The Crisis |
Latin America has the largest income disparity on earth. The richest 10 percent of the population is 19 to 94 percent richer than the bottom 50 percent. This has lead to almost half of the population of the Dominican Republic being in poverty. The government of the Dominican Republic is largely ruled by the elite class because they have a large influence over what is done and how things are done. When a small percentage of the population has all of the money, this makes the lower class very vulnerable and sometimes submissive to the upper class. Often the lower class has no choice but to work for the elite class. This has left more than half of the population in poverty. More than 30 percent of the population is unemployed. While the upper class lives a luxurious lifestyle, many families go without food and basic necessities. This is not okay.
The Dominican Republic is proof that equality can still decrease today. This gap is only widening as the economy becomes more dominated by foreign investors. While export processing zones may appear to have positive benefits because they lower the unemployment rate, they only further cripple citizens. By allowing foreign investors to take advantage of the poor, this stunts the growth of the economy. Instead of allowing the industries of the Dominican Republic to become self-reliant the government has allowed mercantilism to take over. This leaves the people of the Dominican Republic poor while business owners feed off of their hard work and effort. All of the profits get shipped overseas while the people of the Dominican Republic are left in a trap of poverty. This problem is not going to disappear on its own. In fact, it is only going to worsen as more businesses become privatized. There needs to be a broad based structural reform to decrease the inequality gap. The government must make large efforts to reduce this gap because if they don't, there economy will continue to fail. Social protection and policy reform must be a part of these efforts. Education and technology gaps also must be reduced because in order for citizens to achieve higher roles in society, they must be properly educated and connected in society. When this gap decreases the economy will become more successful because they will not be simply handing all of their hard work and profits to other countries. The Dominican Republic can overcome this adversity with hard work and perseverance. The income disparity cannot be ignored. |
Sources |
"Social Inequality Intensifies in Dominican Republic: UNDP." DominicanToday.com. N.p., n.d. Web. 08 Dec. 2015. <http://www.dominicantoday.com/dr/poverty/2013/4/25/47426/Social-inequality-intensifies-in-Dominican-Republic-UNDP>.
"Economic Commission for Latin America and the Caribbean." Economic Commission for Latin America and the Caribbean. N.p., n.d. Web. 08 Dec. 2015. <http://www.cepal.org/en/publications/4965-income-inequality-central-america-dominican-republic-and-mexico-assessing>. Gray, George. "Inequality Is Stagnating in Latin America: Should We Do Nothing?" The Guardian. The Guardian, n.d. Web. <http://www.theguardian.com/global-development-professionals-network/2014/aug/27/inequality-latin-america-undp>. Forbes. Forbes Magazine, n.d. Web. 08 Dec. 2015. <http://www.forbes.com/sites/alejandrochafuen/2014/11/20/educational-quality-and-inequality-in-latin-america/>. |