Amaury Romero

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Introduction

To introduce this work, we will be talking about the relationship of international business in

the Dominican Republic, from its beginnings, to the present, we will also be observing the

constant growth they have had and the descent they have had from poverty, in addition to

how they could cope with the situation of COVID-19, in its economy since it is a country

very dependent on the tourist area and foreign investments.

However, a graph of the commitment amounts of the IBRD and the AIF will be shown, in

said graph it will be shown from its decline to the rise that the Dominican Republic has had

from 2018 to the present, in addition to seeing key points of the levels of employment from

2020 to 2022 and the difficulty of women in creating new jobs for them, explain the labor

crisis that was due to COVID and why it has affected both the economic and labor sectors

in the Dominican Republic.

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During the last 25 years, the Dominican Republic has experienced a period of

remarkably strong economic growth, the economy grew at a rate of 5.3% between 2000 and

2019, it was mainly due to the accumulation of capital and the increase in total productivity

of the factors. The economy recovered strongly in 2021, with GDP recovering to 12.3%,

supported by a strong policy response to the coronavirus, including fiscal policies,

macrosecurity and supervision, as well as monetary easing.

Tourism, remittances, foreign direct investment, mining revenues, free trade zones and

telecommunications have made the DR the second fastest growing economy in Latin

America and the Caribbean during the decade and as of 2019, the country is on track to

achieve its ambition of reaching high income status by 2030.

The pandemic has significantly affected the economy of the Dominican Republic, causing a

sharp drop in the second quarter of 2020 in key sectors such as tourism, construction and

mining. GDP fell by 6.7% in 2020, although it recovered strongly in 2021.

The pandemic has put enormous pressure on fiscal revenues and expenditures, but the

combination of economic recovery and greater efficiency in public spending has put the

fiscal deficit back on a sustainable path. At the same time, effective debt management and

the development of domestic capital markets will become increasingly important to

maintain long-term debt sustainability and reduce currency risk.

Amaury Romero
1100198

Here you can see the amount of IBRD and IDA commitments:

During the last decade, economic growth in the Dominican Republic significantly reduced

poverty rates and supported the expansion of the middle class. However, disparities remain

profound in access to economic opportunities and public services. Poverty rates are

consistently high in rural areas, and women face disproportionate challenges across the

country.

The COVID-19 pandemic has pushed the Dominican Republic into its first recession in

nearly 17 years and has reversed poverty reduction since 2008. By the end of 2020, an

estimated 191,273 jobs had been lost since May 3 of that same year. year. In 2021, the

labor market has not fully recovered and employment is still 2% below pre-pandemic

levels.
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There is evidence of a slight improvement in employment levels from 2020 to 2021

(3.8%), however, the recovery was driven by job creation in the informal sector, in contrast

to the level of employment, Employment of women continue to be the most affected with

less progress in creating jobs for women than in 2019.

Despite the increase in social spending to mitigate the impact of the pandemic crisis, it is

estimated that the official poverty rate will increase by 2.4 percentage points to 23.4% in

2020. The poverty rate will remain corresponding to More than 300,000 people have fallen

into poverty since the start of the pandemic crisis. This can be explained by:

1. An informal labor market associated with lower productivity and wages.

2. High inflation erodes real family income.

3. The emergency reversal of social assistance that was introduced at the height of the

pandemic crisis.

The effects of the current war in Ukraine are already being felt in price increases, fuel, etc.

However, the war will cause disruptions to global supply chains and prices of vital goods

and services will rise as a result, threatening the slow recovery after the pandemic.

Public investment and specific policies to accelerate recovery and mitigate the impact of

inflationary pressures on the most vulnerable will be key to reducing poverty in the coming

years.

As policymakers focus on the urgent challenges posed by the pandemic, the Dominican

Republic remains at high risk from hurricanes, floods, and other extreme weather events.
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Access to adequate water and sanitation services has improved since the early 2000s,

but the Dominican Republic's exposure to climate change threatens these gains.

Climate change mitigation and adaptation efforts must be complemented by better

management of natural resources, especially coastal and marine assets on which much of

the DR's economy depends.

As the pandemic recedes, investment in human capital will be vital to the continued growth

and development of the Dominican Republic. The 2020 Human Capital Index estimates

that a child born today in the DR will be only half as productive throughout his life than it

would have been if he had received a well-rounded education and proper medical care.

The Dominican Republic has made great strides in expanding access to education and

health care, but the uneven quality of these services remains a major obstacle to broad-

based economic growth and human capital development.

To restart job-intensive and pro-poor growth, improve its economic competitiveness, the

Dominican Republic must strengthen productive linkages between domestic and exporting

companies, reduce administrative costs of bureaucracy, improve the reliability of electricity

supply and expand access to credit.