Ribbon-cutting ceremonies. Cash hand-outs. Land titles for small farmers. Suddenly, it is election time in the Dominican Republic. Not unlike the neighbouring US, political jockeying and rallies are off to an early start in the Caribbean nation ahead of the May 2008 presidential election. A strong economy will work in favour of the incumbent, Leonel Fernández. But that does not mean his opponents will not stress what still ails the country, namely poverty, power cuts and corruption.
First, it is clear that Mr Fernández, who was elected to four-year terms in 1996 and 2004, is the candidate to beat. During his first term, the economy enjoyed growth at an impressive 7%, one of the highest growth rates in Latin America at the time. In his second term, Mr Fernández has managed to keep the economy going strong. He has ably renegotiated debt agreements with international lenders. Prudent policies have kept inflation and exchange rates in check. The current-account deficit is also at a manageable level.
