Updated September 21, 2022
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
Since then, the Dominican Republic, for the most part, has
the Caribbean island of Hispaniola, which it shares with
seen steady economic growth and has developed
Haiti. The Dominican Republic is a key U.S. partner in the
democratic institutions. Led by former Presidents Leonel
Caribbean due to its comparatively large size, strong
Fernández (1996-2000, 2004-2012) and Danilo Medina
economy, and relative stability. The United States and the
(2012-2020), the center-left Dominican Liberation Party
Dominican Republic have maintained close commercial ties
(PLD) dominated Dominican politics during this period.
under the Dominican Republic-Central America-United
States Free Trade Agreement (CAFTA-DR) and have
Political Situation
cooperated on regional security concerns under the
Internal divisions within the PLD led to the party’s defeat in
Caribbean Basin Security Initiative (CBSI).
July 2020 elections. Opposition candidate Luis Abinader, a
businessperson standing for the Modern Revolutionary
Figure 1. Dominican Republic at a Glance
Party (PRM) won the presidency with 53% of the vote,
precluding the need for a runoff. The PRM also won a
majority in the Senate and the Chamber of Deputies, as the
PLD became the primary opposition party. President
Abinader took office for a five-year term in August 2020.
Two years into his term, Abinader remains popular (61%
approval rate, according to a July 2022 CID Gallup poll).
His government has successfully managed the health effects
of the Coronavirus 2019 (COVID-19) pandemic and has
overseen a strong post-pandemic recovery. As of September
15, 2022, 55.7% of Dominicans were fully vaccinated,
according to Johns Hopkins University, with China
supplying the majority of vaccine doses. In addition, the
Abinader government has prioritized anti-corruption efforts,
drug seizures, and climate resilience. President Abinader
started the Alliance for Development and Democracy
(ADD) in 2021 with Costa Rica and Panama and has
pressed for increased international efforts to address the
ongoing crisis in Haiti.
Corruption

The Dominican Republic’s challenges with corruption
Sources: CRS graphic. Data from the International Monetary Fund
persist; however, the country improved from a rank of 137
(IMF), U.N. Economic Commission on Latin America and the
in 2020 to a rank of 128 in 2021 among the 180 countries in
Caribbean (CEPAL), and Trade Data Monitor (TDM).
Transparency International’s Corruption Perceptions Index.
Background
Upon taking office, Abinader appointed an independent
attorney general and pledged not to interfere in corruption
After fighting to achieve its independence from Haiti in
cases. The attorney general has pursued high-profile cases
1844 and from Spain in 1865, the Dominican Republic
against networks implicating her predecessor, former
embarked on a bumpy road toward democracy that included
President Medina’s siblings, and former army and air force
coups, dictatorships, and U.S. interventions (1916-1924 and
generals. Prosecutors have charged the former lottery
1965-1966). Rafael Trujillo ruled the country as a dictator
director under Abinader with corruption and PRM
from 1930 until his 1961assassination, employing violent
legislators with colluding with drug traffickers.
tactics to quell opposition. Trujillo’s anti-communist stance
earned him tacit U.S. support. His successor, Joaquín
Drug Trafficking
Balaguer, served as president from 1960 to 1962, 1966 to
According to the State Department’s 2022 International
1978, and 1986 to 1996. Due to these leaders’ dominance,
Narcotics Control Strategy Report (INCSR), most cocaine
the Dominican Republic did not develop into a modern
transiting the Caribbean passes through the Dominican
democracy until the 1990s. In 1994, an agreement
Republic, primarily through maritime routes. According to
commonly referred to as the Pact for Democracy removed
the INCSR, drug seizures by Dominican forces demonstrate
Balaguer from power and paved the way for the country’s
their capacity to stop drug flows. Dominican military data
first free and fair elections in 1996.
assert that cocaine seizures for the first half of 2022 totaled
17,000 kilos, up from 7,000 kilos during that period in
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Dominican Republic
2021. Most seizures have occurred at ports, including
has stated that China is not welcome to invest in strategic
Caucedo, a port certified to screen for security threats by
sectors, such as ports. The Dominican government is
U.S. Customs and Border Protection’s Container Security
seeking to strengthen commercial ties with ADD countries,
Initiative. According to Insight Crime, Dominican drug
including Ecuador, which joined in 2022, and with the
kingpin César Emilio Peralta, now standing trial on drug
United States and other strategic partners.
trafficking charges in Puerto Rico, allegedly funded several
PLD presidential campaigns.
The Dominican Republic continues to face economic and
social challenges. The IMF has urged the government to
Climate Resilience
address its fiscal debt and use targeted social benefits to
The Dominican Republic is highly vulnerable to the effects
address persistent income inequality. Poverty increased
of climate change and natural disasters. In December 2020,
from 21.0% in 2019 to 23.4% in 2020 due to the pandemic
the government launched an $8 billion national climate
and to 23.9% in 2022, as pandemic aid decreased.
action plan. The plan focuses on reducing emissions in
transportation, expanding renewable electricity generation,
U.S. Relations
and bolstering reforestation and other mitigation efforts.
The Dominican Republic enjoys a strong relationship with
Hurricane Fiona, which hit in mid-September 2022,
the United States, with extensive cultural, economic, and
resulted in at least two deaths and displaced 13,000.
political ties. Currently, more than 2 million Dominicans
reside in the United States. Under the CBSI, the United
Relations with Haiti
States has provided the Dominican Republic with support
The Dominican Republic experiences periodic disputes
since FY2010 to reduce illicit drug trafficking, train police
with Haiti, its neighbor and second-largest export market.
and prosecutors, and provide educational and job training
The citizenship status and treatment of people of Haitian
programs for at-risk youth. The Dominican Republic is
descent living in the Dominican Republic is a long-standing
participating in a U.S.-Caribbean partnership launched in
source of tension. Despite efforts to register people of
June 2022 to address energy security and renewable energy,
Haitian descent since 2014, only 31% of that population
access to finance, and food security.
possessed documents required for public benefits and
formal sector jobs in 2018.
The United States allocated $39.8 million in bilateral aid to
the Dominican Republic in FY2022, including $21.3
Tensions have been high along the Dominican-Haitian
million in global health funding (GHP) and $18 million in
border, a porous region where migrant smuggling and other
Development Assistance (DA). The Biden Administration
illicit activities occur. President Abinader closed the border
requested $37.5 million for the Dominican Republic for
following the July 2021 assassination of Haitian President
FY2023, including $17 million in GHP and $20 million in
Jovenel Moïse. In February 2022, the Dominican
DA. Since FY2017, U.S. humanitarian aid to support the
government began constructing a border barrier with Haiti.
Dominican government in sheltering Venezuelan migrants
Human rights groups criticized both that move and the
has totaled some $3.7 million. U.S. COVID-19 assistance
Dominican government for deporting some 57,700 Haitians
for the Dominican Republic has exceeded $4 million.
during the first seven months of 2022 to a country in crisis.
Abinader has asked the international community to
U.S.-Dominican investment, trade, remittance, and tourism
intervene in Haiti. (See also CRS In Focus IF12182, Haiti:
ties are extensive. U.S. foreign direct investment on a
Political Conflict and U.S. Policy Overview.)
historical-cost basis stood at roughly $2.7 billion in 2021.
Total trade increased from $9.8 billion (pre-CAFTA-DR) to
Economic Conditions
$24.9 billion in 2021. In 2021, Dominicans abroad, most
The Dominican Republic has been among the fastest-
residing in the United States, sent a record $10.4 billion in
growing economies in Latin America and the Caribbean. It
remittances. U.S. tourists account for the largest number of
has the largest stock of foreign direct investment and the
foreign visitors to the country. In July 2022, the United
most diversified export structure of any U.S. partner
States, the Dominican Republic, Panama, and Costa Rica
country in CAFTA-DR. Foreign investment, strong
agreed to establish a Joint Consultative Dialogue on
telecommunications and mining sector performance,
Economic Growth and Supply Chain Partnerships.
remittances, and tourism fueled pre-pandemic growth.
Some bilateral trade and labor concerns have arisen. In June
Due to the pandemic, the economy contracted by 6.7% in
2022, the U.S. and Dominican governments announced the
2020, according to International Monetary Fund (IMF)
formation of a technical working group to better enforce
estimates. The Abinader government used fiscal stimulus to
laws against forced and child labor in the Dominican sugar
cushion the economic impact of job losses. U.S. demand
industry. The Dominican government is seeking an
and a vaccination campaign targeting workers in key
extension of the measures it uses to protect its rice
sectors helped construction, mining, and tourism rebound.
producers beyond December 2024 (when they are due to be
The economy grew 12.3% in 2021, and the IMF predicts it
eliminated under CAFTA-DR). See also CRS In Focus
will expand by 5.5% in 2022, despite high inflation.
IF10789, Caribbean Basin Security Initiative, and CRS
Report RS22164, DR-CAFTA: Regional Issues.
The Dominican Republic is a top tourism destination and
receives investment from a range of countries. Although the
People’s Republic of China reportedly promised major
Clare Ribando Seelke, Specialist in Latin American
Affairs
investments after the countries established diplomatic
relations in 2018, few reportedly have occurred. Abinader
IF10407
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Dominican Republic


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