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Dominican Republic
While the service sector has recently overtaken agriculture as the leading employer of Dominicans (mostly from growth in tourism and Free Trade Zones), agriculture remains the most important sector in terms of domestic consumption and is second behind mining in terms of export earnings. PPAF is developing a number of projects from fish farming to mentorships that all share the common goal of improving rural development to create sustainable reduction of poverty.
Key Facts 1
- The Dominican Republic is a Spanish speaking country that is slightly more than twice the size of New Hampshire and has 9.4 million people (July 2007 est.)
- Per capita GDP: $3,850. The UNDP Human Development Report ranking for the Dominican Republic is 79th out of 177 countries for which information is available.
- The economy is highly dependent upon the US, which buys nearly 80% of exports
- Remittances represent about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts.
- The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% enjoys nearly 40% of national income. Greater than 42% of the population lives below the poverty line (2004)
- The economic breakdown of GDP production is 11.5% agriculture, 28.3% industry, and 60.2% services (2007 est.)
PPAF Projects
Fish Farming
The First International Congress on Investment, Education and Transfer of Technology for Development of Aquaculture in the Dominican Republic took place in Santo Domingo in December 2007. PPAF, the Dominican Aquaculture Association, the Autonomous University of Santo Domingo, the Food and Agriculture Organization of the UN, the Dominican Government and other co-sponsors convened this to explore the issues, validate a national strategic plan and prepare for action. Project proposals and business plans are now taking shape. To learn more about this conference and its follow-up, please see our December 2007 e-newsletter and subsequent newsletters.
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Relations between Microfinance and Remittance
The main area of PPAF work has been in ascertaining the potential relations of remittances and microfinance. Remittances represent about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts. The emphasis is upon women and remittances and strengthening leverage of this for community development through microfinance.
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Dominican Relief Fund
PPAF has established the Dominican Relief Fund to channel contributions for assistance in the recovery of the thousands of people who have lost homes, property, crops, and businesses. Our hearts go out to the people of the Dominican Republic for their losses of loved ones and to those who were injured. To learn more, please visit our Programs section under Dominican Relief Fund.
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Computer Donations
PPAF is working with Non-Profit Computing, Inc. (a New York based non-profit organization), local authorities and civic organizations to obtain 400 computers for the community computer centers of Esperanza International, an NGO focusing on youth and disadvantaged groups. Esperanza International is providing transportation costs, and will arrange for setup and technical support.
Non-Profit Computing, Inc., has been closely associated with the United Nations Public-Private Alliance for Rural Development and with PPAF since their establishment. It provided 400 computers for use in Madagascar in 2005.
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Cocoa Production
PPAF is engaged in efforts to promote expansion of a successful, innovative organic cocoa farmers' cooperative in Monte Plata Province. CONACADO (Confederaci�n Nacional de Cacaocultores Dominicanos) Bloque No. 2 aims to increase total and value-added production, and further diversify output, and is seeking grant and investment support for this. Provincial authorities urged PPAF to get involved.
The principal needs are for purchase of an additional mechanical drier to reduce rainy season post-harvest losses; construction of additional facilities to expand current production; and purchase of an existing processing plant that is certified for organic products.
CONACADO Bloque No. 2 was established in 1998, has over 2,000 members and annually exports to Europe more than 2,500 tons of organic cocoa, mostly beans. Total production by the eight bloques of CONACADO is 8,000 tons per year. About 20 percent of Bloque No. 2 current production is cocoa butter and cocoa liquor. Bloque No. 2 has programs for production, sales and eco-tourism, plus support to members of the cooperative in credit, training, quality, infrastructure and diversification. PPAF is helping to arrange matching-fund grant contributions from a US-based business for the lower-cost items, and promotion of investment for purchase of the processing plant.
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Ethanol Distillation
The Dominican Republic was previously a major sugar exporter, but current production levels are considerably down, owing to international market factors and competition from alternative sweeteners. In Monte Plata and San Pedro de Macoris Provinces, conditions are worse, and unemployment and related poverty are serious problems. The price of sugar, the availability of land, labor and productive capacity, and recent technological advances in renewable fuels, coupled with the rising price of and demand for gasoline, makes conversion of sugar mills to ethanol distilleries an item of great interest.
Provincial officials and the sugar producers cooperative COOPCAÑA (Cooperativa Cañera de Servicios Multiples) aim to encourage investment, and have invited PPAF to get involved. Currently, PPAF is collaborating with the producers, a construction and management firm, and potential investors to facilitate arrangements based on the feasibility studies and cost estimates that have already been prepared. PPAF is working with NYC based Non-Profit Computing, Inc., local authorities, and civic organizations to obtain 400 computers for the community computer centers of Esperanza International, an NGO focusing on youth and disadvantaged groups.
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Education and Development
In the Dominican Republic, a team of students from Columbia University School of International and Public Affairs (SIPA) was invited to assess the work of the Dominican Republic Education and Mentoring Project (DREAM Project), a US 501(c)3 nonprofit organization that provides equitable access to quality education for children born into poverty in rural areas and small communities. Their efforts combine volunteerism, international awareness and community involvement into a sustainable support system. The student team reviewed the project and made recommendations to assist DREAM to revise and sharpen its operations.
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1. CIA World Factbook updated March 20, 2008
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“The United Nations can only do its job properly with partners. We will need to forge even closer ties to civil society groups, foundations, academic institutions, the media, labour unions, and the private sector. Each has unique contributions to make.”
-Ban Ki-moon
UN Secretary-General,
Address to UNA-USA Business Council
for the UN,
New York, 10 January 2007
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