Transcript Document

Dominican Republic Country
Information
 Population: - 8,581,477 (July 2001 est.)
 Capitol: - Santo Domingo
 Other cities: -Santiago de los Caballeros
(Santiago), La Romana
 Primary Language: - Spanish
 Date of Independence: -1865
 GDP/capita: -purchasing power parity - $5,700 (2000 est.)
– (has a highly skewed distribution of income, approx. two million
Dominicans still live in poverty)
 Major colonial powers: -Spain, France
Map of the Caribbean
Map of the Dominican Republic
Project goal:
To explore the primary
factors available to the
Dominican Republic for its
development
Human Capital as a Factor of
Development
The population of the Dominican
Republic, if well utilized may bring about
significant economic and social growth.
One way of taking advantage of this factor
of development is through education.
The accumulation of human
capital through education:
Today, many Dominicans in rural areas
are unable to obtain a satisfactory
tertiary education.
– “Those able to achieve higher levels of
education tend to migrate out of the rural
areas leaving behind the most
disadvantaged, creating in the process
entrenched pockets of poverty.” –The World
Bank Group
Some figures relating to the state
of D.R’s human capital.
 Pregnancy has become the leading cause of death
among adolescent girls in the Dominican Republic
[according to the United Nations Population Fund
(UNFPA)]. Nearly 25% of girls aged 15 to 19 are
either pregnant or have already given birth, yet
access to reproductive health services is limited
outside the major cities, putting these young mothers at
risk.
 Public expenditure on education
• As a % of GDP: 2.2
• As a % of total government expenditure: 13.8
Poverty Reduction and
Education
 Today, almost 85% of poor household heads have not
completed primary education.
 Almost 30% of poor household heads have no education
whatsoever, facing enormous opportunity constraints even
within a growing economy.
 While the educational attainment of the younger generation
is higher than that of their parents, enrollment in
secondary education remains low, when compared to
other middle income countries.
Poverty Reduction and
Education (Cont’d)
 Throughout the 1990s the returns on education
for workers who have only attained primary
education remain low.
• This trend is likely to continue given the strong influx of
Haitian immigrants, providing low-skilled labor with low
reservation wages.
 Significant poverty reduction will involve a focus
on areas of public policy such as:
– education, adequate provision of property rights, and
family planning.
EDUCATION
 Structure of the Educational System
– Primary School lasts for 6yrs and is compulsory
– In secondary education two systems are in operation
• Traditional System- consists of a 6yr cycle divided into a
two-year intermediate cycle and a four-year second cycle
• Reform system- studies last for six years, divided into two
cycles. The first cycle (Ciclo Básico) is a four-year cycle
with an emphasis on science. The second cycle (Ciclo
Superior) lasts for two years and offers a greater choice of
specializations than the traditional system.
EDUCATION OVER THE LAST
DECADE
 In the last decade, educational reform activities in
the Dominican Republic have resulted in increased
enrollments, a reduced dropout rate, and greater
access to education for low-income children.
 Equity remains a challenge:
– Particularly for children in rural areas where
where grade repetition and drop-out rates are
higher than in urban areas.
What does the Dominican Republic
need to improve its education system?
 Increased public and private sector expenditures
on education
NOTE: Only this month the IDB(Inter-American
Development Bank) approved an $80 million loan
for a basic education program in the Dominican
Republic.
Purpose of the loan:
-To support the first phase of a program to
improve equity in basic education in the
Dominican Republic by focusing on schools and
students in rural and marginal urban areas.
Seer’s Model for Development
 According to Seers, the term development must
take into consideration 3 factors
– Inequality
– Poverty
– Unemployment
In the case of the Dominican Republic and the
Caribbean on a whole, any factors that are expected
to “develop” the country or region must, according
to Seers, have a positive impact on these 3 aspects
of development.
Education as it relates to
development
The more educated a country’s people are,
the brighter its future.
– An educated population attracts FDI (foreign
direct investment)
– increased investment in education contributes
to economic efficiency and equity.
– investment in the human capital of the poor is
one of the most important tools for reducing
poverty.
Links between education,
women and development
 Educated women have smaller families, fewer of their children die
in infancy and the children who survive are healthier and better
educated.
 Educated women are better equipped to enter the
paid labor force. This is critical to the survival of the
many female headed households of the Caribbean.
 Nations with higher levels of female school enrollment
in the past, today show higher levels of economic
productivity, lower fertility, lower infant and maternal
mortality, and longer life expectancy than countries that
have not achieved as high enrollment levels for girls.
Are Women a Factor for Development in
the Dominican Republic?
Gender in the Labor Force:
– Women are not educated in technical fields
related to agriculture and industry
– The men are educated so as to be hired for
supervisory or professional positions
Gender in the Labor Force
Cont’d
Women will earn an income that can and
will support their children and their
husband
They are not earning wages that can
support the entire family
Quote from a Dominican
Working Woman
 One woman states… “ I eat lunch [the
Dominican main meal] every other day, since I
have no money… besides, who could eat
knowing the children are home with nothing. I
must lock the children in the house during the [12
hour] workday to keep them safe, with no one to
look after or feed them. My eldest should be in
school, but she must see to the little ones… even
in my one-room shack the three year old gets in
trouble. (Interview by Laura Raynolds 20,
December 1989)
Gender in the labor force cont’d
 Although agricultural work is considered to be primarily carried out
by men, the women who work to feed their families see that “they are
fundamentally redrawing the parameters of “women’s work” and
establishing a potential basis for increasing women’s economic
autonomy”. (Raynolds)
 In “Sun, Sex, and Gold: Globalization, Tourism, and the
International Sex Trade”, “ A number of writers have pointed out that
despite the economic independence of Jamaican Women and
matrifocality of many households, men are still perceived to be the
dominant of the sexes” ( Senior 1991, Powell 1986, Moses 1977).
-This is in comparison to the sex industry of Jamaica, but it still
reestablishes the idea of female and male inequalities.
Gender in labor force cont’d
 Women are the primary factor in the work
force, because they perform most of the labor
and yet they are not rewarded for their work
with higher income so they can support their
family
– This is a result of… “ Companies profit from
Dominican patriarchal traditions that limit
women’s alternatives and make them
disproportionately responsible for home and
family” (Raynolds).
Gender in the labor force
cont’d.
The new jobs being created are strictly
based on gender
Men are able to have an education they are
given the professional positions in the
work place
And YES, women do continually
work in the labor force, because…
Their income is restricted
They are continually having more children,
which increases the need for what little
income they do receive
Women make up most of the agricultural
and industrial labor forces, without them
production would be moving at a slower
rate
Women’s issues that hamper
development.
 Women are constantly victims of Domestic Abuse
 Here are some statistics:
– Between November 1st 2000 and October 31st 2001 104 women
were murdered, 62 were murdered by a spouse, and 20 of those
had been women who previously reported domestic violence, but
no help had been given
– The year before 86 women were murdered
– Murder is the 6th cause of death for Dominican women ages 15 to
45
– 1 in 6 homes experience violence
– Due to Domestic violence 80% of women are in who need of
health care
– 40 to 50 reports of violence are given to the Santo Domingo
Police Station daily. (In a year this totals 10,800 reports)
Results of the Project
 BUT, as a result of these horrendous statistics two major
issues have been addressed to create new developments
for the Dominican Republic
 A project was created resulting in…
 The government passing amendments to the Dominican
Penal Code in 1997
 It also united 4 major NGO’s in the Dominican Republic
(CEDAIL, CENSEL, FISOE, CEPLES)
 They are now working together to promote a better
understanding of women’s issues to ensure that women
are treated fairly in the home
Industry: key words and phrases
 Free trade zone: an area within a country regarded as being outside
its customs territory—exempt from custom duties and taxes
 Nontraditional agriculture: 1) all agriculture exports except sugar,
coffee, cocoa, and tobacco 2) agro-industrial commodities for local
and export markets
 Sex tourism: “any travel experience where the provision of sexual
services by the host population in exchange for monetary and
nonmonetary rewards makes a significant contribution to the
enjoyment of the holiday itself” (Mullings)
 CBTPA: Caribbean Basin Trade Partnership Act—”significantly
expands preferential treatment for apparel made in the Caribbean
Basin region” (Export Advantage)
Imports and Exports of Textile
and Apparel Production
Imports:
– Cut apparel parts (pre-made)
– The U.S. accounts for 85% of Dominican
textile imports
• Taiwan, China, Hong Kong, Mexico, and South
Korea
Commodities: foodstuff, petroleum, cotton
and fabrics, chemicals and pharmaceuticals
Textile and Apparel Production
(cont.)
 Exports
– Consist largely of finished garments for the U.S.
market
– Largely assembled in free trade zones for export
– Export partners of the D.R. are: U.S. 87.3%,
Netherlands 1.1%, Canada 0.7%, France 0.7% (2000
est.)
 Momsen: produces what it doesn’t consume,
consumes what it doesn’t produce
clothing, food, tourism, etc.
Industries: Tourism, Agriculture,
and Apparel
Industries: tourism, sugar processing, textiles,
tobacco
Tourism has replaced sugar as country’s leading
foreign-exchange earner in 1984
Labor force by occupation: services and gov’t
58.7%, industry 24.3%, agriculture 17% (1998
est.)
Andreatta: tourism, credit card processing, offshore
banking, and other high tech industry are moving
in [to the Caribbean]
Where the success of industry
lies
Success in exporting: low cost labor
resources
– 20 years success in garment assembly
– of the 34 electronic firms in the D.R., 30
produce goods SOLELY for export
• 90% produced for the U.S.
AGRICULTURE
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Traditional export crops are:
1)
Sugar
2) Coffee
3) Cocoa
4) Tobacco
 The country’s agricultural sector has moved away from sugar and
other traditional crops, with increased production and export of
non-traditional crops.
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Non-Traditional Export Crops are:
1) Pineapples
2) Citrus
3) Melons
4) Mangoes
Agricultural areas are found in the East and Santiago.
 Agriculture was the backbone of the Dominican economy for
centuries. It declined significantly during the 1970s and the 1980s, as
manufacturing, mining, and tourism began to play more important
roles in the country's development
 During the 1960s, the agricultural sector employed close to 60 percent
of the labor force, contributed one-quarter of GDP, and provided
between 80 and 90 percent of exports. By 1988, however, agriculture
employed only 35 percent of the labor force, accounted for 15 percent
of GDP, and generated approximately half of all exports.
 The declining importance of sugar, the principal source of economic
activity for nearly a century, was even more dramatic. Sugar's share
of total exports fell from 63 percent in 1975 to under 20 percent by the
late 1980s.
 The transformation in agriculture paralleled the country's demographic
trends. In 1960, some 70 percent of the country's population was
rural; by the 1990s, upwards of 70 percent was expected to be urban.
Government policies accelerated urbanization through development
strategies that favored urban industries over agriculture in terms of
access to capital, tariff and tax exemptions, and pricing policies. As a
consequence, the production of major food crops either stagnated, or
declined, in per capita terms from the mid-1970s to the late 1980s.
Lower world prices for traditional cash crops and reductions in the
United States sugar quota also depressed the production of export
crops in the 1980s.
http://memory.loc.gov/cgi-bin/query/r?frd/cstdy:@field(DOCID+do0056)
Data as of December 1989
CONTRACT FARMING
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What is Contract Farming?
It is production by smallholders for private corporations.
Contract farming commits household land and labor resources to the
production of a commodity that is ultimately controlled by an agro
industrial firm.
Contract Farming is linked to the increasing consumption of
processed foods and the declining capacity of the state to provide
credit and other inputs to peasant producers.
 Process of Contract Farming
The purchaser enters into a formal agreement with the grower to buy
the farm output prior to production. In return for the production the
grower agrees to abide by rules over sighted of the purchaser.
In other words the Purchasers provide the capital and services and
the growers provide the land and labor.
 Disadvantages of Contract Farming
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The Producers are subordinated to “management”, so we
have a proletarian and bourgeois scenario. There is a
“disguised wage labor” present.
2) It’s not an individual that is involved in this type of farming
but the entire family.
3) Traditional crops have declined with the increase of nontraditional crops.
4) The use of pesticide, chemical fertilizers and mechanical
cultivation has increased dramatically. (Example of the Tomato
Production)
5) Growers are experiencing more debt because of these
changes.
WOMEN IN AGRICULTURE
 The expansion of non-traditional crops has increased the labor
market in the Dominican Republic. It has been encouraging to
the women labor force.
 As result women play a predominant role in the production of
these new crops.
 Women are in the background of the peasant agricultural work.
They do the harvesting and post harvesting crop handling
which generally get no pay. In 1985 14% of Dominican Women
were employed in agriculture.
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 Women constitute to 42% of the paid nontraditional agriculture
labor force. The majority of women are involved in the
production of fresh produce exports. For example, melon,
pineapple, avocado and other fresh fruit and nut enterprises.
They rely heavily on women’s labor. For example, women
constituted for over 55% of the workers on the pineapple
plantation.
AGRICULTURE & TOURISM
 Tourism can influence agriculture in 5 interrelated ways:
 It can offer alternative employment opportunities and therefore raise the
reserve price for agriculture labor and encourage migration from farming to
tourist areas.
Competition for land between recreation and agriculture may raise land
values and so remove some agricultural land from food production.
 Tourist activities may modify land use values around resort areas
 Tourist demand for high-value and quality food may provide incentive for
farmers to increase and diversify production or increase food import
 Tourism may create aesthetic uses for rural land, encouraging preservation of
some rural environments and creating associated recreation – based jobs in
rural areas.
History and Development
over the years: tourism
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 -Prior to 1967, more Dominicans traveled abroad than foreigners
came to visit the country.
 -In 1970, INFRATUR was developed to monitor and to invest directly
in tourist-related infrastructure projects.
 -Multiple devaluations of the peso created a tourism product that was
unbeatable in price.
History and Development
(cont’d)
 -By 1984, tourism replaced sugar as the country’s leading
foreign – exchange earner, exemplifying the growing diversity
of the Dominican Republic economy.
 -By 1989, it boasted more than 18,000 hotel rooms – more
than any other location in the Caribbean.
 -The number of tourists visiting the island increased from
278,000 in 1975 to 792,000 in 1985 and in 1987 the number of
vacationers surpassed 1 million for the first time.
Income from Tourism
Tourist Numbers
 The majority of tourists come by air and stay for at least a week
(Europeans average two weeks)
Arrivals
The Dominican Republic is the most popular Caribbean destination
for Europeans, and they make up 46% of its overnight visitors. In
1997, the countries sending the largest number of tourists were:
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United States 402,039
Germany 328,860
United Kingdom 216,790
Canada 152,777
Italy 118,551
Spain 106,398
France 57,507
Belgium 46,590
Austria 36,753
Who owns the Hotels?
 -Although some foreign-owned hotel chains began investing heavily in
the early 1970s (such as Gulf and Western with the luxury Casa de
Campo), the industry’s development was primarily made possible by
domestic investors.
-In 1987, only 21% of hotel rooms were estimated to be foreign
owned.
Is the Income staying within the
country?
-Because the majority of the hotel chains are domestic owned, the
majority of the income is kept within the country. However for the
approximately 25% foreign owned hotels, this amount goes out of the
country.
Benefits of Tourism
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Tourism offers higher wages
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Tourist industry employs a number of workers which provide
employment for a significant percentage of the country’s population
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Access to foreign currencies
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Makes a substantial contribution to the country’s GDP
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casinos bring in a high amount of visitors and hence some
foreign exchange
Problems associated with
Tourism
(A)
Environmental
 -Inadequate supplies of clean water
 -Electricity
 -Soil eroding into the sea damaging the coral reefs
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 -deforestation
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 -irreplaceable damages from Hurricane George
 crime
 B) Other
 Sex tourism
Plans to Improve Tourism
 -The Government has put measures in place to ensure that tourism
development and environmental management are mutually supportive. It has
also adopted integrated planning policies and promoted public
awareness/education for sustainable tourism.
 The Government has formulated policies for general tourism, eco-tourism
and cultural tourism, but there are no marine-based tourism policies at this
time. The Government has also expressed its support in this area by joining
in the Declaration of the Caribbean Sea as a Sustainable Tourism Region.
Public participation has been developed as a tourism management strategy,
and the development of regulatory measures has occurred.
 The Government has not adopted measures to protect the cultural integrity of
the Dominican Republic; however, local ownership within the tourism sector
has been encouraged. The Government has not yet provided incentives
within the tourism industry for the use of sustainable technology with respect
to energy, water resources or waste disposal, but it has been supportive to
hoteliers engaged in these efforts.