Dominican businesses expanding role in Haiti reconstruction

The Dominican Republic has one of the strongest economies in Central America and is one of the major trade partners of earthquake-beleaguered Haiti. For this reason, political leaders in the country have pointed out that it is vital for local businesses to continue or expand their involvement in Haiti’s reconstruction, or the country would lose an important source of revenue.

The Dominican Republic’s economy is export driven, and Haiti accounted for over 10% of exports before the earthquake of January 12^th, which saw much of the capital Port Au Prince destroyed and 280,000 people killed. That 10% meant $630 million in revenue for local businesses, which is now in jeopardy.

This tragedy has crippled Haiti’s economy and already exports to the country from the Dominican Republic have fallen by 20%. For this reason, many local companies are turning to the US and the UN, as well as other donor countries, and countries involved in Haiti’s reconstruction, to supply them with services and materials instead.

The government recently told the Republic of Dominica’s news media that further decreases in trade with Haiti would hurt the economy in the long-term if Haiti began to rely more on other countries for import products rather than its neighbor.

The Dominican Republic, however, is perfectly placed to play a central role in the redevelopment of the country because of its location, and so the Foreign Ministry has begun providing training to local business owners, showing them how they can go about applying to the UN to offer essential services, such as the provision of housing materials, food and temporary shelters.

For some Dominicans it has provided an opportunity to expand their business into Haiti for the first time, one local wood-furnishing factory owner has built ten prefabricated homes, which he has sold to a charity group in Haiti for $35,000.

So far, the results are not encouraging. Around 100 Dominican businesses have made just $5 million as suppliers for Haiti’s rebuilding in the last three months, which falls woefully short of the some $60 million in revenue lost due to reductions in trade.

However, the world community has pledged over $3 billion for the reconstruction of Haiti and so this figure may improve, providing Dominican and Haitian futures with a better outlook.