Economic Opportunities

usaid/dr helps Increase Sustainable Economic Opportunities for the Poor

• Total Planned Contribution: $34 million

A massive banking fraud in 2003 caused a severe economic decline in the Dominican Republic, an island nation that in preceding years had been the economic star of the hemisphere. Hope returned to the Dominicans with the democratic election of a new administration that promised to fight corruption and return the republic to its previous economic glory. Our strategy to help improve economic opportunity for all Dominicans has, from its inception, focused on the building blocks that create an environment for expanding trade, investment, and thus, Economic Opportunities. At the same time, we have been able to help the Government with “just-in-time” assistance to mitigate emergencies, such as an electricity sector in crisis. Through a combination of policy reform dialogue and best-practice demonstration projects in the areas of trade, competitiveness, environmental protection, and education quality, USAID activities are helping the Dominican people to build a sustainable economic future that works for them. The results of USAID’s program will be a more competitive Dominican Republic, able to take advantage of burgeoning free trade opportunities in the hemisphere. 

A More Competitive Dominican Economy

The country’s competitiveness will be increased by free trade agreements; strategic business alliances that lead to productive investments and small business opportunities; better fiscal management; deepened capital markets; strengthened energy policies and regulation; and expanded rural electrification. USAID activities are concentrated in bettering conditions in four major areas: 1) improving key economic policies, such as establishing a secondary market for government bonds and reforming Dominican tax laws to provide a sound basis for fiscal management; 2) increasing collaborative competitiveness initiatives, particularly in tourism and niche export agriculture, such as quality coffee, mangos and oriental vegetables; 3) reforming energy policies and establishing partnerships to implement the National Rural Electrification Plan in selected communities; and 4) strengthening the country’s capacity to meet trade obligations and implement negotiated trade agreements, such as CAFTA-DR. 

Improved Policies for Environmental Protection

Working directly with the Ministry of Environment, USAID assists the Dominican government to create, implement and enforce environmental policies for sustained environmental protection. USAID provides this cabinet-level Ministry with expert technical assistance on environmental policy formulation and institutional strengthening.  With USAID assistance, a major environmental victory came in 2000 when the Dominican Congress passed the first ever National Environmental Law. USAID works jointly with the government to prepare environmental sub-sector laws and implementing regulations; to prepare and implement environmental standards and norms; to strengthen protected area management; to promote clean production technologies; to strengthen municipal environmental units; to provide training to national, regional and municipal staff; and to enhance civil society participation in protecting the environment. 

Improved Quality of Basic Education

USAID collaborates with the Ministry of Education to improve the quality of primary education. USAID supports policy interventions to increase student achievement in literacy and numeric skills and helps develop evaluation tools to inform decision-making at the local and national level. USAID helps improve teacher effectiveness in reading and math instruction. USAID also provides assistance to teachers, schools and local communities to promote increased participation by community members and parents, private companies, and civil society organizations in the quality of education offered at local, primary schools.