The most popular tourist destination in the Caribbean, the Dominican Republic lies 970 km (600 miles) southeast of Florida. Once ruled by Spain, it occupies the eastern two-thirds of the island of Hispaniola and boasts both the region's highest point (Pico Duarte, 3175 m – 10,420 ft.) and its lowest (Lake Enriquillo, 44 m – 144 ft. – below sea level). Spanish-speaking, it seeks closer ties with the anglophone West Indies.

The white population, primarily the descendants of Spanish settlers, still owns most of the land. The mixed race majority – about 73% – controls much of the republic's commerce, and forms the bulk of the professional middle classes. Blacks, the descendants of Africans, are mainly small-scale farmers and often the victims of latent racism, especially in business. Women in the black community work the farms; in the white and mixed race communities women are starting to make professional careers.

Strengths

Sustained tourism growth. Mining – mainly of nickel and gold – and sugar are major sectors. Hand-made cigars (biggest sellers in USA). Large hidden economy based on transshipment of narcotics to USA.

Weaknesses

Major sectors severely affected by fluctuating world prices and cutbacks in US import quotas. Poor creditworthiness. Failure to diversify. Stalled privatizations.

Joaquín Balaguer of the PRSC, a political patriarch since the 1960s and representative of the white elite and the military, achieved a bogus victory in a 1994 poll. He was forced to agree to fresh elections in 1996 which were narrowly won by Leonel Fernández of the more moderate PLD. The PRSC and PLD later joined forces against the opposition center-left PRD, which won control of the Congress in 1998. The PRD called for a fair presidential election in 2000; it was won by the PRD candidate, Hipolito Mejia.

Relations with Haiti, with which it shares the island of Hispaniola, are important. The Dominican Republic favors a "strategic alliance" between the Caribbean and Central America.

The military has economic and political interests, but no longer holds the defense portfolio. It focuses on illegal immigration from Haiti. The main arms supplier is the USA.

Dominican Republic is a net energy importer: hydroelectric generators are the only domestic source of power, and electricity blackouts can be a major problem. Attempts at oil prospecting have not been successful. Under the terms of the San José Agreement, oil is imported from Mexico and Venezuela on preferential terms. The Dominican Republic's quota from Venezuela was increased under the 2000 Caracas Accord.

Forests are threatened by destructive agricultural practices and also by the use of wood as fuel by rural communities. Deforestation has accelerated soil erosion.

Urban and rural transportation is poor; railroads are mainly for transporting sugarcane and ores. An international consortium in 1999 won a 30-year concession to operate four airports.

Wealthy Dominicans fly to Cuba and the USA for treatment. The poor rely on a basic public service, inadequately provided by over 120 state hospitals.

State schools are badly underfunded. The state university of Santo Domingo suffered a financial crisis in 1999. The rich send their children to study in the USA and Spain.

Cartels increasingly use the Dominican Republic as a transshipment point to the USA. Narcotics trafficking and arms smuggling are linked to high levels of violent crime.

Great disparities exist between rich and poor. The government in 1998 announced a seven-year plan to relieve poverty and reduce the level of malnutrition affecting well over two million people. Black Dominicans remain at the bottom of the economic and social ladder, accounting for the major proportion of small farmers and unemployed. Haitian immigrants are poorly paid, badly treated, and liable to be deported at short notice. Mixed races have shown most upward mobility in recent years, but, nevertheless, the old Spanish families still form the wealthiest section of society and retain their grip on valuable estates.

Ample accommodation and excellent beaches attract many tourists each year, mainly from Europe and North America.

The 1697 Franco-Spanish partition of Hispaniola left Spain with the eastern two-thirds of the island, now the Dominican Republic.

• 1865 Independence from Spain.
• 1930–1961 Gen. Molina dictator.
• 1965 Civil war. US intervention.
• 1966 Joaquín Balaguer's first of seven presidential terms over next 30 years.
• 1996 Center-left PRD candidate succeeds Balaguer.
• 1998 Major hurricane damage.
• 2000 Hipolito Mejia of PRD wins presidency.