OECD: the Dominican Republic actively pursues collaboration to attract foreign investment

By Guzmán Ariza, Attorneys at Law

The Organisation for Economic Co-operation and Development (OECD) has released its Latin American Economic Outlook 2024, an annual report offering a comprehensive analysis of the economic and social landscape of the Latin American region.

This edition was prepared in collaboration with the Economic Commission for Latin America and the Caribbean (UN ECLAC), the Development Bank of Latin America (CAF), and the European Commission (EC). The report provides a detailed macro-structural overview of the region and delves into the strategic challenges and opportunities that Latin America will face in the future.

One of the key highlights of the report is the focus on regional and international finance, particularly the efforts of the Dominican Republic to leverage private capital in the energy sector. The Dominican Republic has strategically focused on establishing public-private partnerships to attract over USD 1 billion in private investments. This initiative is also supported by the partnership between the European Union and the Dominican Republic. Through this collaboration, the country works alongside Team Europe, which consists of the EU, the European Investment Bank, and key European nations, to promote inclusive growth and sustainable development.

In terms of financial market policies, the Dominican Republic has taken significant steps to advance a more robust, inclusive, and sustainable financial system. The National Financial Inclusion Strategy, aimed at increasing access to financial services for underserved populations, has been a key part of this effort. Through mobile banking, financial literacy programs, and microfinance initiatives, the government is working to improve financial access, especially for those who have historically been excluded from the banking sector. Furthermore, the Fifth National Open Government Action Plan (2022-24) incorporates commitments to gender and social inclusion, with a focus on reducing inequality gaps.

Another important initiative in promoting financial inclusion is the Alliance for Financial Inclusion’s Gender Inclusive Finance Mapping project. This initiative seeks to identify barriers and enablers for women in the financial sector, supporting their participation in the economy. Additionally, the Dominican Republic has introduced regulatory frameworks aimed at enhancing the transparency and efficiency of its capital markets.

These efforts are aligned with regional initiatives such as the Inter-American Development Bank Invest’s Small and Island Action Plan and strategic alliances with the Development Bank of Latin America and the Caribbean (CAF), which seek to finance sustainable projects and promote a green agenda. By diversifying the financial instruments available to investors and providing businesses with alternative sources of funding, these efforts are helping to shape a more inclusive and sustainable financial environment in the region.