Financing for development in the Dominican Republic: Towards a more inclusive, resilient and sustainable model

Abstract

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.