Attachments
Multi-Year Funding Requirement CHF 25.6M
IFRC NETWORK ACTION JOINT SITUATIONAL ANALYSIS
Cuba
Cuba has a population of 11.32 million and is the largest island in the Caribbean and the second-most populous after Hispaniola. The country invests significantly in health and education, because of which its education indicators are among the highest in the world.
Cuba’s Human Development Index of 0.764 puts it in the high human development category. The country’s GDP was last recorded as USD 107.35 billion. Cuba is the leading Caribbean producer of sugar, though the main activity of the country’s planned economy in terms of foreign currency exchange has been tourism which overtook sugar in the mid-1990s.
The country’s main challenges include a complex economic situation and limited access to development funds. In three recent years, three consecutive external shocks of the tightening of unilateral sanctions by the United States of America, the economic and health crisis caused by COVID-19, and the conflict in Ukraine, have adversely affected Cuba. This context has exacted additional challenges on socio-economic conditions faced by the country’s population, particularly the most vulnerable.
At the beginning of the COVID-19 pandemic, Cuba successfully contained the virus and had a very low infection rate. However, at the beginning of 2021, the rates increased significantly, peaking in August. Amid rising cases, the Cuban economy was detrimentally affected by forced border closures and restrictions on non-essential economic activities. The pandemic also led to an almost complete collapse of international tourism, negatively affecting the country’s most important economic sector. As a result of these factors, the Cuban economy contracted by 11%. Cuba is the only country in Latin America to pursue the development of its own COVID-19 vaccines.
Dominican Republic
The Dominican Republic, located on the eastern side of the island of Hispaniola, is a middle-income developing country with a population of 11.4 million. It occupies two-thirds of the eastern part of the island, excluding maritime territory. Because of the country’s geographical location in the sub-tropical hurricane region and its relatively small surface area, there is a strong maritime influence on general weather patterns, and it is highly vulnerable to hurricanes.
The Dominican Republic has been one of the fastest-growing economies in Latin America and the Caribbean in the last decade. Its GDP grew by 4.9% in 2022, driven by the service industry, a recovery in global tourism, and the government’s active vaccination campaign. While the GDP has fully recovered from the pandemic, the country’s fiscal position has weakened. Public debt remains above pre-pandemic levels and the interest bill has already absorbed 3 per cent of the GDP in 2022.
Growth has led to an increase in the middle class and the urban population by 50 per cent. In 2022, employment grew by 2 per cent. Structural reforms in energy, water, and public-private partnerships, as well as efforts to improve human capital and attract foreign direct investment, are expected to sustain growth potential in the medium term. Fostering long-term growth will require structural reforms that allow the country to take advantage of nearshoring opportunities and continue to diversify into non-textile activities. This should include higher investments in innovation, promoting economic clusters, and improved public services, particularly in education.
According to the Single System of Beneficiaries, two million people were living in moderate poverty while 668,460 were living in extreme poverty. As a response to the need for improved living conditions for this population, the Social Policy Coordination Cabinet has promoted plans, programmes, and projects. They are focused on the inclusion of people with disabilities and the development of sexual health, nutrition, pregnancy prevention, and drug abuse prevention.