Dominican Republic

Topics: Energy development, Wind power, Nuclear power Pages: 18 (5228 words) Published: July 31, 2013
Dominican Republic: Electrical Deficit

Prepared by: Team E

Submitted By: Team E

DeVry University

Course: LAS432: Tech, Society, and Culture

Date Submitted: June 16, 2013

Table of contents
Dominican Republic Background4
History of bad government4
Monetary policy4
Serious economic inequality6
Underserved Rural Population7
Public Debt8
Electrical Deficit10
Old infrastructure11
Energy theft11
Outages12
Electrical Deficit 12
Dependency on generators13
Using technology to solve energy deficit14
Different alternatives14
Solar Power15
Generator Energy19
Wind Energy20
Criteria21
Comparison to criteria22
Implementation Plan24
Goal of pilot project24
Managing the project25
Tasks Management26
Follow up26
Appendix27
References28

Dominican Republic Background
History of bad government
Dominican Republic is well known for the voyage of Christopher Columbus in 1492. However, if on one hand European conquistadores shared glory and fortunes over their discovery fate of those who lived and still live on the Hispaniola Island can be called anything but glorious. In fact Dominican Republic, one of the largest nations in the Caribbean region, has a long history of bad government (The World Fact Book, 2013).

The history of Dominican Republic is filled with struggles and indecisions. Even though the country became independent during 1821, Dominican Republic would break into war in 1844 (Dominican War of Independence), and once again return to Spanish rule for the next 60 years (Dominican Republic History & Culture, 2012). Monetary policy

In the past few centuries Dominican Republic had many shares of different government forms ranging from colonization, dictatorship, and more recently democracy. Perhaps, the only common factor among all these governments is the fact the main economic practice of the country is exportation. Essentially, Dominican Republic is an agricultural country that imports Bauxite, Cocoa, Coffee, Ferronickel, Gold, Meats, Nickel, Silver, Sugar, and Tobacco to its main trading partners United States of America, Switzerland, Puerto Rico, Spain, Japan, Belgium, the Netherlands, and Venezuela (Atla Pedia, 2013). Unfortunately, Dominican Republic is paying a high price for being commodities exporters. In order to make its commodities attractive to ever demanding international buyers, Dominican Republic has implemented an aggressive monetary policy. Aiming to turn price of their commodities low comparing to other currencies, the government of Dominican Republic is taking actions to devaluate their own currency. According to exchange rates of May 31, 2013, $50 Dominican Pesos (the official currency of Dominican Republic) is converted to $1.21 US dollars (Coin Mil, 2013).

Below follow two charts that help illustrate the imbalance Dominican Republic has. The variance between importation and exportation is roughly U$10 Billion dollars. In theory, such variance never takes place when the economy is balanced since cash flow is stable.

Source: Schroder, 2013
There are some cruel side effects for this policy. If in one hand Dominican Republic’s assets are relatively cheap for foreigners, at the same time the buying power of the locals is dangerously low. This simply means there is not enough cash in the local economy to support locals’ daily activities, and that is a recipe for some serious economic inequality.

Serious economic inequality
Currently, there is an elevated rate of poverty hitting Dominican Republic. Even though economic inequality can be the leading cause of most of social issues in most countries, there are some distinctions in Dominican Republic that make its case unique. Dominican Republic economy offers some unique situation because there are some conflicting data that can be very misleading when it comes time to forecast the future of the country’s economy. For once, the chart below...

References: ABC News (2012). Here 's How Bad the Deficit Problem is in the Dominican Republic: http://abcnews.go.com/ABC_Univision/News/dominican-republics-fiscal-reform-protests-deficit-problems/story?id=17708900#.Ua0e6JVqvFI
CDC in Dominican Republic
Dominican Today (2013). Dominican Republic needs a US$10.0B energy fix, top official warns: http://www.dominicantoday.com/dr/economy/2013/4/18/47354/Dominican-Republic-needs-a-US100B-energy-fix-top-official-warns
Dominican republic
Government. (n.d.). Retrieved from http://www.state.gov/r/pa/ei/bgn/35639.htm
Internet World Status (2012)
YouTube (2007). Electricity Problems in the Dominican Republic: http://www.youtube.com/watch?v=8Q2HMfGHRIU
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