| Approximately 30% of Dominicans live below the poverty line despite a per capita income of $2,326 in 2000. |
THE DEVELOPMENT CHALLENGE: The Dominican Republic's geo-strategic location links the United States to the Caribbean and South America. Although its economy is one of the fastest-growing in the region, 30% of its citizens live below the poverty line. The Dominican Republic shares a long border with Haiti, one of the poorest, least developed and least stable countries in the Americas. Large numbers of poor, illegal Haitian immigrants add to the Dominican poverty burden.
The Dominican Republic's greatest development risks stem from the relatively large segment of the population that has not shared in recent economic prosperity; the fragility of its democratic institutions, including unfinished justice sector and electoral reforms; the potential for conflict; the continued abuse of human rights, especially by a corrupt and incompetent police force that also contributes to weak public security; a large social investment gap particularly in education, health, basic services, housing, pensions, and rural productive infrastructure; and the need to quickly learn to compete in the global economy. A growing population, increased economic activity, competition for resources, inadequate environmental protection and natural disasters continue to strain environment resources particularly affecting sectors that traditionally employ the Dominican poor, such as tourism and agriculture.
The current Administration, inaugurated in August 2000, appears committed to addressing the social investment gap that has accumulated over the years and to confronting corruption and environmental concerns while pressing forward with key economic, political, social, and institutional reforms. | Life expectancy is 68 years;
Infant mortality is 47 per 1,000; and HIV/AIDS affects 2.5% of the adult population.
|
The country is now considered to be a high contraceptive prevalence country with 65% of married women using a modern contraceptive method. The method mix, however, does not adequately serve adolescents, which results in high pregnancy rates among this population. The HIV seroprevalence rate is stable, but still high, at approximately 2.5% of the adult population. The incidence of HIV/AIDS-related tuberculosis is increasing. Effective treatment is difficult because this strain of tuberculosis has a higher rate of resistance to common medicines. The total fertility rate is 2.6%, below average for the Latin American and Caribbean region, but maternal mortality remains a problem. Despite the fact that 95% of births are attended in hospital settings, the maternal mortality rate is estimated to be between 110 and 160 deaths per hundred thousand births. The infant mortality rate has been steadily decreasing (estimated at 47 per thousand) although the low fully-vaccinated coverage rate (35%) could reverse progress. Only 18% of the population is covered by some type of health insurance. Finally, basic education lags behind countries with similar economic conditions and equity is still a challenge, particularly for children in rural areas.
Per capita gross domestic product in 2000 was $2,326. External debt as of December 2001 amounted to $4.082 billion. The debt is owed primarily to multilateral institutions. The Dominican Republic, a World Trade Organization member, recently completed Free Trade Agreements with the Caribbean Community (CARICOM) and the Central American Common Market, and is committed to the goal of a Free Trade Area of the Americas by 2005. U.S. national interests in the Dominican Republic focus on strong trade and investment ties, promoting regional security, stability, and democracy, reducing international crime, and encouraging economic development.
THE USAID PROGRAM:
|
FY 2002 Estimate: $17.982 million | FY 2003 Request: $22.909 million |
The Program Data Sheets provided below cover the six strategic objectives for which USAID is requesting funds. Three strategic objectives relate to ongoing activities under the current Strategic Plan for FY 1997 through FY 2002 (517-002; 517-003; and 517-007). The other three strategic objectives refer to the new, six-year Strategic Plan for FY 2002 through FY 2007. The three new strategic objectives concentrate on institutional changes and public-private partnerships that expand job creation and income opportunities, expand trade and investment, improve environmental protection, improve educational opportunities, foster continued democratic progress through development of the rule of law, political and electoral reform and anti-corruption measures, and improve the health and welfare of women and children. FY 2002 funds will be used to implement the program as currently planned and previously described in the FY 2002 Congressional Budget Justification. USAID also intends to use FY 2002 funds to carry out certain new activities in response to changing circumstances. The specific activities to be funded by FY 2002 and FY 2003 appropriations are described in more detail in the following Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED:
| Number: |
Title: |
Last Notified: |
Planned Completion: |
|---|
| 517-005 | Hurricane Georges Reconstruction | Hurricane Georges Reconstruction | September 30, 2002* |
* Program activities/implementation ended on December 31, 2001. Program close-out will be complete by September 30, 2002.
OTHER PROGRAM ELEMENTS: In addition to the bilateral program, USAID's other program activities in the Dominican Republic include initiatives in the economic, health, education environment, and disaster mitigation areas. A USAID regional anti-corruption program that partners Transparency International with local NGOs is active in the Dominican Republic. USAID's Program Supporting Central American Participation in the Free Trade Area of the Americas (PROALCA) provides specialized technical assistance, inter-ministerial cooperation programs, short-term training, observational trips and support for regional seminars and workshops, and will continue to provide assistance to the Dominican Ministry of Labor. USAID's Energy Partnership Program will continue to increase energy regulatory capability of the Dominican Superintendency of Electricity. Also, USAID will continue to stimulate private sector investment in renewable energy to help address the energy needs of the Dominican rural population through an agreement with Winrock International. USAID's Parks-in-Peril Program will continue to train key government and NGO partners on parks conservation and management, ecotourism, parks-community linkages, and environmental protection. USAID assistance will help Dominicans improve their capability to protect endangered species in 2002 with the launch of Peregrin Fund activities under the Neotropical Raptor Conservation Program.
| Overall development assistance to the Dominican Republic totals about $235 million per year.
|
OTHER DONORS: Donor coordination is good. USAID is the largest bilateral donor, followed by Spain (justice, education and local government). Other bilateral donors include Germany (local government, environment), Japan (health, environment), Canada (micro-hydro), France (agriculture, rural electrification, rural water) and Taiwan (environment, agriculture). Multilateral donors include the Inter-American Development Bank (the largest donor overall involved in education, health, justice, public administration), the World Bank (HIV/AIDS, energy, education), the European Union (health, environment, education, local government), and the Pan American Health Organization (health).
Program Data Sheets
- 517-002 Increased Use of Sustainable Basic Health Care Services and Practices
- 517-003 More Participatory, Representative and Better Functioning Democracy Achieved
- 517-007 Policies Adopted that Promote Good Governance and Sustained Economic Growth
- 517-XXX Increased Sustainable Economic Opportunities for the Poor
- 517-YYY More Participatory, Representative and Accountable Democracy Achieved
- 517-ZZZ Sustained Improvement in the Health of Vulnerable Populations in the Dominican Republic
|
