World Bank strategy to promote growth in Dominica Republic

Washington, Sep. 25, CMC - The World Bank Board of Executive Directors on Thursday endorsed a new strategy to support the Dominican Republic’s efforts to broaden economic and social opportunities for citizens.

The strategy offers a new lending program of US$550 million and advisory services over the next four years .

The new strategy was jointly prepared by the Dominican Government, and the World Bank Group (WBG) comprised by the International Bank for Reconstruction and Development (IBRD) the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

“Economic growth in the last decade has been strong, but with little impact on poverty reduction.  This Country Partnership Strategy with the World Bank Group will support our efforts to achieve a more just country, with better opportunities for all,” said Temístocles Montás, Minister of Economy, Planning and Development.

While the Dominican Republic grew at an average of 6.7 percent per year over the last decade, making the country one of the top performers in the Latin America and Caribbean region, poverty and unemployment have remained high, with 46 percent of rural Dominicans living in poverty and about 30 percent of young people unemployed.

“The Dominican Republic has significant potential to create more and better jobs, as well as to improve access to finance, to more reliable electricity and telecommunications, and to better services in education, health, water and social protection, for the poorest 40 percent of the population,” said Sophie Sirtaine, World Bank Country Director for the Caribbean. “
To achieve these goals, the strategy agreed with the Dominican government will among other things, improve access to quality public services by increasing the number of new teachers in the system, provide access to improved sanitation, increase access to electricity and improve the business climate.

A critical part in the strategy will be played by IFC, the largest global development institution focused exclusively on the private sector.

The IFC’s committed portfolio in the Dominican Republic stands at US$208 million.

“IFC has partnered with the Dominican private sector for more than 50 years in critical areas such as diversifying the energy matrix, increasing access to financing for small and medium entrepreneurs, and supporting new infrastructure,” said Ary Naim, IFC’s Country Head for the Dominican Republic.

“With this new strategy, we plan to build on these strong partnerships, helping the country generate productive jobs and continued economic growth.”