Tourism, trade, finance, and government services account for half of the Dominican workforce and nearly half of the GDP. Service providers are among the nation’s more dynamic and rapidly growing businesses; however, the government bureaucracy, which is the largest component of the service sector, has long been criticized for inefficiency and cronyism. It has been estimated that between one-fifth and half of the urban workforce contributes to the informal sector of the economy, which is largely service-oriented, including domestic servants (who are found even in middle-class households), gardeners, day labourers, and street vendors.

Tourism

Tourism has become one of the Dominican Republic’s most important sources of foreign exchange, and since the mid-1980s the country has been one of the Caribbean’s more popular tourist destinations. The favourable climate, beautiful beaches, restored Spanish colonial architecture, and relatively low prices have drawn an increasing number of foreign visitors and encouraged the building or expansion of resorts and airports on the northern, eastern, and southern coasts. In addition, a significant number of visitors have availed themselves of the country’s liberal divorce code. The United States accounts for the majority of vacationers; smaller numbers come from Canada, Italy, and other European nations. The main tourist sites are La Romana, Puerto Plata, Punta Cana, and the colonial centre of Santo Domingo, which was designated a World Heritage site in 1990. The drawbacks associated with tourism, as in other Caribbean nations, have included the need to import high-priced luxury items, which affects the country’s balance of payments, and to produce large amounts of additional foodstuffs and potable water; in addition, greater quantities of trash and sewage have strained the country’s limited resources.

Trade and finance

The Dominican Republic’s chief imports are petroleum and petroleum products, foodstuffs (notably cereals), and manufactured goods. The principal exports are ferronickel, raw sugar, coffee, cacao, and gold. The United States is the country’s single largest trading partner. China, Haiti, Canada, India, Mexico, Brazil, Spain, and Switzerland are also important. Although the country historically refused to ally itself with other countries in the Caribbean basin, because of cultural differences as well as the great distances between nations in the region, it increasingly has supported regional trade organizations, beginning in the late 20th century. The country has a persistently negative balance of trade.

The Santo Domingo Stock Market began operating in 1991. The national monetary system is managed by the Central Bank, which issues currency (the Dominican peso), maintains a gold and foreign currency reserve, and administers exchange rates. The private banking system is well developed, and several financial institutions, loan companies, and insurance agencies operate in the urban centres.

Transportation

Santo Domingo is the hub of a transport system that connects virtually all parts of the republic. The highway between the capital and the Cibao region is heavily traveled and in poor repair, but secondary roads are in adequate condition. Buses and a large fleet of private taxicabs provide transportation both within and between cities. Most goods are shipped by truck to the important market centres.

A government-owned freight railroad runs through the eastern half of the Cibao Valley from La Vega to the port of Sánchez on the Bay of Samaná. Most of the country’s other railway lines are privately owned and serve the sugar industry in the southeast. There is no passenger service.

The principal international airports are located at Cape Caucedo, about 15 miles (24 km) east of Santo Domingo, and at Puerto Plata on the northern coast. In the late 20th century, new or expanded international airports were opened at the eastern tip of the island (near Cana Point), at La Romana in the southeast, and at Barahona in the southwest. A secondary airport in Santiago handles smaller commercial planes. Other airfields around the country are open to small private craft.

Freight is exported and imported mainly by sea. Until the 20th century the primary commercial ports lay along the northern coast, such as at the Bay of Samaná, one of the finest and largest natural harbours in the entire Caribbean basin; however, with the rise of the sugar plantations in the south, the ports of Santo Domingo, San Pedro de Macorís, and La Romana increased in importance. Most general goods pass through Santo Domingo, but sugar is exported largely through the ports of San Pedro de Macorís and La Romana. The historically important ports of Monte Cristi and Sánchez in the north are now almost defunct. Only Puerto Plata in the north retains its commercial importance, largely because of the tobacco, coffee, and cacao interests in the Cibao region. Barahona exports bauxite, gypsum, and salt but receives few imports.

Administration and social conditions

Government

The Dominican Republic is a representative democracy whose current constitution was promulgated in 2010. The constitution, like its numerous predecessors, provides for civil and economic rights and divides the branches of government. It also allows a president, who is head of state and government, to invoke emergency powers to supersede the legislative and judicial branches. Dominicans have had universal suffrage since 1942. Citizens aged 18 and older may vote in elections unless they are members of the armed forces or the police.

The president is directly elected to a four-year term. Reelection is permitted, and in 2015 the constitution was amended to allow consecutive terms. The bicameral legislature is composed of a Senate and a Chamber of Deputies; members of both houses are directly elected to four-year terms and may be reelected. The 32-member Senate is composed of one representative from each province and one from the National District. The size of the Chamber of Deputies is proportional to the population, but there are no fewer than two representatives from each province and two from the National District.

Following Rafael Trujillo’s dictatorship (1930–61), political life during the late 20th century largely revolved around two men: Joaquín Balaguer, a moderate who held presidential office for a total of three decades, and Juan Bosch Gavino, who led the leftist Dominican Revolutionary Party (Partido Revolucionario Dominicano; PRD) until 1973, when he formed the Dominican Liberation Party (Partido de la Liberación Dominicana; PLD). At the turn of the 21st century, Balaguer’s Social Christian Reformist Party (founded 1963) continued to vie with the PRD, the PLD, and several smaller parties. Beginning in 2010, however, the PLD became the dominant force in both houses, and the Social Christian Reformist Party became more marginalized. In 2014 prominent members of PRD left that party to form the Modern Revolutionary Party (Partido Revolucionario Moderno; PRM)

The country is divided into 31 provinces (provincias) and 1 National District (Distrito Nacional), the site of Santo Domingo. The central government administers the provinces through governors appointed by the president. Each province is subdivided into municipalities (municipios) that elect their own councils and have some local autonomy.

Justice of the Dominican Republic

The legal system is based on the Napoleonic Code. A nine-member Supreme Court is the final court of appeal. The Senate appoints Supreme Court justices, who in turn appoint judges to lower courts, which include courts of appeal and provincial, municipal, commercial, and land courts. The constitution of 2010 provides for a Constitutional Tribunal to rule on constitutional matters. Separate military tribunals hear cases involving members of the armed forces. The constitution stipulates the independence of the judiciary; however, the president and other members of the government have frequently influenced court decisions. Public confidence in the judicial system has long been undermined by corruption, the inadequate legal training of some judges, and the routine preemptive detention of suspected criminals. As is the case in some other Latin American nations, the vast majority of prisoners are held without a trial, sometimes for years.

Armed forces and police

During the Trujillo regime the armed forces were used to preserve the dictatorship, and afterward the military continued to play a role in politics; however, in the 1990s the government placed the military under civilian control, reduced its size and budget, and attempted to make it more professional in character. As a result, the military’s political influence diminished moderately, but its senior officers continued to guard its institutional privileges. The police force is organized on a national basis and is sometimes seen as a rival to the army. Detective work is carried on by the National Department of Investigations (Departamento Nacional de Investigaciones; DNI), whereas narcotics laws are the focus of the National Drug Control Directorate (Dirección Nacional de Control de Drogas; DNCD). Both the DNI and the DNCD include members of the police and military. Corruption, extrajudicial killings, and participation in drug trafficking are major concerns within the nation’s security forces, although the nation has worked closely with the United States on drug interdiction.

Education

Primary education is officially free and compulsory for children between the ages of 7 and 14, although those who live in isolated areas have limited access to schooling. Primary schooling is followed by a two-year intermediate school and a four-year secondary course, after which a diploma called the bachillerato is awarded. Relatively few lower-income students succeed in reaching this level, because the system is designed to encourage middle- and upper-income students to prepare for admittance to a university. Most wealthier students attend private schools, which are frequently sponsored by religious institutions. Some public and private vocational education is available, particularly in the field of agriculture, but this too reaches only a tiny percentage of the population.

The Autonomous University of Santo Domingo, founded in 1538, is the oldest institution of higher education in the New World. It was originally affiliated with the Roman Catholic church, but in the early 19th century its religious ties were severed; the university was reorganized in 1914, and the national government now provides most of its funding. Costs are low, and even poor students may attend if they have been fortunate enough to have secured the requisite primary and secondary preparation. The government or police have occasionally interfered in the university’s operations because it has long been a source of political activism.

The private Pedro Henríquez Ureña National University, located in Santo Domingo, was founded (1966) in part to counter the politicizing of the public university. It received support from the Roman Catholic church, prominent business leaders, and the national and U.S. governments. Apec University (1965) is also located in Santo Domingo, whereas Central del Este University (1970) is in San Pedro de Macorís. The Madre e Maestra Pontifical Catholic University (1962) is based in Santiago but also has a campus in the capital.

Health and welfare

The Dominican people are generally healthier than those of neighbouring Haiti. However, unsanitary water, inadequate housing and health services, and poor nutrition undermine health conditions among the poorer classes in both rural and urban zones. As a result, infectious and parasitic diseases are common, and the infant mortality rate is high. Hospitals and trained medical personnel are available only in the larger cities and towns. In the rural areas, home remedies and traditional healers are often the only means of preserving or restoring health. Severely ill patients may be transported to a nearby urban centre, where hospitalization is free; however, most families take that measure only in extreme cases, often when death is already imminent. Leading causes of death include diseases of the circulatory system, infectious and parasitic diseases, cancer, and respiratory illnesses.

Social conditions in the Dominican Republic generally resemble those of other developing nations in the Americas. The national social security system helps support the elderly and disabled, and maternity and death benefits are also provided; however, public resources are limited, and few Dominicans have additional health insurance, so the elderly and infirm often must rely on family support.

Cultural life

The Dominican Republic’s society and culture largely reflect its Hispanic heritage; African traditions have also influenced the nation because of its slave heritage and its lengthy border with Haiti, which has a predominantly Black population. The nation developed in colonial times as a slave-plantation society, creating a castelike system divided by skin colour. In addition, past generations of Dominicans attempted to define their culture in anti-Haitian terms that implied a racist ideology, although most Dominicans have since discouraged those views. However, it is difficult to identify traditions that are uniquely Dominican.