The Dominican Republic is a fascinating country, full of amazing contrasts. On one hand, it is a modern country with good roads, a modern skyline
(photo Miguel Calzada, Diario Libre). The new Metro train system is almost working and there are an incredible number of modern, luxury hotels and resorts. Yet at the same time, the poverty rate is very high. According to the World Bank's 2006 poverty report, extreme poverty rose from 8.7% of the population in 2001 to 15.7% in 2004, following the banking scandal (table 1.2, page 17). There are clearly opportunities for work in the Dominican Republic--the same report goes on to state that "the low incomes of the poor are a reflection of their low productivity and do not come from barriers to enter the labor market" (translated from the Spanish version of the executive summary, paragraph 23). So why is poverty so bad?
There are some easy over simplifications--the education system if very weak in the DR, the large number of low-skilled Haitians keeps wages low, government investments in the rural areas are quite weak, there are serious problems with political cronyism and corruption.
I would guess that the strong economy since 2004 has improved the situation already, but people still seem to be poorer than they were before the crisis. So what should be done? Is the answer to strengthen the micro-credit work of groups like the Dominican Development Foundation ? Should the focus be more on education like the work being done by Aide et Action and Educa? Would it be possible to measure the impact of the different organizations work against an actual number of poor people?
