The Dominican Republic is a lower-middle income country of 9.6 million inhabitants and a GDP per capita of USD 2,850 (2006 data). In the last 15 years the Dominican Republic has experienced major economic changes. Record growth rates combined with a macroeconomic stability policy meant that per capita income rose from USD 860 in 1991 to USD 2,850 in 2006, and foreign and internal debt are considered to be at a sustainable level. The economic growth has, however, not been matched by an equivalent level of social development.
The Dominican Republic’s relations with the European Union are good and developed since the accession of the country to the Lomé IV Convention. The political dialogue is good and policy dialogue is increasing as development co-operation deepens. Commercial relations with EU Member States have been progressing steadily, the EU being the second commercial partner after the USA and the main source for the important tourism industry (where Spanish and Italians operators play an important role). Commercial cooperation between EU and the Dominican Republic is expected to strengthen in the framework of Economic Partnership Agreement (EPA) with the CARIFORUM. The Dominican Republic played an active role in reaching the agreement. The key objective of the EU for the coming years is to assist the Dominican Republic with translating economic growth in accelerated social development.
The programmable funds for the period 2008-2013 amount to € 179 M. € 15.3 M has been allocated to cover unforeseen needs such as emergency assistance etc
The main objectives of the 10th EDF National Indicative Programme are to promote poverty eradication, foster social and human development and social cohesion as well as to consolidate democracy and enhance competitiveness. Support will be provided as General Budget Support focusing on the MDGs in Poverty alleviation, Health and Education sectors (€ 91.3 M) and Sector Support to Governance and support to economic and institutional reforms (€ 61.7 M).
In the non focal area, the relation with neighbouring Haiti will receive specific attention in order to assist both countries to develop their complex relation, addressing in the framework of a bi-national policy strategy issues of migration, commerce and economic development, infrastructure links, public health and the environment (€ 15 M).