Updated April 2, 2018
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
consecutive presidential terms to run again in 2020, but
the Caribbean island of Hispaniola, which it shares with
former PLD President Fernández may also seek to run.
Haiti. The Dominican Republic is one of the most important
countries in the Caribbean for U.S. policy because of its
Figure 1. Dominican Republic Facts
large size, strong economy, and stability. The United States
is the Dominican Republic’s main trading partner; two-way
trade totaled more than $12.5 billion in 2017. The U.S.
government has supported efforts to prevent crime, improve
resilience to climate change, and address HIV/AIDS. The
Trump Administration has proposed narrowing U.S. aid
programs to focus on security and health programs.
Background
After fighting to achieve its independence from Haiti in
1844 and later from Spain in 1865, the Dominican Republic
embarked upon a bumpy road toward democracy that
included coups, dictatorships, and U.S. interventions
(including 1916-1924 and 1965-1966). Rafael Trujillo ruled
the country as dictator from 1930 to 1961, employing
violent tactics to quell opposition. Despite his brutality,
Trujillo’s anticommunist stance earned him tacit U.S.
support. His acolyte, Joaquín Balaguer, served as president
from 1960 to 1962, 1966 to 1978, and 1986 to 1996. As a
result of the dominance of these caudillo (strongman)
leaders, the Dominican Republic did not develop into a

modern democracy until the 1990s. In 1994, an agreement
Source: CRS graphic. Map data from Department of State; figures
commonly referred to as the Pact for Democracy removed
from IMF, CIA World Factbook, and World Bank.
Balaguer from power and paved the way for the country’s

first free and fair elections in 1996.
President Medina took office in August 2016 for a second
term in a favorable position, but slowing economic growth
Since that time, the Dominican Republic, for the most part,
may give him less room to maneuver when addressing
has seen solid economic growth and developed democratic
lingering social and economic challenges. Some of those
institutions. Led by former President Leonel Fernández
challenges include the following:
(1996-2000, 2004-2012) and current President Danilo
Medina (in office since 2012), the center-left Dominican
Corruption. The Dominican Republic ranked 135th out of
Liberation Party (PLD) has solidified its dominance over
180 countries in Transparency International’s 2017
Dominican politics. Upon taking office, Medina has
Corruption Perceptions Index. The country’s weak judicial
boosted tax revenues and devoted significant resources to
system has not effectively investigated or punished cases of
education, health care, and support to small businesses,
corruption. In May 2017, the attorney general issued
with positive outcomes in those areas. Many observers have
indictments for 14 people, including a cabinet minister
praised the PLD’s economic stewardship, but have
(who then resigned) and two PLD senators, on charges of
expressed concerns that one-party rule may have eroded
receiving $92 million in bribes from the Brazilian firm
pluralism in the country. The historic opposition party, the
Odebrecht in exchange for construction contracts. The
Dominican Revolutionary Party (PRD), ran in an alliance
government maintains that the investigation is ongoing, but
with the PLD in the 2016 elections. The PLD has controlled
none of those accused is in prison.
the presidency and the legislature since 2004.
Political Situation
Migration and Citizenship Issues. According to criteria
for acquiring Dominican nationality outlined in the 2010
In May 2016, President Medina defeated Luis Abinader of
constitution, children born in the Dominican Republic to
the Modern Revolutionary Party (PRM; formed by PRD
parents in the country illegally are ineligible for citizenship.
dissidents) by a margin of 62% to 35% to win a second
A September 2013 tribunal ruling applied that criterion
four-year term. The PLD-PRD alliance also maintained
retroactively to descendants of all undocumented migrants
majorities in the Dominican senate and chamber of
born in the country since 1929; it had the largest impact on
deputies. Medina may seek to lift the current ban on
people of Haitian descent.
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Dominican Republic
The Medina government developed a process to help
investment in the country. The government has made some
resolve the citizenship status of the roughly 55,000
efforts to target subsidies to the poorest households and to
individuals whose Dominican identity documents were
criminalize nonpayment of bills. Nevertheless, the
invalidated by the ruling. Four years later, fewer than half
electricity grid remains fragile, and losses are significant.
of those people have acquired new documents. The Medina
The Dominican Republic ranked 99th of 190 countries in the
government also provided a naturalization plan for
World Bank’s 2018 Doing Business report. It ranks
individuals born in the country without documents who
relatively low on the ease of starting a business, accessing
registered by February 2015. According to Amnesty
credit, paying taxes, and resolving commercial disputes.
International, 16% of the estimated 50,000 or so people in
that situation met that deadline; the others lack documents
Poverty and inequality in the Dominican Republic have
and could be deported.
been higher than regional averages, but are gradually
decreasing. According to the World Bank, poverty has been
In November 2013, the government began a regularization
reduced from 42% of the population in 2013 to 32.4% in
plan that gave migrants born outside the country 18 months
2015. Inequality has also declined. In 2006, the Dominican
to register for legal nonimmigrant status. More than
Republic had a Gini coefficient of 51.9 out of 100 (with
240,000 people qualified, but many lack documents proving
zero indicating total equality). In 2015, it stood at 44.9.
their place of birth, partially due to the Haitian
government’s inability to provide them with birth
U.S. Relations
certificates. The Dominican government has extended the
The Dominican Republic enjoys a strong relationship with
deadline for submitting documents through the summer of
the United States, with extensive cultural, economic, and
2018, but may not do so again. President Medina faces
political ties. Currently, more than 1.1 million Dominicans
domestic pressure to deport those who lack documents,
reside in the United States. In recent decades, the United
limit education and health care spending on unauthorized
States has supported democracy, citizen security, and
immigrants, and stop immigration from Haiti.
economic development in the Dominican Republic.
Drug Trafficking. According to U.S. government
Congress oversees U.S. bilateral aid to the Dominican
estimates, the majority of the roughly 6% of U.S.- and
Republic, which totaled $13.8 million in FY2017. It also
Europe-bound cocaine that transits Hispaniola from South
provides funding and oversight of the Caribbean Basin
America passes through the Dominican Republic using
Security Initiative (CBSI), a regional program through
maritime routes. The Dominican Republic cooperates
which the Dominican Republic has received law-
closely with the United States in counterdrug efforts
enforcement training and equipment. The country also
through seizures, joint operations, and extraditions of drug-
received some $2.5 million in counternarcotics training and
trafficking suspects. Cooperation has been hindered,
equipment from the Department of Defense in FY2017. The
however, by the complicity of corrupt officials.
Trump Administration requested $10.5 million for the
country for FY2018 and $4.5 million for FY2019, with the
Regional Foreign Policy Role. Under President Medina,
bulk of funds requested for global health programs and a
the Dominican Republic has hosted the 2016 Organization
small amount dedicated to military training.
of American States (OAS) General Assembly and the 2017
summit of the Community of Latin American and
U.S.-Dominican trade has increased from $9.8 billion (pre-
Caribbean States (CELAC). From November 2017 through
CAFTA-DR) to $12.5 billion in 2017. Since the United
February 2018, the Dominican government hosted talks
States enjoys a trade surplus with most CAFTA-DR
between the Venezuelan government and an opposition
countries (including a $3 billion surplus with the
coalition. Although those talks have broken down, the
Dominican Republic in 2017), most analysts had not
Dominican government still supports a negotiated solution
predicted that the Trump Administration would seek to
to the crisis in Venezuela.
renegotiate the agreement. Nevertheless, on October 2,
2017, U.S. Trade Representative (USTR) Robert Lighthizer
Economic Conditions
said that CAFTA-DR and a number of other U.S. free trade
The Dominican Republic is among the fastest-growing
agreements with Latin American countries may need to be
economies in Latin America and the Caribbean (with 4.8%
modernized. According to USTR’s 2017 Special 301
GDP growth in 2017). It has the largest stock of foreign
Report, the Dominican Republic does not adequately
direct investment and the most diversified export structure
enforce restitutions against pirated and counterfeit goods,
of any U.S. partner country in the Dominican Republic-
which are widely available. The U.S. Department of Labor
Central America-United States Free Trade Agreement
continues to monitor how the Dominican government is
(CAFTA-DR). Remittances reached an estimated $5.9
working to reduce the use of forced and child labor.
billion in 2017. High levels of foreign investment, solid
mining and telecommunications sector performance, and
Clare Ribando Seelke, Specialist in Latin American
strong tourism revenues have boosted growth.
Affairs
Despite its impressive economic performance, low oil
IF10407
prices have masked the Dominican Republic’s continued
problems with its electricity sector and other barriers to

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Dominican Republic



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