Wednesday, February 23, 2011

SWOT Analysis: Strengths

Agricultural History:  Indigenous peoples began populating the Caribbean around 6,000 BC.  The indigenous residents of what is now the Dominican Republic were called the Taínos and are believed to have been the most advanced of the indigenous Caribbean peoples.  Taíno society was firmly rooted in agriculture. Some of their main crops included yucca, corn, peppers, peanuts, fruit, sweet potatoes, and tobacco.  Taíno agricultural traditions still continue today.  Many small farmers still grow traditional crops without the use of modern agrochemicals.  The Dominican Republic also has a long history of an agricultural export economy.  Although the first Spanish settlers came in 1492 with high hopes of finding gold, the economic focus soon shifted to the exportation of sugar and other cash crops.  Today the Dominican agricultural sector contains both small, traditional crop farmers and large agribusinesses.

The Island: The island of Hispaniola has significant ecological and commercial merits.  The tropical climate offers a long growing season.  Farmers export crops that cannot be grown in more northern countries, and exports boom during the winter, when production in the US and Europe slow substantially.  The ocean also offers protection against pests and diseases.  Such low levels of disease greatly reduce the need for pesticides, fungicides, and other expensive, polluting agrochemicals.  The location of the island is also important for export farmers.  The Dominican Republic is less than three hours from the US by plane and the air shipping rate to the US is USD$0.95/kg.  By boat, it takes Dominican exports two to seven days to reach the US at the cost of about USD$0.09/kg. 

Political Stability and Infrastructure:  Although there is some political discontent in the Dominican Republic, it is considered to be one of the most stable democracies in Latin America.  The country also has sturdy main roads, 6 seaports, 8 international airports, and modern telecommunications.

Life in Rural Areas:  Although there is statistically more poverty in rural areas, and the population is undergoing net urbanization, rural life offers certain benefits.  Hunger is less of a threat for families who grow some of their own food.  Living conditions tend to be cleaner in less densely populated communities, and farmers who work their own plot of land may have a greater sense of control over their own lives than industrial wage laborers.  There is also less economic inequality in the rural sector, as measured by the GINI coefficient.  As of 2007, GINI coefficient for the rural sector was .508 as compared to .566 for the urban sector.
~Alexa

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