January 11, 1962 was the starting point of the long standing relationship between USAID and the Dominican Republic. The Minister of Foreign Affairs of the Dominican Republic, Mr. Ambrosio Álvarez Aybar, and the Chargé d'Affaires of the Embassy of the United States in Santo Domingo at the time, Mr. John Calvin Hill, signed the bilateral agreement that created one of the first USAID missions around the world.
Since then, over the past six decades, USAID has made major contributions to the economic, political, and social development of the Dominican Republic. The agency has contributed to strengthening various public and private institutions in the country. In this essay, we will delve into the agency’s work over the past 60 years, and the agency’s focus in the years to come.
The beginning: the 1960s.
At its inception, the total USAID assistance to the Dominican Republic was $418 million through loans, grants, local currency payments, and loan guarantees. With the Dominican government's coup in September 1963, and the uncertainty and instability of the years that followed, the United States government reduced the size of its assistance to just $5 million and focused on aid to the private sector. In 1965, civil conflict and US military intervention in the Dominican Republic contributed to dramatic increases in USAID funding levels The United States spent more than $189 million over a 17-month period to keep the Dominican Republic afloat. These expenses helped finance the payment of salaries and the implementation of emergency aid programs in collaboration with the Organization of American States.
Public-Private Partnership: Despite the political uncertainty of the early years, USAID's cooperation with the Dominican Republic helped to develop savings and loan associations, promote private investment, and strengthen public and private agricultural institutions. USAID assistance also helped promote public and private investment in education, public and tax administration, citizen security, health, irrigation, agriculture, rural development, and the creation of a skilled agricultural human resource base.
Agriculture: As a first step in the development journey, USAID provided a $500,000 loan to the Asociación para el Desarrollo de Santiago (APEDI), an association of socially committed leaders and advocates. This loan led to the creation of the Instituto Superior de Agricultura (ISA), now known as ISA University. The support to APEDI helped strengthen the capacity of ISA University which continues to be a leader and promoter of the economic, political and social development agenda of the Cibao region. In collaboration with the Instituto Superior de Agricultura, USAID offered scholarships to Texas A&M University in the United States. Graduates of this seminal USAID-supported program are now key figures in the agricultural and economic development of the Dominican Republic, high-level government representatives, USAID implementing partners and ministers.
Institution-Building: Together with APEDI, several institutions were also developed, founded and strengthened, such as:
- the Centro de Investigación y Mejoramiento de la Producción (CIMPA), an experimental livestock laboratory;
- Plan Sierra, a major forestry program;
- the Pontificia Universidad Católica Madre y Maestra (PUCMM), the first private Catholic university;
- Financiera Dominicana, a private organization that would later become two large Dominican banks: Banco Popular and Banco del Progreso;
- the Consejo Nacional de Población y Familia, focused on family planning;
- the Banco Nacional de la Vivienda, which is now known as the Bank for Development and Exports (BANDEX), which at that time provided financing for middle-class housing;
- the Instituto de Desarrollo y Crédito Cooperativo (IDECOOP);
- the Dirección General de Desarrollo de la Comunidad;
- the Price Stabilization Institute (INESPRE), for food stabilization;
- the National Institute of Aqueducts (INAPA);
- the Dominican Municipal League, and
- the Industrial Development Corporation.
In addition to supporting private banking, USAID also supported public banking by granting a $5 million loan to the Central Bank of the Dominican Republic. The Central Bank which helped create the Investment Fund for Economic Development, which supports private sector initiatives. Several import companies located in the Herrera Industrial Zone of Santo Domingo, were financed through this fund.
All public and private sector institutions mentioned, as well as non-governmental organizations, with the exception of Banco del Progreso, are operational and are leaders in their respective fields.
Decade of 1970: Improving Dominican’s access to basic needs
In the 1970s, almost ten years after USAID cooperation began, the agency focused on improving agriculture, health, education, nutrition, and family planning. These initiatives sought to raise living standards and satisfy the basic needs of vulnerable populations. Much of the malnutrition and problems of infants in this decade was related to the lack of protein in their food, which is why USAID developed livestock production projects (especially chicken and pork), and strengthened the dairy industry.
Agriculture: With the approval of Law PL480 Title XII in 1975, the Congress of the United States forced the American agricultural universities to work with developing countries to increase food production. In addition to this support, loans totaling $44.2 million were provided for agricultural development and marketing. Projects were carried out with the Dominican government and non-governmental organizations to eradicate swine fever. USAID, Texas A&M University, ISA, and the Secretary of Agriculture (now the Ministry of Agriculture) implemented a farm rehabilitation program to increase production of beans, corn, oilseeds, and cocoa. Hundreds of ISA students were sent to the United States to train in agricultural sciences.
Health: In addition to contributing to nutrition and agricultural development, USAID made two large loans to the health sector and developed a health management system program based on an earlier 1968 program in maternal and child care. USAID also launched the Women in Development (MUDE) program to help poor women living in rural areas with health, education, and micro-business development. MUDE became one of the most dynamic institutions in the fight for the rights of Dominican women.
Education: In the area of education, USAID helped establish FUNDAPEC, which provides educational loans and credit services to university students through APEC, a private-sector-run educational institution. Together with the Comprehensive Educational Development Project (PIDE), USAID trained 2,400 primary school teachers and built more than 1,100 classrooms in rural areas of the country. In addition, with the PUCMM Postgraduate Management Training program, USAID supported postgraduate courses in public and business administration, economics, and microenterprise development.
Disaster Assistance: In August 1979, at the end of the decade, when hurricanes David and Frederick hit the Dominican Republic, USAID provided immediate assistance. The Agency supported repairs following serious damage to homes, roads, bridges and other infrastructure, and reconstructed affected agricultural production.
Economic Growth: With a deteriorating economic situation due to low prices for Dominican exports (sugar, coffee, bauxite) coupled with high oil prices and effects of extreme weather, USAID shifted its focus to working to reform Dominican macroeconomic policy. The initiatives were developed to support economic recovery by creating a favorable export environment through policy dialogue. USAID promoted trade through regulatory reform and the maintenance of market-oriented policies and agricultural projects focused on diversifying agricultural exports, especially non-traditional crops. Environmentally sound water management policies and practices also became a priority for USAID projects in this decade.
The 1980s and development initiatives
Agriculture: In the Dominican Republic, changes in government leadership often prevent government institutions from being directly responsible for the implementation of USAID projects. A $5.0 million grant was awarded to the Technical Secretariat of the Presidency to finance degrees in agricultural sciences in order to strengthen the research, extension and program implementation capacities of agricultural institutions. As sugar prices fell, a $3.5 million sugar diversification grant was awarded to the Dominican National Sugar Council in an effort to build institutional capacity and seek alternative production methods.
The 1980s represented another period of strong USAID assistance in the agricultural sector. USAID provided over $22 million dollars in grants and loans to the Agricultural Consultative Group and the Dominican Central Bank to promote the expansion of the agribusiness sector. In addition, a $1.2 million grant was awarded to the Secretary of Agriculture (now the Ministry of Agriculture) to establish and strengthen the National Council of Agriculture and an Agricultural Policy Unit to provide agricultural policy recommendations to the administration.
In addition, in June 1983, the On-Farm Water Management Project, financed by a $12 million loan from USAID, began, providing farmers with the necessary technologies to irrigate their own farms, eliminating state control over water in agricultural production from small farms, a trend that had been customary for decades. The project was implemented by the Dominican National Institute of Hydraulic Resources (INDRHI) with technical assistance from Utah State University. The project was a great success and demonstrated to Dominican authorities that farmers could manage and irrigate their own land.
Economic Development: In 1985, USAID collaborated with the Office of Private Companies and a local non-governmental organization to provide training and technical assistance to establish the first Free Trade Zones in the Dominican Republic. These zones are now among the country's leading employers, exporters and producers of foreign exchange. Training programs covered trade, export promotion, investment and business management. This initiative included a $6.6 million grant to improve the business climate in the Dominican Republic. The initiative promoted links between free trade zones and national companies, attracted foreign investment and strengthened the export sector to produce non-traditional products through the Public/Private Sector Council, known today as the General Directorate of Public-Private Partnerships. USAID promoted the development of microenterprises through financing from ADEMI, the Dominican Foundation for Development (FDD) and FONDOMICRO. These three organizations continue to represent the main promoters and advocates of microenterprise development in the Dominican Republic.
In 1988, USAID provided a grant to the Central Bank to help establish an efficient debt conversion mechanism that included training banking professionals to operate the system; and in 1986, to increase technical and managerial skills for an export economy, USAID loaned $15 million made to FUNDAPEC and the National Council of Businessmen, today known as the National Council of Private Enterprise (CONEP).
USAID continued its support to the Dominican people in 1987 when it approved the Commercial Farming program, destined to increase production of non-traditional crops, promote farmer linkages with agribusiness, and increase access to improved technology and credit. The program consisted of a $10 million loan to the Government of the Dominican Republic to establish a bridge credit fund for agribusiness, a $2.1 million grant to the Central Bank to promote the development and expansion of rural financial institutions, and a $2.6 million grant to the Agricultural Development Foundation to promote research in non-traditional crops and improve the technical capacity of the organization. One of ISA University’s objectives during the late 80’s was to increase trained manpower in the Center for Rural Development and Training (CADER). USAID set aside a $12 million grant under the University Agribusiness Partnership program to fund this objective.
Education: In 1981, USAID granted a $4.5 million loan to FUNDAPEC to provide vocational technical training to marginalized populations in priority areas. In 1989, USAID awarded PUCMM University a $6.5 million program to establish a graduate program in public administration and business, and update the curriculum for hotel management and tourism development in support of the world's most important industries in the country. During this decade, USAID also invested in improving infant and child survival. Save the Children received a $4.6 million grant to initiate a program in oral rehydration, immunization, birth spacing and nutrition.
Environment: In the last year of the decade, USAID supported environmental protection to strengthen the Dominican government’s capacity to effectively manage the country's natural resources and to establish a soil and water conservation model that could be used to slow the degradation of the nation's natural resources. The Natural Resources Management project (NARMA) was signed on the premise that hillside farmers were the main contributors to soil erosion, when in reality soil erosion is both a natural process and caused by agriculture, road construction and deforestation.
Assistance to agriculture and economic development have been part of USAID’s work in the Dominican Republic for the last 60 years. Credit: USAID/Dominican Republic
The 1990’s and the initiation of the development strategies
Economic Development: The Private Voluntary Organizations (PVO) Co-financing project that began in 1990 was one of the most successful USAID projects to this date. Under this activity, USAID worked with 17 non-governmental organizations to carry out projects that improved the economic and social conditions for Dominicans throughout the country. USAID provided $7.1 million, and non-governmental organizations and the Dominican communities contributed $8.7 million to fund activities in health, education, employment generation, natural resource management, community development, and other productive and social sectors.
Education: In 1990, USAID provided a grant to Acción para la Educación Básica (EDUCA) to improve the quality of the Dominican education system by establishing an administrative capacity within EDUCA to implement training programs and to produce instructional materials for primary education. EDUCA’s Executive Director, Jaqueline Malagón, who later became the Secretary of Education, was one of the key implementers of this program. The Private Initiatives in Primary Education (PIPE) project mobilized private sector support and leveraged the grant funds provided to EDUCA. This campaign forced the government and political leaders of the opposition to endorse the 10-year Education Plan. The second phase of the program included the Adopt-A-School concept with companies sponsoring schools, funding improvements and donating textbooks.
Health: A major challenge currently facing the Dominican Republic is the AIDS epidemic. During the 90s, USAID began working directly with the Dominican Government and non-governmental organizations to address this problem. The Agency gave a grant of $2.3 million to the Secretary of Public Health to reduce the rate of HIV/AIDS infection through prevention emphasizing public education and contraceptive distribution. An educational campaign, funded through the national Program to Control Sexually Transmitted Diseases (PROCETS), won international awards and was presented as a world model.
Democracy and Governance: Another challenge facing the country in the 1990’s was the need for a more democratic society. USAID funded the Democratic Initiatives Project which had three priority areas: a) educational program to encourage wide participation in the democratic process; b) institutional reform program to modernize the Government of the Dominican Republic in the areas of electoral and judicial reform and social service delivery; and c) data banks and census surveys. During this decade, USAID also worked with the Dominican society in the justice sector. For example, the percentage of prisoners held without trial or sentence had been reduced from 88 percent in 1996 to 71 percent in 1997, partially due to USAID assistance in identifying excessive delays and systemic bottlenecks in the justice system. This rate of reduction in a one year period was truly remarkable. Also, USAID’s assistance in civic education through the Democratic Initiatives project included support for 24 activities and 15 events, focusing on such topics as the participation of women, decentralization, and labor-related issues benefitting over 191,000 Dominican residents.
Disaster Recovery: Hurricane George, considered one of the most devastating natural disasters to affect the Dominican Republic, hit the country on September 22, 1998. Nearly 70 percent of the country sustained significant damage. USAID responded with immediate relief, short-term recovery and long-term reconstruction. Total resources in the aftermath of the hurricane totaled $76 million. These funds helped the most affected people recover from the destruction and better prepared them to respond to future disasters at the national and community levels.
While a number of bilateral and international donors were involved in the immediate relief efforts, the US Government was the only major bilateral donor that stayed the course to partner with the Dominican Government, the private sector and non-governmental organizations to assist vulnerable hurricane victims recover. About 1.2 million people, representing around 15 percent of the population, benefited directly in the five program areas (health, shelter, food, economic reactivation and disaster mitigation) and 99.5 percent of the program funds were spent in record time. Intensive Mission monitoring, coupled with quick decisive action to resolve implementation problems and reprogram funds, led to the successful achievement of objectives in all areas.
Launch of the reconstruction program after the passing of Hurricane Georges in 1998. Credit: USAID/Dominican Republic
Development in the new millennium: Partnerships in the 2000s
The projects and initiatives that progressed into the new millennium were based on the USAID 1997 – 2002 Strategic Plan. After the 1996 presidential elections, USAID wanted to address two major questions in its work strategy: “How could the agency sustain the momentum of the democratic change after the first free and transparent elections of 1996?” and “How to assist a reform-minded government to address long neglected social sectors?” USAID’s new strategy goals focused on ensuring that vulnerable Dominicans obtain and share in the benefits of future economic growth, achieve a more participatory democracy and improve the health conditions of vulnerable populations.
Economic Growth: USAID continued its efforts to encourage broad-based economic growth by focusing on advocacy for policy reforms that alleviate poverty. USAID financed an “Investor’s Roadmap” that identified the main administrative bottlenecks for investors. The agency also funded several studies on rationalizing the national budget allocations for the social sectors. These studies helped increase social spending, improved the quality of the Government’s labor force statistics, and enabled the Central Bank to sponsor open discussions on the country’s unemployment rates.
Democracy and Governance: USAID continued its effort to strengthen rule of law and respect for human rights by establishing an administration of justice program to modernize the courts and strengthen public defense. USAID also worked with Participación Ciudadana and other civil society organizations to increase and strengthen civic action and participate as certified electoral observers.
USAID also reformed the justice sector by helping to establish the School of the Judiciary, which later was awarded as the best Ibero-American Judicial School in 2004. Since 2007, respect for human rights, anti-corruption, and transparency and governance within public institutions, and the preponderance of corruption all remain significant areas of attention for U.S. bilateral relations.
Health: USAID implemented the “Increased Use of Effective Preventive Health Care Services” strategy to improve knowledge of and access to services which reduce the risk of STD/HIV/AIDS; deliver family planning and other reproductive health services; sustain the National Preventive Health systems; and, increase support for rural community water and sanitary systems. USAID’s HIV/AIDS/STI Prevention Project (Acción SIDA) project also led to a significant level of awareness and education of health best practices at the community level. Fathers and mothers, as well as community leaders, were sensitized and educated on the targets and goals of the project and their possible impact on youth. The response of parents was favorable because the project encouraged their children’s participation. This project reached over 3,000 people living with HIV and over 10,000 people from the general population.
As the largest bilateral donor, U.S. Government assistance is helping to combat drug trafficking and crime. In the 2000s, USAID’s portfolio in the Dominican Republic was $177 million under the current Bilateral Assistance Agreement includes four US Presidential Initiatives, the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), Feed the Future (FTF), Global Climate Change Initiative (GCCI) and the Caribbean Basin Security Initiative (CBSI).
Governance: In the last years of the 2000’s decade, USAID’s programming in the Dominican Republic was aligned with the priorities of the country’s National Development Strategy and helped improve governance and citizen security, reduce corruption, protect natural resources, and mitigate the effects of global climate change. Additionally, USAID helped expand equitable access to quality health care, further HIV/AIDS treatment and prevention services and bolster maternal and child health care practices. USAID enhanced the quality of public primary school education through teacher training and advocacy for public education reforms; and provided at-risk youth with life skills, vocational training, and employment opportunities.
Turning 50 years. What has USAID done in the last decade?
In the last decade, USAID has continued to focus on providing efficient and effective health services, promoting human rights and citizen security, supporting governance, and mitigating climate threats.
Environment and Development: In order to help the Dominican Republic in their prosperity journey, climate threats and pollution have to be reduced. To achieve this, USAID has helped train 239 fishers and farmers in sustainable farming and responsible fishing approaches, improve their economic benefits from sustainable natural resource management and improve the management of over 5,500 hectares of biologically significant ecosystems in Northern Hispaniola.
In this decade, USAID also collaborated with a long-time partner, the Center of Emergency Operations, through donations, capacity building and the development of an app to provide users with climate notices, warnings, and other advisories. This app also allows the COE to receive notifications directly from users to help the center act fast if emergencies arise. Additionally, USAID focused on activities to strengthen relationships with the private sector, such as Baseball Cares, Engendering Industries, and Sustainable Cocoa Farming.
Youth: In 2012, USAID’s At-Risk Youth Project created opportunities for vulnerable youth from crime-afflicted, low-income communities to break the cycle of crime and violence and chart a path for a better future. To date, the project has reached over 155,000 beneficiaries resulting in improved school participation, entrepreneurship, positive youth development, increased livelihoods and quality of life of the youth. Over 18,000 youth participated in entrepreneurship programs, over 65,000 participated in health prevention programs to increase their quality of life, and with support from vocational training programs over 8,000 youth got better jobs.
Health: Through the United States President's Emergency Plan For AIDS Relief (PEPFAR), USAID has focused on working with the government of the Dominican Republic as well as non-governmental and community-based organizations to achieve control of the HIV epidemic. Under this support, USAID has been able to provide HIV testing services to over 282,000 patients, supported over 9,000 to start life-saving antiretroviral treatment and achieved viral suppression of over 9,600 patients, which ensures patients will stay healthy and live longer, and greatly reduces their chances of passing HIV on to others.
In the 2010s, USAID Assistance to the Dominican Ministry of Health helped eliminate ghost workers and implemented a national performance management system in fourteen hospitals. Cost savings were reinvested to support staffing, purchase needed medicines and supplies, repair and renovate health facilities, and increase access to primary care services. USAID also supported the development of a National Condom Strategy, distributed more than 185 million condoms, increased the availability of medications in health facilities from 81% to 92%, and contributed to a significant increase in condom use among key populations.
USAID also supported the Dominican Health Sector with its Zika project between 2016 and 2019. The program helped train over 200 health providers in 17 high volume hospitals, disseminate prevention messages in over 54,000 household visits and supported over 100 families with infants affected by the Zika virus. This helped the Dominican people establish emergency supply chain processes and procedures and be prepared to respond to mosquito-borne viruses and other public health threats.
Democracy and Governance: USAID has been working with the Dominican government and with civil society institutions to guarantee access to justice services, mentor, train and help the Dominican National Police representatives to incorporate best standards and practices; and structure dialogues with communities to build relations that promote credibility and trust with the police. In 2005, USAID supported the creation of the Community Houses of Justice pilot project, which in 15 years they have helped more than 460,000 people to access justice easily and quickly, at no cost and with humane treatment.
USAID assisted the Dominican National Police in developing a policy that offers recommendations for inclusion, accessibility, and mutual recognition, and 23 people were trained in the model of police culture and relationship with the LGTBI community, which ensures that vulnerable and marginalized populations are recognized and have access to police services.
Anti Corruption initiatives have also been part of USAID’s work in the last few years. Between 2017 to 2021, USAID provided anti-corruption training to over 1,500 government officials. The Agency also has provided technical assistance to strengthen the institutional capacity of key government institutions to prevent and combat corruption. Another important step USAID has supported is the development of over 158 citizen security roundtables in all municipalities in the Dominican Republic. These roundtables help civil society organizations, municipal governments, the private sector, community groups, and faith-based organizations to join efforts to promote citizen security in their communities.
LGBTI people and people with disabilities have also been part of USAID's assistance in the 2010 decade. USAID helped train and support over 260 human rights organizations to assist vulnerable populations of the LGBTI community, help over 2,000 human rights defenders support the community when they access the justice system, and provide economic opportunities to increase their livelihoods.
Education: In the education sector, USAID has helped improve the reading skills of over 286,000 students in over 380 schools; developed over 645,000 reading materials and teacher guides that precisely targets boosting literacy skills; and trained over 2,000 teachers on best practices for effective reading instruction in almost six years of implementation.
These successes demonstrate how USAID has supported the Dominican Republic’s growth and prosperity.
Neighbors, partners and friends. What will USAID do in the future of Dominican Republic’s development?
Under the 2020-2025 USAID country strategy for the Dominican Republic, the Agency will invest $251 million dollars to promote security, inclusion, transparency and effective governance in the country. Through its programs and initiatives, USAID is working to promote a safer and more inclusively prosperous Dominican Republic. We were, are and will always be neighbors, partners and friends of the Dominican People.
Our work in the Dominican Republic through USAID reflects our strong support for the country as it seeks to implement institutional reforms that will allow it to advance as a leader in the region and an example of democracy, justice, and transparency. Looking back at all that we have achieved together, there is truly much to celebrate.