Updated August 11, 2020
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
Pact for Democracy removed Balaguer from power and
the Caribbean island of Hispaniola, which it shares with
paved the way for the country’s first free and fair elections
Haiti. The Dominican Republic is a key U.S. partner in the
in 1996.
Caribbean because of its comparatively large size, strong
economy, and stability. Over the past decade, the United
Since that time, the Dominican Republic, for the most part,
States and the Dominican Republic have maintained close
has seen steady economic growth and developed
commercial ties under the Dominican Republic-Central
democratic institutions. Led by former President Leonel
America-United States Free Trade Agreement (CAFTA-
Fernández (1996-2000, 2004-2012) and current President
DR) and cooperated on regional security concerns under the
Danilo Medina (in office since 2012), the center-left
Caribbean Basin Security Initiative (CBSI).
Dominican Liberation Party (PLD) had, until recently,
dominated Dominican politics. The PLD has controlled the
Figure 1. Dominican Republic Facts
presidency and the legislature since 2004, but a split
between Fernández supporters and Medina supporters
weakened the party’s prospects for the July 2020 elections.
Political Situation
Presidential and congressional elections held on July 5,
2020, were a victory for opposition candidate Luis
Abinader and the Modern Revolutionary Party (PRM).
Abinader, a businessman with no prior experience holding
office, ran on a platform of promoting economic equality,
fighting corruption, and addressing the root causes of crime
and violence. The elections, originally scheduled for May,
were postponed until July due to the outbreak of the
Coronavirus Disease 2019 (COVID-19). Abinader and his
wife contracted the virus and had to stop campaigning
temporarily.
Despite the pandemic, voter turnout was relatively high at
55.3%. Abinader won with 52.5% of the vote, foregoing the
need for a second round. The PRM also performed well in
congressional elections, resulting in a majority in the Senate
and a plurality in the Chamber of Deputies). The long-
dominant PLD now has the second-highest number of seats
in both chambers. Abinader will need to draw on support

from smaller parties to pass fiscal legislation needed to
Sources: CRS graphic. Map data from the Central Intel igence
address COVID-19 and the resulting economic crisis.
Agency (CIA), International Monetary Fund (IMF), U.N. Economic
Commission on Latin America and the Caribbean (ECLAC), and
Upon assuming office on August 16, 2020, for a four-year
Trade Data Monitor (TDM).
term, Abinader will face a number of challenges. These
include addressing the public health and economic impacts
Background
of COVID-19, combatting corruption and drug trafficking,
After fighting to achieve its independence from Haiti in
and managing ongoing tensions with Haiti.
1844 and later from Spain in 1865, the Dominican Republic
embarked on a bumpy road toward democracy that included
COVID-19
coups, dictatorships, and U.S. interventions (including
The Dominican Republic has struggled to control the
1916-1924 and 1965-1966). Rafael Trujillo ruled the
COVID-19 pandemic. As of August 11, 2020, the country
country as a dictator from 1930 until his assassination in
reported 1,328 COVID-19 deaths and almost 80,500 cases,
1961, employing violent tactics to quell opposition.
according to data gathered by the Johns Hopkins
Trujillo’s anti-communist stance earned him tacit U.S.
Coronavirus Resource Center. The Medina government
support. Trujillo’s successor, Joaquín Balaguer, served as
responded to the pandemic with a state of emergency,
president from 1960-1962, 1966-1978, and 1986-1996. As a
suspending business activities and closing the country’s
result of the dominance of these leaders, the Dominican
borders in mid-March. Despite rising cases, Medina
Republic did not develop into a modern democracy until the
reopened the economy, allowing businesses to operate
1990s. In 1994, an agreement commonly referred to as the
normally by July 1. Observers maintain that this early
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Dominican Republic
reopening, combined with the elections, contributed to a
CAFTA-DR. High levels of foreign investment, solid
spike in new cases. In response, Medina issued a 45-day
mining and telecommunications sector performance, and
state of emergency on July 20, 2020. As of early August
strong tourism revenues have boosted growth.
2020, the Dominican Republic has the highest per capita
infection rate in the Caribbean. Its health ministry reported
Given the impact of the COVID-19 pandemic on the
in early August that all of its hospitals were at or over
economy, in April 2020, the Economist Intelligence Unit
capacity for COVID-19 patients.
forecast a 6% economic contraction for 2020. Although the
Dominican Republic has made progress in reducing poverty
Corruption
and inequality in recent years, many of these gains are at
Reflecting the Dominican Republic’s persistent challenge
risk because of the deep recession.
with corruption, the country ranked 137 out of 198
countries in Transparency International’s 2019 Corruption
The Dominican Republic continues to face some barriers to
Perceptions Index. The country’s weak judicial system has
investment. According to the World Bank’s 2020 Doing
been ineffective in tackling most corruption. Nevertheless,
Business report, it ranks 115 out of 190 countries,
six individuals, including a former minister of public works,
performing particularly low on the ease of starting a
are facing trial over accusations of receiving millions in
business, getting electricity, accessing credit, paying taxes,
bribes from the Brazilian firm Odebrecht in exchange for
and enforcing contracts.
construction contracts. In 2018, the U.S. Treasury
U.S. Relations
Department imposed sanctions on Felix Bautista, a
businessperson close to former President Fernández,
The Dominican Republic enjoys a strong relationship with
pursuant to Executive Order 13818, which targets
the United States, with extensive cultural, economic, and
political ties. Currently, more than 1.1 million Dominicans
perpetrators of corruption.
reside in the United States. In recent decades, the United
Drug Trafficking
States has supported democracy, citizen security, and
According to U.S. government estimates, the majority of
economic development in the Dominican Republic.
the roughly 90% of U.S.- and Europe-bound cocaine that
transits the Caribbean from South America passes through
U.S. assistance to the Dominican Republic totaled $56.7
the Dominican Republic. The government of the Dominican
million in FY2018 (the most recent year available). That
Republic cooperates closely with the United States in
total included bilateral aid, as well as CBSI funds,
antidrug efforts through seizures, joint operations, and
Department of Defense (DOD) assistance, and Peace Corps
extraditions. Corrupt officials have hindered cooperation,
funding.
however. In August 2019, the U.S. Treasury Department
placed sanctions on César Emilio Peralta and his drug
For FY2019, Congress appropriated $36.8 million for the
trafficking organization pursuant to the Foreign Narcotics
Dominican Republic (including $26.5 million through the
Kingpin Designation Act (21 U.S.C. 1901 et seq.). Arrested
Global Health Program [GHP] account). For FY2020,
in Colombia in December 2019, Peralta is expected to be
Congress provided $28.7 million (including $21.2 million
extradited to the United States to face drug trafficking
through the GHP account). DOD is providing $5 million in
antidrug training and equipment to the country in FY2020.
charges.
From FY2017 to FY2020, U.S. aid to support the
Relations with Haiti
Dominican government in sheltering Venezuelan migrants
The Dominican Republic experiences periodic disputes
(which numbered 104,000 people in May 2020) has totaled
with Haiti, its neighbor and second-largest export market.
$1.3 million. U.S. assistance to address COVID-19 has
The citizenship status and treatment of people of Haitian
totaled $3.7 million as of July 29, 2020.
descent living in the Dominican Republic has been a source
of tension between the two countries; annual State
In its FY2021 budget request, the Trump Administration
Department human rights reports have documented
asked for $15.5 million in bilateral assistance for the
discrimination against that population. In June 2018, the
Dominican Republic (a 46% cut from the FY2020
Dominican Republic published a survey that found that,
estimated level). The House-passed measure that includes
despite efforts to register and provide documents to people
FY2021 State and Foreign Operations appropriations (H.R.
of Haitian descent since 2014, only 31% of that population
7608, H.Rept. 116-444) does not specify an aid amount for
possessed documents required for accessing formal
the Dominican Republic.
employment, health care, and insurance. Tensions have
been high along the Dominican-Haitian border, which the
U.S.-Dominican trade increased from $9.8 billion (pre-
Pan American Health Organization has identified as an area
CAFTA-DR) to $14.7 billion in 2019. The United States
of concern for COVID-19 transmission, particularly for
enjoyed a $3.6 billion trade surplus with the Dominican
Haitian migrant workers.
Republic in 2019. Bilateral trade and labor disputes have
periodically arisen. The U.S. Department of Labor
Economic Conditions
continues to monitor how the Dominican government is
The Dominican Republic has been among the fastest-
working to reduce the use of forced and child labor.
growing economies in Latin America and the Caribbean,
with estimated 5.1% GDP growth in 2019. The country has
Clare Ribando Seelke, Specialist in Latin American
the largest stock of foreign direct investment and the most
Affairs
diversified export structure of any U.S. partner country in
Rachel L. Martin, Research Assistant
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Dominican Republic

IF10407


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