Columbus discovered the island of Hispaniola (which he called La Espaniola) in 1492 and established it as his main base for the further exploration of the region. In 1697, the western part of the island came under French control, with the east remaining under Spanish control. In 1795, the city of Santo Domingo – the oldest city in the Americas, founded by Columbus’ brother, in 1496 – was ceded to the French, followed by the rest of the island of Hispaniola later the same year. The battle of Palohincado, in 1808, in which Dominican General Ramirez inflicted an important
defeat on the French, heralded the collapse of French rule in the eastern part of the island. The colony reverted to Spanish sovereignty in 1809, and in 1821, the colonial treasurer, José Nunez de Caceres, proclaimed Santo Domingo’s independence. This independence was short-lived – in 1822, the Haitians invaded the colony and occupied it for 22 years, until, on 27 February 1844, the territory of Santo Domingo recovered its sovereignty and declared independence once again, this time permanently, as the Dominican Republic. After many years of civil war, dictatorship and US occupation, the Republic was ruled by the dictatorship of General Rafael Trujillo (1930-61), whose assassination led to a period of civil unrest. Under the control of President Joaquin Balaguer, leader of the Partido Reformista Social Cristiano (PRSC), who served three terms from 1966, the country was reasonably stable. Guzman Fernandez of the main opposition party, the center-left Partido Revolucionario Dominicano (PRD), won the elections in 1978. However, after a further defeat in 1982, Balaguer was re-elected four times consecutively between 1986 and 1995: in total, he served seven terms of office as President. In November 1995, amid a cycle of protests and strikes caused by a serious energy crisis, steep inflation and deterioration of public services, Balaguer was forced to stand down. In June 1996 Leonel Fernandez took the Presidency. In May 2000, despite failing health, Balaguer took one more shot at the Presidency, but this ended in defeat at the hands of PRD candidate Hipolito Mejia. Two months later, Balaguer, who dominated the politics of the Dominican Republic for half a century, died aged 95. In the most recent elections, in 2004, Leonel Fernandez became president again after promising to reduce inflation, stabilize the exchange rate and restore investor confidence.
Government The bicameral National Congress comprises the legislature. Members of both the 150-seat Camara de Diputados (Chamber of Deputies) and the 32-seat Senado (Senate) are popularly elected. So is the President, who wields executive power. All are elected for four-year terms. The current Vice-President is Rafael Alburquerque.
Economy Agricultural cash crops and the mining industry form the basis of the Dominican Republic’s economy and are the country’s main export commodities. Other industrial investments are food, drinks, chemicals and the refining of imported oil. Tourism now contributes one-sixth of total output.
The economy experienced some problems with growth and unemployment in 2003. At the same time, the Dominican peso lost a third of its value against the dollar. (A major cause was the collapse of the international sugar market.) Strict fiscal targets agreed in the 2004 renegotiation of an IMF standby loan helped President Fernandez stabilize the country’s financial situation.
The economy is growing respectably but unemployment remains a difficulty. Another problem is income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% has nearly 40%. The country relies on substantial foreign aid.
The Dominican Republic is a member of CARICOM, the major regional trading bloc.
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