Dominican Republic - Updating report on the economy (Vol. 1 of 2) : Main report

Report No. 611-DO k- . ? A( Updating Report on the Economy , of the Dominican Republic ETUXN TO LA. & G. (In Two Volumes) 1FOPWMATTN CENTER Volume 1: Main Report April 18, 1975 Latin America and the Caribbean Countr Programs Department I NfornPublic Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility tor the accuracy or completeness of the report  CURRENCY EQUIVALE-NTS 1.00 Dominican Republic Peso (RD$) = U13$1.00 1.00 1U9$ = RD$1.00 Tables 1 through 23 are inserted in the text. Tables 1.1 through 9.2 are included in the Statistical Appendix.  UPDATING REPORT ON THE ECONOMY OF THE DOMINICAN REPUBLIC TABLE OF CONTENTS Page No. VOLUME ONE MAP COUNTRY DATA SUMMARY AND CONCLUSIONS ............... ................ I. INTRODUCTION. 1 II. THE PATTERN OF DOMINICAN DEVELOPMENT 2 A. Recent Developments. 2 B. Main Sectoral Issues. 8 Agricultural Development 8 Industrial Development .19 Tourism .30 III. PUBLIC SECTOR ...32 A. Public Investment Program and Social Services . .32 Public Investment . .32 Social Services . .36 Financing of Public Investment . .39 B. Central Government Finances 42 Taxes on Sugar . .47 Prospects . .49 IV. BALANCE OF PAYMENS AND GROWTH PROSPECTS . .52 A. Short-term Prospects and Credit Policy . . 52 B. Medium-term Prospects . .57 C. Creditworthiness. 62 VOLUME TWO STATISTICAL APPENDIX This report is based on the findings of an economic mission which visited the Dominican Republic in August/September 1974. The mission consisted of Raul de Campos (Chief), G. Kaddar (Agricultural Credit Specialist), F. Thoumi (Industrial Economist) and M. Lasaga (Statistical Assistant). Owing to Mr. de Campos' departure from the Bank, the report was drafted by Mr. Landau. On February 3-7, 1975, Messrs. Pfeffermann, Fernandes and Landau discussed an earlier draft of this report with the Government. The present version incor- porates information available as of February 7, 1975.   i t- l J -gWAH f T - 0~. 3 r X I , SI * / > ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~>M b0- z *50 10 - no~~~~~~~~~~~~~~~   ANNEX I Fopg T o 3 pages ODUNTR1 DATA - DOp3aICA REPUBLIC ARBA POPULATION DINSITY 4c,734 on2 4.2 million (mid-1972) 232 /A Per kll20f arable land SOCIAL INDICATORS Reference Countries Dominican Republic Nicara Jii S * _ 960 1970J 1970 197 GO PER CAPITA us$ (ATLAS BASIS) / 310 lb 470 /c 470 /c 810 Ac 1,210 /c DElOGRAPHIC Crude birth rate (per thousand) 37 40 /d 46 /d 35 /e 20 Crude death rate (per tho-eand) 9 6 7; 17 7; 7 8 Infant ertality rate (per thoueand live birthe) 101 50 7;g 45 7; 26 /e 28 Life expectancy at birth (yea") 58 .. 5O 7 69 70 Orose reproduction rate 2 .. 3.5 3.3 /d 2.5 1.4 Population growth rate 127 3.6 2.8 f ,h 3.o 7? 1.6 If 1.1 If Population growth rate - urban 6 /i 6 5 7j,k 6 7? 2 7Tm Age etrocture (percent) 0-14 47 48 47A/ 46/n 28 15-64 5