Updated January 2, 2020
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
Since that time, the Dominican Republic, for the most part,
the Caribbean island of Hispaniola, which it shares with
has seen solid economic growth and developed democratic
Haiti. The Dominican Republic is a key U.S. partner in the
institutions. Led by former President Leonel Fernández
Caribbean because of its comparatively large size, strong
(1996-2000, 2004-2012) and current President Danilo
economy, and stability. In recent years, the United States
Medina (in office since 2012), the center-left Dominican
and the Dominican Republic have maintained close
Liberation Party (PLD) had, until recently, dominated
commercial ties under the Dominican Republic-Central
Dominican politics. The PLD has controlled the presidency
America-United States Free Trade Agreement (CAFTA-
and the legislature since 2004, but a split between
DR) and cooperated on regional security concerns under the
supporters of Fernández and Medina threatens the party’s
Caribbean Basin Security Initiative (CBSI).
dominance in the May 2020 elections.
Figure 1. Dominican Republic Facts
Political Situation
Inaugurated for a second term in May 2016, President
Danilo Medina (PLD) remains popular, despite a slowing
economy. In alliance with its historic rival, the Dominican
Revolutionary Party (PRD), his PLD held majorities in the
senate and chamber of deputies until late 2019. Popular
concerns about crime, corruption, and one-party dominance
have nevertheless increased. In May 2019, some 70% of
those polled by Gallup opposed amending the constitution
to allow Medina to seek a third consecutive term.
The May 2020 presidential and legislative elections are
expected to be extremely competitive. Luis Abinader, an
economist and the 2016 candidate of the opposition Modern
Revolutionary Party (PRM), easily won his party’s primary.
In the October 2019 PLD party primary, Medina’s chosen
successor, Gonzalo Castillo, an executive and former
minister of public works, narrowly defeated former
president Fernández. Fernández rejected those results as
fraudulent, left the PLD, and formed the People’s Force
Party (LFP). Fernández is running for president on a
multiparty coalition led by the LFP. This split within the

PLD has prompted some analysts to predict an Abinader
Sources: CRS graphic. Map data from the International Monetary
victory. Few believe that any candidate will garner the 50%
Fund (IMF), U.N. Economic Commission on Latin America and the
of votes needed to win in the first round.
Caribbean, UN Comtrade, and U.S. Department of Commerce.
Background
Former president Fernández’s decision to leave the PLD
has prompted defections that have cost the party its
After fighting to achieve its independence from Haiti in
majority in the current chamber of deputies. Partially due to
1844 and later from Spain in 1865, the Dominican Republic
the emergence of Fernández’s LFP, it may be difficult for
embarked on a bumpy road toward democracy that included
the PLD to retake a majority in the chamber in the 2020
coups, dictatorships, and U.S. interventions (including
elections. In November 2019, Fernández formed an
1916-1924 and 1965-1966). Rafael Trujillo ruled the
electoral pact with the PRM and others parties to field one
country as a dictator from 1930 to 1961, employing violent
unified opposition senate candidate against the PLD in each
tactics to quell opposition. Despite his brutality, Trujillo’s
of the country’s 32 provinces. This could challenge the
anti-communist stance earned him tacit U.S. support. His
PLD’s dominance in that chamber.
acolyte, Joaquín Balaguer, served as president from 1960 to
1962, 1966 to 1978, and 1986 to 1996. As a result of the
The next Dominican president and legislature will face a
dominance of these caudillo (strongman) leaders, the
number of pending political challenges:
Dominican Republic did not develop into a modern
democracy until the 1990s. In 1994, an agreement
Corruption
commonly referred to as the Pact for Democracy removed
The Dominican Republic ranked 129 out of 180 countries
Balaguer from power and paved the way for the country’s
in Transparency International’s 2018 Corruption
first free and fair elections in 1996.
Perceptions Index. The country’s weak judicial system has
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Dominican Republic
been ineffective in tackling most corruption. Nevertheless,
Bank’s 2019 Doing Business report, it ranks 115 out of 190
six individuals, including a former minister of public works,
countries, performing particularly low on the ease of
are facing trial over accusations of receiving millions in
starting a business, getting electricity, accessing credit,
bribes from the Brazilian firm Odebrecht in exchange for
paying taxes, and enforcing contracts. According to the
construction contracts. In 2018, the U.S. Treasury
State Department’s 2019 Investment Climate Statement,
Department imposed sanctions on Felix Bautista, a
corruption, weak intellectual property rights protections,
businessperson close to Leonel Fernández, for corruption
and biased judicial procedures hinder U.S. investment.
pursuant to Executive Order (E.O.) 13818, which targets
Since establishing diplomatic relations with China in 2018,
perpetrators of corruption.
the Dominican government has also sought to attract
increased Chinese investment in the country.
Drug Trafficking
According to U.S. government estimates, the majority of
Poverty and inequality in the Dominican Republic have
the roughly 90% of U.S.- and Europe-bound cocaine that
gradually decreased since the 2003-2004 economic crisis.
transits the Caribbean from South America passes through
According to the U.N. Economic Commission on Latin
the Dominican Republic. The Dominican Republic
America and the Caribbean, poverty has fallen from 45.3%
cooperates closely with the United States in antidrug efforts
of the population in 2004 to 22% in 2018. Income
through seizures, joint operations, and extraditions. Corrupt
inequality has also declined; the Gini coefficient fell from
officials have hindered cooperation, however. In August
0.504 in 2004 to 0.444 in 2018 (with zero indicating total
2019, the U.S. Treasury Department designated César
equality and one indicating total inequality).
Emilio Peralta and his drug trafficking organization as
subject to sanctions pursuant to the Foreign Narcotics
U.S. Relations
Kingpin Designation Act (21 U.S.C. 1901 et seq.). Peralta
The Dominican Republic enjoys a strong relationship with
was arrested in Colombia in December; U.S. prosecutors
the United States, with extensive cultural, economic, and
are seeking his extradition.
political ties. Currently, more than 1.1 million Dominicans
reside in the United States. In recent decades, the United
Relations with Haiti
States has supported democracy, citizen security, and
The Dominican Republic experiences periodic disputes
economic development in the Dominican Republic.
with Haiti, its neighbor and second-largest export market.
The citizenship status and treatment of people of Haitian
Congress oversees U.S. bilateral aid to the Dominican
descent living in the Dominican Republic has been a source
Republic, which totaled $36.8 million in FY2019, $26.5
of tension between the two countries; annual State
million of which was for Global Health programs. It also
Department human rights reports have documented
provides funding and oversight of the Caribbean Basin
discrimination against that population. In June 2018, the
Security Initiative (CBSI), a regional program through
Dominican Republic published a survey that found that
which the Dominican Republic has received law-
despite efforts to register and provide documents to people
enforcement training and equipment. In its FY2020 budget
of Haitian descent since 2014, only 31% of that population
request, the Trump Administration proposed a significant
possessed documents required for accessing formal
cut to aid to the Dominican Republic; it is yet unclear how
employment, health care, and insurance. President Medina
much funding the country will receive in FY2020
faces domestic pressure to deport those who lack
appropriations (P.L. 116-94). The country has received $5
documents, limit education and health care spending on
million in antidrug training and equipment from the
unauthorized immigrants, and stop immigration from Haiti.
Department of Defense in FY2020.
Venezuelan Refugees
U.S.-Dominican trade increased from $9.8 billion (pre-
According to U.N. agencies, some 30,000 Venezuelans are
CAFTA-DR) to $14.3 billion in 2018. The United States
sheltering in the Dominican Republic, of whom roughly
enjoyed a $3.6 billion trade surplus with the Dominican
8,000 had residence permits as of June 2019. In mid-
Republic in 2018. Bilateral trade and labor disputes have
December 2019, the Dominican Republic began requiring
periodically arisen. The U.S. Department of Labor
visas from Venezuelans. This could hinder the ability of
continues to monitor how the Dominican government is
those fleeing Venezuela to enter Dominican territory.
working to reduce the use of forced and child labor.
According to the Office of the U.S. Trade Representative’s
Economic Conditions
2019 Special 301 Report, the Dominican Republic has
The Dominican Republic is among the fastest-growing
reduced the backlog of pending patents and prosecuted
economies in Latin America and the Caribbean, with
cases related to counterfeit goods. Nevertheless, the
estimated 7% GDP growth in 2019. It has the largest stock
government’s intellectual property protection and
of foreign direct investment and the most diversified export
enforcement efforts remain weak.
structure of any U.S. partner country in CAFTA-DR. High
levels of foreign investment, solid mining and
See also CRS In Focus IF10789, Caribbean Basin Security
telecommunications sector performance, and strong tourism
Initiative, by Mark P. Sullivan.
revenues have boosted growth. Tourism remained vibrant
even after U.S. hotel bookings declined in the wake of
Clare Ribando Seelke, Specialist in Latin American
several U.S. tourist deaths in the country in 2019.
Affairs
Nevertheless, the Dominican Republic continues to face
IF10407
significant barriers to investment. According to the World
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Dominican Republic


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https://crsreports.congress.gov | IF10407 · VERSION 6 · UPDATED

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