The Impact of the Multinational Corporation in Dominican Republic

By 1890, the Dominican state was in debt by a substantial amount to remote financial inter estsprimarily American and Canadian. American frugal intervention in the Dominican body politic had begun, "when individual mercenary interests acquired land to participate in the sugar industry, the mainstay of the scrimping" (Wheaton, 1984, 420).

Financial problems developed for the new country as a result of nondevelopment, a growing population, and fiscal mismanagement. The combined forcefulness of these financial problems, together with domestic political turbulence, created a "state near anarchy" by 1899 (Fagg, 1965, 152). In 1900, " conflicting interests, particularly the U. S., moved in to . . . control the economy" (Wheaton, 1984, 420). As a part of this external control, President Theodore Roosevelt devised the

socalled "Roosevelt Corollary" to the "Monroe Doctrine," "by which the unite States sought to prevent" the development of conditions "in the Caribbean that big businessman provoke intervention" by European powers (Fagg, 1965, 152). Among the more significant of the actions obligate under the policy prior to 1916 were (1) an American takeover of the usancehouses in the 3Dominican Re human race in 1905, in an arrangement whereby the United States retained 55.0 percent of the collections for the servicing of the Dominican Republic's

international debts (Fagg, 1965,), (2) the imposition of the United States dollar as the national currency of the Dominican Republic in 1905, and (3) the proof of the United States National Bank in the Dominican Republic in 1912 (Wheaton, 1984).

Corporation and the Dominican governmenteliminate American corporate tax requirements, national (Dominican) tax commitments, minimum mesh standards, environmental guidelines, and fair labor practices. While workers atomic number 18 paid 40 cents an hour, Gulf and Western Corporation . . . listed annual assets for 1978 at over $4.2 billion.

The taxfree zone is a veritable slave labor camp (Wheaton, 1984, 425).

Within weeks of the American invasion of the Dominican Republic in 1916, the Central Romana scraping Refinery (under the control and ownership of the Puerto Rico Sugar Company, an American possess firm), and the Grenada Fruit Company, also controlled by American interests, were naturalised in the Dominican Republic (Wheaton, 1984). The American political, military, and economic credit line and domination of the country remained in effect officially by means of 1924. Between 1924 and 1930, however, the American created and controlled Dominican National Guard remained to " precaution American interests after 4formal military withdrawal" by American forces (Wheaton, 1984, 421).

Gulf and Western donated more than 70,000 acres of land to the Dominican government's landreform program without really 9

. . . Public plant filled the land . . . sanitary conditions were excellent for the tropics . . . Public education received much favor, with the number of public schools growing from 900 to 3,000 (Fagg, 1965, 161).

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