greatreporter.com, December 31st, 2006
Area: 48,671 sq km (18,792 sq mi)
Population (2006 est.): 9,021,000
Head of state and government:
President
Leonel
Fernández
The most invigorating event of 2006 for
Pres.
Leonel
Fernández
was the solid victory of his Dominican Liberation Party (PLD) in the May congressional elections. The results vaulted the PLD from minority to significant majority positions in both the Chamber of Deputies and the Senate and reflected the president's strong image.
President
Fernández
, who had been elected in 2004, complained that plans to modernize the country, combat corruption, and reform the constitution had been largely frustrated by congressional opposition.
The president's popularity reflected his sound stewardship of the economy, which continued to rebound from the mismanagement of his
predecessor, Hipólito
Mejía
. General compliance with International Monetary Fund strictures and a IMF standby agreement reinforced positive trends, including a reduction in interest rates, a lower unemployment rate, stabilization of the peso, decreased inflation, an increase in tax revenue, and the return of capital. Though GDP growth dipped slightly from the robust 9% of 2005, the economy remained strong.$648 million
Historically strained relations with neighbouring
Haiti
were eased by the election in February of
René
Préval
(
Haiti
's president and by the rapport he established with
President
Fernández
. Approximately 10% of the population of the
Dominican Republic
were Haitians—a mix of legal and illegal residents.
Fernández
maintained a challenging but successful equilibrium of good relations with
U.S.
Pres.
George W.
Bush
and with Venezuelan
Pres.
Hugo Chávez
. In 2005
Bush
had signed the Central America–Dominican Republic Free Trade Agreement, which was awaiting approval in the
Dominican Republic
, while
Chávez
provided low-cost petroleum.see
Biographies) as
Shadows remained, however, in an otherwise bright landscape. A subway project in
Santo Domingo
consumed more than the combined budget for the underfunded health and education sectors. In addition, no coherent policies appeared to combat endemic corruption, a heavily politicized and inefficient public service, acute poverty in marginal areas, and the continuing blight of a flagrantly inadequate electricity system.
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