Posts

Poverty in the Dominican Republic
Although the Dominican Republic has been one of the fastest-growing economies since the year 2000, it still struggles with income inequality and a high poverty rate of 30 percent as of 2016. Diversification in the past three decades is strengthening the economy and improving tourism and infrastructure. Despite this, the poverty rate remains fairly high. The following describes five ways to reduce poverty in the Dominican Republic and bring income equality to Dominicans.

5 Ways to Reduce Poverty in the Dominican Republic

  1. Government Transparency: Transparency International ranks the Dominican Republic 129 out of 180 countries based on public sector corruption. The ranking demonstrates a failure to control corruption. A lack of transparency dissuades external and internal investors from investment. Under-the-table bribery creates an economy that thrives on bribery instead of honest, hard-working individuals. Active enforcement of laws and corruption-reducing policies could help draw investors to the developing economy and spur faster future growth. In an effort to reduce corruption, the Dominican Republic’s President, Danilo Medina, updated its Anti-Money Laundering and Terrorist Financing Act in 2017 to include the definition of money laundering to crimes including copyright, tax evasion and avoidance and counterfeiting.
  2. Infrastructure Development: Once an agriculture-based economy, the Dominican Republic has transitioned into a diversified economy. Mining, trade, tourism, manufacturing, telecommunications, finance and services make up more than 90 percent of the country’s GDP. The remaining 10 percent is in agriculture. Although the Dominican Republic has made progress in infrastructure, frequent hurricanes in the Caribbean Sea destroy many roads, bridges and docks. The country especially overlooks damage in rural areas, where there is a prominence of poverty. To reduce poverty in the Dominican Republic, investment in repairing areas, such as farmland that hurricanes destroyed, can help alleviate issues and provide easy access to markets. More than 98 percent of the country has access to electricity, yet the reliability is questionable. Frequent outages in rural and urban areas are common. The government owns and operates electricity, and the unreliability is a constant complaint from Dominicans. A more reliable, widespread and affordable electrical grid would open the country to faster development, and a side effect would be additional jobs in the privatized electric companies.
  3. Education Inequality: Inequality is a major issue in the Dominican Republic. Insufficient income reduces the probability of receiving an education and health care. It also happens to be one reason for high illiteracy rates amongst the poor. About 26 percent of the poorest Dominicans are literate. A lack of education is a huge barrier to rising out of poverty. Adding programs to help enable universal access to education can help the poor and, as a result, grant skills and expertise to help the Dominican economy grow.
  4. Health: Another way to reduce poverty in the Dominican Republic is to improve the health care industry. The Ministry of Public Health and Public Welfare administer public services. In 2007, 36 percent had to pay the entirety for public service that is supposed to be free but is not exactly. Only 12 percent of Dominicans report that all or part of the service qualifies for coverage. Cost of public health care is especially a barrier to women, the elderly and the poor. Reducing costs could help reduce the 30 percent poverty rate.
  5. Utilizing Competitive Advantages: Top exports include gold, tobacco, knit t-shirts, low-voltage protection equipment and medical instruments. Competition in the marketplace can increase productivity, a major issue in low-income economies. Utilizing competitive advantages enables the country to produce products for less money and sell them in the current country at a reasonable cost. Poor households would pay less for the products made in the Dominican Republic and therefore would help reduce poverty.

A negative trade balance of $8 billion expresses a need to create and export more products in order to improve the business climate and reduce costs to Dominican consumers. Active humanitarian involvement and utilization of its competitive advantages could help boost growth and bring Dominicans out of poverty.

Efforts to reduce poverty in the Dominican Republic are making great strides. President Medina is combating government corruption and the economy is diversifying. Additionally, improving infrastructure and adding jobs, as well as access to education and health care will aid the Dominican Republic in poverty reduction and economic well being.

– Lucas Schmidt
Photo: Flickr

Using Technology for Decreasing Poverty in the Dominican Republic Via Technology
A promising program that is aiming to help to bring people in the Dominican Republic out of poverty is the Community Technology Center Program (CTC). This initiative is one key sign of the progress the country is making in improving health, promoting gender equality and decreasing poverty in the Dominican Republic. With more innovative programs like the CTCs, the country could continue to see significant progress in many areas of poverty reduction through education and access to technological resources.

What Do CTCs Offer?

Since its inception in 1998, the primary purpose of the CTCs is to offer technology resources for people to help in areas such as employment and education, thereby increasing financial stability. The CTCs are also working to achieve its mission connected to health by helping to prevent the spread of disease by offering people access to information about health. Currently, there are 87 centers, but there are plans to build more.

The CTC initiative works towards helping families living on a dollar per day to possess the tools to help themselves increase their financial stability. One of the reasons for the success of the CTC program is that it utilizes technology to help people at no cost, thereby bestowing to people the tools to have a say in their lives. In fact, the centers offer technology training for those who don’t know how to use the resources.

Empowering Women and Minorities

Assistance for women, the disabled, immigrants and others who have not had access to online information and technology is a top priority. One of the issues the CTC programs has been trying to address is women’s access and use of the Internet. At least “three-fourths of the female population don’t use the internet.” The CTC initiative is also working to expand women’s participation in technology and Internet access.

The part of the program, women on the net, also demonstrates the progress that the CTCs are making. Some of the areas of education the centers provide are programming, multimedia and telecommunications. By providing education in these areas, the goal is for participants to find jobs in technology. By 2013, 700 female participants had finished programs at various centers, learning computer literacy and technology.

By providing assistance to people with disabilities, immigrants and non-legal residents, CTCs are helping to reduce poverty in often marginalized communities. One of the people the program has aided in employment, Julien Joseph-Josue, said the CTC program made him feel like “part of a family.” Joseph-Josue is a Haitian immigrant who received training to help his career as an interpreter.

The Success of the Program

The centers provide opportunities for learning and sharing in a community space as well as providing training in obtaining a job. Currently, the centers have achieved substantial progress in alleviating poverty in the Dominican Republic and have made significant strides in working to promote gender equality. The number of people CTCs has helped demonstrates this development. CTCs have helped develop the skills of around 40,000 people, 60 percent of these people being women, creating a more positive outlook.

Demonstrating a continual sign of progress the CTC program has made is the Bill and Melinda Gates recognition for the initiative for its innovation. The organization awarded the initiative The 2012 Access to Learning Award (ATLA), an award for organizations across the globe that offer access to technology. The CTC program obtained $1 million from this award. Furthermore, Microsoft will give $18 million worth of software to the initiative in accordance with its global citizenship effort to offer help in the positive developments from technology.

The technology that the program provides allows for access to information aiding in financial stability, health and decreasing poverty in the Dominican Republic. In addition, the CTCs have been shown to move the Dominican Republic further along on the path to achieving gender equality. With the continual effort of the initiative, hopefully, there will be more positive results in the effort to alleviate poverty in the Dominican Republic.

– Daniel McAndrew-Greiner
Photo: Flickr