Caribbean Export OUTLOOK 2016 - 2017

Pulse OF THE CARIBBEAN

Meanwhile, the country saw a record number of tourist arrivals (5.1 million) in 2014 – a 9.6% increase year-on-year.

International Monetary Fund (IMF) estimates will be 50% of GDP by 2016. In a related issue, the tax system is hampered by low revenue collection and a heavy reliance on indirect taxes, which means it is both regressive and unable to provide the necessary resources to improve basic public services. As inequality in the country is high and has actually increased since 2000 (32% then, compared to 41% in 2011), reforms to the tax system and the delivery of public services would bring tangible improvements for many. The country also still suffers from frequent power outages, caused by inadequate investment, and the widespread theft of electricity. The Dominican Republic has made significant progress in recent years to strengthen not just its domestic economy but also its regional trading position, and this is expected to continue. However, more needs to be done to incorporate all Dominicans into this success story.

presence in the Americas. Recently, relations have been boosted with several neighbouring countries including Puerto Rico, the Bahamas, and Trinidad and Tobago. The government signed a raft of agreements with Puerto Rico in January 2015. The most important of these include deals that: allow theDominicanRepublic to provide parts for Puerto Rican finished goods that are then sold to the US government, via the Buy America Act; allow Dominicans studying in Puerto Rico to pay the same fees as local students; and encourage better management of natural resources. These and similar agreements aim to strengthen the country’s economic and trading profile and to maximise its role in the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA). As a result of this strong performance and the credit given to President Danilo Medina, the National Assembly passed a constitutional amendment in June 2015 allowing presidents

to stand for a second consecutive term. However, even with the many positive aspects of the economy and the political support that has accompanied that, there are several issues which the authorities must address in order to ensure that the progress made so far does not falter. In a recent World Bank report, ‘Fostering Dynamic Growth of Exports in the Dominican Republic’, it was noted that the country remains highly dependent on the US and Haiti for its exports – about 70% of its exports go to these two countries. Further, the report stated that growth in exports since 2000 has been below that of Colombia, Honduras, Costa Rica, and El Salvador. The World Bank therefore recommended that the Dominican Republic improve the quality of its farm produce, bolster its duty-free manufacturing export sector, and open new markets.

Other concerns include rising debt, which the

Dr. Peter Clegg is a Senior Lecturer in Politics at the University of the West of England, Bristol. He has been a Visiting Fellow at the Institute of Commonwealth Studies in London, and a Visiting Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the University of the West Indies in Jamaica.

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