Dominican Republic

Dominican Republic

Updated April 28, 2023
Dominican Republic
The Dominican Republic occupies the eastern two-thirds of
Since its transition to democracy in 1996, the Dominican
the Caribbean island of Hispaniola, which it shares with
Republic has experienced robust economic growth, reduced
Haiti. The Dominican Republic is a key U.S. partner in the
poverty, and strengthened its democratic institutions and
Caribbean due to its comparatively large size, strong
civil society. Led by former Presidents Leonel Fernández
economy, and democratic institutions. The two countries
(1996-2000, 2004-2012) and Danilo Medina (2012-2020),
have maintained close commercial ties under the
the center-left Dominican Liberation Party (PLD)
Dominican Republic-Central America-United States Free
dominated Dominican politics during this period.
Trade Agreement (CAFTA-DR) and have cooperated on
regional security concerns under the Caribbean Basin
Political Situation
Security Initiative (CBSI). As the country most directly
The Dominican Republic held general elections in July
impacted by the ongoing crisis in Haiti, the Dominican
2020, during the height of the Coronavirus 2019 (COVID-
Republic has urged increased international efforts to
19) pandemic. Despite below-average voter turnout of 55%,
stabilize Haiti (See also CRS Report R47394, Haiti: Recent
independent observers deemed the elections credible. The
Developments and U.S. Policy).
results delivered a major upset to the PLD, which lost both
the presidency and the control of congress to the opposition.
Figure 1. Dominican Republic at a Glance
Luis Abinader, a businessperson standing for the Modern
Revolutionary 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. His government has prioritized managing the
pandemic’s health effects and overseen an economic
recovery, launched independent anti-corruption
investigations, strengthened border controls, and
collaborated more closely with democratic peers through
the Alliance for Development in Democracy (ADD).
President Abinader has also set ambitious goals for
improving the Dominican Republic’s energy independence
and climate resilience. Midway through his term, Abinader
remains popular (59% approval rate, according to a March
2023 CID Gallup poll). However, corruption and criminal
activity, reduced economic growth prospects, and the
severe crisis in Haiti pose ongoing challenges.
Corruption

The Dominican Republic’s challenges with corruption—
Sources: CRS graphic. Data from the International Monetary Fund
much of it linked to organized crime—persist. Upon taking
(IMF), U.N. Economic Commission on Latin America and the
office, President Abinader appointed an independent
Caribbean (CEPAL), and Trade Data Monitor (TDM).
attorney general and pledged not to interfere in corruption
Background
cases. The attorney general has pursued high-profile cases
against networks implicating several high-ranking members
After achieving its independence from Haiti in 1844 and
of former President Medina’s government, as well as
from Spain in 1865, the Dominican Republic entered a
members of his immediate family, in a range of corruption
period of prolonged instability marked by coups,
schemes. In March 2023, authorities arrested twenty people,
dictatorships, and U.S. interventions (1916-1924 and 1965-
including the former finance and public works ministers,
1966). For much of the twentieth century, authoritarian
Medina’s ex-chief of staff, and the ex-comptroller general,
leaders Rafael Trujillo and Joaquín Balaguer ruled the
in connection with the investigation. While Medina himself
country. Due to these leaders’ dominance, the Dominican
has not been charged, two of his siblings and his former
Republic did not develop democratic institutions until the
attorney general have faced corruption charges. Prosecutors
mid-1990s, when an agreement commonly referred to as the
have also charged former army and air force generals, and
Pact for Democracy removed Balaguer from power and
members of President Abinader’s party, including the
paved the way for free and fair elections.
former lottery director and PRM legislators, with corruption
and collusion with drug traffickers.
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Dominican Republic
Drug Trafficking
economy grew 12.3% in 2021, and 4.9% in 2022; the IMF
According to the State Department’s 2023 International
predicts it will expand by 4.2 % in 2023.
Narcotics Control Strategy Report (INCSR), most cocaine
transiting the Caribbean passes through the Dominican
The Dominican Republic is a top tourism destination and
Republic, primarily through maritime routes. Dominican
receives investment from a range of countries. Although the
military data assert that cocaine seizures for the first nine
People’s Republic of China promised major investments
months of 2022 totaled 24,450 kilos, with a street value of
after the countries established diplomatic relations in 2018,
$733.6 million. Most seizures have occurred at ports,
few have occurred. President Abinader has barred China
including Caucedo, a port certified to screen for security
from investing in strategic sectors, such as ports.
threats by U.S. Customs and Border Protection.
The Dominican Republic continues to face economic and
Climate Resilience
social challenges. The IMF has urged the government to
The Dominican Republic is highly vulnerable to the effects
address its fiscal debt and use targeted social benefits to
of climate change and natural disasters. In December 2020,
address persistent income inequality. The poverty rate,
the government launched an $8 billion national climate
which had declined from 25% to 21% in the three years
action plan. The plan focuses on reducing emissions in
prior to the pandemic, rose to 23% in 2020, and remained at
transportation, expanding renewable electricity generation,
that level as pandemic-era public support measures expired.
and bolstering reforestation and other mitigation efforts.
U.S. Relations
The Dominican Republic is participating in the U.S.-
Caribbean Partnership to Address the Climate Crisis 2030
The Dominican Republic enjoys a strong relationship with
(PACC 2030) to increase Caribbean countries’ energy
the United States, with extensive cultural, economic, and
security and climate resilience.
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 major export market. The
and prosecutors, and provide educational and job training
citizenship status and treatment of people of Haitian descent
programs for at-risk youth.
living in the Dominican Republic is a long-standing source
of tension. Despite efforts to register people of Haitian
The United States allocated $43.5 million in bilateral aid to
descent since 2014, according to non-governmental
the Dominican Republic in FY2022, including $21.3
organization Human Rights Watch, many eligible people
million in global health funding (GHP) and $21.8 million in
still cannot resolve their situation, and large-scale
Development Assistance (DA). The Biden Administration
expulsions and deportations continue.
requested $46.5 million for the Dominican Republic for
FY2024 including $24.0 million in GHP and $21.9 million
President Abinader has framed the use of restrictive
in DA. Since FY2017, U.S. humanitarian aid to support
migration policies as a national security response to the
Venezuelan migrants in the Dominican Republic has totaled
crisis in Haiti; his government has also banned 39 Haitian
some $3.7 million. U.S. COVID-19 assistance for the
gang leaders, politicians, and executives from entering its
Dominican Republic has exceeded $4 million.
territory. In February 2022, Abinader ordered the
construction of a border fence with Haiti. Human rights
U.S.-Dominican investment, trade, remittance, and tourism
groups criticized the fence’s construction and the
ties are extensive. U.S. foreign direct investment on a
Dominican government’s deportation of some 154,000
historical-cost basis stood at roughly $2.7 billion in 2021.
Haitians in 2022. Although the government has granted
Total trade increased from $9.8 billion (pre-CAFTA-DR) to
visas to some 100,000 Venezuelan migrants, the Dominican
$31.1 billion in 2022. In 2021, Dominicans abroad, most
Republic did not sign the 2022 Los Angeles Declaration on
residing in the United States, sent a record $10.4 billion in
Migration and Protection, in which countries pledged to
remittances. U.S. tourists account for the largest number of
increase regional cooperation on migration.
foreign visitors to the country.
Economic Conditions
Some bilateral trade and labor concerns have arisen,
The Dominican Republic has been among the fastest-
including U.S. concerns over lax enforcement of laws
growing economies in Latin America and the Caribbean. It
against forced and child labor in the Dominican sugar
has the largest stock of foreign direct investment and the
industry, and the Dominican Republic’s desire to extend
most diversified export structure of any U.S. partner
tariffs on imported U.S. rice beyond their December 2024
country in CAFTA-DR. Foreign investment, strong
expiration under CAFTA-DR. See also CRS In Focus
telecommunications and mining sector performance,
IF10789, Caribbean Basin Security Initiative, and CRS
remittances, and tourism fueled pre-pandemic growth.
Report RS22164, DR-CAFTA: Regional Issues.
Due to the pandemic, the economy contracted by 6.7% in
Clare Ribando Seelke, Specialist in Latin American
2020, according to the International Monetary Fund (IMF).
Affairs
The Abinader government used fiscal stimulus to cushion
Ramon Miro, Analyst in Latin American Affairs
the economic impact of job losses. U.S. demand and a
vaccination campaign targeting workers in key sectors
IF10407
helped construction, mining, and tourism rebound. The

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Dominican Republic

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