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Part III PROPOSING STRATEGIES

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Part III PROPOSING STRATEGIES Part III PROPOSING STRATEGIES Final Report CHAPTER 5 DEVELOPING STRATEGIES In this chapter, the results of two types of additional analysis needed for the formulation of the development strategies are presented, taking into consideration the situation analysis and the results of the pilot project summarized in the preceding chapters. Results referred up to the previous chapter: According to the analysis of chapters 1 and 2, the following conclusion was reached regarding the subjects and methods of Border Region development. 1. Poverty is a major problem in the Border Region, caused principally by the “vicious circle formed by the flee of the young population because of the lack of jobs”. Therefore it is necessary to “generate employment to avoid the out-migration of young population and to attain sustainable economy”. 2. The existing principal approach to address itself to issues of the region is feeding aids to make up for shortage. From now on, it will be necessary to take an approach oriented to support self-effort for economic sustainability of the Region. 3. The problem of the development process is the lack of the common direction and the continuity. It is necessary to encourage development to proceed in a unified direction, under coordination and continuity. 4. The fundamental problem at local level has been the fact that the “local population has not played a central role in the development process of the Border Regin.” A lot of people have been aware of this problem, and started to tackle with the development with local initiatives. Toward this direction, however, it is necessary to reinforce the initiative through the process of implementation. 5. For what was said previously, the “creation of employment to avoid the out-migration of young population and achieve economic sustainability at regional level”, is the imminent for the region. It is indispensable that an efficient and continuous coordination to encourage different interventions to be directed towards a common direction. However, in the people and the local entities, there is a strong tendency to be dependent on external resources. The national authorities are working out the measure to integrate the local initiative in the participative planning system. Meanwhile they should accumulate practical experiences through this on-going process. 6. The future desirable profile of the Border Region is to achieve “development of the local capacities, with which the organization and local people could resolve their issues and set out a base for sustainable development. 5-1 The Study on Capacity Development for the Efficient Management of Sustainable Development Programs in the Border Region of the Dominica Republic On the following figure, the structures of the current issues and future perspectives of the Border Region development are presented. It is understood that the fundamental problem at local is that local people do not act a main player of the development process. This is the reason why a pilot project was executed to introduce a development process based on local initiatives. Results of the pilot project are found and summarized chapters 3 and 4. Figure 5.1 Structure of Issues in Border Region and Direction of Development Source: JICA Study Team Discussion in this Chapter: It is necessary to consider the following points to formulate the development strategies, taking into account the results of the additional analysis: The first point is “how to create a region with sustainable economy". In the Pilot Project of Capacity Development, an attempt was made to workout strategies, with an emphasis on the local initiative. Consequently, it was understood that it was necessary to make an analysis from not only local but also national and international viewpoints to identify particular advantages of the Border Region. 5-2 Final Report The second point is to analyze the present situation of the required capacities to promote development based on the local initiative (See the following figure). This chapter analyzes these two points in the Section 5.1: “Analysis of the Advantages of the Border Region with a view to the Formulation of Development Strategies" and the Section 5.2: " Capacity to put in Practice the Traced Strategies ". DIRECTION OF DEVELOPMENT SITUATION HOW TO? (NEEDS) Region with Problem Solving FUTURE PROFILE Capacity for Sustainablly Developing Economy Vicious circle formed by out-migration of he Creating job opportunity preventing ACTUAL How to develop region with young population and the lack of outimigration of young people for SITUATION economic sustanability employment sustainable economy ↑ ↑ ↑ APROACH TO To support its own efforts to achieve Providing aids to the poverty area DEVELOPMENT economic independence Lack of common strategy Toward the common goal, coutinual DEVELOPMENT Lack of continuity of policies and projects effort with coordination among actors MANAGEMENT Lack of coordination involved ↑ ↑ ↑ Local population has not played a central How about the capacity to ACTIONS FOR Promoting development with loca role in the development process of Border promote development with DEVELOPMENT initiative Regin local initiative? Figure 5.2 Analysis for Stategy Formulation in line with the Results of the Pilot Projects Source: JICA Study team 5.1 Analysis of Comparative Advantages (1) Present Situation and Threats (a) Border Region Left behind the National Economic Growth The Dominican Republic is immersed in the trend of regional economic integration and the globalization. The textile products that constitute one of main products of Dominican export have been losing the competitiveness since the year 2000 in the North American market, against other major exporters like China. In March 2007, the Free Trade Agreement was made effective between the United States, Central America and Dominican Republic (DR-CAFTA). This agreement would give more privileged treatment to the DR and other member states and will contribute to a more intensive economic linkage with Central and North America. The following is leading elements of the economic growth of the DR in recent years (See Table 5.1 and 5.2). 1. Exports, mainly from the Free Zones 2. Tourism predominated by the one of “Sun and Beach” especially in eastern coastal area of the country such as Punta Cana 3. Remittances 4. Information technology industries 5-3 The Study on Capacity Development for the Efficient Management of Sustainable Development Programs in the Border Region of the Dominica Republic Table 5.1 GDP Structure and Growth Rate by Sector GDP Share (%) 1991-95 1996-00 2001 2002 2003 2004 2005 2006 Agriculture, Forestry and Fisheries 11.5 9.1 9.1 8.8 9.0 8.7 8.4 8.3 Industries 32.8 34.4 32.8 32.5 32.0 32.1 31.3 30.1 Mining 1.1 0.9 0.8 0.8 0.8 0.9 0.8 0.8 Industries 21.7 22.4 21.5 21.5 21.7 21.6 21.3 20.4 Zonas Francas 4.5 5.1 5.0 4.7 4.8 5.2 4.8 4.0 Texitle 2.9 3.3 3.1 3.0 3.2 3.1 2.7 2.1 Others 1.6 1.8 1.8 1.7 1.7 2.0 2.0 1.9 Construc ion 5.4 6.1 5.6 5.6 4.6 4.5 4.5 5 0 Services 47.9 47.2 48.8 49.6 51.5 51.7 51.5 51.5 Trade 10.6 10.6 10.0 9.9 8.7 8.2 8.6 8.7 Hotel, Restaurants and Bars 5.7 6.9 6.7 6.6 7.5 7.6 7.6 7.2 Transport and Storage 5.7 6.4 6.6 6.2 5.8 5.8 5.8 5.4 Communications 2.6 3.6 6.5 8.0 9.3 10.0 11.5 12.9 Financial, Insurance and Related Activities 2.1 2.4 2.9 3.2 3.3 2.9 2.6 2.9 Value Added 92.2 90.7 90.7 91.0 92.5 92.5 91.2 89.9 Taxes on production net of allowances 7.8 9.3 9.3 9.0 7.5 7.5 8.8 10.1 GDP 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100 0 Annual Growth Rate (%) 1991-95 1996-00 00-01 01-02 02-03 03-04 04-05 05-06 Agriculture, Forestry and Fisheries 2.8 2 0 9.5 2.5 1.8 -2.5 5.9 8.6 Industries 6.9 7.6 -2.5 4.9 -2.0 1.8 6.6 6.5 Mining 1.6 2 5 -13.5 7.7 8.8 5.8 -0.1 11 0 Industries 6.0 7.5 -0.7 5.8 0.6 1.2 7.6 5.7 Zonas Francas 8.0 9.7 -6.9 1.1 2.1 7.7 0.9 -8.0 Texitle 10.8 7.4 -5.3 3.1 3.5 0.3 -4.7 -14.9 Others 2.8 14.3 -9.6 -2.4 -0.3 21.3 9.7 1.3 Construction 12.2 7.7 -3.9 4.6 -17.1 -2.3 9.2 24.6 Services 6.6 6.2 6.2 7.6 3.6 1.7 8.7 10.7 Trade 7.8 5.6 -0.6 5.7 -12.8 -4.9 15.8 11.3 Hotel, Restaurants and Bars 16.6 7 8 -1.5 2.8 13.6 3.2 9.0 4.9 Transport and Storage 7.1 10.0 2.2 0.3 -7.2 1.4 8.7 4.0 Communications 16.4 15.3 45.0 30.0 15.7 9.8 24.8 24.8 Financial, Insurance and Related Activities 8.2 9 2 14.6 17.8 3.2 -10.8 -0.7 23.6 Value Added 6.2 6 3 3.2 6.1 1.4 1.3 7.7 9.1 Taxes on production net of allowances 8.9 14.0 -9.9 2.7 -17.1 1.2 28.6 27.3 GDP 6.4 6 9 1.8 5.8 -0.3 1.3 9.3 10.7 Source：Banco Central Table 5.2 Foreign Currencies Revenue 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005A.
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