National Human Development Report

History historical comparison of GDP per capita of Dominican Republic with other neighboring countries based on World Population, GDP and Per Capita GDP, 1-2003 AD. After the economic recession during the second half of the ’80s and early ’90s, during which GDP contracted by 5 and inflation reached 100 , the Dominican Republic entered a period of moderate growth and diminishing inflation to 2002, after which, the economy went into recession. GDP contracted by 1 in 2003, while inflation soared above 27 . Despite a rising trade deficit, tourism and remittances have helped secure foreign currency reserves. Today, remittances from USA, Europe and other countries, form part of the national economy.According to the National Human Development Report of the United Nations Program for Development, UNDP, Dominican Republic 2005 states that this country has been inserted into the global economy in a socially and politically inclusive, knowing rates of average annual economic growth in recent years above 5 . However, the exclusionary economic model that has been imposed, this growth has not contributed to the welfare of the population. Before the contrary, the Report says, Dominican Republic, in 2002 the country was number 13 (out of 177 in the world) that less had used to help rank in the Human Development Index (HDI). Thus we can speak of a failure of political elites in the past 50 years to lead his people to welfare and security arenas.Equally, the report makes clear that the problem of the Dominican economy is no insertion in markets, but competitive strategies that should be associated with the welfare of its people. The report concludes that the “main cause of the Dominican poverty and low human development on is not the lack of financing and financial resources, but the weak commitment to the collective progress of national and corporate leadership during the last decades and the absence of a social and empowerment of the majority of Dominican society. In December 1996, the then incoming President Leonel Fern ndez, presented a package of reforms – including the devaluation of the peso, reduction in import tariffs and increase in fuel prices – in an attempt to create a market-oriented economy to compete internationally. Between 2000 and 2004, the government of Hip lito Mej a, introduced changesthat slammed into the Dominican economy.Relegation of reforms that were ongoing slowdown of export supply (which had already begun in the previous government of Fernandez), and above all, the currency and banking crisis (the third largest bank and financial group in the country: the BANINTER and two groups financial banks, met a bankruptcy which amounted to about 15-20 of annual GDP), coupled with general and administrative corruption associated with these failures, and because of the deepening crisis in the electricity sector, encapsulating a change of nature never before seen in the Dominican economy. The magnitude of the crisis brought down entire sectors of the economy, and it is estimated that between 12 to 15 of the population went from being poor to very poor or indigent. This means about 2 million people. Although the economy has started to grow under the new Fernandez administration that began in August 2004, construction, tourism and telecommunications are the sectors that are at the forefront.However, do not forget what supported by the National Human Development Report 2005 UNDP / RD, pointing out that the current model of tourism is not, despite its vigor, a sustainable proposal, and if the same “no amending, is exhausted. Therefore, remains unfulfilled in the country, that national leadership will discuss in depth what this amendment is to make to this burgeoning sector of the Dominican economy. According to that report, the negative externalities associated with: the insecurity, the environmental detrioro (ranging from clearing of protected areas, destruction of habitats of endemic, to the use of water sources for purposes of waste and destruction of mangroves and marine areas), property speculation, and especially the exclusion of the Dominican population and their value added to the context of tourism, are of medium and long term that “unsustainable over time will this activity.”Moreover, with the strong competition that it entails in the Caribbean area. It is paradoxical, ironic and surprising nationally and internationally, who just two months of published UNDP report, which technically demonstrated the infeasibility of this model of tourism in the long or medium term, under a subheading in Chapter III of “Tourism: If unchanged, the exhaustion itself Ministry of Tourism (Secretaria de Estado), launched an international campaign to promote tourism in which his main slogan reads:” Dominican Republic: Inexhaustible. The current administration is working to increase production capacity of electric power, key to continued economic growth, but its main problem is not funding but generating.