Dominican Republic and Haiti: Country Studies

Unloading lumber, port ofHaina
Courtesy Inter-American Development Bank
exports to the Caribbean. The agreements would also put the
Dominican Republic in a favorable position to benefit from
foreign investment generated by the special agreements that
the CACM and Caricom maintain with the United States and
the European Union (EU).
In September 1998, Hurricane Georges cut a devastating
path across the Dominican Republic, leaving about 300 persons
dead, hundreds of thousands of homeless, and economic
damage estimated at US$1.3 billion (8 percent of GDP). It
severely damaged farming and livestock production, with total
losses estimated at US$400 million during 1998-99. It also
affected tourism and such key exports as sugar, coffee, cocoa,
tobacco, and fruit. The government's preliminary damage
assessments put the cost of repairs to basic public-sector infrastructure
and low-income housing at more than US$400 million
(2.5 percent of GDP).
A month later, the IMF approved the government's request
for financial assistance equivalent to one-fourth of the Dominican
Republic's special drawing rights (SDRs—see Glossary)
quota, approximately US$56 million. The support of the
Dominican government's economic adjustment program and
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