POLITICAL AND ECONOMIC SITUATION The Dominican Republic is a democracy, and recent elections have taken place with absolute transparency, without any doubts as to their legitimacy, and with large voter turnout. The traditional political leadership has been slowly replaced by a new generation of young leaders who aspire to develop a viable economy encom- passing global competition, a responsible public sector, and a strong alliance with the private sector. The primary variables affecting the Dominican Republic’s international economy are tourism and industrial free zones; the significant elements of the country’s domestic economy are communications, construction, elec- tricity, commerce, and transportation. During the last few years, the Dominican Republic has had an enviable macroeconomic stability. The results over the last year illustrate this: 1. A growth rate of 7.8% of Gross Domestic Product. 2. A stable exchange rate between RD$36.50 and RD$37.80 for each US$1 with depreciation of ap- proximately 3%.