The Dominican Republic: Stabilization, Structural Reform, and Economic Growth

January 29, 2002

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Jaime Cardoso, and Philip M Young. The Dominican Republic: Stabilization, Structural Reform, and Economic Growth, (USA: International Monetary Fund, 2002) accessed November 23, 2024

Summary

This paper summarizes the authorities’ stabilization efforts, how these efforts were subsequently reinforced by certain key structural reforms, and other related developments that help explain the remarkable performance of the Dominican Republic’s economy in the 1990s during which the country achieved one of the highest output growth rates in Latin America, combined with low inflation, and a much improved external debt profile. The authorities often resorted to external arrears as a means of financing the external current account deficits of the 1980s. Although rescheduling agreements were reached with the international banking community and with the Paris Club of official creditors in the mid-1980s, they met with limited success until the authorities embarked on their stabilization program of the early 1990s. Large and persistent fiscal deficits represented a significant burden for monetary policy. Although at the beginning of the decade more than half of the public deficit was financed by foreign loans, episodes of default on external and domestic government debt led to a progressive drying up of these sources of financing.

Subject: Arrears, Economic sectors, External debt, Public investment and public-private partnerships (PPP), Public sector, Revenue administration, Tariffs, Taxes

Keywords: Arrears, Asia and Pacific, Caribbean, Central America, Debt, Exchange rate depreciation, Interest rate differential, OP, Productivity growth, Public goods, Public sector, State sugar Co, Tariffs

Publication Details

Pages:

78
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2002/001
Stock No:

S206EA0000000
ISBN:

9781589060463
ISSN:

0251-6365

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