, 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 4-year terms.

Legislative power is exercised by a bicameral Congress.  As of the 1986
elections, the Senate is composed of 30 members--one for each province
and the National District of Santo Domingo.  The Chamber of Deputies has
120 members--a minimum of 2 from each province and/or 1 for each 50,000
inhabitants or fraction above 25,000.  Congressional, municipal, and
presidential elections are held simultaneously.

The nine-member Supreme Court of Justice is appointed by the Senate.
The Court has sole jurisdiction over actions against the president and
members of Congress and hears appeals from lower courts.

Each of the 29 provinces is headed by a presidentially appointed
governor.  Elected mayors and municipal councils administer the National
District (Santo Domingo) and the 103 municipal districts.

Principal Government Officials
President--Joaquin BALAGUER Ricardo
Foreign Minister--Juan Aristides TAVERAS Guzman
Ambassador to the United States--Jose del Carmen ARIZA GomezAmbassador
to the United Nations--Hector Virgilio ALCANTARA Ambassador to the
OAS--Eladio KNIPPING Victoria

The Dominican Republic maintains an embassy in the United States at 1715
22d Street, NW, Washington, DC  20008  (202-332-6280).

ECONOMY
The Dominican Republic is a middle-income developing country depending
primarily on agriculture, trade, and services, especially tourism.
Agriculture is the most important sector in terms of employment and
output for domestic consumption, but it has fallen to second place
(behind mining) in terms of export earnings. Tourism accounts for almost
$1 billion in annual earnings and, along with exports from the export
processing zones, represents the main growth area.  Remittances from
Dominicans living in the United States are estimated to be about $800
million per year. In 1990, real gross domestic product fell by 5% from
the previous year, and consumer price inflation from December 1989 to
December 1990 reached an unprecedented 100%.  Debt arrearages led to a
virtual cutoff in new foreign aid activities and sharply reduced
investment in the Dominican Republic.

An overvalued exchange rate contributed to a drastic shortfall in energy
supplies and other vital imported good and services, which did serious
damage to industrial and agricultural output during the last quarter of
1990.  Central Bank measures to control monetary aggregates reduced the
availability of credit to the private sector during the last two
quarters; there was a significant drop in new construction in 1990.
Since August 1990, the Dominican Government has successfully confronted
widespread shortages of consumer goods and increasing inflation by
enacting several key market-orientated reforms.  The government
eliminated costly consumption subsidies, standardized customs duties,
adopted a floating exchange rate, curtailed monetary growth, abolished
interest rate ceilings and resumed payments on the foreign debt.  These
policies were adopted without the financial assistance generally made
available to countries undertaking such programs and had the
deflationary impact usually associated with IMF-sponsored adjustment
programs.  For example, GDP fell by 5% in 1990 and by roughly 2.5%
during the first quarter of 1991.

In the first half of 1991, the government successfully eliminated its
payment arrears to all multilateral lending institutions.  It also made
payments to the United States, thereby lifting restrictions to new
assistance under the Brooke-Alexander Amendment (imposed in 1990 when
arrears exceeded 1 year).  In July 1991, after implementing this series
of significant economic reforms, President Balaguer signed an 18-month
standby agreement with the IMF in which the Dominican Republic unified
the two-tier exchange rate and committed itself to make good on external
debt arrears by the end of 1992, and adopt reforms of monetary policy in
financing public sector deficits.

DEFENSE
The military consists of approximately 23,500 active-duty men and women,
commanded by the president.  Its principal mission is to defend the
nation's independence and territorial integrity, but in the absence of a
significant external threat, it serves more as an internal security
force.  The army, twice as large as the other services combined,
consists of  4 infantry brigades and a combat support brigade; the air
force operates 3 flying squadrons; and the navy maintains 30 aging
vessels.  The Dominican Republic's military is second in size to Cuba's
in the Caribbean.

The armed forces participate fully in the government's commitment to
counter the movement of illegal drugs into and through the republic.
They are also active in efforts to control contraband and illegal
immigration from Haiti to the Dominican Republic and from the Dominican
Republic to the United States.

FOREIGN RELATIONS
The Dominican Republic associates closely 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.  In 1991, it resumed diplomatic relations
with the Soviet Union.  It does not maintain diplomatic relations with
Cuba, although there is contact in fields such as commerce, culture, and
sports.  Dominican relations with its closest neighbor, the Republic of
Haiti, have never been extensive.  The Haitian community resident in the
Dominican Republic, made up mostly of illegal immigrants seeking greater
economic opportunities, is estimated to include several hundred thousand
people.

US-DOMINICAN RELATIONS
The United States has excellent relations with the Dominican Republic.
US policy is based on the principle of cooperation in international
affairs, including appropriate support for the Dominican Republic's
economic development program.  In addition, bilateral trade is important
to both countries, and US firms account for nearly all foreign private
investment in the Dominican Republic. One important element of the
bilateral relationship between the two countries is the Dominican
community residing in the United States.  According to some estimates, 1
million Dominicans live in the United States, the majority in New York
City.

Principal US Officials
Ambassador--Robert S. Pastorino
Deputy Chief of Mission--V. Manuel Rocha
AID Mission Director--Raymond F. Rifenburg
Consul General--Harry E. Jones
Political Counselor--Francis Scanlan
Economic Counselor--William Falkner
Public Affairs Advisor (USIA)--Sheldon H. Avenius
Agricultural Counselor (USDA/FAS)--Forrest K. Geerken
Commercial Counselor (DOC/FCS)--Richard Ades (based in Miami)
Defense Attache--Lt. Col. Gary R. Wright

The US Embassy in the Dominican  Republic is located at Calle Cesar
Nicolas Penson and Calle Leopoldo Navarro, Santo Domingo
(809-541-2171).

Climate and clothing: Lightweight clothing suitable for hot, humid
weather is appropriate in Santo Domingo year-round.

Customs: A valid passport or tourist card is required of visitors.  The
tourist card, valid for 20 days, can be extended for an additional 70
days.  The charge for the card at airline offices is $10; proof of
citizenship, such as a birth certificate, is required.  Visas are free
of charge.  No immunizations are required of tourists.

Health: Santo Domingo has many American-trained, English-speaking
doctors and dentists who speak English.  Tapwater is not potable.

Telecommunications: Telephone service links all major points in the
country.  Long-distance connections can be made to the US and other
countries without difficulty or undue delay.

Transportation:  Flights are available from the US to Santo Domingo's
International Airport, with or without stopovers in Haiti or Puerto
Rico.  Flights from the US are also available to the north coast resort
area of Puerto Plata.  Some companies in Santo Domingo arrange
chartered, air-conditioned bus tours for groups.  A group can charter a
car at a reasonable cost.