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DOMINICAN REPUBLIC



Education

Structure & Degrees: In 1985 the structure of the educational pyramid consisted of three years of noncompulsory preschool education; six years in primary school; and six years in middle school, divided into two years of intermediate education and four years of secondary school, or into four years and two years (Plan de Reforma). Students who continued to that point received their high school degree (bachillerato) and might continue to the tertiary education provided by the Dominican universities, which conferred either licentiates (licenciaturas), ingenerias, or doctorados (doctorates—for law and medicine only), depending on the field of study.

The revised structure is no longer a simple pyramid. Of the three years of preschool education, one year became compulsory, as did nine years of basic primary school, effectively extending compulsory schooling by four years. Middle school (to receive the bachillerato degree) has been reduced to only three years and is noncompulsory, as is higher education. Middle school students are separated into academic and technical-professional tracks, receiving high school diplomas that specify their tracks. Education provided by the Dominican universities continues to confer licenciaturas, ingenerias, and doctorados, but with extended programs, especially in the areas of medicine and law, whose programs have been effectively doubled in both material and time. Also of note is the inclusion of maestrias and nonmedical doctorados as the higher education system expands its postgraduate degree systems.



Economy

After a decade of little to no growth in the 1980s, the Dominican Republic's economy boomed in the 1990s, expanding at an average rate of 7.7% per year from 1996 to 2000. Tourism (the leading foreign exchange earner), telecommunications, and free-trade-zone manufacturing are the most important sectors, although agriculture is still a major part of the economy. The Dominican Republic owed much of its success to the adoption of sound macroeconomic policies in the early 1990s and greater opening to foreign investment. Growth turned negative in 2003 (-0.4%) due to the effects of government handling of major bank frauds and to lower U.S. demand for Dominican manufacturers. The Mejía administration negotiated an IMF standby agreement in August 2003 but was unable to comply with fiscal targets. The Fernández administration obtained required tax legislation and IMF board approval for the standby in January 2005. The Dominican peso fell to an unprecedented low in exchange markets in 2003-2004 but strengthened dramatically following the election and inauguration of Leonel Fernández. Since late 2004 it has traded at a rate considered to be overvalued on a purchasing power parity basis. Inflation fell sharply in late 2004 and was estimated at 9% for that calendar year. The Fernández administration successfully renegotiated official bilateral debt with Paris Club member governments, commercial bank debt with London Club members, and sovereign debt with a consortium of lenders. It met fiscal and financial targets of the standby agreement but fell short of goals for reforms in the electricity sector and financial markets. Central Bank statistics indicate 10.7% growth for 2006 with 5.0% inflation. The Central Bank estimates that the economy grew at 7.9% in the first six months of 2007 with an inflation rate of 5.9%.

The Dominican Republic's most important trading partner is the United States (75% of export revenues). Other markets include Canada, Western Europe, and Japan. The country exports free-trade-zone manufactured products (garments, medical devices, etc.), nickel, sugar, coffee, cacao, and tobacco. It imports petroleum, industrial raw materials, capital goods, and foodstuffs. On September 5, 2005, the Dominican Congress ratified a free trade agreement with the U.S. and five Central American countries, known as CAFTA-DR. The CAFTA-DR agreement entered into force for the Dominican Republic on March 1, 2007. The total stock of U.S. foreign direct investment (FDI) in Dominican Republic as of 2006 was U.S. $3.3 billion, much of it directed to the energy and tourism sectors, to free trade zones, and to the telecommunications sector. Remittances were close to $2.7 billion in 2006.

An important aspect of the Dominican economy is the Free Trade Zone industry (FTZ), which made up U.S. $4.55 billion in Dominican exports for 2006 (70% of total exports). Reports show, however, that the FTZs lost approximately 60,000 between 2005 and 2007 and suffered a 4% decrease in total exports in 2006. The textiles sector experienced an approximate 17% drop in exports due in part to the appreciation of the Dominican peso against the dollar, Asian competition following expiration of the quotas of the Multi-Fiber Arrangement, and a government-mandated increase in salaries, which should have occurred in 2005 but was postponed to January 2006. Lost Dominican business was captured by firms in Central America and Asia. The tobacco, jewelry, medical, and pharmaceutical sectors in the FTZs all reported increases for 2006, which somewhat offset textile and garment losses. Industry experts from the FTZs expect that entry into force of the CAFTA-DR agreement will promote substantial growth in the FTZ sector for 2007.

An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Three regional electricity distribution systems were privatized in 1998 via sale of 50% of shares to foreign operators; the Mejía administration repurchased all foreign-owned shares in two of these systems in late 2003. The third, serving the eastern provinces, is operated by U.S. concerns and is 50% U.S.-owned. The World Bank records that electricity distribution losses for 2005 totaled about 38.2%, a rate of losses exceeded in only three other countries. Industry experts estimate distribution losses for 2006 will surpass 40%, primarily due to low collection rates, theft, infrastructure problems and corruption. At the close of 2006, the government had exceeded its budget for electricity subsidies, spending close to U.S. $650 million. The government plans to continue providing subsidies. Congress passed a law in 2007 that criminalizes the act of stealing electricity, but it has not yet been fully implemented. The electricity sector is a highly politicized sector and with 2008 presidential election campaigning already in motion, the prospect of further effective reforms of the electricity sector is poor. Debts in the sector, including government debt, amount to more than U.S. $500 million. Some generating companies are undercapitalized and at times unable to purchase adequate fuel supplies.



Climate

The Dominican Republic enjoys a year round privileged tropical maritime climate. Its 17° 36, - 19° 58, latitude places the Dominican Republic at the border of the tropical zone. Sea breezes refresh the insular territory, evening out temperatures to average 23°C in the early mornings to 32°C at noon time year round.

The lowest temperatures occur in the mountain areas near Constanza, where temperatures have dropped to 0°C, and record highs have been registered at the frontier with Haiti, 39°C in the summer.

May through November are regarded as the rainy season. The hurricane season lasts from June through November, with August-September being the peak months. The last major hurricanes to hit the Dominican Republic were Georges (September 1998) and David (August 1979).



List of Universities in DOMINICAN REPUBLIC