Scribd
Upload
327 views

Position Paper

The document discusses the economic dependency issues facing the Dominican Republic. The Dominican Republic has historically depended on exports of commodities like sugar, coffee, and tobacco, but has diversified with growth in tourism, construction, and free trade zones. However, about half of exports still go to the US and 40% of imports come from the US, contributing to economic dependency. Past international agreements like CAFTA aimed to boost trade and reduce barriers. Currently, the Dominican Republic seeks to reduce poverty through achieving UN development goals, increasing international aid and education spending, reducing corruption, and adapting an export-oriented industrialization system to improve economic independence.

Uploaded by

Amina Stoenescu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
327 views

Position Paper

The document discusses the economic dependency issues facing the Dominican Republic. The Dominican Republic has historically depended on exports of commodities like sugar, coffee, and tobacco, but has diversified with growth in tourism, construction, and free trade zones. However, about half of exports still go to the US and 40% of imports come from the US, contributing to economic dependency. Past international agreements like CAFTA aimed to boost trade and reduce barriers. Currently, the Dominican Republic seeks to reduce poverty through achieving UN development goals, increasing international aid and education spending, reducing corruption, and adapting an export-oriented industrialization system to improve economic independence.

Uploaded by

Amina Stoenescu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Position Paper

Name:Stoenescu Amina
Country: Dominican Republic
Topic: The issue of economic dependency on a macro scale
Committee: ECOFIN
Honorable chairs,fellow delegates

Overview of the topic:


The Dominican Republic was for most of its history primarily an exporter of sugar, coffee,
and tobacco, but over the last three decades the economy has become more diversified as
the service sector has overtaken agriculture as the economy's largest employer, due to
growth in construction, tourism, and free trade zones. For the last 20 years, the Dominican
Republic has been one of the fastest growing economies in Latin America. The economy
is highly dependent upon the US, the destination for approximately half of exports
and the source of 40% of imports. However,despite recent improvements,The
Dominican Republic is incapable of solving the problem of population and poverty.

Past international actions:


Understanding the inequality between developed and developing states ,such as in The
Dominican Republic is important so that we can analyze the past and current issue and develop
future changes.The economic divergence is constantly increasing ,which is substantially
impacted by economic dependency in many of its forms:commodity-dependence ,reliance on
foreign aid, foreign investment dependence.In recent years,because the moast important trading
partener with the Dominican Republic was The United States,to take action ,the two countries
made the first multilateral free trade agreement between the United States and smaller
developing economies. The Central American-Dominican Republic Free Trade Agreement was
made between the United States and six countries in the greater Central America region,and it
was signed on August 5,2004. This agreement have created new economic opportunities by
eliminating tariffs, opening markets, reducing barriers to services, and promoting transparency. Gold,
silver, and tourism have grown as exports over recent years. The economy grew 4.6 percent in
2017, 6.6 percent in 2016, and 7 percent in 2015. Like most other trade agreements, CAFTA
removes tariffs and merchandise processing fees on trade. All tariffs on U.S. consumer and
industrial exports were removed as of 2015 while tariffs on agricultural exports will be gone by
2020.
Dominican’s Republic position:
The Dominican Republic is a country located on the island of Hispaniola in the Greater
Antilles archipelago of the Caribbean region,is also a rich country populated by poor people. It
has had one of the fastest-growing economies in the Americas – with an average real GDP
growth rate of 5.4% between 1992 and 2014 and in the first half of 2016 the economy grew 7.4%
continuing its trend of rapid economic growth.Consequently,the nation’s economy ,as it has
evolved ,is unbalanced an fragile.Although impressive advances have been made in the last 2
dacades in industrialization and economic diversification ,the country remains heavily reliant on
markets and prices it cannot control,on loans it cannot repay,and increasingly on imported food it
cannot afford . Nevertheless,commodity dependence in not only a sentence of poverty.Whether
natural resources are a benefit or a burden relies on the way a country uses them.Since the main
industry of the Dominican Republic is tourism,rural areas are often overlooked when it comes to
government investment.One in three Dominicans are either poor or live below the poverty line
because of the economic growth of urban areas and also of the huge difference between the
urban and rural civilization.In recent years,President Danilo Medina made efforts to include the
country’s poorest citizens in the economic boom,and increase spending on the nation’s public
school system. The government has doubled education spending as a percentage of GDP since
2013 and implemented a series of reforms to improve learning outcomes. The Government has
also joined the WBG’s Human Capital Project, which provides a platform for countries to share
experiences on improving human capital outcomes.
Country’s proposals :
We belive that achieving the UN’s Sustainable Development Goals, from reducing poverty and
fostering equality to protecting the planet and preserving peace,could resolve many of
Dominican’s Republic issues. Also ,International aid and the government involvement could
help reducing poverty,by placing a higher priority on equity and education ,meanwhile, nonprofit
organizations around the world could be working in the Dominican Republic to build houses,
create schools, and provide healthcare to those who need it most.Another major problem would
be the high level corruption. An active enforcement of laws and corruption-reducing policies
could help draw investors to the developing economy and spur faster future growth. We belive
that adapting an EOI system will improve our country economy.
Conclusion:
Summing up,the issue of economic dependency on a macro scale it’s a major setback when it
comes to natural development of a country’s economy.The Dominican Republic will fight until
there won’t longer exists issuses caused by poverty ,corruption etc.,by coming up with solutions
for this topic alongside other nations.
Bibliography:
https://www.bbc.com/news/topics/cx1m7zg0gd4t/dominican-republic

https://imuna.org/resources/country-profiles/dominican-republic

ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta
https://www.worldbank.org/en/country/dominicanrepublic/overview

https://en.wikipedia.org/wiki/Economy_of_the_Dominican_Republic

https://www.weforum.org/agenda/2019/05/why-commodity-dependence-is-bad-news-for-all-of-us/

You might also like