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Dominica
Area: 754 sq km (290 sq mi)
Population:72,000
Capital City: Roseau
People: Dominica is the only island in the Eastern Caribbean to retain some of its pre-Colombian population - the Carib Indians - about 3000 of whom live on the island's East Coast. The population growth rate is very low, due primarily to emigration to more prosperous Caribbean Islands, the United Kingdom, the United States, and Canada.
Languages: The official language is English. However, because of historic connections with France, the most widely spoken dialect is the French patois, Creole.
Religion(s): Roman Catholic 77%, Protestant 15% (Methodist 5%, Pentecostal 3%, Seventh Day Adventist 3%, Baptist 2%, other 6%)
Currency: Eastern Caribbean Dollar (XCD) GBP1.00 = 5.33 XCD, 1 EUR = 3.60 XCD
Major Political Parties: Dominica Freedom Party (DFP); Dominica Labour Party (DLP); United Workers Party (UWP)
Government: Dominica has a Westminster-style parliamentary government. A President and Prime Minister make up the executive branch. Nominated by the Prime Minister in consultation with the leader of the opposition party, the President is elected for a 5-year term by the Parliament. The President appoints as Prime Minister the leader of the majority party in the Parliament and also appoints, on the Prime Minister's recommendation, members of the Parliament from the ruling party as cabinet ministers. The Prime Minister and cabinet are responsible to the parliament and can be removed on a no-confidence vote. The unicameral Parliament, called the House of Assembly, is composed of 21 regional representatives and 9 Senators. The regional representatives are elected by universal suffrage and, in turn, decide whether Senators are to be elected or appointed. If appointed, five are chosen by the President on the advice of the Prime Minister and four with the advice of the opposition leader. If elected, it is by the vote of the regional representatives. Elections for Representatives and Senators must be held at least every 5 years, although the Prime Minister can call elections any time. Dominica's legal system is based on English common law. There are three magistrate's courts, with appeals made to the Eastern Caribbean court of appeal and, ultimately, to the Privy Council in London.
Head of State: President Dr. Nicholas Liverpool
Prime Minister/Premier: The Hon Roosevelt Skerrit MP
Foreign Minister: The Hon Senator Charles Savarin
Membership of international groupings/organisations: Dominica's memberships include: Commonwealth, CARICOM, Caribbean Development Bank (CDB), The Group of African, Caribbean and Pacific States (ACP), United Nations (UN), UN Conference on Trade and Development (UNCTAD), UNESCO, Organisation of American States (OAS), IMF, WHO
GEOGRAPHY
Dominica, the most northern Windward Island, is mountainous and forest-clad and has a warm year-round tropical climate. Its varied flora and fauna are protected by an extensive national parks system. The island has the highest mountain in the Eastern Caribbean. Its volcanic peaks are cones of lava craters and include Boiling Lake, the second-largest thermally active lake in the world. The mountains act as a magnet for rain and serve as a water source for the hundreds of rivers that run down the lush green valleys, many cascading over steep cliff faces on their way to the coast. The driest months are February to June, the wettest month is August.
HISTORY
Spotted by Christopher Columbus in 1493 and named after the day of his discovery, a Sunday (Dominica in Latin), Dominica was the last of the Caribbean islands to be colonised by Europeans, due chiefly to the fierce resistance of the native Caribs. France ceded possession to Great Britain in 1763, which made the island a colony in 1805. In 1967, Dominica gained autonomy in internal affairs, and on November 3, 1978, Dominica became an independent republic within the Commonwealth. After a turbulent first year of independence, marked by a corrupt government and devastating hurricanes, Mary Eugenia Charles of the Dominica Freedom Party was elected Prime Minister, the first female prime minister in the Caribbean. She remained in office for 15 years.
POLITICS
In a closely contested election in January 2000, the Dominica Labour Party (DLP) formed an alliance with the Freedom Party (FP) to oust the ruling United Workers Party (UWP). The leader of the DLP, Roosevelt "Rosie" Douglas was appointed Prime Minister of the coalition government. Following the sudden and tragic death of Rosie Douglas in October 2000, Pierre Charles was appointed Prime Minister. Pierre Charles himself died suddenly in January 2004. Roosevelt Skerrit was sworn in as Prime Minister on 8 January 2004.
A general election on 5 May 2005 returned the DLP to power. The DLP won 12 of the 21 seats with eight going to the UWP and one to an independent.
IMF
Following a request from Dominica, the IMF agreed in August 2002 to provide a 4.3m US dollar stand-by loan. The adjustment programme agreed between the IMF and Dominica is ambitious and requires the fiscal deficit to be reduced by nearly half to 5 % of GDP. To do this the government needs to sharply increase its revenue whilst reducing government expenditure.
Government plans to introduce cuts in the public service lead to a week-long strike in February 2003. After concluding its mid-term review in March 2003, the IMF announced that Dominica had not been able to reduce its fiscal deficit and stressed the need for the government to take substantial measures.
The 2003 Budget incorporated measures agreed with the IMF, which include a 5% cut in public service salaries. A public sector reform strategy and implementation plan was announced. Measures included in the 2004 Budget include a rationalisation of public services over two years, resulting in a reduction in its size and cost. There will be a further reduction in the wage bill, increase in retirement age (from 55 to 60) etc. There is a commitment to restructuring Dominica’s debt with the objective of reducing the net present value of the total debt by 50%. There will also be a series of capital projects, funded by donor governments/institutions, aimed at boosting the economy.
In July 2003 the IMF completed the first review of the Special Borrowing Arrangement. Following this review, the IMF agreed to release further funds under the programme which had been withheld because the government had failed to bring the budget deficit under control. In December 2003 the IMF approved a Poverty Reduction Growth Facility (PRFG) of US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$11.2 million. Dominica has also obtained a World Bank structural adjustment loan of US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$3 million. The first IMF review of the PRGF in February 2004 was judged satisfactory. The IMF announced in November 04 that it had approved a one-year extension of Dominica’s repayments totalling nearly US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$42 million. In March 05 the IMF announced that following a positive review of Dominica’s performance under the PRGF covering the period June-December 2004, Dominica can draw down a further US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$1.8 million, which will bring total disbursements to US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$6.4 million.
In December 2006 the IMF concluded its final review of Dominica's economic performance and concluded that it was satisfied with the manner in which the Government had implemented the programme. As a result of this review, Dominica can now receive nearly US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$1.8 million under the IMF arrangement, bringing the total disbursements to nearly US\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$11.6 million.
Debt Restructuring
The Caribbean Development Bank (CDB) announced a debt restructuring package worth US413.2 million which would result in a reduction in the Net Present Value of Dominica’s future debt service payments. The new arrangements commenced on 1 October 2004. The Department for International Development (DFID) have established a Fiscal and Economic Programme in Dominica. This includes part-funding of an adviser to assist Dominica with the debt restructuring process.
ECONOMY
Agriculture is Dominica's mainstay and bananas in particular, but less than a third of the island is under cultivation due to the mountainous terrain. However, the sector is in decline, with its proportion of GDP falling from 25% in 1990 to 18% in 2005. In attempts to boost the economy Dominica is increasingly looking to niche markets in eco-agriculture and eco-tourism. There is also a small offshore financial sector, with an estimated 9000 international businesses. In 2000 Dominica was listed on an OECD list of tax havens. However, after extensive reforms it was removed from this list in 2002, subject to close external scrutiny. Weak export prices and the gradual phasing out of preferential access to the EU market have affected the banana industry, which has started to decline; along with the downturn in global tourism since 2001 this has caused the economy to struggle in recent years. Unemployment remains high at 23.1%
In the adjustment programme agreed with the IMF, the government has undertaken among other things to review the tax system, to conduct a public expenditure review and to initiate a civil service reform program. The aim is to broaden the tax base, increase the efficiency of public spending, reduce the public sector wage and increase the public services' efficiency. The government also plans to increase banana production and has begun to restructure the banana sector. At the same time, it is implementing a number of programs to reduce poverty, improve education and health services and protect the environment. VAT was introduced in March 2006.
The adjustment programme aims at structural reforms, but relies heavily on external financial and other assistance from institutions like the IMF, the World Bank, other CARICOM states, the Eastern Caribbean Central Bank and the EU. The EU has also provided funds for several projects.
In November 2004 Dominica suffered an earthquake which damaged buildings in the north of the island. In addition landslides were caused by heavy rains. Dominica also has several areas of volcanic activity, with an estimated 25% chance of a large eruption occurring in the next 25 years. This increases the uncertainty and risk for potential investors.
Basic Economic Facts
GDP (2005):US \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$300.3 million
GDP per head (2005): US \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$4,300
Real GDP annual growth: (IMF 2004 est) 3.4% (EIU)
Inflation: 1.7% (EIU)
Major industries: bananas, soap, coconut oil, tourism
Major trading partners:
Export partners: EU (25) 27.8%, Jamaica 12.7%, Antigua & Barbuda 11.3%, Trinidad & Tobago 9.0%, Saint Lucia 6.8% (2005)
Import partners: US 36.6%, Trinidad & Tobago 20.5%, EU (25) 13.4%, Japan (4.6%), Barbados 3.4% (2005)
Agriculture: Tropical and citrus fruits are the main crops. Products for export are bananas, fruit juices, lime oil, bay oil, copra and rum. Forestry, fisheries and agro-processing are being encouraged.
INTERNATIONAL RELATIONS
Dominica's Relations with Neighbours
Dominica, due to its proximity, has forged strong relationships with the French Departments of Martinique and Guadeloupe. There are sizeable Dominican populations on both islands. Dominica takes its CARICOM and OECS responsibilities seriously and is an active participant in both organisations.
Dominica's Relations with the International Community
Dominica's relations with the International Community are varied and often based on personalities, for example its relationship with Libya and Cuba. Dominica enjoys close relationships The People's Republic of China and Japan who are both large aid donors.
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