Haiti’s collapse and the Dominican Republic’s economic strain

For many years, the Dominican Republic benefited from the relative stability of its neighbor Haiti. Despite their differences, the two countries shared strong economic ties through trade, labor, and border markets that supported thousands of families on both sides of the island.

The Dominican Republic supplied food, manufactured goods, and services that Haiti needed, while Haitian workers played an important role in Dominican agriculture, construction, and tourism.

That balance began to change in 2018 when political tensions and widespread protests erupted in Haiti. Demonstrations against corruption and rising fuel prices weakened the government’s ability to maintain order and led to years of political paralysis. The situation grew worse in July 2021 with the assassination of President Jovenel Moïse. In the months that followed, armed groups filled the power vacuum, and violence became part of daily life in many parts of the country.

By 2023, gangs had taken control of much of Port-au-Prince and nearby regions, creating insecurity that disrupted markets, transportation, and basic services.

This growing instability had immediate consequences for the Dominican Republic.

Trade between the two nations slowed as violence and roadblocks made it difficult for Haitian businesses to receive goods.

For decades, Haiti had been one of the Dominican Republic’s largest export markets, buying everything from eggs and flour to clothing and household goods. At its peak, the Dominican Republic exported close to 900 million dollars’ worth of products to Haiti each year. The crisis reduced this figure, leaving Dominican farmers and exporters with unsold stock and falling prices.

The situation reached a critical point in late 2023 when the Dominican government decided to close its border in response to rising insecurity and political disputes. The decision aimed to protect national security but had a heavy economic cost.

In just a few weeks, Dominican producers reported around 21 million dollars in export losses, especially for perishable goods like poultry, vegetables, and fruit. Many small traders and transport companies that depended on the border markets lost their main source of income.

The effects extended beyond trade. For years, Haitian workers had supported key sectors of the Dominican economy by providing essential labor in farming, construction, and services.

When deportations increased and border crossings became more difficult, many employers struggled to find workers. Agricultural production slowed in several provinces near the frontier, and construction projects faced delays or higher labor costs.

Informal markets along the border also suffered. These markets, held weekly or twice a week, were more than trading spaces; they were social and economic lifelines that connected communities. When they stopped operating, thousands of small-scale sellers and buyers lost their livelihoods. Some Dominican towns that had prospered from this exchange saw sharp declines in local commerce.

The humanitarian situation in Haiti has continued to deteriorate. Widespread violence, food shortages, and displacement have left more than a million people without stable shelter or income. As a result, cross-border demand for goods and services has fallen even further, reducing opportunities for both countries.

The Dominican Republic now faces a complex challenge. The same interdependence that once supported economic growth has become a source of vulnerability. Every disruption in Haiti’s markets or labor force is felt across the border. Yet the relationship also presents long-term opportunities if stability can return.

Many analysts believe that rebuilding safe trade routes and reestablishing formal economic channels would benefit both nations and strengthen the region as a whole.

The crisis in Haiti is a reminder that stability and prosperity on one side of the island are closely linked to conditions on the other. For the Dominican Republic, supporting peaceful and secure development in Haiti is not only a humanitarian concern but also an essential part of protecting its own economic future.