These takeover ploys connected with Trujillo's interfering in the internal matters of adjacent nations, resulted in more and more U.S. dissatisfaction with the autocrat of the Dominican Republic. (History of the Dominican Republic) The Trujillo administration for more than thirty years made massive spending in building infrastructure, however, the despot himself, his family, and his associates cornered the major part of the monetary gains. Trujillo's chief avenues of gaining his riches were the national sugar industry that he speedily scaled up during the 1950s in spite of a subdued global market. In the route to setting up his massive fortune, he evicted farmers from their land, plundered the state treasury, and built a private estate akin to those of Somoza and the Duvelier families in Nicaragua and Haiti, respectively. Prior to his murder in 1961, Trujillo and his close aides allegedly had more than 600,000 hectares of fertile land and 60% of country's sugar, cement, tobacco, and shipping assets. This huge wealth covered eighty-seven enterprises, covering twelve of the nation's fifteen sugar mills. Even though the economy enjoyed balanced progress under Trujillo's regime, approximately 6% annually during the 1950s, the uneven sharing of that growth made the rural Dominicans poor as deeply as were an of the equivalents in other regions of the Western Hemisphere. (Dominican Republic: Growth and Structure of the Economy)

Trujillo clung on to power for more than 30 years; however, towards the final stages of his regime, he was successful in distancing his most ardent followers that included the U.S. also. When he breathed his last on May 20, 1961, he was among the wealthiest men in the universe, having hoarded a private fortune projected to be more than $500 million U.S. dollars, including possession of majority of the big industries of the nation and an important segment of the productive farmlands, when the economy too. (History of the Dominican Republic) Following the killing of Trujillo, his Vice President during that period, Dr. Joaquin Balaquer, assumed charge of the presidency. After one and half year, Juan Bosch belonging to the Dominican Revolutionary Party assumed the office of the President. (Dominican Republic: U.S. Department of State Post Reports)

The time between Trujillo's killing and the civil war which took place in 1965 was disordered financially and politically as well. A state of flux impelled escape of capital. Whereas the burden on spending went up primarily due to social programs when Juan Bosch Gavino was the President, bureaucratic turmoil hindered the collection of required revenues. The economy of the nation was sustained by some degree through concoction of cash from overseas in the shape of foreign aid, primarily from the United States and loans. (Dominican Republic: Growth and Structure of the Economy) the socialist program of Bosch was adjudged to be very strict by the U.S. who during that time was suspicious about the potential popularity of the Communism following Fidel Castro's revolution in Cuba that was immensely successful.

The next 2 years witnessed political and economic confusion in the Dominican Republic. This came to an end while the disgruntled working classes, teamed up with a breakaway section of the Army, revolted and took steps to again set up constitutional order on April 24, 1965. After a year, the erstwhile leader Dr. Joaquin Balaquer was again appointed as President, with the U.S. support, which everybody believed that the election was manipulated. (History of the Dominican Republic) the time period from middle of 1960s to the middle of 1970s was manifested by speedier economic development and growth. Rising prices of petroleum and lowering prices for fundamental Dominican exports, nevertheless, played a part to a lull in the domestic economic growth starting in the later part of 1970s. (Dominican Republic: U.S. Department of State Post Reports)

Initiating in 1970, revenues calculated as a percentage of GDP came down continuously. Even since the year 1970 there is a sharp decline in the ratio of expenditure, as a result of the decrease in revenues as proportion to the total output. Declined revenues called upon an equivalent decline in the proportionate spending on social services that worsened the position of poorer Dominicans. (Country Studies: Economic Policy) Dominican citizens demonstrated their verdict of change by electing Dr. Antonio Guzman of the Dominican Revolutionary Party or PRD in the election of 1978. Guxman committed suicide prior to completion of his four-year tem during 1982 understanding the fact of involvement of close family members in rampant corruption and misappropriation of government money. (History of the Dominican Republic) Paradoxically,...

Provision for such subsidies started in the year 1970s during the period of affluent government resource. However, by 1980s they gave rise to the grave price distortions between government and market prices. (Country Studies: Economic Policy)
Several prices of basic consumer goods were fixed by the government controlled National Price Stabilization or Inespre. Regardless of Inespre's endeavors, prices of foods went up faster compared to all other prices during the 1980s. The pricing policies of Inespre were more in keeping with the political will than the economic actualities. The cost of essential foodstuffs were kept at unthinkably low levels, in part due to urban aggression frequently happened from endeavors to keep these prices at par with the free market. Maintaining the urban consumer prices at lower prices, called for the procurement of staple crops from Dominican peasants at less than reasonable value was a system that dejected the earnings and the living standards of rural Dominicans. (Dominican Republic: Monetary and Exchange-Rate Policies) Politicians were unwilling to lower price subsidies in favor of the poor, as the economy and destabilized widespread hopes for continued government backing continued to be high. (Country Studies: Economic Policy)

Weak business results and a massive debt burden resulted in the nation's balance of payments to record huge deficits during the 1980s. During 1987 the total deficit attained U.S.$593 million, or nearly 11% of GDP. This deficit funded depletion of the reserves and a rollback of the oil debt kept outstanding for Venezuela and Mexico. The current account of the nation remained persistently negative; it had not recorded an annual extra for more than decades. Large products trade deficits were the main reason behind deficits in the current account. (Dominican Republic: Balance of Payments) Fiscal deficits went up in the 1980s, however, as the fallout of declining reserves and mounting losses from price and exchange-rate subsidies to establishments belonging to the state. Revenues calculated as a percentage of GDP, came down from 16% in 1970 to a low of 10% in 1982, positioning the Dominican Republic lower compared to almost every Latin American nation in this group. Moderate incentive regulations framed to prompt industrialization during the 1960s and the 1970s remained the principal reason behind the depletion of the revenue base. These revenues came to an astounding low level in 1982, since the outcome of liberal tax cuts for the industry. Several economists condemned the contribution of fiscal exemptions in the industrialization of the nation as the Government in this way severely lost out urgently required revenues in support of job creation. (Country Studies: Economic Policy)

The implementation of fiscal policies was impacted by individual and political custom. For instance, a lot of business unlawfully obtained tax-emption status due to their closeness to the political circles, whereas other eligible enterprises did not. Among the rich Dominican it was usual to evade taxes. Nepotism at government ranks, especially among the parastatals was considered to likewise a normal feature. The absence of competitive tendering process on award of government construction contracts also played a part in beliefs of fiscal disorderliness. The average fiscal deficits stood at approximately 5% of GDP annually in the middle part 1980s to the later part of 1980s. The deficits were funded by minting extra pesos, a strategy which aggravated inflation. Subsequent governments showed absence of political resolve to tackle the structural shortfalls on both the expenditure and the revenue portions of the national budget. (Country Studies: Economic Policy)

When the economy was deteriorating tremendously Dr. Salvador Jorge Blanco, of the same political party succeeded Guzman as president. (History of the Dominican Republic) When Salvador Jorge Blanco attained victory in the 1992 elections, the PRD attained a majority in both houses of the Congress. In an endeavor to heal the sick economy, the Jorge government started to execute economic regulation and recovery strategies, inclusive of an ascetic program in collaboration with the International Monetary Fund or IMF. During April 1984, mounting prices of essential foodstuffs and insecurity regarding the ascetic procedures resulted in revolts. (History: (www.world66.com) Blanco carried on the prolonged tradition of Dominican Republic of awarding family members, close friends and political supporters…