Dominican Republic and Haiti: Country Studies

Dominican Republic and Haiti: Country Studies
The Balaguer period from 1966 to 1978 was one of high economic
growth; the country averaged a 7.6 percent increase in
real GDP over the period. Growth was based on increased
export earnings, import-substitution in consumer goods promoted
by generous tax incentives, and public investment
projects. It was facilitated by the United States sugar quota and
generous economic assistance, particularly in the early Balaguer
years. Balaguer ruled in a patrimonial fashion, ensuring
that he was the central axis around which all other major political
and economic forces revolved. At the same time, he eventually
undermined his position by promoting the development of
business groups separate from, even if dependent upon, the
state. Such an approach sharply contrasted with the approach
taken in the Trujillo period. However, organized labor
remained extremely weak as a result of repression, co-optation,
and very restrictive labor legislation.
Relations between business and Balaguer were complicated
by the growing incursions of the armed forces into business
and into politics. Balaguer had a commanding presence within
the military as a result of his ties to the Trujillo period, his anticommunism,
his statesmanlike caudillo figure, and his acceptance
of military repression as well as large-scale corruption.
However, he clearly was not the military figure Trujillo had
been. He sought to manage the military by playing off the
ambitions of the leading generals and shifting their assigned
posts. Yet, he occasionally confronted serious challenges, such
as a coup effort by EHas Wessin y Wessin in 1971, which he successfully
dismantled. The two leaders were later to reconcile
politically.
The initial Balaguer years were a period of relative polarization
that saw government repression and sporadic terrorist
activities by opposition groups. In a six-year period after the
1965 occupation, some 2,000 additional Dominicans were
killed. Following his electoral victory in 1966, Balaguer ran
again and won in elections in 1970 and 1974. However, in these
elections, the military placed strong pressure on opposition
candidates, most of whom ultimately withdrew prior to election
day. Balaguer also practiced a policy of co-optation, bringing
opposition figures into government. The extent and the severity
of repression, particularly after 1976, were considerably less
than in the Trujillo years.
By the 1978 elections, Balaguer's drive for power, reelectionist
aspirations, and policy decisions had alienated a number of
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