Multi-dimensional Review of the Dominican Republic
Towards Greater Well-being for All
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The Dominican Republic has made strides on many socioeconomic fronts over the years. The country has been one of the leading economies in Latin America and the Caribbean in terms of GDP growth, reaching upper middle-income status in 2011. However, progress on the different dimensions of well-being has been insufficient. In particular, socioeconomic and territorial disparities are still important, and public institutions remain insufficiently solid. For the Dominican Republic to embark on a more prosperous development path, three critical dimensions must be tackled. First, providing quality jobs for all, with particular emphasis on boosting formalisation and productive transformation. Second, mobilising more public and private finance for development, with more progressive and effective taxation systems, more efficient public expenditure and deeper capital markets. Third, accelerating digital transformation to boost productivity, enhance inclusion and support job creation.
Also available in: Spanish
Financing for development in the Dominican Republic: Towards a more inclusive, resilient and sustainable model
To finance a development model that is inclusive, sustainable and resilient the Dominican Republic needs to mobilise further public and private resources. On the public side, further tax revenues that reduce inequalities can be levied by rethinking the tax structure, rationalising tax exemptions, and fighting tax evasion. Similarly, there is space to improve the quality of public spending, to ensure its efficiency and increase its impact. Regarding the private sector, strengthening the role of the financial system is crucial to mobilise the necessary resources for development. Actions include further developing the banking system, strengthening the public debt market, and deepening the private debt market. The chapter first examines public finance, analysing revenue and expenditure and exploring potential areas for improvement. It then analyses the financial system and ways to improve private sector finance and further develop capital markets. Finally, the chapter presents the main conclusions and offers policy recommendations, arguing that advancing towards a more robust “financing for development” model will necessitate agreement on a comprehensive fiscal pact.
Also available in: Spanish
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