Dominican Rep

Document Sample
Dominican Rep Powered By Docstoc
					Dominican Republic Country
 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
Human Capital as a Factor of
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
 Public expenditure on education
      • As a % of GDP: 2.2
      • As a % of total government expenditure: 13.8
Poverty Reduction and
 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.

 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.
 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
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
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
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 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
Women will earn an income that can and
 will support their children and their
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
  – 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
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
Women’s issues that hamper
 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
   – 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
 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
  – Cut apparel parts (pre-made)
  – The U.S. accounts for 85% of Dominican
    textile imports
     • Taiwan, China, Hong Kong, Mexico, and South
Commodities: foodstuff, petroleum, cotton
 and fabrics, chemicals and pharmaceuticals
 Textile and Apparel Production
 Exports
  – Consist largely of finished garments for the U.S.
  – 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
 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,
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
Andreatta: tourism, credit card processing, offshore
  banking, and other high tech industry are moving
  in [to the Caribbean]
  Where the success of industry
Success in exporting: low cost labor
  – 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.
   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.

   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.
Data as of December 1989

                         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
 1)      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 non-
    traditional crops.
   4) The use of pesticide, chemical fertilizers and mechanical
    cultivation has increased dramatically. (Example of the Tomato
   5) Growers are experiencing more debt because of these

 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.
 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

 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
 -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
 -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)

     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:

   §     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
Is the Income staying within the
-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
Benefits of Tourism

 -     Tourism offers higher wages

 -    Tourist industry employs a number of workers which provide
  employment for a significant percentage of the country’s population

 -     Access to foreign currencies

 -     Makes a substantial contribution to the country’s GDP

 -     casinos bring in a high amount of visitors and hence some
  foreign exchange
Problems associated with
(A)   Environmental
 -Inadequate supplies of clean water

 -Electricity

 -Soil eroding into the sea damaging the coral reefs
 -deforestation
 -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.