Currency: Dominican peso (DOP)
GDP(per capita): $7,000 (2005 est.)
Overview: The Dominican Republic is a Caribbean representative democracy that enjoyed strong GDP growth until 2003. Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, in recent years the service sector has overtaken agriculture as the economy's largest employer due to growth in tourism and free trade zones. Growth turned negative in 2003 with reduced tourism, a major bank fraud, and limited growth in the US economy (the source of about 80% of export revenues), but recovered in 2004 and 2005. With the help of strict fiscal targets agreed in the 2004 renegotiation of an IMF standby loan, President FERNANDEZ has stabilized the country's financial situation. Although the economy continues to grow at a respectable rate, unemployment remains an important challenge. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% enjoys nearly 40% of national income. The Dominican Republic's development prospects improved with the ratification of the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) in September 2005.

Exports: ferronickel, sugar, gold, silver, coffee, cocoa, tobacco, meats, consumer goods

Import: foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

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Background: Explored and claimed by Christopher COLUMBUS on his first voyage in 1492, the island of Hispaniola became a springboard for Spanish conquest of the Caribbean and the American mainland. In 1697, Spain recognized French dominion over the western third of the island, which in 1804 became Haiti. The remainder of the island, by then known as Santo Domingo, sought to gain its own independence in 1821, but was conquered and ruled by the Haitians for 22 years; it finally attained independence as the Dominican Republic in 1844. In 1861, the Dominicans voluntarily returned to the Spanish Empire, but two years later they launched a war that restored independence in 1865. A legacy of unsettled, mostly non-representative, rule for much of its subsequent history was brought to an end in 1966 when Joaquin BALAGUER became president. He maintained a tight grip on power for most of the next 30 years when international reaction to flawed elections forced him to curtail his term in 1996. Since then, regular competitive elections have been held in which opposition candidates have won the presidency. Former President (1996-2000) Leonel FERNANDEZ Reyna won election to a second term in 2004 following a constitutional amendment allowing presidents to serve more than one term.

Independence Day: 27 February 1844 (from Haiti)

Capital City: Santo Domingo
Administrative divisions: 31 provinces (provincias, singular - provincia) and 1 district* (distrito); Azua, Baoruco, Barahona, Dajabon, Distrito Nacional*, Duarte, El Seibo, Elias Pina, Espaillat, Hato Mayor, Independencia, La Altagracia, La Romana, La Vega, Maria Trinidad Sanchez, Monsenor Nouel, Monte Cristi, Monte Plata, Pedernales, Peravia, Puerto Plata, Salcedo, Samana, San Cristobal, San Jose de Ocoa, San Juan, San Pedro de Macoris, Sanchez Ramirez, Santiago, Santiago Rodriguez, Santo Domingo, Valverde